Condition of Wisconsin Banks, 1852-61. 
185 
banking law have, during the year just closed, done a safe, 
profitable and legitimate business. The amount of capital in¬ 
vested has yielded fair returns. Their entire currency is well 
secured by the deposit of state stocks, and their reports show an 
unusual amount of specie in their vaults. Public confidence in 
their currency is perfect, and the integrity of their manage¬ 
ment is shown by the large amount of individual deposits. ” 
When the financial panic of 1857 struck the Wisconsin banks 
along in October they were accordingly in splendid condition, 
and with few exceptions met their runs with great ability. 
There were twenty failures during the year, however, due partly 
to the decline in the market value of the Southern State bonds 
and partly due to the lack of actual working capital of banks 
established in distant and inaccessible points in the North for 
the purpose of merely issuing notes. The loss was not severe, 
however, and the panic of 1857 was not felt as sharply in the 
following year in Wisconsin as in most of the other states. 
The Comptroller makes the following interesting statement in 
his report for January, 1858: 
“The past year has been signalized as one of unprecedented 
financial disaster, extending throughout the United States and 
Europe. While it has been one of severe trial to banks and 
banking associations, it must be gratifying to the friends of our 
system to reflect that with but few exceptions, the banks of Wis¬ 
consin were able to conduct their business without a suspension 
of specie payments. No circulating notes have been returned 
to this office, protested. * * * I believe that the banks 
of Wisconsin are in as sound and healthy condition as those of 
any state in the Union. ” 
The returns of 1857 show a withdrawal of deposits during the 
year to the extent of $1,287,000; whereas the year before the 
deposits were increased by $559,221. But while there was a 
lack of public confidence, the banks were able and willing to 
increase their loans and discounts to the amount of $1,050,000 
over the previous year. 
In July and August, 1858, Milwaukee bankers refused some 
of the currency issued by certain Illinois banks of doubtful 
character. In return the bankers of Chicaco refused to receive 
