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Early Illinois

I
aper Money

by

R. Edward Davis
R. Edward Davis
Early Illinois Paper Money

By R. Edward Davis

with the
Reprint from the Numismatic Scrapbook Magazine
addition of an alphabetical check list of paper currency
issued in Illinois.

Published By
HEWITT BROTHERS
CHICAGO
The First Banks of Illinois

JOURNEY
^A try, in
to the Illinois coun-
the far west, in 1818,
quired to pay $10 per share in gold
or silver at the time of subscription,
was usually made down the Ohio and the balance in current paper
river. The river followed a gener- money, when called for by the di-
ally westward direction along the rectors. The directors could not call
southern border of Ohio and In- for more than twenty-five per cent
diana until it reached Illinois. Here of the whole amount at any one time,
it turned abruptly south to pass and then only after sixty days notice.
around the Ozark uplift in southern Since ready money was so scarce in
Illinois. At the point where it turn- the new country, the charter pro-
ed south, was situated the village of vided that the bank might begin
Shawneetown, which was the prin- business as soon as $50,000 had been
ciple port of entry to Illinois. Here subscribed and $10,000 paid in.
emigrants left the slowly moving Twelve directors were to be elect-
flat-boats to cross over to the settle- ed, all of whom must be residents of
ments in western Illinois and Miss- Illinois. The bank was empowered
ouri. Roads also lead northward to to acquire property to the extent of
the newly established settlements in $500,000, but such property should
English Prairie fostered by Morris not include real estate in excess of
Eirkbeck and George Flower. A what was needed to do business,
traveller of that time says the town except that which it had acquired
"consisted of about thirty log houses. through forfeiture of loans or on
The chief occupation of the people mortgages. The charter also provid-
is the salt-trade. There is a United ed that in the event that the bank
States Land-office, and a log bank is refused to redeem its notes in coin,
just established. The chief cashier of the holder could collect 12% interest.
this establishment was engaged in The life of the charter was to be
cutting logs at the moment of my twenty-five years.
arrival." This was the metropolis of The mininum capital of $10,000
Illinois in 1818, and the home of the was soon paid in and the bank open-
firstbank in Illinois. ed for business on January 1, 1817.
The founder of the first bank in The fact that for some time there
Illinois was John Marshall, who was no mention made of it in the
came to Shawneetown in 1804. He legislature, and little in the news-
became a prosperous merchant. He papers of the time, seems to indi-
took deposits, loaned money and is- cate that it carried on a conserva-
sued of credit. In 1816 he, in
bills tive and successful business as mea-
company with a few others, applied sured by the standards of the time.
to the Territorial Legislature for a Banking standards in those days
bank charter. The law establishing were quite different from banking
the Bank of Illinois at Shawneetown principles of today. To understand
was approved on December 26, 1816. the early history of banking in Illi-
The capital stock was fixed at nois these facts must be kept in
$300,000, divided into $100 shares, mind. James in "The Growth of
but one third of this capital was to Chicago Banking" explains this dif-
be reserved for the Territory (or ference quite clearly, "Banks were
subsequently the state) of Illinois, organized not because there was
should the legislature wish to buy capital seeking investment; not be-
the stock. The subscribers were re- cause the places where they were

2003076
established had commerce or manu- and his name carried
political figure,
factures which needed their foster- considerable weight, in spite of the
ing aid; but because men without fact that he was deeply involved in
active capital wanted the means of land speculations, and that among
obtaining loans, which their stand- his associates in the bank were sev-
ing in the community would not com- eral whose financial stability and
mand from banks or individuals honesty were somewhat questionable.
having real capital and established The bank at Edwardsville began
credit. In frontier communities like business at once. Within a few
Illinois banks were regarded agents months a serious financial crisis
for the painless provision of capital. developed which spread through the
In a pioneer community capital of south and the west. Both Illinois
all kinds was scarce, because there banks, after some anxious days,
was seldom much surplus product; weathered the storm and came
of moneyed capital, there was very through the depression in good order.
little, and banks were looked upon Early in 1818, through the political
as a mechanism for increasing the manuverings of Ninian Edwards,
supply, without any painful saving both banks were made federal de-
on the part of the community. positories for money received from
"Checks were almost unknown, the sale of public land. Up to this
outside of the large eastern cities, time the Bank of Missouri at St.
and few people except the wealthier Louis had been the federal deposi-
merchants were familiar with bank tary for Illinois. The removal of
accounts. If banks were to supply these deposits from the Bank of
the community with either currency Missouri to the Illinois banks start-
or capital funds, it had to be in the ed a long and bitter feud between
form of bank notes, and if banks the St.Louis banks and the two
were to exercise any influence upon Illinois banks. On one occasion a
the general level of prices, it would representative of the Bank of Miss-
have to be through the policies that ouri appeared in Shawneetown with
they adopted in regard to the issue $12,000 in notes of the Bank of Illi-
and retirement of such notes." nois and demanded payment in
The success of the Bank of Illinois specie. Representatives of the Bank
at Shawneetown, inspired citizens in of Missouri in Kaskaskia refused to
the settlements near the Mississippi accept Illinois notes in payment for
to become bank conscious. A group land, and in all possible ways made
of people of Edwardsville headed by trouble for the Illinois banks.
Ninian Edwards and Benjamin Step- At first the two Illinois banks
henson succeeded in obtaining a competed with each other as fiercely
charter for the Bank of Edwards- as they both competed with the Bank
ville from the legislature on Janu- of Missouri. Finally they joined
ary 9, 1818. The provisions of the forces against their more powerful
charter were similar to those for rival, and agreed that neither bank
the Bank of Illinois, except that the would present the notes of the other
shares were for $50 instead of $100. for redemption, if it could possibly
The first installment of the capital be avoided, and in addition agreed
amounting to $30,000 was quickly to send notes of the other bank as
paid in. Of this $22,625 came from far from the point of issue as pos-
Kentucky, $1,800 from St. Louis and sible, in order to make their redemp-
only $5,475 from Illinois. No resi- tion more difficult.
dent of Illinois paid in more than The financial depression of 1819
$50. Ninian Edwards was a powerful had called attention of eastern
bankers of the loose and perilous The Bank of Edwardsville was
conditions in eastern banks. This not so efficiently managed and was
lead to a curtailing of the bank note soon in trouble. Early in 1819,
issues. In four years the bank note Ninian Edwards, became dissatisfied
circulation in the United States de- with the way things were going and
clined nearly fifty percent. This con- quietly resigned from its Board of
traction as it swept west caused Directors. Although he was a Sena-
bank failure after bank failure. All tor in Washington at the time, he
lines of business were crippled. left it to Stephenson, the president
Through all of this depression the of the bank, to inform the Secretary
Bank of Illinois continued to operate of the Treasury of his resignation
efficiently and profitably. In 1823 and to ask that no more federal
the business of the bank declined so money be deposited, until the con-
rapidly that the directors decided to dition of the bank be investigated.
suspend operations, and they suc- Stephenson was well aware of the
ceeded in doing this without sur- value of the prestige of the Ed-
rendering their charter. wards name, and also of the condi-

