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Aud received the following note in retura:
“Bank of Ilinois at Shauneetown, January, 27, 1837.
GENTLEMEN: I have received your communication of this date, enclosing copy of a resolution passed by the Hon. the Senate aud House of Representatives of the General Assembly of the State of Illinois, authorising you as a joint committee to examine into the affairs and condition, and also into the conduct and management of this Bank, and have laid them before the Board of Directors, by whom I have been instructed to say that they have no objection whatever to the examination proposed, and the Cashier and a committee of the Board have been instructed to be present, or in attendance, to render you every possible aid to facilitate your labors. The Board of Directors fully appreciate the motive which appear to have actuated :he Legislature in instituting the enquiry, as well as the delicacy of manner with which their committee have introduced the subject.
I have the honor to be, very respectfully,
Bank of Illinois.
Whereupon, they proceeded to the Banking House in Shawneetown, and upon examination found the affairs and condition of the Bank of Illinois to stand as shown by the accompanying statement, marked (A.) The statement thus furnished, your committee believe to be correci up to the date of our examination; and will take occasion here to say, that their duties were greatly facilitated, by the promptness with which our request was met, and the regularity and clearness with which the Books were managed and posted.
Your committee were of opinion that they should inquire into the character of the discounts, &c.
They found that upon the subject of exchange, the Bank charged one per cent, for bills payable at Philadelphia and New Orleans, and in the purchase of bills of exchange on New Orleans, they discount one per cent, and interest for the time it has to run.
As to the purchase of bills of exchange on Philadelphia, there is no transactions be. cause the balance of trade is against the country, and but few are ever - bought. We find also from the discount Book, that there are no loans made to individuals out of this State, and the whole operations of the Bank are confined to the southern part of the State.
As to the issue of bills payable at New Orleans, Louisville, Phila. delphia or elsewhere than at the Banking House at Shawneetown, the Bank redeems all notes upon presentation, wherever payable, whenever they are presented at the Banking House in Shawneetown; and of the $14,900 payable at Philadelphia $8,500 has been already redeemed, as appears by the correspondence of the Bank. The Bank issues but
few notes payable elsewhere than at Shawneetown. The following is the amount, with the places at which it is payable, viz:
Payable at Shawneetown, $83,178; payable at Philadelphia, $14,900; payable at Louisville, $2,825; payable at New Orleans, $4,660; whole amount in circulation, $105,563, of which $8,500 has been redeemed as before mer.tioned. Your committee also upon examination find that the amount of issues of paper payable elsewhere than at the banking house in Shawneetown is small, and generally confined to those who wish Eastern funds, which accounts for the issue of paper payable at Philadelphia. There is now no notes issued by this Bank of a less denomination than five dollars, although the Bank is not prohibited by the charter, and probably there will not be again; at least such is their determination at present.
We will also take occasion to remark that bills of exchange bought or discounted, are chiefly on New Orleans, payable at short dates, and will be collected without renewal or delay. The amount it will be perceived is $69,944,95, and will shortly add not only to the specie in the Bank, but to the security of the institution. This amount may be accounted for from the fact that larger shipments of produce have been made this year from Shawneetown than ever was made before. As an evidence of which, your committee would state that two steam boats are owned at this place, and were exclusively engaged in this trade, and although our stay at Shawneetown, was short, two steam boats were loaded and departed with produce of the immediate vicinity, for the southern market, and several more will beloaded during this season,
The committee were shown some of the correspondence of the Bank, particularly a letter from their agent, by which it appears that there is in addition to the sum of $47,278,27 in specie now in Bank, there is $21,000 on the way from New Orleans to Shawneetown, in lieu of the notes on various Banks in New Orleans, which is set down as notes on other Banks, in the statement herewith furnished; and the further sum of $9,000 in specie is also expected in payment of bills of exchange on New Orleans. From the heavy shipments making the result, it is confidently expected that a large accession of specie will be obtained in the course of the first spring months.
