The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1855-11-07
The New Currency-.-Weste Ex-
change and Fire Insurance Co.


pal towns of Iowa, and the effort that is be.
ing made to force them into circulation, to.
gether with the character of the paper itself
merits the serious consideration of the pub.
lie.
We have read the act under which the As.
ISOLATION is formed which issues these notes
1t has been somewhat extensively published
in the State, and almost any one can peruse
1t for himself. Among it's provisions We
find only the two following items which bear
upon the issue Of certificates and bills of ex-
change. In the first section appear these
words:
. The said Company, under the above
name and style, are hereby declared capable
in law of dealing in exchanges of all kinds, .
etc.
Section reads as follows
''That the corporation hereby created shall
havefull power and authority 10 invest its
capital and surplus funds in any funded debt,
created, or to be created by or under any
law OF the United States, or any of the
States, IN mortgages on real estate, promls-
sorry notes, bills Of exchange, and on bot
tomry and respondent a, to,sell and transfer,
change and reinyest the same as the Diree-
tors may deem best TO the interest Of the
company, receive deposits, and under such
rules and regulations may be prescribed
by the bv-laws Of said company, to issue
certificates therefor
This Company was formed in Nebraska,
with It's legal headquarters at Omaha City,
nominally for the purpose of transacting a
general Insurance business, and the franehi-
ses granted in the clauses above quoted were
IN their evident intent, Judging from the
prominence which is given TO them, and the
general tone and character Of the act, gran
ted as mere incidental advantages. Now
what are the real facts in the case? IL il
not plain that the whole matter with refer
ence to Insurance was substantially sham,
cover under which other business migh be
prosecuted? The Company was incorporat-
with insurance powers, not for the main pur-
pose Of transacting an Insurance business -
that was mere pretext,- the incidental
franchises furnish the real authority for the
transaction of the principal business of the
Company. Several prominent persons went
over to Nebraska and procured the passage
OF this act, for the simple purpose Of doing
a Wildcat Banking business, principally in
Iowa. That is the plain, honest fact, a. is
too apparent by their operations. According
IL, what have they done Who hears any
thing about their doing a heavy Insurance
business IN Nebraska? Nobody. But they
have just had ream on ream Of Certificates
OF Deposit printed and signed, and have
sent them through all the principal towns Of
Iowa, and are exerting every influence tnev
possess toforce them into circulation That
IS their business, and they have gone ener-
getieally and determinedly to work to accom-
plish it.
Section 273i Of the code Of Iowa IS in
the following words
If any person subscribe 10. or become a
member Of, or be III any way Interested in
any association or company formed for the
purpose Of issuing or putting in circulation
any bill, check, ticket, certificate, promisso-
r. note, or other paper, or the paper Of any
BANK TO circulate a. money in this State. he
shall be punished by Imprisonment in the
county jan not exceeding one year, or bv fine
not more than one thousand dollars"
The three sections immediately succeeding
the above relate To the same matter. were on
acted as this was, eaectually to prohibit the
prosecution Of the Banking business, and are
equally stringent aud severe. Now the same
class OF men who have gotten up this Wild
cat institution IN Nebraska, some Of the self
same individuals, were instrumental in pro
curing the enactment Of these provisions In
tins State; wrote against Banking as u bust
ness 70 be ladieionsly regulated bv law and
useiuly prosecuted, denounced il. and pro-
hiblted e. For what purpose? just with the
design which was charged upon the great mass
OF the leaders when they were engaged in
urging the public mind up to demand the en-
actment OF the provisions above quoted, viz:
g exclude all judiciously -regulated and reli-
able institutions, that they might speculate
upon the necessities of the people, and pluck
anu plumber them AT their will. With inso
lent cffrontery, shameless and contemntn-
Gus disregard of all principle and consisten-
cy' they now proceed to improve the field
which they have prepared for their spceula-
TONS, and utter their dubious and unsecured
certificates wherever they can wedge them
INTO the circulation of the country, and eve
~ red-mouthed, bank-hating Locofoco Editor
IN the State, with one solitary exception, 50
tar as we have noticed as vet. for the son of
lengthy advertisement, commends their ma.
per, the silest and most unsafe species Of cur
fehey ever emitted, as every business house
very well knows, to the confidence and nat