, 1875-01-11

1t is time that the Illinois Leci8Jatuyo
should pass law which will carry out the
constitutional provisions relativo to private
banks organized under special charters. The
tailure to do so up to this timo may be par
tially excused by the laborious and tedious
work of revising the whole statutes which
has occupied our law-mak,,rs but this OK
cuse will Serve no longer, as tho revision work
is completed. Ihefo iR 10 subjeet, next to
the General Revenue hw, Of 80 much i'm
portance to the people of this State and
now that Gov. BEvER1p ls has called special
attention to it in his N essage, the duty Of tho
Legislature should 6u ygest m immediate con-
sideration thereof. 1 10 Governors suggestion
Is In general terms leaving tho Legislature
to nct freely toward. tho end OF aGordinR tn
adequate protec6e n for depositors in private
banking lnstitutlU as The great bulk Of these
IS made up Of savings banks, or general
banks with sati 1873 departments. They re-
ceive tho gre1&s r proportion Of their deposits
from the mid lle or poorer classes, frem
mechanics, Gu ,rks, laborers, widows, minors,
etc. The clnd Of depositors in savings banks
are. o{ all OF aers, the least abls to protect
themselves. or stand the loss Of their money,
or to Jue1ef, OF the safeguards provided for their
proteetdesl. We presume that niae-senths OF
all the d positors in savings banks, unfamiliar
with tn, lava Of the Steto, fully believe that
thesfs Institutions aro watched by tho State
authorities, and that every reasona-
bic, precaution against swindling is
proviled by Inv. The fact is that
thay are utterly irresponsible, except as to
tho integrity and business ssgacity of the
msu who mny manage tho1u. They do busi-
ness in most aaaes under special charters,
which were prepared by their own attorneys
with special reference TO limitation Of Iia~
bilitics and other individual advantages, aud
they arc uudt,r no official restraint and sub
ject to no official examinations or surveil-
lance.
Thero a.r, two provisions Of tho Constitu-
tion of 1875 which apply directly to these in
Rtstutions. Ono Of them {Sec. 2, Art. XII
provides shat "Ali existing charters, or grants
Of special or exclusive privileges, under
which organization ahau not hnvo taken
place, q: which shall not have been In opera
ton within ten days from tho time this
Con:hitution takes effect, shall thereafter
have no validity or effect whatever" The
intention Of this provision was to wipe out all
the Speculative charters which had boen rro-
cured. on speculation to sell to my person IN
nocd OF q specjal-pEiyilegs charter after the
constitutional prohibition of special lesisla-
ton. Yet it is evident, from tho number of
ban king institutions that have sprung into
| existence since the adoption Of the present
| Constitution, in 1870, that these old and de-
fsnct charters are revived In positive violn-
lion Of law. Nothing ia easier to do than Or
| ganize under ono Of these, since there is no
! legal direction to the State authorities to
examine into the organizations, and no way
| Of finding out whether the charter had real
life or not, or what IL being done under 1t.
! Sec, 7 Of tho snms article Of the Constitn-
ton, after prohibiting tho suspension Of spe-
cie.pay7nents On the circulation Of my banks
created by the State, provides that Is Every
banking association now, or which may here
after BE- organized under tho iaws of this
State, shall make and publish full and aceu-
| rate quarterly ststeinent qf its Affairs (which
shall be certified to under oath by ono or
moro Of Its ofdners), a. .xsy b 4,rocIial ly
law." But no Inv has been provided to this
end. Some Of the savings and other private
banks voluntarily make statements Of their
affnirs, and pub lish them as advertisements
Of their busineas. But thors II no obligation
on them to do 1t, and there ia no means OF
| knowing whether the statements represent
| tho actual condition Of tho bank or are
F" cooked" up in such manner a. TO deceive
| the public.
The legislation required should cover both
these points. The law should confer upon
the stata Auditor tho power, and make it his
duty, To exs1line into the affairs Of any bank
ing institution doing business under a special
charter or asste law At any tima he may deem
It necessary, and to ascertain whether the
charter wss valid 1t the adoption Of the Con.
| sHtskleA II 1efA n - snrA - 1er