William Duer’s failure helped trigger the Panic of 1792 in the newly formed United States.
Duer was a financier and former government official who borrowed heavily to speculate in bank shares and government securities. When he could not meet his obligations, his default helped set off a wave of selling and financial distress in New York during March and April 1792.
The panic involved speculative trading, credit shortages, and collapsing confidence in securities connected with the new federal financial system. Treasury Secretary Alexander Hamilton responded by supporting government securities and arranging measures to restore liquidity and confidence. His intervention helped contain the crisis.
The Panic of 1792 is sometimes described as America’s first major financial panic, although the young nation’s securities market was much smaller than later Wall Street markets. Duer’s role should not be confused with Hamilton’s: Duer helped drive the speculative failure, while Hamilton led the stabilization response.