Postcard Thursday: The Buttonwood Agreement

On May 17, 1792 (226 years ago today), the New York Stock Exchange was founded by a group of twenty four individuals and firms under a buttonwood tree near 68 Wall Street (just west of Pearl Street).

The short document read:

We the Subscribers, Brokers for the Purchase and Sale of the Public Stock, do hereby solemnly promise and pledge ourselves to each other, that we will not buy or sell from this day for any person whatsoever, any kind of Public Stock, at a less rate than one quarter percent Commission on the Specie value and that we will give preference to each other in our Negotiations. In Testimony whereof we have set our hands this 17th day of May at New York, 1792.

Among those who were members of that original exchange were Leonard Bleecker, whose brother Anthony was namesake of Bleecker Street, Isaac M. Gomez, whose father's home in Marlboro, New York, built ca. 1714, is the oldest Jewish home in America, Benjamin Seixas, a president of Congregation Shearith Israel and former privateer, and Samuel Beebe, in whose offices in 1817, the stock exchange would be reorganized and receive the name "New York Stock and Exchange Board."



The exchange may have actually met under the tree in good weather, but in the early years they mostly convened inside the Tontine Coffee House (above, with the balcony) on Wall Street near the corner of Water Street. Later, they rented an office on the second floor of the Bank of New York for $200 a year (which included heat) before moving into the Merchant's Exchange at 55 Wall Street and, finally, two successive buildings on the current spot on Broad Street. Today, a scraggly buttonwood stands in front of the exchange to mark this event.

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Read more about NYC history in

 

Footprints in New York: Tracing the Lives of Four Centuries of New Yorkers

Inside the Apple: A Streetwise History of New York City

New York's First Bank Robbery

When workers arrived at the City Bank at 52 Wall Street* on Monday, March 21, 1831, they were in for a rude shock. Sometime over the weekend—probably the evening of March 19 or the early morning hours of March 20—the bank had been robbed of $245,000 in bank notes and Spanish doubloons. This was New York’s first-ever bank heist.

Though suspicion immediately fell on workers at the bank, the police had little time to investigate the employees before they received a tip from Mr. Bangs, the proprietor of a “respectable private boarding house” (according to the New-York Evening Post) who was leery of his newest tenant.

On the Monday following the robbery, a man calling himself Mr. Jones had arrived at Mr. Bangs's boarding house on Elm Street** with three small trunks, asking for a private room in which to write. He paid for the room in advance. After a few days, the landlord became suspicious over Mr. Jones’s apparent anxiety, especially concerning the contents of his trunks. When one of the trunks disappeared, Mr. Bangs contacted the police. The police—seemingly without probable cause or a warrant—picked the locks of the two remaining trunks and found bank notes they could positively identify as being from the City Bank robbery.

When Mr. Jones returned to the boarding house, he was promptly arrested. The robber was soon discovered to be Edward Smith, who lived on Division Street with his wife and two children and ran a shoe store. He was well-known to police, having been arrested for a store robbery in Brooklyn but not convicted due to lack of evidence. Stories soon began to swirl of other robberies Smith was allegedly connected to, including the attempted theft of cash from the steamer Chancellor Livingston and a daring mail coach heist in England.

Of the $245, 000, only about $176,000 was recovered from Smith. The bank soon began advertising for people to keep an eye out for the other bank notes (and the Spanish doubloons). One apparent accomplice was arrested in Philadelphia in April when some of the missing bank notes were identified on his person. But it is unclear if the remainder of the money was ever recovered or if that man was, indeed, part of the robbery.

A jury found Edward Smith guilty in a one-day trial (that one day included jury selection, testimony, and deliberations) and he was sentenced to five years hard labor in Sing-Sing prison.

* City Bank (aka The National City Bank) had been founded on this spot in 1812. At the turn of the 20th-century it would move across the street into the old Merchant's Exchange building at 55 Wall Street, now Cipriani. City Bank is today Citibank.