$20 Bank of Illinois of the second type; lower illustration $10 of the
Bank of Cairo issued at Kaskaskia.
7
tion of the bank, so he did nothing. from the government about eighteen
Early in the fall of 1821 the failure hundred acres of land on the narrow
of the Bank of Missouri caused a point of land between the Ohio and
panic at Edwardsville. There was a Mississippi rivers. This land deeded
run on the bank, and after a few to a company of which Comegys was
days it closed its doors, owing near- the leading spirit, and plans were
ly $60,000, of which about $55,000 drawn up for a town, a bank and an
was owed to the federal government, ambitious scheme of public improve-
the proceeds of the sale of public ments. The act of incorporation pro-
lands. vided for two thousand lots which
The same legislature which issued were to be sold for $150 each. One
the charter for the Bank of Ed- third of this was to be spent for
wardsville issued charters for two public improvements, one third was
other banks, the Bank of Kaskaskia, to go to Comegys and his associates,
and the Bank of Cairo. The promot- and the other third was to be bank
ers of the Bank of Kaskaskia were capital. Comegys died suddenly in
not very energetic. By the time the the spring of 1819 and the whole
stock subscriptions were opened scheme collapsed.
there were not enough people with When the first state Constitution

The rare $10 Bank of Edwardsville note. It is said that there is only one
complete set of the notes of this bank in collectors hands.

ten dollars in gold or silver in Kas- was adopted on August 26, 1819, the
kaskia to raise the required capital Bank of Illinois at Shawneetown
so the bank never opened. was the only bank in the state in
The most interesting of all the good standing. The new Constitution
banking schemes was the organiza- provided that there should be no
tion of "The City and Bank of other banks or moneyed institutions
Cairo." The act authorizing this in Illinois except those already pro-
scheme was also passed on January vided by law, and a state bank with
9, 1818. Five months earlier John its branches to be established by the

Comegys of Baltimore had bought legislature. The account of the ex-
periences of the State in the banking required to close up the bank as
business is another story and will be soon as possible.
told later. A second act allowed the bank to
In 1835 during a wild period of go into voluntary liquidation under
land speculation, advantage was its own officers, provided the bank
taken of the provision in the Consti- turned over to the state its state
tution, allowing all banks in exist- bonds in return for the bank stock
ance to continue, to extend the held by the state. This second act
charter of the Bank of Illinois at was accepted by the bank. Though
Shawneetown. The same men who the bank closed its doors in 1842,
had managed it in its early days its notes continued to circulate for
were again in charge. Although the many years, so great was the faith
Bank of Cairo had never opened for of the people in John Marshall and
business its charter, too. was re- the other officers of the bank.
newed. The old charter had been sold The notes of these early Illinois
to a group of Englishmen who open- banks are scarce, especially those of
ed the bank at Kaskaskia. This bank Edwardsville, and the early notes of
was operated soundly and incon- the Bank of Illinois. The notes of
spicously, and for several years fur- the Bank of Cairo at Kaskaskia are
nished about 70% of all the small much oftener found. A list of the
notes used in southern Illinois. In notes of these banks follows:
about 1841 the bank's officers used Bank of Edwardsville 25 cents,
a considerable portion of the bank's
50 cents, $1.00, $2.00, $3.00. $5.00,
funds to finance a canal company.
$10.00, and a "Post Note" where the
As a result of the collapse of this value is written in, usually $20.00.
scheme the bank was forced into These notes are nicely engraved by
bankruptcy in February of 1842. Tanner, Kearney and Tiebout.
Following the disasterous collapse
of the Second State Bank, the Bank
Bankof Illinois at Shawneetown
earlyissue $1.00, $2.00, $3.00
of Illinois at Shawneetown again
found itself to be the only bank in and $5.00. On these notes the name
the state. Meanwhile, brought to the
is spelled "Shawance Town".
front by the activities of Andrew
Later issues $1., $2., $3., $20.,
$50., and $100. The $20. notes of the
Jackson, there had developed a feel-
later issues occur in two types, one
ing that all banks were evil. The
of which was issued in 1838 and the
Bank of Illinois had been forced to
other in 1839. The plates for the
buy great quantities of Illinois
notes of the last issue were engrav-
Public Improvement bonds, and had
ed by Wm. Dane & Co.
been obliged to sell to the state,
some bank stock. The legislature The scarcity of the early notes of
wanted to clear up the Public Im- the Bank of Illinois is probably due
provement bonds and the bank offer- to the fact that when the bank sus-
ed to exchange them for its stock. pended operations in 1823. it re-
The state administration wanted to deemed and destroyed all notes pre-

close the bank, which had a right sented for payment.
under its extended charter to con- The Bank of Cairo at Kaskaskia
tinue operation for fifteen years. $1.00 (two types), $2.00, $3.00 (two
Finally the legislature repealed the types), $5.00 (two types), and $10.00.
charter and placed the assets in the The plates for these notes were en-
hands of three Commissioners, ap- graved by Underwood, Bold, Spencer
pointed by the Governor, who were and Huffy.
The State Banks of Illinois and the Era of
Internal Improvements

TLLINOIS was admitted to the crazy. Land could be bought from
1 Union 1818. The Constitution
in the government by paying only a
of the new state provided that small part of its cost as a first in-
"there shall be no other banks or stallment, and many, expecting a
monied institutions in this state than rapid rise in land values, took out
those already provided by law, ex- land when they only possessed
cept a State bank and its branches, enough money to pay the first in-
which may be established and regu- stallment. The wild speculation re-
lated by the general assembly of sulting from such sales aroused the
the state as they may think proper." apprehension of the National Gov-
Two banks were in existance in Illi- ernment, and to curb such excesses
nois at this time, the Bank of Illi- and Act was passed in 1820, reduc-
nois at Shawneetown, and the Bank ing' the price of public lands from
of Edwardsville. There were two $2.00 to $1.25 an acre and requiring
other charters which had been full payment in all future sales. The
granted by the legislature, those for effect of this act was to bring the
the Bank of Cairo, and the Bank of depression to the West. In the East
Kaskaskia, but which had not, at attempts had been made to control
this time, been used. and regulate banks of issue in some
At this time there was very little states. This had led to a rapid con-
gold or silver in circulation in the traction in the volume of bank notes
state.The circulation was mainly in and from this a depression had
bank notes of other states. These started. In this time of financial
passed at all kinds of discounts, and stringency the United States Land
at constantly varying discounts. A Offices were more careful what kind
few came from specie paying banks, of money they accepted in payment
some from banks that were really of public lands. Money of any kind
solvent, some from banks that had was not plentiful and when the Land
failed, some from banks that had Offices refused to accept about two
never existed, and some were coun- thirds of that in circulation, a real
terfeits of the issues of existing depression hit the state.
banks. The notes of the Illinois As a measure of relief the first
banks made up but a small part of state legislature passed an act to
the circulation, and notes of the establish a state bank. It was to
Bank of the United States were very have a capital of $4,000,000, half of
rare. This mass of paper came which was to be subscribed by the
mainly from banks in Ohio and the state and half by private persons.
South, though some notes from The charter provided that the bank
banks in Western New York, Penn- might start business when it had
sylvania and the District of Colum- received "in gold or silver or notes
bia, with a few from the New Eng- of banks in the Western country
land states were also circulating. paying specie" an initial payment of
This was a period of wide spread $15,000. Even with the most liberal
financial depression. Every one was interpretation of the last clause, it
in debt. During the boom times, was not possible to find enough
everyone had speculated in land and people who were able or willing to
usually on credit. People were land- subscribe enough cash so this bank

