Iowa capitol reporter. [volume] (Iowa City, Iowa) 1841-1855, 1847-01-27
Banking III IIlinois.

| We extract the following paragraph OF
the subject Of Banks from tie Inaugural
Address Of Gov. FRESeH OF Illinois, am
commend it to the consideration Of thos,
persons in this State who still regare
banks as the great panacea for all the evil,
a State is heir to. After years Of expe
riencc of the effects Of banking after
undergoing the 6, eatest of pecuniary EN-.
barrassment, and being almost reduced t.
ruin through bank agency, the State O
Illinois came to the wise resolution t
discard them altogether, being fully per-
suaded that they were only so many agents
in the hands of the fewto re.ard and ruiz,
the prosperity of the people at large
Aud now, af.er tina. resolution has been
carried into effect, and the consequence
are perceived, the Governor says that the
commencement ofthe returning prosperity
Of the State may be dated from the time
OF the passage of the act requiring the
Banks TO 60 into liquidation Of their
affairs. 1t is probable that the new con-
stitalicn. which the people Of that State
have determined to form, will following
the example of Iowa, for ever hereafter
prohibit the creation of banks of discount
and circulation within her borders. The
Governor says:
Cat the time Of the passage Of the law
requiring the banks Of this State to pi,.
their affairs in process of liquidation, there
were those who honestly doubted the pro-
priety OF measure SO stringent in It's
provisions, and who looked forward W itb
apprehension to disasters which they ear
ed would follow from it. But time has
fully justified its object, and the exp. diem
oy OF It's general provisions; and VIC NAV
date the commencement of our re- turnins
prosperity to the passage of THAT law.
When its provisions shall have Leep fully
carried cut, banking institutions in This
State will he fully at an end, and it oe-
comes question of serious magnitude to
the people, whether sound policy will
justify the establishment of another. when
we may look forward vsi,h almost positive
certainty to a repetition Of iiae same scenes
through which we have SO lately passed.
y few years have taug hi US MANY things
connected with this subject, which We
were slow to learn. Prem ava habitual and
unwary confidence in the integrity Of
banking institutions, we came At last to
look upon them as. almost Indispensable
necessary, and principles gradually but
silently crep! into their charters which
have wrought deep and lss,iDc injury to
the country, and Writ lally.sub, erted some
OF those principles " Mich 90. eminent was
founded in an espe ciaI manner to cherish
and preserve. Tiac series of evils which
incorporate bans ing has brought into ex
istenee, lind the II main source in the pow
er given to baAks, to trade upon credit in
stead OF mone.y-to loan simple promisso-
ry notes In2.ead Of cash-not 10 loan only.
but create the currency, and an utter ex-
emption tgom individual liability, besides
placing this very power in the hands Of
those whose interests often prompt to lis
abuse, and against which it is scarcely
possible to interpose any legislative re.
straint. 1t seems to me that the interests
81 the people of this State will be better
promoted by hereafter dispensing with
banks altogether, than again 10 take their
chance upon such sea Of uncertainty and
confusion as they have lately passed. II.
we form an opinion from the current
events which have attended the winding
up Of the affairs of our banks, even under
the disadvantage of coercing the payment
of heavy indebtedness, the advancing of
the State, the restoration of sound cur
rency, taken in connection with the agri-
cultural character of our people, it can
hardly be doubted that capital will as read
lily seek this State for investment - be as
safely invested--as well as safely and
properly managed, as constantly employ
ed, and rendered as practically useful in
all the relations of business, and at the
same time preserve as safe and sound
currency under forms Of association, un-
der general laws, as with The aid of banks;
while the community will be relieved
from the dangers which are always atten-
dant upon them "a