1797 – 1800
The Panic of 1797 was primarily caused by the effects that the deflating Bank of England sent overseas. The Bank of England, already in serious trouble, was tied into America enough that when it did deflate, it caused a huge disruption in the commercial and real estate markets in the U.S. Part of the reason that the Bank of England was in so much trouble at the time was because of the war.
At that time, the British were fighting France in the French Revolutionary war, and the disflationary repercussions that it caused really sent shock waves through both Britain and the U.S. The Caribbean was also affected by the Panic of 1797.
This was really the first recession that the United States had ever had, and it was quite troubling and caused all sorts of problems for the still young economy of the United States of America.