10
never came into existance as a busi- amounts up to $1,000 at two percent
ness institution. interest.
At the next session of the legis- After the organization was com-
lature in 1821, a new bill was intro- pleted the Vandalia Bank was au-
duced creating a bank based entirely thorized to have printed $300,000 in
on the faith and credit of the state. notes in denominations of from $1
This bank would not have to worry to $20 and to give them out to the
about stock subscriptions. Opposi- branch banks in proportion to the
tion to the act was strong. It was population in the various districts.
These notes, guaranteed by the State
pointed out that the bank would
have no specie with which to redeem of Illinois, bore two percent interest
its notes, also that the act was a
a year and were to be retired in ten
bare-faced attempt to violate the years. They were to be receivable
for all taxes and dues to the state,
prohibition in the national constitu-
tion of bills of credit, and that such and one tenth of the entire issue was
an institution would encourage wild to be retired each year.
The officers of the various branch
speculation instead of tending to
curb it. The bill was passed in both banks were to lend this money at
houses by a small majority. six percent, the loans to be secured

The bill came before the council by real estate of at least twice the
value of the loan. For small loans
of revision, consisting of the Gover-
of less than $100, upon the consent
nor and the Justices of the Supreme
of the board of directors, personal
Court, which under the state consti-
property could be pledged as secur-
tution, possessed the veto power.
ity. No one could borrow more than
This council gave it a unanimous
$1,000. No loan was for more than
veto. The bill went back to the legis-
one year, but if the debtor would re-
lature and after a long debate it
duce the loan ten percent he could
was passed with a few votes to
get a renewal for another year.
spare. It is quite evident that the aim of
The act as it was passed provided the bank was to distribute the money
for The State Bank of Illinois, with among as many borrowers as pos-
its principal office in Vandalia, and sible. The bank was also to act as a
with branches at Shawneetown, depositary and as a business agent
Edwardsville, Brownsville and Pal- for the state. It was also authorized
myra. The capital was finally fixed to receive deposits and do a general
at $300,000, all subscribed by the banking business, but it was pro-
state. The management was to be in hibited from charging depositors for
the hands of a president, a cashier, its services, and its exchanges were
and six directors, with five local di- to be madeat par.
rectors at each of the branches. All In the hope of its preponents such
of these officers were to be appoint- was to be the first State Bank of
ted by the legislature every two Illinois, which its capital had been
years. The directors of the branch put at $800,000 no such sum was
banks were to select their own ever turned over to the bank. It did
presidents and cashiers. The presi- receive from the legislature $2,000
dent of the Vandalia Bank was given in cash to pay for the engraving of
a salary of $800 a year and the the plates from which the notes
cashiers were to receive salaries were to be printed. To insure the
not to exceed this amount. The other widest circulation of these notes in
officials received no salaries but the states, the legislature passed
were given the right to borrow additional acts to prevent the issu-

11
Notes of the Second State Bank. Upper One dollar on Illinois & Michigan
Canal Fund; Middle and Lower $10 and $5 with "Branch Bank" imprint.

12
ance of any form of paper currency branches that in 1824 the legislature
by any one but chartered bankers. appointed a committee to examine
As soon as the bank was opened these branches. It was found that
about every man who had any un- the books were in such a condiiton
encumbered real estate had borrow- that it was impossible to find out
ed all he could get, and every man what the true state of affairs really
who could get an endorser had bor- was. It was found that loans had
rowed his hundred dollars. In about been made illegally, and several
a week the whole $300,000 had been large sums could not be accounted
loaned. Those who came too late to for in any way. At once steps were
get a loan complained bitterly of taken to close up the banks. In Jan-
political favoritism shown by the uary, 1825, an act was passed order-
directors. Since most of the direct- ing the cashier to burn all notes in
ors were politicians with no banking his possession in a bonfire in the
experience, very little attention was public square at Vandalia in the
paid to the probable ability of the presence of the Governor and the
borrowers to repay the loan. Many members of the Supreme Court.
of the borrowers accepted the loan In this fire, notes with a face
as a gift from a benificent common- value of $75,000 were destroyed.
wealth and never expected to have Other fires were held in June and
to repay. December of the same year, where
Briefly, the state enjoyed a mild about $50,000 more were burned. The
boom, but it was of a short life. The bank still had a large volume of
Eastern banks had put their houses loans outstanding and attempts were
in order, and business conditions made to collect them. Some small
were improving. This improvement parts were paid, but finally the Su-
did not reach Illinois. Here a paper preme Court following a precedent
currency with no specie backing, in a similar case in the United States
drove gold and silver and the notes Supreme Court, declared these notes
of specie paying Eastern banks out to be bills of credit and therefore
of circulation. The State Bank notes illegal, and that notes issued for
which were intended to circulate at them could not be collected by law.
par with gold and silver were down This decision did not relieve the
to 75 in a little over a month and in state of the necessity of redeeming
less than two years were worth only the notes in full in 1831. There were
thirty cents on the dollar. Even small still $150,000 of these in circulation

change disappeared and to make and the state had only $30,000 in
change it was necessary to tear cash. To repay these notes, the Gov-
these notes in pieces the size of ernor was authorized to borrow
which roughly indicated their value. $100,000. A contract was made with
While the act creating the bank Samuel Wiggins of Cincinnati for
had provided that one tenth of the this amount, he taking state stock,
notes issued should be retired each bearing six percent interest to be re-
year, the legislature made no pro- deemed whenever the State Treasur-
vision to supply any specie to do it. er had any surplus funds on hand.
In fact specie was so scarce that In a year nearly $290,000 had been
when one of the branch banks re- redeemed or destroyed, and by 1835
ceived two silver dollars, they con- only $6,554.00 of the notes were still
sidered them so rare they put them outstanding, representing probably
on display as a curiosity. the losses and destruction during the
So many complaints came in con- ten years of the life of the bank.
cerning the management of the This experiment in banking cost the

