Page:History of Iowa From the Earliest Times to the Beginning of the Twentieth Century Volume 1.djvu/520



The banking laws enacted provided for two systems. The first was the incorporation of the State Bank of Iowa and provision for the organization of five or more branches, with capital of not less than $50,000 and not more than $300,000 each; all notes for circulation to be furnished by the State Bank, and good security required for their redemption in gold or silver. The number of branches of the State Bank was limited to thirty and ample security was provided for depositors. The branches were required to be mutually responsible for each other’s liabilities on all notes circulated as money; each stockholder to be individually responsible to its creditors for all of its liabilities to an amount equal to the amount of shares held by him; and in case of insolvency the bill holders to have preference over other creditors; the suspension of specie payments never to be permitted or sanctioned. The act passed the Legislature in March, was submitted to a vote of the electors at a special election held on the fourth Monday of June, 1858. The vote stood for the law, 41,588; against the law, 3,697. It went into effect on the 29th of July, upon the issue of a proclamation by the Governor. The Commissioners named to carry into effect the provisions of the law, were C. H. Booth of Dubuque County; E. H. Harrison of Lee; Ezekiel Clark of Johnson; J. W. Dutton of Muscatine; W. J. Gatling of Polk; C. W. Slagle of Jefferson; Elihu Baker of Linn; W. S. Dart of Mahaska; L. W. Babbitt of Pottawattamie; and T. W. Edgington of Lucas, who organized and received applications for the establishment of branches. After a careful examination of securities offered by the applicants, branches were authorized at Muscatine, Iowa City, Des Moines, Dubuque, Oskaloosa, Mount Pleasant, Keokuk and Davenport. In accordance with law, the affairs of the State Bank of Iowa now passed under the control and supervision of a Board of Directors, consisting of one chosen from each branch. The first Board consisted of W. T. Smith of Oskaloosa; Samuel