to 6 nays, and referred to the Council. This having been passed' the day before adjournment, it only reached its first reading in the Council.2 Although there was a majority in both branches of the Legislature in favor of compelling the Miners' Bank to resume and continue specie payments, on and from August 1st, 1842, we find that through a lack of good management by the Democratic party, which had a majority in the Council and the House, no bill was passed and the bank was permitted to go on the even tenor of its way until the next session of the Legislative Assembly. 2. Proposed Bank at Davenport. On February 5, 1842, Mr. Grant gave notice3 that on some future day he would introduce a bill to incorporate a bank in Davenport, Scott County. In accordance with this notice, two days later, he introduced No. 126, H. R. File, "A Bill to establish a Bank in the town of Davenport," which was read a first time by title.4 A motion to reject was carried by yeas 21, nays 2. Mr. Grant voting for its rejection. This was the summary ending of the second attempt to incorporate a bank in the Territory of Iowa. 3. Change in Stockholders of the Miners' Bank. In June, 1842, a changes was made in the organization of the Miners' Bank of Dubuque. The controlling interests of the bank were bought by persons connected with the St. Louis Gas Light Company. Mr. Martin, the Cashier, resigned and his place was filled by Mr. Pearson, formerly a principal clerk in the Gas Light Company. The new directory was composed of Messrs. Whaple, Waller, Davis, Quigley and Farley, all of Dubuque, and who were of the highest standing in the 1 Journal of House, p. 222. 4 Ibid, p. 210. 5 St. Louis Republican, June 16th, 1842. business circles of the city. The financial standing of the bank now seemed to be better than at any previous time in its history. In July twenty thousand dollars in specie1 was deposited in the Galena Branch of the State Bank of Illinois, by the St. Louis Gas Light Company with which to redeem the notes of the Miners' Bank of Dubuque. The bank continued the redemption of its notes for about one week, when being disappointed in receiving ten thousand dollars in specie it again suspended. At the time of the last suspension of specie payments there were besides the notes held by the St. Louis Gas Light Company, only about eight thousand dollars in circulation, and the bank had at this time for their redemption about one thousand dollars in specie. During this period Mr. St. John of St. Louis purchased2 forty thousand dollars of the stock by giving his note to the bank. As a stockholder he borrowed from the bank, on his individual notes, fifty-seven thousand dollars. St. John failed in business and took the benefit of the existing "Bankrupt Act," and by this transaction the bank sustained a clear loss of ninety-seven thousand dollars. Later in the year, Dr. Barrett and Thomas Mather became the principal owners of the stock of the bank. 4. Failure of the Territory of Iowa to Pay the Debt Due the Miners' Bank. As mentioned before, the Territory of Iowa had borrowed from the Miners' Bank of Dubuque five hundred dollars, and had given its note payable at the Missouri Bank in St. Louis. This note had become due on June 30th, 1842, and, upon failure to pay, it had been protested. The probability that the Territory would not be able to meet the payment of its five thousand dollar note when due and that it also would be I Davis testimony before Investigating Committee, Journal of House, 1843, p. 150. 2 See Mobley's testimony, Ibid, p. 151. protested, led to a correspondence' between the Territorial Agent and the officers of the bank. The Territorial Agent sought to influence them to hold the note for payment or adjustment at the bank in Dubuque, instead of forwarding it to New York for payment. In his letter of August 13, 1842, to the Cashier of the bank, the Territorial Agent, after acknowledging the receipt of the notification of the protest, wrote that it had been impossible to meet this payment as the office came into his hands without funds; that he had been embarrassed with a large number of small debts outstanding from the previous year; that the only resources that were at his command during the year were the remainders of old debts due the office from previous sales, many of these were not collectible, and that any of them would be difficult to collect. The Legislature having repealed the law authorizing the agent to borrow money, and having passed an act requiring that the proceeds of the sales of city lots should be used only in payment for work upon and material for the capitol, it would be an absolute impossibility for him