13
state over $300,000 in cash and the two and a half times the paid-in
losses sustained by the people and capital. The notes were to be re-
business in general cannot be esti- deemed in specie at anytime, and a
mated. With the closing of this bank failure to redeem any of them in ten
the state was left without a bank days time was to cause the charter
in its borders, and this condition to be forfeited, and the bank to go
existed for several years. out of business.
Business conditions all over the Within a few weeks after the sub-
country improved greatly in the scription lists were opened $8,000,000
early '30's and it was not long be- was subscribed, and the task of cut-
fore the boom reached the West. ting down the subscription started.
With this improved business con- Meanwhile, Samuel Wiggins of Cin-
dition it was not long before there cinnati, with a group of followers,
came demands for financial institu- succeeded in gaining possession of
tions, able to provide exchange with many of the subscription rights, and
the East and with New Orleans. The when the stock was allotted, Wig-
charters of the Bank of Illinois at gins controlled nearly 3500 shares.
Shawneetown, and the Bank of In July, 1835, the bank opened for
Cairo were revived, and a movement business. Branches were established
was set afoot to establish another in Alton, Belleville, Chicago, Dan-
state bank. The Bank of the United ville, Galena, Jacksonville, Mount
States had been refused a renewal Carmel, Quincy and Vandalia. On
of its charter by Jackson's adminis- the whole the operations of the bank
tration, and to take its place various the first years seemed to be more
state banking systems had been es- than satisfactory. The notes circu-
tablished. Some were carefully lated about at par with specie and
managed, and some were very care- the bank made money on its regular
lessly managed. Floods of this new banking business.
paper money poured into the state. In 1836 there began a period of
Under such conditions it was not the wildest speculation ever seen in
hard to convince the legislature that America. Townsites were laid out
a new bank was needed to protect everywhere and a sudden enthusiasm
the business interests of the state. for railroads began. Lines were
The bill for the new bank was planned to criss-cross the state in
passed by the legislature and ap- all directions, with little regard to
proved by the Committee of Revision any possible business they might
February 12, 1835. It provided that get. The move to build the Illinois
the bank should run until I860, its and Michigan canal, really got un-
head office was to be at Springfield, der way. Business was so good that
and eight branches were to be estab- the state legislature decided to sub-
lished where, in the opinion of the scribe $100,000 in state bank stock
directors, they were needed. The as provided in the bank's charter.
capital was to be $1,500,000, all to The bank agreed to assume the old
be subscribed by the general public, Wiggins loan left over from the first
though the state reserved the right State Bank, as a consideration for
to take $100,000, if the legislature the privilege of opening some new
so desired. The bank could begin branches. The legislature also took
business when $250,000 in specie had advantage of a provision in the old
been received. charter of the Shawneetown Bank
The state made no guarantee of and took $100,000 stock in that bank
the notes, and the value of the notes also.
issued was not at anytime to exceed The people of the state became so
14
wild about public improvements that important town on the proposed
when the legislature met in 1836 it rights of way. A Board of Fund
passed a most amazing act, known Commissioners consisting of three
as the "Public Improvement Bill". It "experienced financiers" was ap-
included all of the pet schemes of pointed to make the loan and to ad-
the wildest promoters. It provided minister the distribution of it to the
for the construction of seven rail- various projects.
roads across the state from east to Eastern capitalists did not seem
west and for the central railroad very anxious to make this loan, even
running from Galena to Cairo. The though it was made an unconditional
old National Highway from Vincen- obligation of the state. provision A
nes to St. Louis was to be improved. of the act prohibited the sale of the
The state was borrow $8,000,000
to securities at less than par. The state
at once and begin work upon all of could not wait, so finally the State
these projects, starting from every Bank and the Shawneetown Bank

t <K Nn= :

STATE BANK OF ILLINOIS

/^/'fiflS WWH>^/ '-

"
/A^Jjyj|*-
:%s
.

\t"fYf\5
ltt/)

ST'ATB BANK AT '

to llti iirtln- ,,f : .

t<n/s"fift<-r tittti. IKIII
. .

;/ 'I/it- llliiwi* 4- Jliffiiifun t'aimf. 2*tot> DoUnvo,

.//.<*,.*. /'' .' .'''" -/'- /V,

The $100 note of the Second State Bank, which is of larger size than other

issues. The $2 Chicago branch note was printed from type.

15
were asked to make the loan. Both continue work on the canal.
were making money and at the time The banks became invloved in the
the future looked rosy. Nearly three panic and at a special session of the
million dollars of these bonds were legislature an act was passed to
unloaded on these two banks. The legalize the suspension of specie
Shawneetown Bank sold part of payments. The activities of the banks
their share at once at a fair profit, were greatly curtailed by this act.
but the State Banks held theirs as The Anti-Bank Democrats began a
capital, against which more notes determined fight on the two insti-
were issued. tutions. In 1839 the State Bank
The State Bank stock was earning ceased to be a bank of issue and
nearly eight percent and times ceased to do business except to dis-
seemed so good that the legislature burse the Canal Fund, and to deal
increased the capitalization of the with some eastern exchange. In 1843
State Bank to $4,500,000 and of the it was forced into liquidation. Its
Shawneetown Bank to $1,700,000, of notes were nearly all redeemed and
which $1,000,000 was to be taken by very few of them have come down
the state. These two institutions to us.
were to finance the new public im- The Chicago Branch of the State
provements throughout the state. Bank opened December 1, 1835 in a
Sectional jealousies would not al- building at the corner of Clark and
low the Board of Fund Commission- Water streets. John Kinzie was its
ers to concentrate their energies on president and its board of directors
any one project. It decided to start included most of the leading mer-
all seven railroads and the Illinois chants of the city. The bank did a
and Michigan canal at once. From good business from the start. In 1840
each direction from any town to be due to some trouble with some of
touched by any railroad work was the city's leaders, the bank was re-
to be started, with local contractors moved to Lockport, as a punishment
doing the work as far as possible. to the city. As the bank continued
Counties not touched by railroads to do business through an agent in
were given $200,000 each for high- the city, the punishment lost most
way improvements. of its force. From 1839 to 1843 when
Things were going well in the it finally closed it did little except

West, when, in the early summer of handle Illinois and Michigan Canal
1837, without warning, a sudden Funds, and issue a flood of paper
crash came in the East. Prices de- money based upon them.
clined, banks failed, and business The Fund Commissioners had no
firms failed on every hand. Local banking authority but they issued
financiers thought things in Illinois paper that was widely circulated as
were on too stable a basis to be money. These were really promis-
affected by this eastern flurry, and sory notes of small value, but they
did little to prepare for the future. circulated freely with the other
The panic spread and in 1838 the paper. While the public improve-
legislature voted to stop work on ment bubble burst in 1838, some of
the internal improvement system. these notes circulated well along
The state had incurred a debt of into the sixties. They were finally
$6 000,000 and none of the railroads cancelled and most of them des-
had been completed. The Illinois and troyed in 1867.
Michigan canal had its own board Very few notes of this period have
of trustees and they decided even in come down to us. The First State
the face of the impending panic to Bank issued notes in denominations
16
of $1, $2, $3, $5, $10 and $20 but tiful engraved notes in denomina-
very few can be found in collections. tions of 1, 2V2 5, 10, 20, 50 and 100
,

All but about $6,000 of these issues dollars were issued. In 1842, some
were destroyed in the bonfires, or- of this last issue were cut down in
dered by the state legislature. Notes size and printed on the reverse with
of the Second State Bank are also a statement that they represented
scarce. As they were redeemed they an indebtedness of the Canal Com-
were destroyed. Notes drawn on the missioners. The indebtedness was the
Illinois and Michigan Canal Fund same as the face value of the muti-
thru Chicago Branch are more com- lated note.
mon. The first issue of May 1, 1839, The notes issued by the Board of
were type set notes in denomina- Fund Commissioners are in denomi-
tions of $1, $2, $5, $10 and $100.
nations of $2, $3, $5, $10 and $100.
Similar issues were made in March
of 1840, while the bank was in Lock- The lower values are quite scarce.
port. In the fall of 1840 some beau- The greater part of these notes were

$100 note of the "Fund Commissioner of the State of Illinois" and a $5
note of the "Internal Improvement Office."

17
destroyed at various times up to it not been loaded up with the fan-
the year 1867. tastic internalimprovement scheme,
The experiences of Illinois in and with too much legislative tinker-
state banking were very costly to ing; with the closing of this bank
the state. The first bank was on too the state was left without any bank
nebulous a base to have any chance in its borders, and there were no
of success. The second bank might legal banks in Illinois for several
have had some chance of success had years afterward.

