Alexander Hamilton helped calm the Panic of 1792 by buying government securities and urging market support.
The Panic of 1792 was one of the earliest financial crises in the new United States. Speculation in government securities and bank shares helped push prices upward, while credit expansion and the activities of speculator William Duer increased fragility. When confidence broke, prices fell rapidly and lenders became reluctant to extend credit.
As secretary of the treasury, Hamilton responded with measures designed to restore liquidity and confidence. He authorized purchases of government securities and encouraged banks to continue lending to sound borrowers. His intervention helped prevent the crisis from becoming even more destructive.
The episode is closely connected with the early development of U.S. financial institutions, including the First Bank of the United States. It is not the same event as the Panic of 1819 or the Panic of 1907, both later American financial crises with different causes and participants.