Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1852-12-02
For the Glasgow Times.
Illinois Banks-Free Banking.


Now that the paper of the new Illinois
banks is beginning to circulate, we hear of
prejudces against it, growing out of the
great failure of l84l, by which SO many of
our citizens lost large amounss. The pre-
judice and distrust is perfectly natural, but
the new issues being perfectly good-much
sounder than the Missouri, Kentucky, Ohio,
or Indiana paper--we have thought it proper
to state the foundation on which all the new
Illinois banks rest. Last year, all act of the
Legislature was passed, under the amended
constitution, making banking what it ought
to be every where, and what it is nearly
every where except in Missouri, FREE
One man, or any number Of men, at any
time, can commence banking, under certain
restrictions, and limitations, and 10 enable
every man to feel that he is safe with Illinois
bank notes in his pocket, we will state the
principal restrictions and limitations which
the state has imposed. In the first place,
then, no bank can commence business in
Illinois, without first dcpositing with the
State Treasurer, one dollar in State bonds,
at par in the city of New York, for every
dollar issued. To make this sure, no note
car be issued, without the signature Of the
Register Of the Treasury, and upon exam
lining these notes, this certificate will be
found on every one of them. In addition TO
this security, filed with the State, the bank
is bound to redeem all its notes, in gold or
silver, on demand, and upon failure, is clos
ed up, the stocks deposited with the State,
as security, sold, and the notes redeemed
In this way, our readers will observe, the
note holders OF the Illinois banks are per-
fcctly safe. There can be no doubt about
it. Just examine, in every case, and if the
note is certified by the Register, and moi
counterfeit, tis good, and should freely pass
from hand TO hand.
But some of our friends may inquire how
a Bank can make money, under this plan o.
issuing only dollar for dollar? We willie
them. Under the old plan, by which tn,
Bank of Missouri, and most Of the old bank.
in the Western states is regulated, certain
capital orgold and silver was required, anC
permission granted to issue two or three
dollars in paper for every dollar in silver
the note holders looking to the integrity o
the Directors, and the general assets, for tn
means Of redemption. In this way, tn
multiplication Of paper, and consequent in
crease Of interest, Constituted the prof
Of the banker. But in many instances, III
Directors have been careless, or fraudulent
and the people fuunLn no gold or silver in III
Bank, and great losses have been the result
What is generally known as the New Yor
Free Banking Law, now in force in Illnoi,
, was adopted 10 remedy this evil. Unde
this law the profit Of the Banker, althoug
/, only Issuing dollar for dollar, is more sccur
\ than under the old system, and in the fol
c lowing manner: The State stocks deposit
, ed are his. They draw six per cent pc
annum, and this interest is his. The dollu
for dollar which is issued TO him, in til
; form of Bank note, is loaned ont at inter
= est, and this is his, thereby getting, as
4 seen, double interest on his capital, Will
= the note holders have double security for III
II paper, the security of the State, and the st
s curity of the Bank.
C The system, we believe, is the safest an
e soundest which human wisdom can devils,
z and we hope soon 70 see it in force in Mi,
souri,. 49,