18
Illegal and Free Banking

TN 1836 the legislature of the trio was joined by Alexander Mit-
state of Illinois had chartered chell, a young banker from Aber-
the Chicago Marine and Fire In- deen, Scotland. The company's stock
surance Company. The charter of $225,000 was held half in Scot-
specifically stated that the company land and half by these four men.
was not to do a banking business or The new company issued certificates
issue any notes or bills to be passed of deposit engraved like bank notes
as money or "in the semblance of in denomination from one to ten
bank notes". However, as early as dollars.
May 1837, the company published The new issue worked its way into
an advertisement in a Chicago news- circulation despite of stiff opposition
paper saying that, in consideration from Illinois chartered banks. Be-
of the great need of the community, fore long the new notes came to be
advantage would be taken of the known as reliable, as, in contrast to
section in their charter which per- other bills, they were always paid
mited them to "receive moneys on promptly on demand. Soon Illinois
deposit, and to loan the same, on and other bank notes were being ex-
bottomry, and respondentia, o r changed at les& than face value and
otherwise, at such rates of interest the "illegal" currency of the Wis-
as may now be done by the existing consin Marine and Fire Insurance
laws of the State." The company Company was required in larger and
went into the banking business and larger amounts. By December, 1841,
in time its demand certificates of some $35,000 of these bills were
deposit took the place of money. outstanding. The amount increased
However, the company complied to $100,000 in 1843, $300,000 in 1847
with their charter and did not issue and steadily increased to a peak cir-
their certificates in the "semblance culation of $1,470,000 in 1851. After
of bank notes." It was not long be- that the circulation was gradually
fore these certificates became an contracted, every dollar of the en-
inportant factor in commerce of the tire outstanding amount was redeem-
northwest. ed, except $34,000which were never
George Smith Bills presented these latter notes hav-
George Smith, a Scotch farmer, ing, no doubt, been lost, burned or
came to Illinois in 1834 and becom- worn out.
ing impressed by the possible fields Legal banks and others who were
for investment profit, returned to interested in stopping the progress
Scotland and organized the Scottish the institution was making, exerted
Illinois Land Investment Company. great efforts to discredit its paper.
In 1836 Messrs. Strachan and Scott Runs were instituted on the agencies,
returned with Smith to Illinois to and banks would hoard large quan-
act as managers. They took a trans- tities of the illegal notes so that
script of the Chicago Marine and they might be presented all at one
Fire Insurance Company and with a time and thus drain the specie sup-
few changes obtained a charter ply of the company. Nothing, how-
from the Territorial Legislature of ever, seemed to avail. According to
Wisconsin for the Wisconsin Marine one story, Mr. Scammon, president
and Fire Insurance Company. The of the Marine Bank of Chicago, had

19
been enjoying the pastime of pre- person who desired to engage in the
senting large amounts of "Smith's issue of notes be required to deposit
bills" for redemption. One day he with the State Auditor bonds issued
met Mr. Smith who asked him what by the United States, the state of
amount of the notes of his (Scam- lillinos, or any state which paid full
mon's) bank were outstanding. six percent interest. The deposit of
When Mr. Scammon replied that the first two classes of bonds en-
there were just $175,000. Mr. Smith titled the owner to circulate notes
quickly informed him that his own to the full market value of the
vaults contained $125,000 of that onds, but not more than half their
amount, and that he would "bring par value.
them over for redemption one of When first passed, this new, so-
these days." That remark kept Mr. called "free" banking law of 1851,
Scammon in a state of worry for could be and was so construed that
some time before an agreement was two kinds of banks were established,
reached between the two rivals each under the supervision of the
whereby each was pledged not to state auditor, but one issuing notes
attempt anything to the detriment secured by deposited bonds and the
of the business of the other. Since other simply issuing unsecured
"Smith's bills" could not be driven notes.
out and gained such popularity that This act was responsilbe for the
soon agencies for their redemption creation of many
varieties of early
were established at Galena (111.), paper money for which the collector
St. Louis, Cincinnati, and Detroit. of today may seek. Newspapers of
George Smith, operating under the period tell of the establishment
the title of George Smith and Com- and the circulation of notes of many
pany, continued in business in Chi- banks that no specimens have come
cago on LaSalle street until 1857, down to us.
when the house was closed. Shortly Banks were slow to be organized
thereafter he retired, having acquir- under the new law. In 1852 the
ed large sections of valuable prop- Senate decided to repeal the act and
erty in Chicago and elsewhere, to- there was a great rush to incorpo-
gether with a sizable fortune in se- rate banks before the law was re-
curities. Smith spent most of his re- pealed and within a few days twen-
maining days in Scotland. ty-seven applications were made.
Smith's success encouraged others Later, when the law was not repeal-
to undertake similar illegal note is- ed, the number of banks again fell
sues and a number of unincorporated off, until in 1854 the banking com-
companies were organized to issue missioners reported that there were
money which circulated at variable only twenty-nine banks operating
discounts. The Merchants' and Me- under the law, ten in Chicago, two
chanics' Bank of Chicago was one of each in Springfield and Naperville,
the more successful in this business and not more than one in any other
of issuing illegal currency. city. The issues of these banks con-
Free Banking stituted but a small amount of the
After a bitter fight between "free circulation, while illegal issues and
banking" and "anti-banking" groups those of foreign banks continued to
which started in the year 1846, at a bourish.
special election the Free Banking For a period a bank war waged,
Act of 1851 was adopted by a vote but little could come of all the agi-
of 37,626 to 31,405. One of the re- tation because of the intricate situ-
quirements of the act was that any ation which existed. Legally estab-

20
The Bank of Chicago

/^ I ^ <//'/.
'" // TWO D LL AR S
,9m. $* /

Upper A "George Smith" note of Marine and Fire Insurance Company.
Middle $1.00 of the Bank of Chicago showing signature of Seth Paine.
Lower $2.00 note of Bank of Belleville with State Auditor's seal in corner.

21
lished banks were issuing illegal both good and bad followed.
bills;some few banks did a strictly Seth Paine Notes
legal business, even going so far as Into this warfare stepped Seth
to absorb illegal banks and issue Paine & Co., when it opened the
legal for the illegal currency out- Bank of Chicago on September 1,
standing. The Chicago Marine Bank, 1852.
which had organized under the law, Seth Paine was a native of New
was accused of having revived its England. He arrived in Chicago by
old insurance company and of mak- boat in 1834. When he landed he was
ing legal loans thereto, so that the without a cent of capital, having
latter, in turn, might circulate il- paid his last dollar for his fare on
legal bills for profit. Some banks the boat. We are told he was tall
were so bold as to issue illegal cur- and straight with a pleasing pre-
rency for buying bonds that might posing manner. He was an excellent
be deposited with the auditor conversationalist and a fine public
against legal issues. As a conse- speaker. He hired out to the firm of
quence, the bankers, under J. Y. Tailor & Breese, and in a short time
Scammon of the Marine Bank of became a partner in the firm. Later
Chicago, determined to put an end he went into partnership with The-
both to the actual illegal practices ron Norton under the name of Paine
and to unjust accusations of such & Norton. He sold out to Norton in
dishonesty by getting the legislature 1842.
to pass an amendment to the bank During his early years in Chicago
law which would prohibit all illegal he became an ardent abolitionist and
banking. On Februaiy 10, 1853, this a follower of the socialistic doctrines
was passed and to conduct a bank- of Fourier. When he sold out to
ing business within the state ex- Norton he went up into Lake County
cept under the provisions of the and bought, with a number of
statutes was made little less than others, a large tract of land at Lake
a felony. Zurich to try out some of these so-
In prohibiting illegal currency, cialistic ideas. After a time we find
more than the powers of the law him one of the directors and a man-
were required to accomplish the re- ager of the unchartered Illinois
sult. The public had been trained to River Bank at La Salle.
accept the illegal issues, such as the About this time he became an ar-
George Smith notes in preference to dent spiritualist. His type of mind
legal issues. Also, men like Smith was such that he readily adopted
had bought interests in foreign every new "ism" that came along.
banks and were circulating their To him the world was sadly out of
issues in Illinois, and foreign banks joint and he looked upon himself as
had established agencies in the the one to set it right. The chaotic
state for the purpose of circulating state of the banking business was
and redeeming their notes. Nebras- such that he decided to return to
ka established agencies at Gales- Chicago and teach his old business
burg, Peoria, Macomb and other Il- associates how banking could be
linois cities. Some states would per- carried on in accordance with a
suade residents of Illinois to take higher law than the banking law of
stock in their banks and so attain a Illinois.
right to the bank's notes; such The prospectus of the new bank
stockholders would then agree to written by Paine himself, stated
help keep each other's notes in cir- several principals, "We loan to no
culation, and so "wild cat" issues one to pay debts. We loan to no one

