The Panic of 1792
After Wall Street's first crash, an angry mob demanded revenge for the collapse. After working his way up in New York, William Duer became a powerful man and was eventually appointed the Secretary to the Board of the Treasury by Anthony Hamilton. This appointment allowed Duer to learn about the inner workings of the financial system of America. Hamilton was an honest man and never tried to profit from his position. Duer, on the other hand, was just the opposite. After agreeing to a merger with Macomb, Duer then decided to double cross his new-found partner. He then gained the attention of many lenders looking to make a fortune with Duer. But one wealthy family, the Livingston clan, wanted to make sure that his plan failed. By withdrawing their silver and gold, they forced a credit squeeze. This resulted in a financial panic, leading to Duer being thrown into debtors prison along with Macomb. After Hamilton ordered the Treasury to buy securities and urged banks not to call in loans, calm returned.