** Elm Street is now Lafayette Street.

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Read more about Wall Street banks--including the deadly Morgan Bank bombing--in
Inside the Apple: A Streetwise History of New York City
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A Literal Crash on Wall Street: November 12, 1929

Everyone knows about the Wall Street crash of October 1929 that triggered the Great Depression. But there was another, much more literal crash a couple of weeks later. Eighty-one years ago today, one of the great skyscrapers races of all time was coming to a close: The Bank of the Manhattan Company at 40 Wall Street was topping out and thus becoming the tallest building in the world. But an hour before the ceremonies, Wall Street was a scene of chaos.

As The New York Times reported, crowds were gathering around noon for the ceremonies to mark the completion of the world's tallest structure when "a half-ton block of limestone fell from the thirty-fifth floor of the new seventy-story building of the Bank of the Manhattan Company, crashed through the roof of the eighth-story setback down to the fifth floor and scattered debris over the street below."

Luckily, only three people were mildly injured in the accident. A woman in a parked car was cut when a piece of debris shattered the car's window; a steamfitter was struck by a piece of scaffolding in the shoulder; and a young office clerk crossing Wall Street had his leg cut by a shard of granite. As one police officer noted at the scene, "it was miraculous that no others were injured."

One the dust had settled and the injured persons treated at the scene or sent to the hospital, the work of topping out the building commenced. About an hour later the highest piece of structural steel was put atop 40 Wall Street--and, as the papers duly noted the next, it had become the world's tallest building.

Just four days later, the truth would be revealed: the Chrysler Building on 42nd Street had already surpassed 40 Wall Street's height. (You can read our more detailed entry about the skyscraper race from last year for further details.)

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Read more about the race between the Chrysler Building and 40 Wall Street in

Inside the Apple: A Streetwise History of New York City.

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The Manhattan Company vs. the Chrysler Building

The Bank of the Manhattan Company by CR on flickr.

A couple of weeks ago, there were a number of commemorations of the 80th anniversary of the Great Crash of 1929 which led to the Great Depression. As the stock market was plummeting, however, buildings in the Financial District were still soaring to new heights, including the Bank of the Manhattan Company at 40 Wall Street, which was racing against the Chrysler Building on 42nd Street to be the tallest building in the world.

Eighty years ago today--on November 12, 1929--the Manhattan Company finally topped out at 925 feet. As far as anyone knew at the time, that meant it was the tallest building in the world. (The New York World, reporting the day's events, noted that it had bested the rival Chrysler Building which only stood at 808 feet.)

But the news of the Manhattan Company topping out was overshadowed by a construction accident an hour before the ceremony. In front of a large crowd of spectators, a half-ton block of limestone that was being hauled up the building broke free from its harness at the 35th floor. The huge stone tore through the 8th-floor setback and through three more stories of steel and concrete before stopping at the fifth floor. Debris rained down onto Wall Street; one piece struck Helen Pratt, who was waiting in a car parked across the street. She was only slightly injured and insisted on being taken home and not to the hospital. One of the building's construction workers, James Bellis, was injured by a piece of falling scaffolding and taken to the hospital but was ultimately fine.

The accident so overshadowed the reason people were there -- to see the building's last piece of structural steel hoisted into place -- that the New York Times didn't even bother reporting on the building's completion. Indeed, those news outlets that did proclaim 40 Wall Street to be the "world's tallest tower" were in for a rude shock. Just four days later, it was revealed that the Chrysler Building was not 808 feet tall as previously reported, but that its spire--hoisted into place on October 23--was its crowning architectural element, bringing its full height to 1,046 feet. That not only made the Chrysler Building significantly taller than the Manhattan Company, it also made it taller than the Eiffel Tower and thus the tallest structure in the world.

After the Bank of the Manhattan Company merged with Chase in 1955 to become Chase Manhattan, the skyscraper at 40 Wall went through a succession of owners, including at one time Ferdinand and Imelda Marcos. Donald Trump purchased the dilapidated tower in 1995 for $1 million and emblazoned his name in large, shiny letters across the front, thus causing all sorts of tourists to think it is Trump Tower and might be full of wanna-be apprentices. Trump has tried to sell the building at least once but has yet to find suitable buyers.

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Read more about this skyscraper race, the Great Crash of 1929, and New York during the Depression in Inside the Apple: A Streetwise History of New York City.

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