22
to aid inthe murder of anything This caused a run on the bank.
which has life. We loan to no man Paine and Mrs. Herrick stood behind
to speculate in the necessities of life. the counter to redeem the bills that
We loan nothing on real estate, be- had been issued. Several prominent
lieving that it can not be bought or citizens who could not satisfy the
sold, possession with use is the only spirits of the justness of their
title to it. We loan nothing to aid in claims were unduly hustled out and
the manufacture or sale of liquor or thrown into the street.
tobacco. We loan nothing to gam- Things came to a head the- next
blers or money lenders. Our basis day. The conservator of Eddy's es-
for making loans is the established tate tried to take over the affairs of
character of the borrower. He must the bank, and he met with threats
be temperate, honest and religious of shooting. Finally the whole corps
with a mind sufficiently developed of the bank officers, mediums,
to understand business." bouncers and all, were arrested and
For a few weeks the bank did a tried. Two or three were discharged
quiet business with a class of re- and all of the rest except Mrs. Her-
spectable citizens who approved of rick were put under peace bonds of
the sentiments in the prospectus. $500. She was kept in jail for re-
Paine and Eddy, his partner, were sisting officers.
both ardent spiritualists and they With the removal of Eddy's
began to bring spiritualism into the money the bank was so badly crip-
management of the bank. A trance pled that it soon went out of busi-
medium, Mrs. Herrick was brought ness. Every note that was presented
into the bank to give the officers the was paid by Paine, or Eddy's con-
advice of departed spirits. The spirit servator. The bank, as bazarre as
of Alexander Hamilton was, thru was its existence, was neither dis-
Mrs. Herrick, to direct the policy of honored nor insolvent.
the bank. If a person came in to do After the closing of the bank
business and Mrs. Herrick or the Paine returned to Lake Zurich,
spirits, did not approve him he was where he tried out many of his
unceremonously thrown out into the schemes. He established a school on
street by some burly bouncers kept his farm called "the Stable of Hu-
for that puporse. No smokers, manity" which he managed for sev-
drinkers or bankers were to be eral years. In 1868 he returned to
served. Women, children, negroes Chicago and established a "Women's
and spiritual minded men were to Home". The object of this was to
be served in that order. During this provide respectable women a com-
time Paine published a little paper fortable home at a moderate price.
called the Chirstian Banker. The ar- This he operated for about three
ticles were rambling discourses, years. He died in Chicago in 1871.
witty and sarcastic, containing a While Seth Paine's excursion into
mixture of spiritualism, banking banking was short lived, he fur-
and personal attacks on his enemies nishes the history of banking in
that made many think he was crazy. Chicago with one of the most color-
Ira B. Eddy had put most of the ful figures it has ever seen.
cash into the bank and when his The End of Illinois Bank Notes
friends saw how the business was At the time of Lincoln's election
being conducted they had him adjud- in 1860, business was so good that
ged insane, and had an injunction the banks had increased their cir-
served to protect Mr. Eddy's inter- culation and inflated currency until
ests in the bank. the state of Illinois had an aggreg-

23
ate circulation of $12,320,694, se- rise in value, the bankers could not
cured by deposits of United States well undertake the risk of holding
and state securities with a par value large quantities of this currency and
of $14,000,000. Of this amount so were forced to discredit it, even
$9,527,500 consisted of bonds of the at a greater loss to themselves than
southern states. Immediately follow- to their depositors. In addition to
ing the election, the credit of the these thirty-two, nine others had
South began to diminish. Large been previously thrown out and the
deposits held by that part of the situation which now developed was
country in northern banks were sud- subsequently referred to as an "era"
denly withdrawn, which together in the financial annals of the state.
with the depreciation in southern se- The monetary column of the Chi-
curities threatened financial chaos cago Tribune of April 2, 1861, im-
for Illinois. mediately after the discrediting of
In March, 1861, at which time these banks, listed all banks in the
twenty-two banks were to make state and showed that there were
good the demand of the commis- then sixty-four doing business with
sioners for more security to cover their notes still accepted, while
their notes, seventeen with a total thirty-nine were doing business with
circulation of $2,726,795 were un- their notes in disrepute. Outside
able to comply and were placed in Chicago such discredited notes were
liquidation. By now southern states sometimes accepted at fifty cents on
were seceding one at a time and the dollar. General financial disorder
their bonds declining more and reigned and uncertainty became so
more rapidly in market value. The great that exchange on the East
bonds of Missouri, which on April not only rapidly rose but showed
1 were quoted at sixty-seven cents signs of going higher.
on the dollar, were worth only fifty- Currency became so variable as to
one by the 17th and their future be of little use as money. The bills
prospects were growing steadily less of banks backed by northern se-
attractive. By the end of April, Chi- curities, or those of banks which had
cago bankers, who had previously made good their bond deficits, re-
carried the bills of a large number tired from circulation, driven out by
of Illinois banks whose bonds se- those less stable banks. The poorer
curing their currency had depreciat- bills flooded the country and it be-
ed, made a list of thirty-two which came necessary for daily bulletins
they felt could not be carried any to be issued listing bills according
longer unless the deficiencies were to their present worth in terms of
speedily made up. This decision was exchange and specie. Railroads,
really brought about by a citizen boards of trade, newspapers, and
who circulated an article entitled other groups issued lists, no two of
"Stand From Under," warning the which lists agreed. No holder of
people of the state against taking bank bills knew from one day to
the notes of these thirty-two banks. the next what his holdings were
Immediately the issues of these worth. Notes that were bankable
banks flowed into the offices of Chi- one day were worthless the next.
cago bankers for redemption in The situation was pretty much the
such quantities that it seemed the same over the entire country. With
bankers would soon have millions between 1500 and 2000 kinds of
of them on hand. paper money circulating thruout the
Since the southern bonds securing country a "bank note detector" was
these bills appeared not likely to an essential to the merchant. Some

24
of these books went into detail des- were liquidated in such a manner
cribing the distinguishing charact- that they managed to pay an aver-
eristics of more than a thousand age of sixty percent on their cir-
bills. One of the best known of these culation.
bank note guides was "Thompson's The federal government issue of
Bank-Note Reporter" which was greenbacks and a little later national
established in 1836 by John Thomp- bank notes, soon started to replace
son, who was one of the organizers local currency. By 1864 only twenty-
of the First National Bank of New three banks remained in the state.
York and also of the Chase National In 1866 the federal tax on state bank
Bank of New York. notes drove most of the currency,
Banks were rapidly forced into which until then had persisted, out
liquidation and notes poured into the of circulation and by 1869, accord-
office of the state auditor at such a ng to the state auditor's report,
rate that on occasions he had to there were only $531 in bank notes
close his doors until the accumula- outstanding in the state. This small
tion could be counted, cancelled and amount of unredeemed notes ac-
burned. On January 1, 1862, only counts for the rarity of Illinois
three Illinois banks had notes on a bank notes today. There are many
par basis. In November, 1860, there issues of which only one or two
had been one hundred and ten sol- specimens are known to be held by
vent banks with a circulation of collectors. Most of the notes which
$12,320,694, while just two years
have been preserved for numisma-
later the total circulation of the
state amounted to only $566,163. In tists are canceled notes which some

spite of a bad situation the banks how were not destroyed at the time.

