, 1879-04-27
IIILINOIS BANKS.
What Legally Constitutes One in
- This State.
If Il Issue No Notes Its Charter L
t1ood if Earlier than 1870.
The Last Constitution Prohibits Any
Charters without Vote Of :
the People.


| r.o,.+or,+ necfsior, bv JUDGE
ALI A4AApoA ee~@As ~
g. Jameson.
,.....
| 74,.o. 1ouoeoo vesterdav morning. decided the
| ouese '.ass s a,.a ~ +he International Bank vs.
very important c"se " tAe '",.. ~ aroa+;nn
Elliott Anthony and others, involving the 4ucs1lon
~ the eonstitutionaity OF a bank charters granted
to nanks nndor the law OF 1s4s This was suit
on an appeai oonu. ouesns ~, ~, . ". d.
| 0, 1875. against Anthony toT 81. anu WIG ue
l. cisfon was affirmed By the Appellate Court. Suit
w.. tha-, hoonn nm the annenl bond against
wa. saoa s e. s,,ra.;s. u Foss and John A.
An'hohS anu nta euAo.eo. 49, - .a..t. cI,5 r6ur
Loma1. IN feoruaF5 !nst 1ns ~.
p'eas sef1hcu " ~ "lne~ tsa, +hn hanL ,vna
tally the came facts namely tna1 Ing oann "ao
| not q corporation 4 motion was made 10 slflxe
this affidavit from the files as insufficient and for
Judgment by default under the statute for want Of
hatMsr M tha on;1avit se, mn s1,fficent defcnec II
tn ~ ts 49, ~ ;ncnrnn1a,ion ~ the Irterua-
and That i,ose 1s,; T. 1sss sfs IL IL
direct vloaon o. sne et. ,sere + The udgc
AZ sso ~ ~ 4,xn nraIjm,narr nhiectinns first that
utse Pasasu ~ 49, a.ta,ns3 f1nnn raising auch
onest;en ne rhc nIincine Vas we'll settled that
When psrsons lad aealt with others holding them
selves out Us possessed Of corporate powers. nnd
not M heora m .dcnv The CORPORATE character
tn no1 defcat navment Of their lust debt. The
NO
athn ~ " snrn cornnraton and The Stats
hnea envavsn env noars II inysded The only ey-
denee ] Necessity in such case to sustain tha cor
,hn5e tus su nstonne1 When The
IT, @ tan a. ~ ha+n th;rd ncrsnn mt stock
older. l % and the corporation md the question Of
" rnn Has M ~, ,n nnfhot,tv m tho no;ut
Mh.rs tns earnnnnI was enTorced against stock
h'5- '4 4, sorwgl,t nnAar rntcr of the con.ttn-
WIZ rhnrtnr nrocnred and nyaed Of by
hs,sa1c for h;s nwr nrnIt tn defiant suit brought
- m snrn hia eornorare iiah,l5ty The oher oucg-
ian Of The estoppci on the appeal bond was not
TO n ne fn n pr main one,on raised
- t - ~ M ~ the constitutinna]izY Of the char-
ter and gave -.-.--- =
THE Fol1o"1Se oflNios:
What then Is the law by which this motion is to
be decided? II consists OF the OF Incorporation
OF charter OF the bank passed March z, 1857. md
OF those sections Of the Constitution Of 1913 which
mnch need be said in respect to the former. 1t
authorizes the exercise Of ali the ordinary powers
Of banking institutions except that OF Issuing bills
tn circu|Afe ns money! The parts OF the Constitu-
ton are Secs, g. l. and 5, Art. 10 Of the Constita-
ton Of l84S relating to State and other banks
t.spcTTor3 Ma state hank shalt hereafter be
created. nor shah the state own. or be lfa-
bic FOR any stocaz in anY corporation or
10 he hereafter created," -
stsEc. T. The stockholders in every corporation
or joint stock association for banking purposes
ciTcnstc o.a1 AZ monsr snail be- iuydunily respon
sibie to the amount Of their respective share or
debts debts and liabilities Of every snd.'' '~' '&1
t.sEr. :. No act Of the Geuerai Assembly au-
tholizing cofporations associations with nankpg
fnrce unless tie sane shall be submitted TO the
ncnu}e Ut The general election next succeeding the
passage Of the same, ctc.''
b 70 e as onnns o. 81 s' 1s
for stuck in nny institution tereunder created for
hanIing nnrn1ses. Both we're absoiute1y forbid
1en' pH'pS'' N''l N'''~''
Sec / provides for the individual liability of the
ciatiops for banking purposes, Issuing bank notes
OF any kind Of pauef credits to circulate as money,
sPPa;ent;y s.ag!s species @ of @ sas ssnas 5aaEs;
nlicabie onIy to banks of issue. N'
Sec. provides that, no act Of Assembly author
ling or aess m ibs
neone. This anpearu in It's terms to amply to ali
sorts Of banks-to the whole genus-whcthcr banks
Of deposit, Of discount, or Of circulation II there
is anT ambiguity in these provisions it is latent
onsdiscoverable and removable only By extrnsIc
every tair MUD would conclude that no bank
whatever could be cteated after 1913 but bY vote
reaa in the licht Of ono fact in The financial history
Of Illinos it seems that there must be some such
ambiguity That fact ia that within three years
afterihe Consriution OF 1873 went into effcri as-
sociations with banking powers except TINT Of
issuing bills, nesan TO 6e created bT t6e General
Asscmby without submitting theif charters to tbs
people. that ecores OF them hare been in fnll opcr
ation from that to nearly the present time.
anil that It is only two Years or 40
TINT a. question; has neea raised as to
Iae!e vahus1 ut inaae ~ tns, 50 la1 as
hnuM - t e.s ;t, " H. misses Mnethe1
@ ny ~ a. ] ~ ~ m ~ requ.Ieu y
neS' " 9e tu.ea ~ y .Io psople hle nos mslely
tas assos.ae'on5 aof 'anhe pusPoses Issu1n3
9ank uutes' u ~ fse. = attts sl'sntls Cnangea
- lucy IT. '1e same associations
iusM ln1s ena'tei - '"o' II saes 4se o1he1en1' II
Is no.. A..
Accotu'nglJ, m On tne PIT oI aeienoants u Is
esa ;d 1nas are nol tne same anu + Is lsny
saia tnat .nese @ a1s noW uivefs k1nas OF oanSlns
powers Of aisGonnt1ng commercial paper
inat u Fecsslns anG paElng OUT
aepossits, op,si anu lhat OF utter1ng paper to
bar a and ntar ,-t nas M come oanks
nave VI ano oIaeIs on'5 palt Q. tnose powers; IN
otner WORDS, tnat me power Of Issuing Oils fo1
nt M atI - poss;ssGu oy sone oanks ana
n"t ~ 1thets .ha. % anls t9s inference seems
!astneu tn.ae me drsmets .. tne tonstitntlon ~
" LII Ihe e1etc'se OF any oanklns
isa poMie " tnas VI reeelslng ac
pos.!s o1 aiscount'ns no!es or OF issuing bills to