Page:A History of Banking in the United States.djvu/472

 issuing bonds in aid of railroads. As the latter did not pay the interest on the bonds the State finances became disordered. The presence of these bonds in the bank guarantee funds of several States also became a cause of trouble to them.

In Missouri the term "currency" was used for all kinds of uncurrent bank paper. The Bank Commissioner said, in 1860, "The truth of the whole matter is that, in a practical sense, our banks cannot justly lay claim to the name of specie-paying banks." He found it very mortifying that Missouri currency was one per cent. below that of Indiana, Ohio, Kentucky, Tennessee and Louisiana. We are warranted in the conclusion that there was no "convertible" currency in the whole Mississippi valley, north of Arkansas and the Gulf States, even when "convertible" currency is understood with all the latitude customary in those days in the United States.

The Supreme Court of this State rendered a decision, in 1863, in support of the action of a bank which, when called on to redeem several thousand dollars of its notes, took them one at a time, the lowest being for ten dollars, and redeemed each one by giving five dollars in fractional coin of the coinage of 1853, and gold for the rest.

.—Some citizens of Milwaukee presented to Congress, January 31, 1837, a remonstrance against the charters passed by the Territorial Legislature for the Bank of Milwaukee, the Miners' Bank of Dubuque, and the Bank of Mineral Point. The congressional committee reported favorably on the three, expressing the hope that the Territorial Legislature would not find it necessary to make any more for a long time. An act was accordingly passed ratifying these three charters, but with important modifications, which Congress thus imposed. An act of the Legislature of the same Territory creating a State Bank of Wisconsin at Prairie du Chien was disallowed, June 12, 1838.

In the summer of 1838, it was reported from a Wisconsin newspaper that wild-cat money had overrun the Territory, driving out all other. In 1840, the only bank in the Territory of Wisconsin was that of Mineral Point, with $100,000 capital; $90,000 circulation; specie and specie funds, $48,492. At a later date, however, it was reported that there had been, until 1841, a Bank of Wisconsin at Green Bay. In 1839, the Wisconsin Marine and Fire Insurance Company of Milwaukee was chartered by the Territorial Legislature. It had authority also to receive money on deposit and to loan the same; but banking privileges were expressly excluded. If it received bank notes on deposit and loaned them, it was to endorse them by its president, and redeem them in specie, in case the issuing bank should fail. This charter was obtained by George Smith, who issued certificates of deposit in set denominations, for small amounts. The authorized capital of the company was $500,000, but it started with $8,104 paid up. The issue was continued until 1852. It became famous all over the Northwest as "George Smith's