to meet any part of the debt due the bank this year. He was certain that the debt for $5,000 could not be met at maturity and the only practicable course to pursue that he could see, was to renew the notes. On September 20th, he wrote a letter to the President and Directors of the bank which was to be handed to them by Hon. Francis Springer who was "one of the counsel" for the collection of debts due the Territory. Mr. Springer was to explain to them the financial condition of the Territorial Agent's office, and would be as an answer from him to them. Mr. Pearson, Cashier, in his reply of the 23rd of September, 1842, stated that he had "depended upon the prompt payment of that debt" as by its payment the bank would be able to redeem the small balance of their notes still in circulation. Bu he promised to retain the note in the bank, and acknowledge. a deposit of $50, made to the State's credit, and that "any I Journal of Council, 5th Legislative Assembly, pp. 195-96. arrangement you make for the payment, in small or large amounts, of the notes now due, and becoming due, will be satisfactory." The Territorial Agent at the closing of his report suggests that as the note will not become due until December 28-31, 1843, there is time for the Legislature to make some arrangement for the payment or renewal of it and save its being pro tested. 5. Attempt in the Fifth General Assembly to Revoke the Charter of the Miners' Bank. On the 5th of December, 1842, the Fifth Legislative Assembly of the Territory of Iowa convened, and on the third day of the session, Mr. Rogers of Dubuque gave notice1 that at some future day he would introduce a bill to repeal the charter of the Miners' Bank and provide for winding up the affairs of the same. This bill was not introdued 2 by him until the second of January, 1843. It was considered in the Committee of the Whole on the same day and referred back to the House without amendment. An attempt 3 to refer it to the committee on Judiciary failed and it was finally referred to a Select Committee of one from each electoral district. To this committee of ten members was given the power to send for such persons and papers as may be had at Iowa City relative to the subject. (a) Majority Report of Select Committee of House. After two unsuccessful attempts by Mr. Rogers to secure an earlier report, one was finally made on January 23, 1843. The committee reported the bill back without amendment and recommended its passage. The committee also reported that they had examined Joseph T. Fales, Timothy Davis, and I Journal of House, p. 12. 2 Ibid, p. 69. 3 Ibid, p. 71. 4 Ibid, p. 150, et seq. William Mobley in regard to the affairs and the methods of conducting the bank. The most important statement of Mr. Fales was "that he believes, the stock of the bank was never paid in any other way than by the stockholders giving their notes to the institution." He also testified in regard to the suspension of specie payment by the bank, that he had presented notes to the bank for redemption and had been refused specie. That the officers of the bank threatened to shoot a constable if he should persist in his attempts to serve a writ of attachment on the property of the bank or open the doors of the bank building; that he had been paid forty cents on the dollar for the notes of the bank by one of the directors of it, and that the notes were worth from 37 to 40 cents on the dollar when he left Dubuque to come to the session of the Legislative Assembly; that he believed that nearly every one in Dubuque and the surrounding country, excepting those interested, wanted the bank's affairs closed up. Mr. Davis, one of the directors, testified that a fifty dollar certificate of stock was handed to him to qualify him to act as director, and that he "intended to return the certificate when he ceased acting as director." He claimed that other directors were qualified in the same manner as he was. He also testified as to the transactions between the bank and the St. Louis Gas Light Company; and as to the amount of bills yet outstanding which were about eight thousand dollars. Mr. Mobley of Springfield testified that the principal owners of the bank were Dr. Barrett and Thomas Mather; and that he had been hired by them before purchasing stock to investigate the condition of the bank. He gave an account of Mr. St. John's transactions with the bank whereby it lost the price of forty thousand dollars of the stock, and the fiftyseven thousand dollars which he had borrowed from it on his notes; he had become bankrupt and his debt to the bank was consequently a total loss. The report discussed the suggestion that had been made ་ |