In June 1772, Alexander Fordyce, a Scottish merchant and banker, fled to France to escape significant debts owed to various creditors. His abrupt departure illuminated the precarious nature of credit in the burgeoning global economy of the 18th century. Fordyce's financial troubles were not isolated; he was deeply entangled in a web of trade and finance that linked Britain with its colonies and European powers like the Dutch Republic. The solvency of Fordyce and his associates was crucial in maintaining the stability of credit markets. His flight, however, sent shockwaves through the financial community, leading to a loss of confidence among investors and triggering a credit crisis. This chain reaction involved widespread withdrawals from banks, plummeting stock prices, and the eventual collapse of several financial institutions in both Britain and the Dutch Republic.

The crisis was characterized by a lack of liquidity, as businesses faced a sudden scarcity of credit. The effects were widespread: merchants defaulted on payments, and many became insolvent, leaving their business partners in dire straits. The crisis exposed vulnerabilities within the economic structures of the time, highlighting the interconnectedness of finance across Europe. Banks faced increasing calls for withdrawals, leading to liquidity shortages and further panic in the markets. This period was marked by a general distrust in financial institutions, compelling many to re-evaluate their reliance on credit and signaling the need for greater regulatory oversight in the financial sector.