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 convic- 
tion 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 Ex- 
change, however, was still a temporary lodger rather than an 
established inhabitant of Wall Street, for all the valiant na- 
tional 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 “Re- 
solved, 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.