, 1861-06-24
ILLINOIS BANKS.
IMPORTANT REP0RTtt0F. THK
BANK COMMISSIONERS.
Twenty-Five Banks: Under Call.
CENTRAL BKDEMPTfoE REQUIRED.


:
Ing Law Of thls Stats, passed February 15,
1851, It ID provided that sny person, OF assocf:
otlon Of persons, formed for the purpose OF
banking, under the provisions Of that act, shall
l4wfu1Y t1ufer to, and: deposlt With the Au-
ditor, my portion Of ths Rahlls stoeks issued
state stocks on which hnlr Interest Is aunn-
aIlv, Maid or the etocks Of this stats.
The latter stocks 10 be valued at rate
Of twenty per ceatum less In value than
the market value Of such stocks, to BIZ
estimated ana governed. d.as Y re average sg
sold in the city Of New York, within the pre-.
vious six months preceding the time when
the stocks msy belet On deposit With the An,
ditor such person or association Of ptrBoNt
ehal1 be entitled to receive from the Audltoran
equal amount Of such circulating notes, o!
and | : eonntersigned But tie Auditor
could in no caso 1ssue' bills for bank:
Ing. purposes, On bonds Of this OF
any other State on. which less than six
per cant was not regularly paid unless there
Tas depoaited with Fin at least two dollars in
bonds exclusive Of the interest for every dol,
lar in bills 30 Issued and IN no instance could
atock be received BY the auditor at rate above
the market value ut the time Of deposit BY
sajd banker or association.
:. On the l4fh of February; 1857, this part oi
The law OF 1851 ,was 10 amended (sec. q thtt
all stocks Of the United states, and Of the sew:
eral States, on which interest WIS regularly
paid including the stocks Of this State dspos'
tied with the Treasurer under the provisions
Of that act, should be valued at the rate Of tn
per cent. zess than the market price Of stocks
to be estimated a. provided In said law.
Section 1, Of the Act OF February IA, 1861
provides that the stocks which banks now oi
Hereafter to bs organized under the General
Banking law Of this state, shsn hereafter de.
posit With the Auditor, as security for circu.
1atiug notes to be b1ued thereon, SHAH be
stocks OF the State Of. Illinois and no others :
and It shall be lawful for the Auditor to re-.
ceiye such stocks at their par value.
These laws, togethe1 With the individual lia~
bllity Of stockholders b provided In our Con
stitntion, were intended to afford ample pro.
lection to bill holders for the REDEMPTION OF
the.circulating notes Of banks created under
them, and until the late political troubles
Of our country, such has been the effect
Of their operation. The principle upon
which they are. based has until 1afelY
proved safe ona to our people, aud
notwithstanding preaent excitement and pub
growing out Of evasious of its spirit, We still
believe the principle Of stock security is emf.
nently sound and practicable. Until the act
of 1861, there has been no provision TINT a
bank should hnyo = habitdtion aa well as nan,e.
and It is believed that this defect or omission
in our LAWS has been the original source Of
much Of tho present trouble.
In addition to these provisions of law In
relation to the character Of securities sohea
the ssme has been or may be deposi-
ted for circulating notes, tie Bank Com
mfssiouers (sectioR a, of act OF l851.
and nov in force), are charged with
the, duty Of examining the se.
curines, and when from such examination
they ASCERTAIN that the Same or any part
thereof has been lost, destroyed, or lmprop-
erly Withdrawn, or from my cause become
1essened In value or insufficient as security fo1
the redemption Of the circulation, to notifT tha
officers Of such bankH Of such facts and require
the transfer Of other securities Or the surren-
to tho Auditor, to be burned; sufficient
amount Of circulating notes to reduce tho liz
bllity OF such bank to such sum a. that the
securities IN the possession pf the Trlasurer
will be sufficient for the redemption Of aIl bills
not 60 surrendered.
The duly thus enjoined upon. the Bank
Commisstonere Is, in times like the present.
one. Of great difficulty and Of graVo response.
bility: SINCE the organization Of the present
Board the Stock market has been constantly
anctuating, but the general tendency has been
downward The stock OF some Of Tie ststes
on deposit with the Treasurer have moi heen
IN market and therefore 1t has been impossi.
bic to determine their market value,
The Legislature at its last regular session.
*S"oseAs k~A44Pu!A ~ IeuetEu us N0da part
Of the responsibility By relieving the Banks
from liquidation for failure to redeem theIr
issues or complying with q call Of the Rank
Commissioners, until the 14.h OF August naxt.
Since the passage Of the act Of Feb, Il. 1861.
the effect Of not complying with call Of the
Bank Commissioners, on the part Of the banka
ia that the securities Were liable to .be With
drawn by the bill holder. Prior to that Fine.
the banks not answering to such calls were
liable to liquidation.
Since the expiration. Of tbs sfxty days men
toned in the 5.h section Of That sct, va have
given the subject Of calling upon banks. our
mort careful and anxious consideration. The
stock market has been unreliablo as d basis Ia
estimate upon. 0nr State officers on tho frat
Of next month, have advertised for. sale of
our war bonds, in the sale Of which every citi-
zen Of Illinois has pride mid personal In
terest, and We are disinclined to take any gtcp
tbat might lead to throwing upon the market
the whole OF our bauk Securities to break
down the market and result In additional loss
TO every interest In the State. Influenced bY
these considerations, aud Jet anxious to do
our duty "a best We could, we postponed
action from the 18th Of April until the 2Ith
of May. ~-''
Another reason for this apparent delay con.
sisted in the fact that bill holders had then. "a
; they have now, the right to protest the bills
and withdraw their portion Of the securities,
go that they were not remedl1ess On accounf
Of no calls during that ttme being made.
On the 2Ath Of May the clrculsiion aud &C.
curities Of the banks Of thta State, with tho
exception Of forty banks hereinafter mention.
ed, rs appears from the books In the Auditors
Office, were IS follows:
American Exchange Bank. Raleigh.
81, 600 Missouri 6s,
1900 Virginia IS.