The 1819 U.S. financial crisis was the Panic of 1819.
It was the first major financial crisis and depression in the United States. The crisis followed the economic expansion that came after the War of 1812, when banks issued abundant credit and land speculation spread across the country. Falling agricultural prices then made it difficult for borrowers to repay loans.
The Second Bank of the United States tightened credit and demanded repayment from state-chartered banks. Bank failures, foreclosures, and unemployment followed, with especially severe effects in western and southern states. The crisis also damaged public confidence in banks and intensified political arguments about national banking.
The Panic of 1819 is often confused with the Panic of 1837, another major U.S. depression driven partly by banking and land-market problems. The earlier panic was significant because the United States had little experience with nationwide financial instability and because its social effects made economic policy a major political issue.