
Wall Street’s Founding Document Was a Two-Sentence Price-Fixing Pact Signed Under a Tree
The New York Stock Exchange traces its origin not to a gleaming trading floor but to a patch of shade outside 68 Wall Street, where on May 17, 1792, two dozen brokers and merchants put their names to a document that ran to roughly two sentences. The institution that now sets the tone for global capital markets began as a handshake among rivals, struck in the aftermath of a financial disaster. That disaster was the Panic of 1792, America’s first speculative bust. The architect of the chaos was William Duer, a wealthy merchant and former assistant to Treasury Secretary Alexander Hamilton, who leveraged borrowed money to corner markets in bank scrip and government debt. When his scheme collapsed in the spring of 1792, prices cratered, credit froze, and public confidence in the young nation’s financial instruments evaporated. Hamilton, who had worked to establish those instruments, intervened with Treasury purchases to stem the damage, an early precedent for official market support in a crisis. For the brokers who made their living trading securities in the open air of lower Manhattan, the panic exposed a structural problem. Trading was informal and chaotic, often conducted through public auctions where outsiders could observe prices













































