Mineral Point tribune. [volume] (Mineral Point, Wis.) 1854-1858, 1858-01-26
GOVERNORS MESSAGE.
| CONCLUDED.
BANKING LAW.

clent in many important respects, affecting
the security of The bill holder, and needs
most thorough or revision amendment.-
The first duty of the State In AUTHORIZING
issues of bank paper, is TO protect the
public, and see that they suffer no loss.-
All banking history shows tendency. in
practice, to perpetually diminish public
security, either by expulsion of specie,
which bank paper is supposed to repre-
sent, or by the depreciation of State
stocks deposited as collateral to guar
antee final redemption. The banking
system of this State has proved no excep-
ton to the common rule. The trainers of
the law unquestionably designed to guard
against this evil, but the evidence Of re-
cord, showing the practices which have
grown up, conclusively demonstrates that
the original design is failure, and that
security to bill holders, instead of increas-
ing, has constantly diminished, more es-
peclaily with the banks of recent ORIGIN.
The object of the law requiring the de-
posite OF State or United States Stocks.
with the Bank Comptroller, as security
Ior the issue OF bank notes, was a plain
one. these stocks were not TO be regar-
ed as bank capital, strictly speaking bu,
as collateral security, available to the bill
holder only III the emergency that any
bank might fail TO redeem from lis own
funds. Banks were expected to conduct
their business upon their own capital and
give security besides, and such was the
view held and acted upon by the Bank
Department until period quite recent.
During the past year, however, an entire
change seems to have taken place in the
practice of the department in this respect.
so that al this time the stocks or colater-
al deposited, is made to stand for and rep
resent bank capital ITSELF and very large
issues OF bills have been credited and
put INTO circulation upon this hypothesis
IN numerous instances, too, the banks thus
started, with no other know capital than
their collateral security, are located in
places or at points without population, u
known to the people of the State or the
maps, inaccessible, and beyond the reach
OF blll-holders, even when known; ani
frequently the bills appear TO be signed
by fictitious names as officers, by minors
or by persons pecuniariiy Irresponsible
AS necessary consequence In all such
( cases, bill holders cannot demand pay
ment, or on default have their notes pro-
tested or do any act to obtain the money
due them, even from the security which
IS the only real or tangible capital of such
banks. The trainers of our bank law ev-
identity never contemplated the organiza-
ton Of a banking ASSOCIATION and the ennis
sion of bills by it, without the establish
ment of banking house or place of bus
mess, accessible by ordinary means to the
public, open at regular business hours,
and with officers well known to the com
munity in which they reside, and it was,
of consequence, anticipated that persons
having such bank bills, might presen,
them Tor payment at any time, and IN de-
fault of payment have hem protested, SO
tina, they could secure payment by the es-
,ablished legal method. 1t could never
have entered the minds of the trainers of
the law, that bills should 90 into crcu!a-
ton, directly from the Comptrollers Of
flee, without ever going into a bank or
passing over the counter of bank in the
ordinary course of business. | cannot re-
gard such issues in any ather light, than
as a manifest perversloa of the spirit aud
intent OF the law; an evasion of It's terms,
for the purpose of preventing bill-holder>
from obtaining payment Of their dues, and
thus far at least, fraudulent in design
/ Whatever may be SAID of legitimate
banking as an abstract question, or its
benefits as compared with a currency of
coin, ;his practice has certainly rendered
1t impossible. No association, however
desirous, can carry on legitimate and
homes, business on real capital, while such
Institutions as those alluded to are per-
mi,ted to exist. The question is narrow
7 ab
Fraudulent Banking. Both cannot long
exist at the same time, and it is your du-
ty to determine which shall prevail and
whether the interests of the people of
/ Wisconsin in the premises, shall or shall
not be protected. 1t is my earnest wish
tha, the great and growing evil should be
speedily checked and removed, ard 10
proper effort will be spared by my De-
partment to accomplish that result. An
examination as 10 the manner N which
one of that class of banks was started dis
closes facts more or less appreciate 10
all persons, and which cannot in justice
be withei3 here. In the case alluded to
stocks were issued at the Capital of Mis-
souri,, on the 18th dav of December ul..,
and were registered by the Auditor of
that State on the same day. On the 2Sth
of the same month they were registered
at St. Louis, by the President of the Pa
cific Railroad Company; and on the 3lst
of the same month were registered in the
Bank Comptroller's Office Of this State,
as security for the issues of bank notes.
On that day the receipts in the Treasury
of all funds were little over TWO thou
sand dollars, as appears by the books IN
the Treasurer's office. After that date
no business was done, no money received
or disbursed. until the fourth day of the
present month, when the amount of Sl2l,-
| 22i, ,2S, which was in the Treasury on The
3lst Dec, was paid oser by the retiring
Treasurer TO the present ,ncumbent OF