25
Check List of Early Illinois Paper Money
BY D. C. WISHER and LEE F. HEWITT
STATE ISSUES McLean County Bank
State of Illinois $1., $2.
Office of theBoard of Public Bolton
Works; Fund Commissioner of Bank of Southern Illinois
the State of Illinois $1., $2., $3., $5., $10.
Cairo
$2., $3., $5., $10., $100.
Internal Improvement Office Bank of Cairo
$2., $3., $5., $10. $1., $2., $2., $3., $5., $5.
City Bank of Cairo
$1., $2., $3., $5.
The Planters Bank
BANK ISSUES $1., $2.
Caledonia
Albion
Bluff City Bank
Albion Exchange Bank
$2., $5.
$1.25, $2.50
Carmi
Bank of Albion
Bank of Carmi
$5., $10.
$1., $2., $5., $10.
Alledo
Merchants Bank
Bank of Alledo
$5., $10.
$5.
People's Bank
Alton
$1., $2., $5.
Alton Bank
Charleston
$1., $2., $3., $5., $5., $10.
Anna Farmer's & Trader's Bank
$1., $2., $3., $5.
Wheat Grower's Bank
Chester
$1., $2., $5., $10. Bank of Chester
Aurora
$1., $2., $3., $5.
Bank of Aurora
Chicago
$1., $2., $3., $5.
Bank of America
Belleville
$1., $2., $3.
Bank of Belleville
$1., $2.,
Bank of Chicago (Seth Paine)
$3., $5.
Southern Bank of Illinois $1., $1., $2., $2., $3., $3.
$1., $2., $5., $10. Bank of Commerce
Belvidere $1.
Belvidere Bank Branch of the State Bank
$1., $3., $5. $1., $2., $5., $10., $100.
Benton
Chicago Bank
Frontier Bank $1., $2., $3., $5.
$5.
Union Bank City Bank of Chicago
$1., $1., $1., $2., $3., $5.
$1., $2.
Bloomington Commercial Bank
Bank of Bloomington $1., $3., $5.
$1., $2., $3., $5. E. I. Tinkham & Company's
Lafayette Bank Bank
$1., $2., $3., $5., $5. $1., $2., $3., $5.
Chicago Continued Galena
Exchange Bank of H. A. Tucker Bank of Galena
& Co. $1., $2., $3., $5.

$1., $2., $3., $5. Galesburg
Farmer's Bank Reed's Bank
$1., $2., $5. $1., $2., $3., $5.
Marine Bank of Chicago Galatea
$1., $1., $2., $3., $5., $5.,
Bank of Galatea

$5., $10. $5., $10.
Phenix Bank Geneva
$1., $2., $3., $5.
Kane County Bank
R. K. Swifts Loan & Trust Bank $1., $2., $3., $5.
Bill of Exchange Geneseo
Bank of Geneseo
Treasurer's Bank
$5.
$1.
Golconda
Trader's Bank Bank of Ashland
$1. $5.
Union Bank Ohio River Bank
$1., $2., $3. $1., $2., $3., $5., $10., $20.
Danville Granville
Stock Security Bank Continental Bank
$1., $2., $5. $5., $10.
State Bank Branch Grayville
$1., $10. Grayville Bank
Decatur $1., $2., $5., $10.
Railroad Bank Southern Bank of Illinois
$1., $2., $3., $5. $1,. $2., $5., $10.
Edwardsville Greenup
Bank of Edwardsville Cumberland County Bank
25c, 50c, $1., $2., $3., $5., $10., $2., $5.
$20. (also post notes) Griggsville
Elgin Bank of Pike County
Bank of Elgin $1., $2., $3., $5., $10.
$1., $2., $5. Pamet Bank
Elgin Bank of D. Clark & Co. $1., $2., $3., $5.
$2. Hardin
Home Bank Illinois River Bank
$1., $2. $1., $2.
Elizabethtown Mechanic's Bank of Hardin
Shawanese Bank $1., $2., $3., $5.
$1., $2., $3., $5. Harrisburg
Equality Lake Michigan Bank
Illinois State Security Bank $5., $10.
$5., $10. Hutsonville
National Bank Bank of Hutsonville
$1., $3., $5. $1., $2., $5.
Fairfield Garden State Bank
Corn Exchange Bank $1., $2., $2., $5.
$1., $2., $3., $5. Jacksonville
Reaper's Bank Morgan County Bank
$1., $2., $3., $5. $1., $2., $5., $10.

27
Jacksonville Continued The Hampden Bank
Branch of State Bank $1.
$5. Metropolis
Joliet Farmers Bank
Merchants & Drovers Bank $1., $3., $5., $10.
$1., $2., $3., $5. Momence
Jonesboro Bank of Momence
Union County Bank $1., $2., $3., $5.
$5., $10. Mon mouth
Kankakee Warren County Bank
Kankakee Bank $5.
$1., $2. Morris
Kaskaskia Grundy County Bank
Bank of Cairo at Kaskaskia $1., $5.
$1., $1., $2., $3., $3., $5., Mt. Carmel
$5., $10. Bank of America
Kewanee $5., $10., $20., $50., $100.
Bank of Kewanee Branch of State Bank
$1., $2., $5. $3.
Lacon Citizen's Bank
Marshall County Bank $1., $2., $5., $10.
$1., $5. Mt. Vernon
Lancaster Bank of Mt. Vernon
Lancaster Bank $1., $2.
$5., $10. Naperville
LaSalle Bank of Naperville
LaSalle Bank $1., $2.
$2. Dupage County Bank
Lockport $1., $3., $5., $10.
State Bank of Illinois Humboldt Bank
$1., $2.50 $5., $50. $1.
Illinois &
Michigan Canal In- New Haven
debtedness, printed on back of Bank of Illinois
State Bank notes of the same $1., $3., $5.
denomination Commercial Bank
$2.50, $5., $20., $50., $100. $2., $3., $5.
Marion Illinois State Bank
Agricultural Bank $5., $10.
$1., $2., $2., $5. New Canton
Maihaiwe Bank Farmers Bank
$1., $2., $3., $5. $5.
Marshall New Market
Corn Planters Bank Bank of the Metropolis
$2., $3., $5. $5., $10.
McLeansboro New Market Bank
Bank of the Republic $5., $10.
$1., $2., $3., $5. Newton
E. I. Tinkham & Co. Bank Illinois Central Bank
(Branch) $1., $2., $10., $20.
$1., $2., $3., $5., $10., $20. Ottawa
Hamilton County Bank Bank of Ottawa
$1., $2., $3., $5. $1., $2., $3., $5.
Ottawa Continued Rock Island
City Bank Bank of the Federal Union
$1., $5. $1., $5.
Oxford Rock Island Bank
Mississippi River Bank $1., $1., $2., $2., $3., $3.,
$1., $2., $5., $10. $5., $5.
Palestine Rushville
Commercial Bank Rushville Bank
$1., $2., $5., $10. $2., $3., $5., $10.
Paris St. John's
Edgar County Bank State Stock Bank
$1., $2., $3., $5. $1., $5.
Peoria St. Marie
Central Bank Bull's Head Bank
$1., $3., $5. $5., $10.
Farmers Bank Savannah
$5. Western Bank
Peru $1., $2., $3., $5., $10., $20.
Bank of Peru Schawance Town
$1., $2., $3. Bank of Illinois
Illinois River Bank of Taylor $1., $2., $3., $5.
& Coffin Shawneetown
$1. Bank of Illinois
Pittsfield $1., $2., $3., $20., $20., $50.,
Highland Bank $100.
$5., $10. State Bank of Illinois
Pittsfield Bank $1., $2., $3., $5., $10.
$1., $2., $5., $5. Sparta
Prairie City United States Stock Bank
Graziers Bank $1.
$5. Bank of Sparta
Quincy $1., $2., $3.
Bank of Quincy Springfield
$1., $2., $3., $5., $10., $20
Clark's Exchange Bank
Quincy City Bank $1., $2., $3., $5., $10., $20.

