The Panic of 1792 is considered the United States’ first major securities-market panic.
The crisis struck in March and April 1792 after rapid speculation in securities, especially the debt of the newly established United States. William Duer and Alexander Macomb helped drive aggressive borrowing and trading, while falling prices made it difficult for speculators to repay loans. The resulting defaults threatened banks and brokers in New York and Philadelphia.
Treasury Secretary Alexander Hamilton responded by reassuring banks, arranging government purchases of securities, and encouraging banks to provide liquidity. His actions helped stabilize the young financial system and are often described as an early example of a central-government response to a market panic.
The event is sometimes confused with the Panic of 1819, the first major peacetime financial crisis in the United States. The Panic of 1792 was much earlier and occurred before the creation of the Federal Reserve or a permanent national central bank.