William Duer (U.S. Congressman)

William Duer (1747-1799) was a British-born American lawyer, developer, and speculator who served as a U.S. Congressman representing New York. He played a significant role in the early financial structure of the United States but is also remembered for his disastrous financial speculations that led to one of the first major financial crises in the newly formed nation.

Early Life and Career:

Born in Devonshire, England, Duer received a privileged education and served in the British Army before immigrating to the American colonies in 1768. He initially settled in New York, where he managed lumber mills and developed an interest in politics.

Revolutionary War and Early Political Involvement:

During the American Revolutionary War, Duer served in the New York Provincial Congress and held positions related to supplying the Continental Army. He was actively involved in procuring provisions and organizing supplies for the war effort. His involvement in the Revolution helped solidify his standing within the emerging American political landscape.

U.S. Congressman and Treasury Official:

After the war, Duer was elected as a delegate to the Continental Congress, serving from 1778 to 1779. He later represented New York in the U.S. House of Representatives during the First Congress (1789-1790). In 1789, Alexander Hamilton, the first Secretary of the Treasury, appointed Duer as Assistant Secretary of the Treasury. In this role, he played a key role in implementing Hamilton's financial plan, which aimed to establish a stable national currency and credit system.

Financial Speculation and Imprisonment:

Duer resigned from his position in the Treasury in 1790 and began engaging in increasingly risky financial speculations. He leveraged his government connections and inside knowledge to invest heavily in government securities and other ventures. His speculative activities created a bubble in the market, fueled by credit and based on the assumption that government securities would continue to rise in value. However, his overleveraged position and increasingly unsustainable practices eventually led to his downfall.

In 1792, the financial bubble burst, and Duer's schemes collapsed. He was unable to meet his financial obligations, causing widespread panic among investors and creditors. He was arrested and imprisoned for debt, and his imprisonment contributed to the Panic of 1792, one of the first major financial crises in the United States.

Death and Legacy:

Duer remained imprisoned until his death in 1799. His financial dealings left a lasting impact on the early American financial system, highlighting the dangers of speculation and the need for greater regulation. He is remembered as a figure who rose to prominence in the early years of the United States, only to fall due to his own financial excesses. His story serves as a cautionary tale about the risks of unchecked ambition and the importance of financial prudence.