$1., $2., $3., $5., $10., $10.,
Mechanics & Farmers Bank
$20., $20. $1
State Bank of Illinois (parent
Raleigh
American Exchange Bank bank)
$1., $1., $2.50, $5., $10., $20.,
$5., $10.
Bank $100.
of Raleigh
State Bank of Illinois Branch
$5., $10.
$5., $10.
International Bank
Sycamore
$5., $10.
Sycamore Bank
Robinson
$1., $5.
Bank of the Commonwealth Taylorville
$5., $10. Plowman's Bank
Rockford $2.
Lumberman's Bank of E. L. Thebes
Fuller & Co. Canal Bank
$2., $3., $5 $3., $5.
Thebes Continued TRANSPORTATION ISSUES
Eagle Bank Bloomington
$1., $2., $3., $5. Chicago, Alton & St. Louis R.R.
Urbana $10.
Grand Prairie Bank Chicago
$1., $2., $5., $10. Chicago & Southwestern Plank
Vandalia Road Co.
State Bank of Illinois (the first $1.
state bank, 1821)
Lockport
$1., $2., $3., $5., $10., $20. Illinois & Michigan Canal Fund
Vermont notes on the State Bank
Fulton Bank $1., $1., $2., $2.50, $2.50, $5.,
$3., $5. $5., $5., $10., $100., $100.,
Vienna $100., $150.
Narragansett Bank East St. Louis
$2., $3., $5., $10. Illinois River Packet Co.
Bank of Commerce lOc
$5., $10. Joliet
Washington Oswego & Indiana Plank Road
Prairie State Bank Co.
$1., $3., $5., $10. $1., $2., $3., $5.
Waukegan LaSalle
Bank of Northern Illinois
Illinois & Rock River R.R.
$1., $2.
$2., $3.
West Aurora
Bank of Aurora Pekin
Illinois River Railroad Co.
$1., $2., $3., $5.
Woodstock lOc, 25c
Woodstock Bank Illinois & Rock River R.R.
lOc. 25c
Peru
Salisbury Plank Road Co.
CITY AND TOWN ISSUES $1.
City of Bloomington, McLean County Shoal Creek
lOc, 25c, 50c, $1. Shoal Creek Toll-Bridge (re-
Bureau County, Board of supervi- deemable at J. H. Lambert's
sors, annual meeting, 1864, Sol- Store in Carlyle, Feb. 14, 1820)
dier's Relief Fund 25c
$2.
City of Columbia, Monroe County
lOc, 25c
City of East St. Louis, St. Clair SCRIP ISSUES
County Alton
$1., $2., $5.
Jones & Sawyer
Griggsville, Treasury Note 25c
$2. Beardstown
Kankakee City, Kankakee County Champlin Smith & Co. on the
25c banking house of J. C. Leonard
Mound City, Pulaski County & Co.
5c, 25c lOc, $10.
Belleville Pedman & Co.
St. Clair Savings & Insurance 25c, 50c
Co. Geo. Randolph (payable in 111.

lOc, 50c & Michigan Canal 6% scrip)
Bishops Hill 5c
L. Bjorkland, (Nov. 1, 1862) Ross & Co., 167 Lake St.
25c, 50c 25c
Western Exchange & Marine Stein, Advertising note, 1868,
Insurance Co. 83 Clark St.
25c, 50c, $1., $2., $3., $5. $3.
Bloomington Stryker & Co., 150 Lake St.
Evergreen City Business Col- 25c
lege Danville
10c, 25c Tincher & English
Breese 50c
R. S. M. Donne Dixon
lOc Dixon Hotel Co.
Chebanse $2., $3., $5.
E. S. Richmond Dixons Ferry
lOc Dixon Hotel Co.
Chenoa $3., $5.
J. R. Snyder Dunton
25c J. M. Olmstead
Chicago 50c
Luman Burr, Camp Douglass, El Paso
Post Sutler Van Vleet & Bois
25c 50c
Chadwick & Co.
Freeport
$1.
John Long, on the Stephenson
Chicago Marine & Fire Insur-
ance Co. County Bank
lOc, 15c
$1., $2., $3., $5.
Jos. Louchheim
Chicago Times
25c, 50c
5c
Wm. P. Malbum, on Farmers
Thomas Church Bank
25c
5c, 5c, 25c, 25c, 50c
Philip Conley, 137 Lake St.
Hanover
25c, 25c
H. A. Hallerman, 1862.
Crosby Opera House, 1866.
$5. 25c, 50c
DeGraff & Co., advertising note
P. Lampen & Co.
$1.
$15.
A. 0. Downs, 150 Lake St. Jackson
25c Illinois Exporting, Mining &
Eastman's College note, Mer- Manufacturing Co., (Inc. 1833)
chants National Bank $1., $2., $3., $10.
$3. Joliet
North Chicago Rolling Mill Albert Day & Co., adv. note
$10. $3.
P. Palmer & Co., 112-116 Lake Joliet City Bank
25c, 50c 5c

31
Lockport Quincy
Norton & Co. L. & C. H. Bull
lOc 5c
H. Norton Eagle Mill, 1862
12y2 c, 25c, 50c lOc
Macomb Farmer's & Mei'chant's Ex. Co.
Chandler & Co. $1.
5c Quincy Savings Bank
5c
Nauvoo
Nauvoo House Ass'n (Mormon Rochelle
issue)
Guest & Lake, advertising note
AO
$rf.
$50., $100.
Ottawa Rockford
Wm. H. W. Cushman, 1862. Wood & Co., Druggists
2c
lOc, 50c
Peoria Springfield
Farmers & Merchants Ex. Co. (See State issues)
$3. Trenton
Merchants Association David Beardsley & Co.
5c 5c
Peru Washington
Brewster & Co. B. P. Kelly, Nov. 1, 1862
5c 50c
Bank of Peru
5c

32
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