, 1864-01-01

At the first Legislature after the adoption
Of The Constitution, a State Bank Was incor-
| pc1ated, but which never went into opera
ton. In 1891. the charter for what Is famil-
| inrly known Us 1Ac Old State Bank was passed.
Gov Ford, in Ills History of Illinois, de-
ecribcd it as follows: 1t was founded without
money and wholly on the credit Of the State.
| It was authorized to issue one, two, three,
five, ten and twenty dollar notes, IN
the likeness of bank bills, bearing
rayablc by the 6tate In ten years. 4 priuct-
pal bunk Tas established at Vanda,ia, which
Tus at that time the capital OF the State, Nnd
four or fire branches IN other places; tho
Legislature elected all the directors and Off
Gers, a large number Of whom wcrc mcm-
feeeional politicians. The bank was directed
by 1aw to lend its bills to the people to the
amount Of ono huudrcd dollars gu personal
security; and upon the security Of mortga-
res upon land, for greater sum- These bills
Were 10 be receivable IL payment Ct alls;ate sts
and salaries Of public officers; md If u creai-
tor refused to endorse on his execution his
willingness to receive them in payment OF
debt, the debtor could 1epleyy OF stay Its col.
lection fer three years, By giving personal
security.
In lie sumner Of 1891, the new bank went
into operation. Every man who could get
m enGorfe1 borrowed his hundred dollars.
Accordingly, three hundred thousand dollars
Of the new money were soon lent without
much attention tosecu7ity CT care for event
| ual payment. It first fell tn enty live cents,
then 1lfty, and then seventy centa below
, mn, And rs the deprecated bills Of the Ohio
and Kentucky bcnks had driven all othel
money ont Of the State, so this new issue CT
fcctually Kept it out. Such a total ABSENCE
Ras there Of silver coin, TINT It became utter
ly impossible, In the course Of trade, to make
change. The people, from necessity, vert
completed to cut the new bills into pieces, &C
| Ms to make two halves OF dollar. This agalI
further aided to Keep out even the suales
d silver coins, for the people must know thai
good money Is very proud thing, and NIL
Rot circulate, stay OF 60 where bad money !:
treated with Us much respect rs the good
Fer aboat four Eycars there Vas no ott
: ! er kind OF money tnt this nncurrent Stat1
? ? Eans l,per. In the meantime, yery, few per
: SONS pretended to pay their debts t.
: had borrowed money, from the bank consid
: cred what they had gotten from It as 81
: much clear gain. and never intended to pa,
2 It from the first" 1t Ieyo1red upo1 the Leg
h is1aturc elected In 1870 to provide for the re
" dcmp1ion Of this circulation, as tie ten year
ut the end Of which the bills nerc made pay
nble would expire the next SIMMER: II
members Of EQ former legislative body 10
darcd to risk Their popularity bv proyidin
for their redemption b taxation, and th
time hAd IoW conc Wien something mus
be dorc The Legislature deteruiincd t
, borrow s1oo, coo Of Samuel Virgins. Go'
Ford saye tho money was obtained. and tn
notcs Of the bank redeemed, the honor {
e Tic st.tc eaved, but the Legislature va
L d-T5nca tor all time to come The loan wa
b. SO unpo1 r,ar TINT those voting for It we'
~ utterly oTcrpowcrcd by the Indignation I
r, tlIcIr constituents, On Their T., return hom
Z Of rrcai men wns noticeable for great nun
Il hcT Of years. The Virgins loan Was long
>. by-word in the mouths Of the people" Mar
IS aiiected 10 believe that Wiggina had pu
chased the whole State; that the inhabitant
= for generations 10 corno had been made =. oy'
IT. in their sight who had nnythiy to do vi
Y tic loan, This tank charter was subs
ae se qucntly enormously pronounced TO b uaco
Il stitutional By the su1rcme Court of this st:.
In obedience 10 what the Court 6uDposedso