, 1874-03-07
Experience Of tho State of
Illinois.
The Financial panics Of 1920, 1887,
1857, and 1878.
Some Objections to "Free"Danking -.
Tic Millionaire Inaationists.

homo articles WAS pormhnont, and those became
tho circulating medium: tho currency OF tho
eountry. Tho skins OF deer and raccoonB were
naea as money. and hnancial nastora wero
p1aced On firm buckskn baala.
Aftor tho Var Of 1919, when tho soldiers TO-
eeivcd thoir pay
MONEY BECAME PLENTY,
md a dostro for speculation was encouraged
Tho higher prices roso, tho higher It waa
thought thoy wore about to riso. Tho oxpeota-
lions Of tho people wore stimulated not only by
Tho volume Of tho currency, but by the hope Of
Immigration. They togan overywero to 1ay of
tracts Of country into town-lots and tho stakes
which marked tho corners rcmainod for many
years. ho1ittlo reminders Of tho prevailing folly.
In "Qazottoor OF Illinois for 1928 "eppoars tho
following item:
Independence: 4 town In nona County. Tho town
10 laid out on very extensive scale but no improve
anenB hRvo rs yet BEEN Hlne on tho ground. 1t only
exats paper, mud constitutes part Of tho speculate
lug medium Of tic State
The nnturaI result of an inaatcd currency and
speculative prices came III 1920, whom tho banks
broke and tho people were deeply involved in
debt. DNt from tho wrock OF brokou banka and
blnsted fortunes camo cry for
MORE MONEY.
Illinois had boon State only few years. but
demagogucH woro plenty. In 1891 the Leglsla-
lure created State Dank, using tho credit OF
the state and the hope Of tho people for capital,
md SOLICITING for officers and managers tho most
active politicians. Tho principal bank waa at
Vandalia tho branches wero distributed among
tho various towns whero politicians woro most
active. Tho bank~bilis boro 2 por cent interest,
and woro rodeomabo at tho and of ton years.
These bills were lent, i'll Sums Of :3100, to all who
could give personal security. AB tho people
1,u1 all len
,nonoy they wanted. 1lliaois wnB thon q tlnan-
cinl paradise. THE Millennium Of ready cash
Lad co'no' aud people pie, lad ...;.,u,.v
But this financial glory W2A only diDeolvinE
Wow, for tho State Bank paper deprecated, and
became worth only 25 cents on tho dollar and
poople wero no hotter off tllan before. Tho
bank WAS a political establishment. and, like
many other political establishments, its manago-
snont bccane corrupt. In 1896, at tho instance
Of Gov. Edwards, n committee was appointed to
t,nenrth tho corruption. Tho Committee began
us work, but tho banl managers worked against
it, writer tays Of tue investigation "And
now comnlonccd such . running to and fro about
tho Sent Of Government by day and by night as
cali only bo equaed by swarm Of beos wIrou
rudc!v attacked in tllcir hive. Tie Governor
was opouiy and boldly charged with haso mo-
tivcB,'' DC. The Investigation came to nothing,
aud tho charges wore reported not sustained.
Such nro tho results when tho Government nn-
daltakas TO manage the fnnnceB Of the country.
The staso Bank became utterly broken part
OF tue notes wore received for taxes, and . part
woro funded at per ceut interest. The 6tnte
lost IN the operation about s400 000,-a con-
siderable Sum when tho sparse population
OF that time iB takon into account. The people
woraod themselves out Of their financial difflcui-
tics by
ECONOMY AND HARD LABOR.
!hla is rather MI unpopular mud unpleasant way,
but mysterious Providence las thus far fur
pishod lo other.
