Condition of Wisconsin Banks, 1852-61. 
187 
and beyond the reach of bill-holders, even when known; and not 
infrequently the bills appear to be signed by fictitious names as 
officers, by minors, or by persons pecuniarily irresponsible. It 
needs little sagacity to foresee that if such banking is to be tol¬ 
erated or if the legislature at this session, shall fail to provide 
stringent remedies for the evil, that all legitimate banking is 
ended for the present, and widespread financial ruin must soon 
overtake the people and the state. ” 
In accordance with these suggestions, which were emphasized 
by the first Bankers’ Convention called in the latter part of 
1857, the legislature adopted, and the people ratified the follow¬ 
ing amendments to the Banking Law: 
First. No bank shall be located in a township containing 
less than two hundred inhabitants. 
Second. The Comptroller shall uot issue circulating notes 
excepts to banks doing a regular discount, deposit, and ex¬ 
change business in some inhabited village, town or city. 
In January 1858 the total outstanding circulation of all the 
Wisconsin State Banks was $2,913,071. Missouri stocks were 
the chief securities, listed at $2,004,000. Their market vlaue in 
New York was not over 80 cents on the dollar 40 and it was 
firmly believed that, were the demand created for banking in Illi¬ 
nois and Wisconsin to cease, they would sink far below the rates 
at which they were then being received on deposit as collat¬ 
eral security. Furthermore the public debt of Missouri, Vir¬ 
ginia, Louisiana, and one or two Northern States had passed the 
bounds of prudence and they were having a hard struggle to 
pay the semi-annual interest on their bonds. For these reasons 
from this time on, the Bank Comptroller refused to accept any 
longer the stocks of doubtful Southern States as security. In 
January, 1859 the currency stood at the highest point ever 
reached, $4,882,442 4l . 
On December 30, 1859—nine months from above—-the circu¬ 
lation had decreased over $200,000; the Southern State securities 
had decreased in proportion. 
The year 1859-60 was a severe year on the Wisconsin banks. 
40 Governor's Message and Accopanying Documents , 1858, p. 21. 
41 Compt. Kep. in Gov. Mess, and Acc. Doc., 1870, p. 5. 
