The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1855-01-27

amend the general banking lgw. lie ,x
planned that the Lill was intended for the re.
lief Of such OF our free ban.s as wished to
retire their circulation and op the b IsIn, 50
Of issuing paper. As the ] W ut present
stands such banks cou d oD ain none o.
their securities back from the auditor except
on returning al their circulation, which,
considering that much Of IL may DC lost or
destroyed, was impossible: or they must
wait two years, occasioning much vcxaion
and loss. One Suspended bank had now
some forty four thousand d liars of It's bills
depo 'itcd in Springfield, yet could get back
none Of its securities under two years. be-
cause 1t was unable 10 gather up the few re-
naming thousands OF its circulation. The
bill would obviate the difficulty, by enabling
any such bank, On returning 900 OF its
bills 10 the an,iitor, to take up ) 900 of its
bonds. The bill was carefully framed 30 as
not to impair in the least the security Of the
bill holders
The hill was read third time an passed
yeas lS, nays 4.
A resolution similar to that passed in the
house, was adopted, allowing members 10
daily papers during the session.
A resolution offered by Mr. Gillespie was
to report on the exp, diency of law to pro-
hibit the grant Of writs Of error in our
courts in cases where divorces have b,en dc.
/ creed.
Mr. Morton offered Il resolution TO require
the finance committee To repOr, on the cNpc-
dicney Of authorizing the receipt Of the bills
OF our banks in pay aymrnt q! taxes.
Mr.. NJ, said his cun>tl'u,nt, were IN favor
r 4 \. 4. "A
result from it, cXcep, perhaps, that it
might cause little neon 'cniencc to the
banks. All the specie Was boarded up in
their vaults, and the people could not get
enough 10 pay their taxes.
Mr. Kuykvndall said he ha seen the opc-
ration of such laws on former occa.ions, and
said they were Of a most d .ngcrous and per
nicioIs character He hoped never again to
see such results as they lad prolGced.
/ The resolution was lost.
After the introduction Of a number Of pri-
yate and local bills, passing or referring
them, the senate adjourned.
/ UoUsc.-Mr. Strawn presented petition
asking u changcin the location Of the state
road from Ottawa to Peru After some fur
thcr presentation o: petitions
! Mr. Richmond, from the committee on
! banks and corporations, reported bill Tor
/ an act to authorize banks to reduce their cir
cdiation. The hill is designed 10 meet the
same o|,jec. proposed by that which passed
the seHltc, except that II goes further. II
authorizes all banks in the state to withdraw
/ th,ir bonds in the manner roloscd, until
! their circulation is r,durei To go 5,'op when
/ tLey shalt cease to cXor,i the hinct onS OF
bank anl IT also authurlz Is dhy bank to
present 81 900 of 'he bilS Of any oNer bank
in the state, and take up an equal amount OF
such bank.
A long debate spru g up on the bill. Mr..
/ Logan said, as one OF the committee lac Lad
ass, nted TO the bill being reported, but hc
was not in favor of all it, proyr,i ms. When
hank, reduced Ia ir bonds dowt T. 80, ,UOo,
he was in favor Of tn ir winding up lie
wanted no S25, ,,0J a Us.
Mr.. Day snl Mr. No" ~" ''nt -" com"
v.u. and The lattcr moved tbs Ie-sohinlt-
ment OF the bill TO the committee n Judicia-
ry.
Mr. Strawn thought it should 60 to the
committee on banks.
Mr. Richmond, Of Schuyler, thought il
had better 60 to the Judiciary, a. he had
strong doubts whether this legislature could
amend law made by the people.
Mr. ligbuc alluded to the expense Of
windin- upa bank, and suggest that 1t
would be as expcns ve 10 wind up So, 900
bank as one with n capital y! Slvv,uVJ.
Besides, he was opposed to these l'ttIe
banks. Pass this bl, and soon every man
who owns a quarter section OF land, ard "A
sixrcnce in specie could become tanker.
/ Mr. Richmond. Of Cook, said he was not
tenacious about the S25, 900 clause, and IT
there was objection 10 it, il could be am,nd'
cd but he could see nothing Objectionable
in it himself 4 s. bill well secured is as
good as 800 bill. 1t might work to ad-
vantage in localities where larger sums could
, not be raised. A pressure had come upon
US, and he believed the banks were getting
,.isgusted with banking, and wished to with
! draw their ircrlatlon. II would thus tina
I Bile su>h as were now under pressure, to
operate -afcly--and he thought all the bank.
/ large or small--toud have the same nd.
! vantage 1t was more democratic.
Mr.. Yarmer had doubts about the right Of
/ til, legislature to amend law passed 10y the
lcople, without submitting the amendments
to the same tribunal for satis faction.
, Mr.. Richmond, Of Schuyler, said, moth
! ing but the same doubts had prev, n,cd him
| from Introducing bill for the repeal OF the
general banking law. The law was pcri,tt
nuisance, and he was glad the people were
waking up ~ the realities Of the monstrous
system,
Mr.. Logan participated, TO some extent,
in the feelings OF the last speaker. The peo.
pie had voted for the banking law as q
whole, and that made provision for no banks
smalle, than $4,000. lie did not believe
the law would have been adopted without
this clause in it. lie was willing, however,
10 vote TO let the banks reduce their Sccuri-
ties to SO, 900, and then if they wished to
90 below that, to let them withdraw nj their
bonds, so as 10 wind up without the in' on.
venivnce and expense Of going into liquida.
ton.
Mr.. llgbce said il this $25, 900 provision
was adopted, little banks would sprng up
all over the state $4,000 was hardly
enough to build banking house to start on.
Banks had been found in Indiana in saw.
mill and shoc.makcr's shop.
Mr. Foss said il was well known that some
banks had suspended, and wished to take up
their bonds. Bll-holdrrs having their notes
took them to the banks but could do moth
ing with them under the present law unless
they could got in Si5,ocO out ofthe So'' ,ooo
in circulation. II they were permitted To
wi hdraw part of their bonds ON returning
their bills to the Auditor, they might be able
to come out of n pr Ssure without winding
up. lie was as willing to have banking
done on $4,000 as on $4,000. Did not
know, if tnc bills are secured, why banking
may not be- carried on as well in sho,.nla-
ke,s' shops as in large brick buildings. The
object of the bill was to relieve banks that
had now got nearly, but not quite enough,
to take up their stocks. Hence the loss fell
upon the people as wclla upon the banks;
Mr.. Hackney said he knew of suspended
banks tina, could have stood up under the
pressure if they could have returned Slo,Oo
Of their circulation and taken up their secu'
rites. lie thought the banks could be al
lowed to withdraw their circulation without
reducing their capital stock below Soo,ooo
and he was for amending the bill in thai
way.
The debate was continued by Mr. Allen,
Mr.. Low JOY, ard others, and finally, or