, 1864-01-01


Our Lore, 60 rich and rare.
Dec. 81. 1858. Il.
The HISTORY or BANKING IN ILL
RUiS.
Address Delivered by Hon: =. Young
1or1ea1 sofiety, at t.e 81 Hi=hth annual
LADIES AxD GESTLEMES: i somewhat I'd
markable character in the carly history Of
Illinois, il reported to hare said that history
Was of three kinds, "The fabulous, the non
fabulous, ard the unknown ages" do not
propose to 60 quite SO far back as the third
division, hut shall confne my remarks to the
second period, though, unless it be true that
history is philosophy teaching by example, 1t
Is ditticult to conceive that the condition of
the statc might not have been better, If there
he'd been no such history to be written.
for this evening, the History Of Banking in
the state Of Illinois. It is not my purpose
to 20 into fery minute or particular State
ments, but rather to show the general cur
rent Of cvents. If in so doing | shall draw
a picture which Is neither creditab1e to our
legislation nor aattering to the Intelligence
or honesty Of the people, the fault Of por-
trsyal alone will be mine. The stubborn
facts arc no creatures Of my fancy.
TIE STATE BANK PERIOD.
The subject naturally divides itself into
two periods, which, for want Of other desig-
nations, will call the State Bank and the
Wild Bank period. The first embraces tho
time from the organization Of the State gov
cgnment in 1878, down TO the repeal Of the
charters Of the Old Bank Of Illinois, at Shaw
ncetown, and that Of tho State Bank of ILL
nois, at Springfield.
TIE WILD DASk PERIOD.
The letter commences with the Illegal
issues of the Wisconsin Marine and Fire In
surance Company and follows down the pre-
Options scale Of ilIegitImats Issues, I1um1ned
with only here and there bright example Of
commercial insanity. This period, including
the last twenty years, is probably too recent
to be admitted Into tie legitimate pale Of his
torr. merely allude to 1t, not Intendin. to
make it any considerable part Of my essay.
COMMENCEMENT OF TIE BASK SYSTEM.
The state Of Illinois was admitted into the
Union in 1876 It's constitution provided
That there should be no other banl1s or
monied Institutions in this State but those
and it's branches, which might be established
ard regulated by the General Assembly Of the
State os they might think proper.
Previous 10 the adoption Of the Constitu.
tion, the Territorial Legislature had, In 1876
| II. created the Banl Of Illinois 1T Shawnee
| town, the Bank Of Edwarasville at Edwards
yfuc, in Madison county, and the Bank o'
| Cairo, The Inst named Institution being To-
Gated ut what was then prophceled to be ths
| future great interior capital Of tie country,
| at the Junction OF tic Ohio and Mississippi
Rivers, where the famous city now stand:
which borrowed its name from tho capital O.
Egypt
TIE nAkK OF EDwARDsvM1E.
The Bank of Edwardsville fell into tht
has always had very sorry remembrance
selI~styled Eastern Capitalists. Their capita
consisted chiefly in their brazen efIronter1
and pretension, although they had the ability
to obtain from Mr. Crawford, Secretary Of tht
Treasury Of the United States, the deposits
OF the public moneys. which turned ont tt
be very permanent 60 fhr rs the Government
vas concerned; s54 600 having been deposit
cd with its officers, but no return therefor
ever made to the United States. This iusti
tfon hed very short life It expired In 1920
Its cntire capital and circulation were lost
TILE BAS1 OF ILLINOIS.
Tie Bank Of Illinois was more fortunate
In its earlier history. Its stockholders vert
good, responsible men, and at its head
Ehavncctown, Of unqucstioaed lnancia
ability and lr1npcss. This Institution was
well managed, but did very moderate bust
mess until 1885, when Its capital was increased
and lis charter. extended, the State subse
qucntly taAiug, part Of its capital. I
places, among these, Pckin, Lawrencebuzg
and Jacksonville 1t seemed to do pros
| porous business for seycs1l years, but In III
end became, Gs all other banking Institution
Of actual capital in this State have become,
prey to large operators and the disasters c
the times.
TIE nASE or CAIRO.
The Bunk Of Cairo was harmless during 1t
lender years. Though chartered in 1611,
showed no signs Of vitality Until 1885, wtc
1t GTokc from its glumberG, under the stint
1us given to State Banking BY Nr. Woodbury.
tue then Secretary Of tho Treasury, In ordc
to supply the place Of the United Suites Ban
should cease to exist. It's issues were neve
well received By the public, and in the cours
o:a rear or two, the corporation disappeared
leaving its orphan issue to the cold cha,itie
OF the public -unWept, uahouored, and VI
| sung.
There vas q charter for bank at Kaska
kia, the original capital Of the State, but til
the war Of 1872, general el1ort was made
| the West to create money BY charterin
bapl:s. Previous to this time only thru
! bauks he'd existed in Ohio-thc Miami E.
porting Company ut Cincinnati, the Bank I
Marietta, and the Bank at Chillicothe-
IN 1916, twelve new banks were charteTc
in Ohio, and about fifty in Kentucky.
! IN bcih their Lirlhs and deaths they erince
| a becoming Eense OF their democratic eaua
ity. Howrrer ambitious 1l.eir parents mt
have beer, tic offspring never showed an
! Indications Of being public benefaetors. The
| Iiycs were short and painful, and their depar
rre alite distressing 10 their stockholders an
lie public The losses sustained BY these il
dependent bunks, which had circulated freel
in TIC Territory Of Illinois, indnced the men
hers Of the Convention for forming the fir
| Constitution of this State to prohibit the cr
. | alton OF any other institution for issuing
paper currency than State Bank vii
branches.
STATE RAEK
At The first Legislature after the adoptie