Two days after MIT was chartered, the first battle of the Civil War broke out. After a long delay through the war years, MIT's first classes were held in the Mercantile Building in Boston in 1865.[34] The new institute was founded as part of the Morrill Land-Grant Colleges Act to fund institutions "to promote the liberal and practical education of the industrial classes" and was a land-grant school.[35][36] In 1863 under the same act, the Commonwealth of Massachusetts founded the Massachusetts Agricultural College, which developed as the University of Massachusetts Amherst. In 1866, the proceeds from land sales went toward new buildings in the Back Bay.[37]
MIT was informally called "Boston Tech".[37] The institute adopted the European polytechnic university model and emphasized laboratory instruction from an early date.[32] Despite chronic financial problems, the institute saw growth in the last two decades of the 19th century under President Francis Amasa Walker.[38] Programs in electrical, chemical, marine, and sanitary engineering were introduced,[39][40] new buildings were built, and the size of the student body increased to more than one thousand.[38]