The Panic of 1796–1797 was a financial crisis sparked by collapsing land speculation and British credit restrictions.
The panic began in 1796 after a speculative boom in American land and securities weakened. British banks tightened lending, while the collapse of several land companies damaged confidence among investors and creditors in the United States and Britain.
Robert Morris and James Greenleaf were among the prominent American speculators affected by the downturn. The crisis produced bank failures, falling property values, and commercial distress, although it was less severe than the later Panic of 1819.
It is often confused with the Panic of 1792, an earlier U.S. securities crisis associated with Alexander Hamilton's financial system. The 1796–1797 panic was closely tied to international credit conditions and land speculation.