Tho ycar 1884 found the people of illinois
happy and prosperous. From that time until
1887, immigrants canlo iu multtudcs by steam-
goatBt with ox-toams, On horseback, or on foot.
ln the timo Of advcraity, the peoplo had chilled
On tho Government for assistance, but had
found thnt nol,e could bo givon. Nevertheless,
hy some atsnnge reasoning, thoy thought that
when they werc proBperouH, the Government
Etato again went into tho banking bu1huess,
One OF tho old State Bnnks WAS reyivcd, aud a
new one Was started. III order To circuiato the
money, it was provided that it could DO loaned
ca real estate to all amount not exceeding 5O por
cont Of the appraised vauo. Ibis opened sho
way for kharperH. great uhany people Ind {
their land appraised by friends ut higl 1igurcH,
ad obtained loans OIL these fictitious appraisals.
Old awamp-laud which was hardly worth the tar
intended to ropay. Lnige SUMS were borrowed |
ior speculative purposes by paraonB conunctcd
with tho management OF the bank aud in q very
BAort time it lost million OF dollars.
The country would havo be,on flooded with
money without tho creation Of State BanEB, for
Con- Jacksous Administration Ind encouraged |
bGnkoia to discount liborally. Tile m.nenae
y t1itno OF currency stimulated speculation and
people
BECAME NEARLY dH AZY
with Excitement when they obse rived the rising
galnea.. From 1884 to 1887, tho,' engaged in the
1t asgo o eqsre Intp se Is a2d
to give an idea Of tis period Of frantic spocula-
t1on. 1t is o. fact that, in ;some instances
gamblers lott their cards and die laid out little
Legislature Of 1886 fully ropreaemted tho crazy
idea Of tho poriol, and tho mind OF the mem
bcrs wore unsettled by the jmm enso volume of
currency Sums Of money amor lntipg to millions
Of dollara seomcl more triIo =. They passed
rlsora and the construction Of ai1roadH, requir-
ing disbursement of nearly S 900, 600, which
wns more than s4o apiece for every man,
woman, and child IN the State. Not all Of this
to to borrow it.. Eyerything WAS commenced, but
little was 1niahed.
Az rosnlt OF
=. THIS PNI1TrFuL Exrn4 tvA1ANcE,
tho state contracted q dobt of 14,900. 600, aud
Maa ~. only stopped from going further by the for
tunate panic Of 1887. It wa, q matter ct re-
@ Rso: tnat ~ the panic WIZ dolayo so long and tho
patou @ 2! speculation md papa r.ina!ion exteud-
trayaganco which occasouei IL, The banks uni
VERBALLY suspended, mud thoi, worthless papar
Woaid purchase little or nothing. It is not ncc-
eEhary to FaSiew the struggles and discussions
wltGh followsa in the Lssa turo which ito
not create Yalue nor aford re- Lief oxcops by set
tlni; gu example Of economy. The Etato was
brought by the panct to thc vor GO OF population.
but was hApplly saved from tim dospprate course.
some - ,dca Of Tue feartul dst1 ess may be gained
from tho fact that many Of tho farmers Of lhe IN
tosior brought thosr pork to The Chicago market,
aud, after paying the expense OF bringing It, hpd
remaining only Il OF a cent L,or pou,,d. Anc1
AFRO tho fesn!ta which spring from m intiatod
cllrreucy aud reckloss speculation. Tic noon)o
dA! The only thing for roof tlsoy could do;
WORKED HARD AND spE.1T L1rTLE
md their financial condition slowly improved.
Gold aud nilyrr beca.,e the Gu rrouoy, and yaluos
were adjusted accordingly. 'Goouo,lty aud labor
brought proaparity. and tho fertile soil OF llli-
nU'a attracted im1nigranta.
IN 1861, tile Banlit,g law .of Illinois wont into
eject, and bAnkerH who deE osited State stocks
with the Auditor were allo' rcd TO iaaua THAR
lotoa for tho narket-yaluo ol the stocks of all
slates except llllnots. a IN asgin OF 20 per cent
TGs required OH tue marAl st-value Of Iliuoia
ttoek. Tho volume OF Gun enoY waa it}efupsod
by this l1anking Inv, woll by tho wealth ut.
iraeted BY immigration. Tho building OF tho
II3uk-3 p