Page:The New International Encyclopædia 1st ed. v. 13.djvu/491

MICHIGAN. The furniture industry is centred largely in Grand Rapids, where it has been promoted especially by means of semi-annual fairs.

Michigan's extremely favorable location with respect to water transportation has been of great value in the exploitation of the local mineral and forest resources. (For a discussion of lake transportation, see .) Besides the canals connecting the main lakes, a short canal has been constructed connecting the northern end of Lake Portage with Lake Superior. The small rivers were formerly much used for the transportation of logs. Owing to its peninsular form, the State is not traversed by many of the great trunk lines of the country. A large mileage, however, was early recorded for the southern part of the State, and railway construction has steadily spread to the northward, until recently almost every region is well supplied with railway advantages. Detroit ranks first among the lake ports in the amount of its exports, and second in the amount of its imports. The customs districts Huron and Superior also have a large foreign trade, and a small trade is done from the Michigan district. The first railway began operation in 1836. In the following year the State undertook the building of railways, but owing to financial embarrassment the lines were sold after a decade to private corporations. The chief lines are the Lake Shore and Michigan Southern, the Michigan Central, the Chicago and Grand Trunk, and the Père Marquette. In recent years there has been a very extensive construction of interurban electric car lines. There is one railroad commissioner. His

duties chiefly pertain to the physical condition of the roads and to accommodations.

The Bank of Michigan, organized in Detroit in 1817, was the first in the Territory. It incurred large losses in the panic of 1837-38, and was placed in the hands of trustees for liquidation in 1842. In 1835, shortly before Michigan was admitted as a State, nine new banks were organized. The free banking law of 1837 was the first in the United States to put into practice the system of securing the circulation of banks by deposit of collaterals. It also provided for examination of banks by bank commissioners. The law was imperfectly administered, however, and in 1839 42 banks were in the hands of receivers, and more than a million dollars of bills became worthless. In 1844 the banking law was declared unconstitutional. The banking system of the State did not recover from this depression for many years, and the banking business was carried on mainly by brokers and private bankers. In 1857 a new banking law was adopted, similar to the law of New York. In 1902 there were 84 national banks, with a capital of $11,380,000; surplus, $3,416,000; cash, etc., $6,019,000; loans, $59,464,000, and deposits, $64,657,000; 223 State banks with a capital of $13,941,200; surplus, $3,916,280; cash, $8,471,249; loans, $64,674,091, and deposits, $132,517,710.

The original Constitution of 1835 was revived in 1850, when many features, radical for the time, were introduced. It has been amended in 1866, 1870. and 1876, and also in 1900. when it was provided that railway corporations might be taxed on the gross value of