Wall Street

What is Wall Street?

Wall Street, a street in New York City’s Financial District, has long been synonymous with financial markets and the heart of America’s economic power. But how did this narrow strip of land become so iconic? Let’s delve into its rich history and significance.

The Origins of Wall Street

Originally known as Het Cingel, meaning ‘the wall,’ it was named after a fortification built by the Dutch in 1653 to protect against English troops. The name ‘Wall Street’ is believed to have been first officially designated in 1686. This street has seen countless transformations over centuries, from a slave market and securities trading site to the location of New York’s city hall and Federal Hall.

From Slavery to Securities

Slavery was introduced to Manhattan in 1626 and became official in 1711. The area around Wall Street saw significant presence, with taxes benefiting municipal authorities who sold slaves at the market. Local merchants and traders gathered here to buy and sell shares and bonds before formalizing their association under the Buttonwood Agreement.

The Rise of Wall Street

In the 19th century, business dominated the area, with the Erie Canal boom bringing New York City to prominence as the ‘money capital of America.’ The Civil War expanded the northern economy, solidifying New York’s position as a banking center. By the 1840s and 1850s, residents moved uptown, leaving the lower tip for business use.

Key Milestones

The opening of the Erie Canal led to huge business growth for New York City in the early 19th century. The city became the ‘money capital of America’ with little outside interference from authorities. In the late 18th century, traders gathered under a buttonwood tree on Wall Street to trade securities, formalizing the New York Stock Exchange in 1792.

Wall Street’s Evolution

The area around Wall Street saw various changes throughout history, including the construction of new City Hall using stones from the bastions as materials for the foundation. P. Morgan created giant trusts, Rockefeller’s Standard Oil moved to New York City, and the economy shifted from agricultural to industrial to financial between 1860 and 1920.

Notable Events

New York remained a leading financial capital, with Charles Dow tracking stocks in 1884. The Wall Street Journal began publishing in 1896, expanding its list of stocks over time. In the 20th century, Wall Street experienced significant changes, including protests against stock transfer taxes and fund-raising efforts during World War I.

The Great Depression and Beyond

September 1929 was the peak of the stock market, but by October 3, 1929, it began to slip, and by October 14, the market continued to decline. The stock market crash of 1929 led to the Great Depression, which had a significant impact on Wall Street and finance.

Post-War Developments

During the New Deal years and the 1940s, there was less focus on Wall Street and finance. However, from 1946 to 1947, stocks could not be purchased ‘on margin,’ but this policy was later relaxed, leading to increased stock buying on credit. The financial community posted a collective loss of $245 million in 1973, prompting temporary government assistance.

Modern Challenges and Resilience

In the aftermath of World War II, trading volumes climbed, with 7.5 million shares traded daily by 1967. Reforms were instituted in the securities industry, eliminating fixed commissions and allowing for electronic trading methods. This led to lower prices and increased participation in the stock market.

Recent History

The 1980s saw a resurgence of cocaine use among Wall Street executives, with reports describing a ‘drug culture’ of sorts. However, the overall percent of users was likely small. In 1987, the stock market plunged, leading to a recession and job losses in the surrounding area.

Post-9/11 and Beyond

The 9/11 attacks had a significant impact on Wall Street, with 45% of ‘best office space’ lost and year-end bonuses dropping by $6.5 billion. To address security concerns, concrete barriers were built, which were later made more aesthetically pleasing with bollards costing between $5000 and $8000 each.

Current Landscape

In 2001, the NYSE was described as the world’s largest and most prestigious stock market. The financial services industry experienced a downturn, but efforts were made to rebuild and revitalize the area. Its bronze surfaces echo grand doorways of Wall Street’s temples of commerce, allowing pedestrians to pass but blocking cars.

Landmarks and Architecture

Key landmarks include Federal Hall National Memorial (26 Wall Street), built in 1833-1842; 55 Wall Street, erected in 1836-1841 and expanded into the U.S. Custom House and National City Bank Building; 14 Wall Street, a 32-story skyscraper with a stepped pyramid, built in 1910-1912 and expanded in 1931-1933; 23 Wall Street, a four-story headquarters built in 1914 as the J.P. Morgan & Co. bank building; 48 Wall Street, a 32-story skyscraper built in 1927-1929 as the Bank of New York & Trust Company Building; and 40 Wall Street, a 71-story skyscraper built in 1929-1930 as the Bank of Manhattan Company Building and later the Trump Building.

Conclusion

Wall Street is more than just a street; it’s a symbol of financial power, elitism, and controversy. Its history reflects the dynamic nature of America’s economic system, from its roots in slavery to its current role as a global financial hub. As we look towards the future, Wall Street continues to evolve, facing challenges and opportunities that shape not only New York City but the world economy.