Brooklyn was, indeed, ready, but fortunately the crisis for which it prepared did not appear. On the evening of February 11, 1815, came the news of peace with Great Britain. On the evening of the 21st Brooklyn was illuminated in a spirit of rejoicing, and the band of the Forty-first Regiment, then stationed in the village, voiced the delight of the people.

Meanwhile, various important advances had been made by Brooklyn and her neighbors. In 1812, Robert Fulton having made a successful experiment with his first steamboat, the Clermont, a steam ferry was opened between New York City and Paulus Hook, Jersey City. In that year Fulton and his "backer," Robert R. Livingston, offered to the corporation of the city of New York a proposition to establish a steam ferry from Fly Market Slip to Brooklyn.[19] The proposition was accepted, and it was decided to run the boats from Burling Slip. "As, however, the slip was not then filled in, and the cost of filling was estimated at $30,000, it was finally concluded to establish the ferry at Beekman Slip (present Fulton Street, New York), which was accordingly purchased for that purpose by the corporation from Mr. Peter Schermerhorn. Beekman Slip at that time extended only to Pearl Street. Fair Street, which then ran from Broadway to Cliff Street, was extended through the block between Cliff and Pearl streets to join Beekman Slip. To this newly extended Fair Street, from the East River to Broadway, and to Partition Street, which then extended from Broadway to the Hudson River, was given the name of Fulton Street, in honor of the distinguished inventor, in consequence of the establishing of whose steam ferry this street was about to become a great highroad of travel and traffic. The ferry from Fly Market Slip was discontinued.

"The lease of the ferry was granted to Robert Fulton and William Cutting (his brother-in-law), for twenty-five years,—from the 1st of May, 1814, to May, 1839,—at an annual rental of $4000 for the first eighteen years, and $4500 for the last seven years. The lessees were to put on the ferry one steamboat similar to the Paulus Hook ferry-boat; to run once an hour from each side of the ferry, from half an hour before sunrise to half an hour after sunset; to furnish in addition such barges, etc., as were required by previous acts of the Legislature; and on or before the 1st of May, 1819, they were to provide another steamboat in all respects equal to the first, and when that was done a boat should start from each side of the river every half hour. As a compensation to the lessees for the increase of expense which would be incurred in conducting the ferry upon such an enlarged scale, the corporation covenanted to apply to the Legislature for a modification and increase in the rates of ferriage; and in case the bill passed before May 1, 1819, Messrs. Fulton and Cutting agreed to put on their second boat at the earliest possible date thereafter. In case of its failing to pass, they were to be permitted to receive four cents for each and every passenger who might choose to cross the river in the steamboat, but the fare in barges was to remain as it had been, viz., two cents."[20]

The proposed bill successfully passed the Legislature, and Fulton and Cutting formed a stock company, called the New York and Brooklyn Steamboat Ferry Association, with a capital of $68,000. The first steam ferry-boat, called the Nassau, began running on Sunday, May 10, 1814. "This noble boat," said the Long Island "Star," "surpassed the expectations of the public in the rapidity of her movements. Her trips varied from five to twelve minutes, according to tide and weather.... Carriages and wagons, however crowded, pass on and off the boat with the same facility as in passing a bridge. There is a spacious room below the deck where the passengers may be secure from the weather, etc." On one of the first day's trips an engineer was fatally hurt.

The Nassau made forty trips on the following Sunday, and became a useful and popular institution. She was used after business hours for pleasure excursions on the river. The plan of construction was that of a double boat, with the wheel in the centre, the engine-house on deck and the passenger cabin in one of the hulls. Peter Coffee, the first pilot, died in 1876, aged ninety-nine years. One end of the deckhouse of the Nassau was occupied by a pensioner of Fulton's, who sold candies and cakes.

While the Nassau was in operation the horse ferry-boats were also used on the Fulton Ferry. These horse ferry-boats were peculiar craft. The first horse-boats were single-enders, and were compelled to turn around in crossing the river. Subsequently double-enders were used. All these boats had two hulls, about twenty feet apart and covered over by a single deck. Between these hulls were placed the paddle-wheels, working upon the shafting propelled by horses.

"By an invention of Mr. John G. Murphy, father of ex-Senator Henry C. Murphy, the managers of these boats were enabled to reverse their machinery without changing the position of the horses. The steamboat was very popular with the public. Owing to its success there was soon a very marked desire in both cities for the addition of the second steamboat, in accordance with the terms of the contract made by the lessees with the city of New York. Objection was made by the lessees on the ground of additional expense, and boats run by horse power were substituted. In 1815 Robert Fulton died. Mr. Cutting, who had lived in New York, removed to Brooklyn, and died at his residence on the Heights in 1821. The winter of 1821–22 was one of the most severe in the history of the country. The ferries were obstructed by enormous quantities of floating ice. Great cakes became jammed between the double hulls, and travel was practically suspended. Brooklyn had grown rapidly, and an uproar arose in which the ferry management was roundly assailed. Who can tell but it was here that the original idea of the East River Bridge was first born? In 1827 a steamboat similar to the Nassau, and called the William Cutting, was put on the ferry, but even this did not satisfy the public, who were eagerly seeking more extended accommodations. In 1833 Messrs. David Leavitt and Silas Butler secured a controlling interest in the stock of the company, and sought to meet the anticipations of the people by adding two new steamboats, the Relief and the Olive Branch. Unlike their predecessors, these boats had single hulls and side wheels. Subsequently agitation in the southern part of Brooklyn led to the establishment of the South Ferry."

In 1817, the Loisian Academy, which had been started four years before, received a salaried teacher, and was removed to the small frame house on Concord and Adams streets, where Public School No. 1 was afterward built.

Brooklyn began soon after the Revolution to think seriously of the matter of incorporation as a village. On January 8, 1816, a public meeting was held at the public house of Lawrence Brown, "to take into consideration the proposed application for an incorporation of Brooklyn. A committee, consisting of Thomas Everit, Alden Spooner, Joshua Sands, the Reverend John Ireland, and John Doughty, met the following day at the house of H. B. Pierrepont. On April 12th the act incorporating the village passed the Legislature."