166 
Hadden—Early Banking in Wisconsin. 
in New York since 1838. This law obliged all banks to deposit 
ample funds with the state treasurer as security for their issues, 
in addition to other stringent regulations. It may be remarked 
in anticipation that the main feature of this New York law 
were copied in the Wisconsin General Banking Law of 1852, of 
which mention will be made later on. 
This bill was opposed by all the influence which the Bank of 
Mineral Point could bring to bear. The bill passed the house 
by a vote of 16 to 10; but in the minor amendments which were 
proposed by the council, the house refused to concur; the coun¬ 
cil refused to recede and the bill was defeated. 13 Thus was the 
opportunity lost of establishing a free banking system on a se¬ 
cure basis, which undoubtedly would have been a more judicious 
system than that of a state or a single corporation banking mo¬ 
nopoly. 
The hostility toward the Mineral Point bank, occasioned by 
its suspicious dealings, led to the appointment of another com¬ 
mittee of investigation, which reported on March 23, 1841, as 
follows: Liabilities (not including stock) $250,295.34; resour¬ 
ces $246,132.95. Paper “which is not considered immediately 
available but which may be deemed ultimately good” $86,877.69. 
Real estate $17,723.46. Stock paid in $100,000. Total liabil¬ 
ities $346,132.95. Total assets $350,734.10. Its own note 
circulation was $208,820, which showed an abnormal increase 
of $118,515 since September 25, 1840—scarcely six months. 
In August, 1841, receivers were finally appointed. Upon ex¬ 
amination the vaults of the bank were found to be empty. 
$26,507.25 of the specie had been removed. The cashier, his 
brother, and the teller of the bank had all absconded, taking with 
them all the currency and portable assets. They were over¬ 
taken, however, at Rockford, Illinois, and relieved of $15,000 of 
Illinois bank notes, together with $70,000 worth of certificates 
of deposit and drafts, and bills of lading for 12,901 pigs of lead. 
Very little, if anything, was realized on these securities, for 
the parties on whom the drafts were drawn interposed all man¬ 
ner of defenses and offsets. The injury to the community from 
the failure of this, “the only legal banking institution” in Wis- 
13 Strong, History of Wisconsin Territory , p. 328. 
