The Panic of 1792 was an early United States financial crisis linked to speculative activity by Alexander Macomb and William Duer. It caused sharp declines in securities prices and threatened the young nation’s credit system.
Duer and other speculators borrowed heavily to buy government securities and bank stock. When they could not meet obligations, lenders and brokers faced a chain of defaults. The crisis centered on New York and Philadelphia, where the new federal financial system was still developing.
Treasury Secretary Alexander Hamilton responded by supporting banks and arranging purchases of government securities. His intervention helped restore confidence and is often viewed as an early example of a central-bank-style rescue, although the First Bank of the United States was not a modern central bank. The panic highlighted the risks of leverage in a young financial market.