Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-01-22

Which are secured by the deposit of pub
lie stocks and specie, to the amount of S.
439 ,576. 95-of which 81 1868, 900 are Missou-
ri 6's, $4,000 Tennessee 6's, and $685., 72O
Illinois 6's. Specie of organized banks,
1924, 1895, ditto closed banks $116,977.
Gov. Bissell of Illinois, in his Message, thus
refers to the Banking sytem of Illinois:
"The banking system of the State is declared to
be, ''in the main, satisfactory" vi six banks
closed during the two years past, five paid the
whole of their paper out of their deposited securl
but trifng The stocks deposited with the Audi
tor by tie banks are estimated to be of the market
value of $6,74O,745, while the CT culatlon of these
banks is S6,2O5, 1922"
The Superintendent Of the Bank Depart
ment of New York speaks with like favor Of
the free banking system of that State:
"The suspension and resumption of specie pay
ments by the banks of the State, in 1857, with the
surrounding circumstances, have simply brought
out into bold relief the perfection of our free bank
system in its connection with our currency.
The retirement of 81 800 900 of the circulation of
the interior banks accumulated in the City of New
York within the time specified by the resolution of
the Clearing House of the 18th November, 1857,
with an occasional exception for an insignificant
diuOuHL SLICE pdiu) cledTIy SuoWS tudt tney "ciC
not only strong in capital but that their ability to
quidate that debt was only equaled by their desire
to enter upon course of policy that must produce
a speedy resumption of specie payments, clearly
foreshadowed by the passage of the resolution re-
ferred to-"
But five associations have been formed during
the past fiscal year, for the purpose of pursuing
the business of banking; and of these is the con-
tnuation of an incorporated bank whose charter
expired January l, 1858.
The actual increase of capital during the year
by the formation of new institutions, is $4,000.
Still more marked is the fact that no individual
banker has commenced business during the past
year. In connection with the unusual dearth of
new banks and the small amount of capital en-
ployed by them, comes the astonishing fact that
while the actual increase of capital by the fOrma-
ton of new banks has been only $l50, 900, there
has been added to the banking capital of the State
the sum of g., 48S, 891.
One Of the causes which tended to produce the
suspension of 1857, the Superintendent believes,
and so stated in his report of that year. was the
multiplicity of banks of small capitals Still, he
believes the bank capital of the State smaller than
is required by the usual business of our citizens
Their relief cannot be looked for in the multiple
cation of small banks, but in raising the capitals
of those already in existence, when located in pla
ces where increasing business warrants additional
bank facilities.
The present condition and amount of the secu-
rites held by this department, for the redemption
of the currency of the free banks of this State,
give renewed and strong indication of the stability
of its currency.
The total amount of securities held by
this de partment on the Both OF septem.
ber 1857, $50, 203, 6S2 OF
Amount held on the 8Oth of September,
1907 ....................-. $1,000 |o'oso,V9o 90