The U.S. financial crisis that began in 1819 after credit tightened and land prices collapsed was the Panic of 1819.
The panic followed years of rapid expansion after the War of 1812. Banks issued large quantities of paper money, land speculation increased, and merchants imported more goods than the economy could comfortably absorb. When the Second Bank of the United States began restricting credit, commodity prices and land values fell.
The downturn produced bank failures, business bankruptcies, foreclosures, and severe unemployment. It was the first major peacetime financial crisis in the United States and caused a long depression in many regions.
The Panic of 1819 is sometimes confused with the Panic of 1837, another U.S. crisis tied to speculative lending and falling land values. The later panic was more closely associated with President Andrew Jackson's banking policies and the collapse of the 1830s economic boom.