Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1858-02-15

3SOUBoOA0 x60kBs
There 10 Just and universal hostility in
Chicago against Nebraska money. But, in
justice TO several good banks in Nebraska,
We copy the following article from the
Omaha Ne6raskaian
NEBRASKA BANKS.
When the first bank Of Issue was organ
lied in Nebraska. we deprecated it as an
unfortunate event. believing, as we did,
that its ultimate effect would be an injury
To the people. We have always taken the
ground Of opposition to all banks, believing
them at variance with the first principles Of
political economy. Indeed, 30 strong was
the feeling in the Territory, and in the first
Legislative Assembly against banks, that
the party who asked for the first bank char
ter, dare not ask for charter granting EN-
phatic privileges as bank, but effected
effected their object by procuring CHI AFTER
for an insurance company, authorized to re-
ceve deposites, and 'under such regulations
as might be prescribed by the laws Of said
company, to issue certificates therefor. =
Under this clause, the company proceeded
to organize a regular bank of issue, and IN
the smilitude of bank bills, put in c.rcula-
ton certificates Of deposit to a large amount.
| surance) continued from its organization up
TO September last, to enjoy high degree OF
credit, when it burst up and disclosed the
fact that it had done busines. FIR a long
| tina solely on credit its capital stock hav-
ing been withdrawn by its owners. one
bank Of issue having been instituted, 1t be-
came comparatively easy, through the agen-
CIV Of "a weak need Governor, to procure
| n. cf AocnrdiuOIy the
succeeding legislature chartered 1--WE banks;
this was followed last winter by the crea-
ton of two more.
Taking advantage Of general law OF the
Territory in relation to corporations, two
other banks have also been put put IN ope-
ration. This law, however, was repealed
bv the legislature Of last winter, which puts
a uuie,us to any more creations in that di-
rection. Owing to the failures that have
occurred; and consequent general feeling
against the creation of any more banks, no
serious attempt was made in the late legis-
lature which has just expired, to procure
any more charters. 1t may, therefore, be
set down as fixed fact that no more banks
will be created in Nebraska.
Of the above ten banks, three have failed
one is now in failing condition, and one.
|
dissolution, Judging from a recent act OF the
absuuatulating Legislature at Florence by
which it is authorized to suspend for six
months, and without requiring it to have
anv specie in its vault, to issue three dollars
of paper to every one of capital stock. We
allude to the Platte Valley Bank, at Nebras-
ka CITY. One of the before mentioned three
1.-THE Bank Of Fontenelle, at Beilevue) is a
dead cock in the pit, and sleeps the sleep
that knows no waking The Nemaha Val
lev Bank, at Brownville. and the Western
Fire and Marine Insurance Co., ut this place
claim to be only suspended. They shut
down on the holders of their bills and de-
positors in september last and have since
given no signs of vitality at their respective
places Of doing business in Nebraska. We
UNDERSTAND, however, that their currency
has been kept in circulation In Illinois by
certain parties interested in them there
The Bank of Florence has been for some
time in dscredit, although it has continued
to redeem its issues, provided not over nifty
dollars ives offered at time. Its bills have
also been forced iLto circulation in eastern
Iowa. bv the credit of Cook d Sargent OF
Davenport. They are not taken in the Ter
ritory at all, and it may be considered a
defunct institution.
Now. the point We wish to make is this :
Banks, to certain extent, are necessary
eyils. With the views entertained at this
time by the public at large, and especially
by the bushes community, they are likely
to exist in some form or other. AT least
we have them in Nebraska. and it is the
actual state of things existing amongst us
that we have to deal with 1t is, then, OF
the utmost importance to the security OF
the public that every bank which has an
existence in Nebraska should be sound, pos
sess full credit, and be an actually and hav.
the confidence Of the public in the region
, where it is located. 1t should be an unal-
termination on the part Of every Nebraska
ian to discountenance every bank in his
Territory which does not mai good
credit at home. The banks which we have
named above, the Nemaha Valley, Fioreect
and Western Fire and, Marine, have done
more to discredit and throw odum upor
other sound banks in Nebraska than any
thing else could have done except their act
ual suspension. To-day, parties of the hig
est character ard financial responsibility il
Chica 90 dare not touch the currency of Oul
sound banks for fear of raising suspi, Tor
with the public there as to their own sound
. ness, such il the utter want of confidenc,
in all Nebraska banks, occasioned by the
discredited currency of the above named
banks. 1t should be set down as a cardina
, proposition. that bank which does no,
: possess credit at home. should not possess i,
anywhere else. simply because persons Other
than those legally bound to redaem its is
sues, propose to give it foreign credit.
We desire to say here. however, that WI
Of Nebraska are not entirely responsible fol
this state Of things. This kiting has beer
done by parties in Illiuois and Iowa, wht
have no feeling in common with Us, and il
! definance of our wishes. have pursued
course highly injurious to us. and discredit
able to themselves. We, however. hav,
one remedy in our hands. and that is fo
ous bankers and the public to set their faces
: like flint against them here. If the com
munities, also, in Iowa and Illinois, will bu
do the same thing the evil will soon be cor
rectsd. We design TO say more upon thi
subject here after.