64
THE WORK OF THE STOCK EXCHANGE
The stock market thus inaugurated grew rapidly. After
playing a vital part in the creation of our earliest banks, the
fire and marine insurance companies were likewise presently
enabled through its agency to obtain necessary capital. State
and municipal obligations were shortly added. The War of
1812 resulted in heavier government debt, more government
bonds, and a heavy increase in their purchase and sale in the
New York securities market. So rapidly did the security
brokerage business grow that steps soon had to be taken not
merely to provide for the greater dignity and comfort of the
stockbrokers themselves, but also to protect their contracts
more completely by restricting membership in the market. To
this end the New York street brokers went under a roof for
the first time in 181%, and as a part of the further organization
which this move necessitated, took for themselves the collective
name of the “New York Stock and Exchange Board.” The
first constitution of this new organization bears the date of
March 8, 1817, and among other matters provides that “any
members making a fictitious sale or contract shall, upon conviction
thereof, be expelled from the board.” At this time trading
was permitted in only about 30 stocks, and the new association
was formed by only 7 firms and 13 individual brokers.
Original Stock Exchange Equipment.—The Stock Exchange,
however, was still a temporary lodger rather than an
established inhabitant of Wall Street, for all the valiant national
service which it was performing in stabilizing America’s
national and local public credit and in helping to find capital
for our early banking system. On April 8, 1817, it was “Resolved,
that we pay Mr. George F. Vaupell for the use of his
front room in the second story of house No. 40 Wall Street,
two hundred dollars ($200) per annum, he to furnish fire and
chairs, when required, and to keep the room in order.” ?
Further evidence of the leisurely transactions on the “Board”
1 See Appendix IIIa.
2E. C. Stedman (editor), “The New York Stock Exchange,” p. 65.
