The age-herald., 1900-05-06
HE DESERVED EVERY DOLLAR
"Reminiscences of Friend of the Late
 Millionaire Smith

From the New York Evening Sun
 One of the familiar figures in Wall street is William M. Riley, who was for many years identified with large business enter prises in the west. In early years MT Ri- ley was the friend of the late George Smith, formerly of New York and Chica- go, who died in London last October, and whoose estate recently paid to the state of New York an inheritance tax or nearly two million dollars. MT. Riley has many rem- niscences of MT. Smith, and in speaking of him today he said
 Tn none of the accounts of George Smiths death and fortune is mention made of the manner in which he became identi- fled with the development of the north west. To any old citizen of Chicago or Milwaukee the names of George Smith and Alexander Mitchell recall remnis- cences of a period when compa lively lit- tie development had taken place in that section. The Chicago and Galena Union railroad. the only one running at that time into Chicago, was completed only to Elgin, a distance of thirty miles, and the grain came mainly from the Illinois and Michigan canal, or was hauled long dis tances in wagons to the different ports on Lake Michigan.
 Wisconsin was admitted as a state in lSiI, but prior to that time the territorial legislature had granted very many curious special charters. Among them one was granted to George Smith and Alexander Mitchell and their associates, under which they organized the Wisconsin Fire and Ma rine Insurance company. The charter gave them the right to do almost anything un- der the sun-among them the right to do general banking business, issue paper money, deal in foreign and domestic ex- change, as well as empowering them to do a general fire and marine insurance buSi- ness, etc. These two features of their char kax, Al.A TA1x sJAI themselves of and thus began the history of one of the most remarkable banking concerns that ever existed in this any other country. There was practically no limit to the amount of currency the com pany could issue. Behind that currency there was no shadow of security, save the word of these two men, How they kept faith with the people Is a matter of his- tory and such a history, I venture to say, was never paralleled in the banking busi- ness You must remember that those were the days of stump tailed' currency. Mich igan was prolific in these wildcat banks. but nearly all the western states were af- nicted with the same trouble.
 At first the Wisconsin Fire and Marine Insurance company was closed as a wildcat and it's circulation was only local one. Whether or not these young men had back ing from their Scotch friends was never known but when people found out that gold was never reluSeu over tIie couilef lot cur rency confidence '~ -'- company became general, the wildcat issues were driven out of circulation and in little while these two men held the purse strings of the whole northwest. Not vessel cleared from the upper lake ports upon whose bill of lading money was not advanced or whose cargo was not insured by the Wisconsin Fire and Marine Insurance company. Rates of discount averaged about 10 per cent, and insurance charges 11a and per cent. Most of the grain was in those times consigned to Dean Richmond at Buffalo and laid the foundation of his large fortune.
 With no limit to their power of issuing currency, it was believed by the public that they floated at times as high as two half million to three million dollars, which was rapidly turning at the rates I have men limited command of currency, the conf- dence of the people, with responsibility personally nor in their corporate capacity to the state or otherwise, with keen bus- ness perception, excellent judgment and natural thrift, these men should accumu- late vast wealth? There came time about 1854 when eastern capital began to divide the business with these bankers. Chicago was booming; banking institutions of sub stantial character were established and prospered. I think 1t was about 1856 when the Wisconsin Fire and Marine Insurance company. Without any legal resronsibili- ty on the part of these two men, they fear