Indiana became a state in 1816, and in 1819 there were two banks, with a capital of $202,857, and so continued until 1834, when the State Bank of Indiana was created, capital $1,600,000, and with ten branches, which were mutually liable for each other's debts, and notes under $5 were prohibited. The bank stopped, partially, in 1837, and resumed payment October, 1841. In 1852 the general banking law of New York was adopted, and under it ninety-four banks were speedily organized, and fifty-one of them soon failed. The charter of the State Bank of Indiana having expired, the legislature chartered a new one, with capital of $6,000,000, and twenty branches, which bought out the state interest in the old bank, the charter being paid up to January 1, 1857. The progress of the state has been as follows. number of small banks authorized by the territorial legislature. These rapidly multiplied under the state, during the speculative year 1837. In the early part of that year there existed 20 banks, with a capital of $1,918,361. These were a total wreck, and in March, 1838, a general banking law was passed, in order, as was alleged, to throw the business open. In one year, 49 banks, with a capital of $3,915,000, were projected. Of these, 42 went into operation. Those banks were not required to redeem their issues on demand. The result was utter insolvency, inflicting a heavy loss upon the public. In 1849, the "free banking law" was adopted, with personal liabilities to stockholders. The progress was as follows 1819, 1835, 10 $202,857 1838, 43 392,530 Free law. 4 Illinois came into the Union in 1818, and in 1819 there were two banks, capital $140,910-one of which had been chartered in 1813, under the territory. It stopped in 1815 and remained so until 1835, when the legislature revived it and increased its capital to $1,400,000. The constitution of the state in 1818 forbade the creation of any new banks except a state bank, which was chartered in 1819, with a capital of $4,000,000. This was repealed and a new bank chartered, which speedily failed. In 1835 a new bank was chartered, capital $1,500,000 to $2,500,000. These banks suspended in 1837, going into liquidation in 1842, and no banks existed in the state until the adoption of the free banking law in 1851. The general progress to 1862, was as follows: 1859, 1862, 755,461 786,455 Iowa was admitted into the Union in 1846. It had at Dubuque the Miners' Bank, chartered by Wisconsin before the erection of Iowa territory, in operation since 1838. In 1858 it adopted the free banking law, and authorized a State Bank, which, with its branches, organized in 1859. In 1862, the State Bank and its 15 branches had $720,890 capital. Wisconsin was admittted into the Union in 1848. It had, during some ten years, two banks, that of Mineral Point and the Bank of Wisconsin; these failed, and in 1851 a new bank was started at Milwaukee. In 1854 the free banking law was adopted; since that time the progress has been as follows: 4,397,000 1860, 1862, 70 Suspension. Suspension. The operation of the free law, by retarding the convertibility of the bills of the Wisconsin banks, caused, when crops are short, exchange on the east to rule high, in other words depreciates the currency. The bank circulation was about $4,600,000. Minnesota has made, as yet, little progress in banking. It adopted the free banking law in 1858, and several banks were |