The Panic of 1819 was the first major financial crisis in the United States.
It followed a speculative boom in land, cotton, and bank lending after the War of 1812. The Second Bank of the United States tightened credit, while falling commodity prices made it harder for borrowers to repay loans. Land prices dropped sharply, and many banks suspended payments or failed.
The panic caused widespread foreclosures, bankruptcies, unemployment, and falling wages. It also damaged confidence in banks and intensified political arguments over monetary policy and government-backed internal improvements.
The Panic of 1819 is sometimes confused with later U.S. panics, especially the Panic of 1837. Unlike the later crisis, it was closely tied to the reversal of the post-1812 expansion and the collapse of speculative land lending.