182 Hadden—Early Banking in Wisconsin. 
and whose banks pay no taxes toward the support of our gov¬ 
ernment. ” 
Upon the same point the Governor recommends in his mes¬ 
sage of 1855 36 that foreign circulation, “which is not secured 
in a manner like our own, ” be prohibited altogether, or else 
“ require as far as practicable such bankers as may issue foreign 
notes to treat them in all respects as their own currency, sub¬ 
ject to the same legal requirements.” 
This recommendation, however, was not followed, because on 
the one hand foreign currency could not be prevented from en¬ 
tering the state, and on the other hand, no banker would treat 
it the same as his own currency; would not pay a tax on a note 
already depreciated, nor deposit any stocks to protect a swin¬ 
dler in some other state. 
In the months of October, November and December, 1854, 
the southern stocks began to depreciate and the New York 
money market was soon more depressed than at any other pre¬ 
vious time within twelve years. 3,5 The stocks of the largest 
and most reliable states fell several points. In view of this 
depreciation in state securities, the Comptroller requested of all 
the banks an additional deposit of 10 per cent, in state stocks 
or an equivalent reduction of 10 per cent, in their currency. 
No additional security was required for Wisconsin stocks, as 
they were at par. This call was promptly responded to by all 
the banks. 
Five thousand dollars of the first mortgage bonds of the Mil- 
waukie and Wisconsin Railroad Company were for a short time 
deposited, but on account of the discount in value of twenty 
cents on the dollar, and the limited amount of currency allowed to 
be issued upon them, they were soon withdrawn and state stocks 
substituted. 
It is interesting to note that before any panic or civil war 
cloud cast its shadow on the horizon, the Comptroller hinted at 
the greatest defect in the Banking Law of 1852. He said: 
“Since the constitution limits the Wisconsin public debt to 
$100,000, other state bonds must form the basis of the greater 
85 Gov. Mess, and Accom. Docs., 1855, p. 13. 
86 Comptroller’s Kept, in Gov. Mess, and Accom. Docs., 1855. 
