The Rise of Wall Street

In 1792, New York City had a population of about 34,000, and that did not include Queen's and Brooklyn, which were still separate towns. Most of Manhattan had just been restored with brick buildings, after the disastrous Great Fire of 1776. Wall Street was New York's center of commerce, and was just a few blocks long, from Broadway on the west, to the East River at the other end. Up until 1792, a person wanting to buy or sell an investment, would either advertise or spread by word of mouth, among friends and associates.

The first organized stock exchange originated in 1792, when Benjamin Jay, John Sutton, and 22 other financial leaders signed an agreement of regulations, fees and rules. Located in a building at 22 Wall Street, securities were auctioned everyday starting at noon, and sold to the highest bidder. The seller paid the exchange a commission on each stock or bond sold. The exchange was a privileged organization, where new members were required to be voted in, and a candidate could be black-balled by three no votes. A seat on the exchange in 1817, was $25, and by 1848, the price was $400. In 1850, the stock exchange was located at Wall and Hanover, its fifth address. At that time, the Board's total yearly expenses including salaries and rent, were less than $5,000.

In 1863, the Board changed its name to the New York Stock Exchange, and moved into the impressive building, at the corner of Wall and Broad streets. Here we are 146 years later, and the unceasing exchange is still doing business today.