Subsequent History and Conclusion. 
195 
plicit confidence in the national bonds in spite of the heavy pub¬ 
lic debt which the government had contracted during the war. 
So the state banks were very slow in taking advantage of the 
privileges offered by the new national system. 
In fact there was considerable preference manifested for the 
state free banking system as opposed to the national system 
which was looked upon as an untried experiment, monopolistic 
in its tendencies. 49 
On March 3, 1865, a tax of 10 per cent, was laid upon all state 
issues. After July 1,1866, and during the next year, the number 
and circulation of the State Banks in Wisconsin began to diminish. 
In April the State Treasurer was required to receive Wisconsin 
bank notes, not only for taxes and debts due the state, but also 
on deposit, in return for which he was to issue certificates of 
deposit bearing 7 per cent, interest. In June, 1864, the 
National Bank Act was revised and state banks were given 
greater inducement to change over to the national system. By 
these means the state currency was rapidly withdrawn from cir¬ 
culation and in July, 1865, there remained only 26 State Banks 
with $1,087,000 capital, with deposits of $2,284,210 and a cir¬ 
culation reduced to $192,323. 
In 1867, after it was settled that the national system had 
obtained a permanent foothold and that it was as free as the 
state system, and much more strongly secured in its issues, the 
Wisconsin legislature passed a joint resolution, which was rati¬ 
fied by the people, authorizing the State Banks to wind up their 
circulation without surrendering their charters, or in any man¬ 
ner interfering with their general banking business. By July, 
1873, only $1,404 of currency was reported as outstanding. On 
January 1, 1870, the office of bank comptroller was abolished 
and the records and duties of the banking department were 
transferred to the state treasury. Semi-annual reports of the 
condition of the Wisconsin state and private banks have been 
issued by the treasurer from 1870 up to the present time. 
By a semi-annual tax of f of 1 per cent, on the capital stock 
of all the state banks, the state received quite a large annual 
sum, as is shown in the following table: 
49 See J. M. Rusk, Gov. Mess. & Acc. Doc., 1870. Comp’t Rep. p. s. 
