The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1892-10-12

neutrality-suspicious. sherman Neoouht'
Republican Achievements.
The Evils of Wild cat Money Illustrated
by Mr.. Camp, OF Milwaukee.
In August, 1879, IL. III. Camp. then
cashier of the First National Bank at Mil.
waukce. and now its president, delivered
an address on the history or Western
banking before the American Bankers
Association at Saratoga, n. Y. There was
no political significance connected WIN
the address at that time. but IN this cam
paign, when the Democratic party Is seek
ing TO revive the old wildcat banking sys-
TEN, il will be profitable to recall some OF
Mr. Camp's statements In regard 10 the
disastrous results OF that system OF HOOD
ing the states with irredecmablc paper
money The substance of the address Is as
follows:
The first era commencing in the differ
ent states at the different dates when cnar-
tiers were granted by the several leglsla-
lures for the various kinds OF banks ana
banking institutions: whereby either non
est men placed their capital at the service
OF commerce and the development OF all
interests i'm their several localities, or for
schemcrS and spectators who procured
legislation 10 enable them TO establish
credit upon an insecure basis. The west
ern states | shall refer TO III connection
a.
kentucky, Missouri. Michigan, Wisconsin,
Iowa and Minnesota. In some OF these
states this era was ended between 1900 and
1855; the second era began III ISo2, ana
covers the entire history OF free state
banking up TO 1851. Within the dates thus
named Indiana. Illinois and Wisconsin
had Hooded their own states and had DIS
turbed the finances of the entire West with
the issues of their Tree banks, ana il is not
improbable that but for the collapse in the
value of state stocks upon the security or
which most of the notes had been issued
many of the other states named would
have been involved III more or less SIM
liar evil.
The free banking law of Illinois was
very favorable TO adventures and Wild
cat banking the bonds OF all states paying
per cent. interest were received at par
for circulation. In July, 1857, there were
fOrty-tve banks with a circulation OF
$6,b35,000 and the organization OF these IN
sttutlonS went on until 1861. when Sl3,-
100000 OF this class of sO-called paper
money had been put in circulation, and
then the fatal collapse came.
The bankers of Chicago and other large
towns in the state often met to confer ON
the difficulties Of their situation, and sim
liar meetings were held IN other states sim
ilarly afflicted: resolutions and agree
mentS wtre formulated, lists were made
out of good, bad, and worse, ana SO
the work went on until the disastrous end
came. The auditor OF the state sold out
some Sl4, 0OO. 000 to 5000 900 of state stock
TO redeem S13, 100000 of circulation issued
by these banks with the following result
Ninety-three banks were wound up.
The notes OF were redeemed at par;
The notes of were redeemed at from 90 to
70 per cent.
The notes of were redeemed at from 80 to
w per cent.
The notes Of II were redeemed at from 20 to
~ per cent.
The notes OF - were redeemed at from GO to
40 per cent.
The notes OF 81 were redeemed at from 80 to
90 per cent
The notes OF were redeemed at 40 per cent.
The history or wildcat banking in Wis
consn is short. Here 1 can stand on firm
Ell ground for since the era Of free state
banking in the Northwest my professional
experience and "reminiscences supply me
with better material, and fear l may 90
farther into the details OF Wisconsin bank
ing than will be interesting. In the early
territorial existence of Wisconsin there
were few banks organized, but their eX-
istencc was ephemeral, and the panic of
1887 swept them away. The territory and
the Northwest mad few people and little
money. Emigrants from all the states
and countries beyond the sea brought
their small boards of money, which were
quickly gathered and sent eastward to
purchase the 1t cessaries of civilized life,
and there really seemed Il greater want of
a local circulating medium than for money
itself.
AS carly as 1851 conventions of bankers
were held III Milwaukee, to consider the
currency evil. In 1858 the bankers OF
Chicago refused to receive the issues of
twenty-seven Wisconsin banks, many of
which had no local habiation but had
simply the name OF some winter lumber
camping place high up in the tributaries
of the Wisconsin o. Chippewa rivers.
Milwaukee had returned the compliment
by refusing q line of Illinois currency of
the same character. The representatives
of tiity-Seven banks signed an agreement
which was published in the neWSpapc IS,
saying OF the list of seventy banks named
al detail that they believed them secure.
and that they would continue to receive and
pay out their notes until December |. 1861,
when an act of the legislature would 90
into effect requiring a better redemption
of the currency of the state. The largest
banking houses in Milwaukee, with one
exception. signed the paper. As might
have been expected, the tendency OF this
currency was to the business centcrs and
soon the burden became too great for Mil
waukee 10 bear. On Saturday, June %.
the banks which had agreed TO take GER
tain issues until December | published Il
card refusing TO receive ten of the number
from and after that date.
On the following Monday a mob gath
cred in the manufacturing portion of the
city, chiefly Germans and Scandinayians.
of probably 1000 or more persons. They
marched deliberately to the vicinity of two
of the largest banks and beg III their work
of vandalism. which only ceased when
plate glass windows were destroyed, ma
hogany counters and all the furniture, as
we'll as the books ana papers not previous
ly locked in the vaults, had been thrown
into the street and burned. The officers
of the several banks were obliged to run
for their lives. During this exciting ycal
an incident OF the war helped them Il
close up several Wisconsin banks on ;
basis more favorable TO nOtc-holdcrS than
had been previously expected.
When the war broke out, TO pay the eX
pcnscs OF Wisconsin forces IN the field
nearly Sl.000.000 of state bonds were is
sued. The bonds OF Wisconsin were no
known and had no market value. The
governor and state treasurer could ge
but 60 per cent. for them in the New Yorl
market, and even Southern state bonds
bore better price. These officers came
home and made negotiations with WiScOn
sin bankers, taking the bonds held for then
by the state comptroller, and giving i'm eX
change Wisconsin bonds upon such term:
as could best be met by the banks.
In 1862 at one time there were forty-iive
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