So far as we have been able to judge, the conduct of the Bank shews great impartiality in their discounts, and is confined to those of the State, as before mentioned, and to those who are actively engaged in commerce in purchasing and exporting the produce of the country at heavy prices. The discount book was presented to us, and as far as we could judge, no complaint ought to be entertained of its accon. modations on the score of political preferences. The Bank of Illinois went into operation in 1817, under a charter passed that year by the Legislature of the Illinois Territory, and did not close operations until the pressure of the times forced them to collect their debts and cease discounting in 1822 or '23, leaving however no paper unredeemed, except what might be supposed to be lost--say some few hundred dol.
larg. The Bank has redeemed some of this paper since going into operation, which had been out over fifteen years. The books of the Bank show but little of paper unredeemed. Such was the management of the Bank in its early age, and the conduct and management of the Bank is chiefly in the same hands now that it was then.
The President and Directors consist of Messrs. John Marshall, President; P. Redman, T. F. Vaught, E. H. Gatewood, A. Kirkpatrick, C. C Vanlandingham, Timothy Guaad, James C. Sloo, M. M. Rawlings, IJenry Eddy, M. A. G. Posey, A. Docker, Directors; John Siddall, Cashier and Allen Redman, Clerk-men who have been long in the country, most of them over twenty years in the immediate vi. cinity of the location of the Bank, of excellent standing, and unimpeachable integrity and honor, and without designing to pay a compliment to individuals, your committee cannot refrain from making this expression in relation to that branch of the resolution under which they now act, requiring us to inquire into the management of the Bank.
Since the examination, and before making this report, your committee have been informed by the communication of the Cashier of that Bank, that the sum of $23,300 has been received of the funds of the Bank in silver from New Orleans, which makes the amount of specie now in its vaults $70,578-
All of which is respectfully submitted.
Mr. Borrough moved to lay the report and accompanying documents upon the table, and thereupon, On motion of Mr. Gatewood, The aforesaid report and accompanying documents were Ordered To lie upon the table and be printed.
Mr. Wight from the select committee to which bad been referred the bill from the House of Representatives entitled,
“An act to locate a state road from Galena to Beardstown,"
The communication from the Governor and the accompanying documents relative to the improvement of the Great Wabash river, which had been laid on the table,
Were taken up, and
On motion of Mr. Reilley,
The resolution heretofore laid on the table, prohibiting the introduction of new business after the 6th February, &c.
Was taken up, and
Amended by striking out the w6th,"" and inserting the “13th” in, lieu thereof.
On motion of Mr. Ross,
Said resolution was further amended by striking out the 26th” and inserting the “28th” in lieu thereof.
On motion of Mr. Fletcher,
Said resolution was further amended by striking out "next,” and inserting "instant” in lieu thereof.
The resolution as amended was then
Ordered, That the Secretary inform the House of Representatives of the adoption of said resolution, and ask their concurrence thereio.
Tuesday, Feb. 7, 1837.
The Senate met pursuant to adjournment.
Mr. Fletcher, from the select committee to which was referred the petition of sundry citizens of Sangamo county praying for the location of a certain state road,
Reported a bill entitled
Mr. Pruyne, from the select committee to which was referred the bill entitled
“An act supplemental to an act establishing certain counties--approved Jan. 16, 1837,"
Reported said bill back with an amendment, Which was read, and Concurred in; and the said bill was Ordered To be engrossed for a third reading as amended. Mr. Ross, from the select committee to which was referred the peti. tion of sundry citizens of Pike county in relation to McKeo's creck,
Reported a bill entitled
"An act declaring McKee's creek in Pike county a navigable stream,'
Which was read, and
Mr. Mitchell, from the select committee to which was referred the petition of sundry citizens of Washington in Tazewell county praying an act of incorporation for manufacturing purposes.
Reported a bill entitled
Mr. Wood, from the select committee to which was referred the bill to incorporate the Kaskaskia Rail Road Company,
Reported the same back with a substitute as an amendment,
"An act to re-locate a part of a certain road in Montgomery county, and for other purposes,"
", "An act changing part of the state road from Liberty to Tremont," “An act to locate a state road from Stephenson to Peoria,"
“An act to locate a state road from Ottawa to Grandature and thence north to intersect the state road from Peoria :o Galena,”
“An act to re-locate a part of a state road therein named,"
“An act to continue the state road from Shawneetown in Gallatin county to Chicago in Cook county,"
“An act to locale a state road from Henderson in Knox county to Morristown in Henry county,"
“An act to incorporate the Griggsville Female Academy," and
“An act to authorize Jacob Fry, Thomas Cummings, and Isaac Darniel to establish a ferry across the Illinois river at the town of Guilford;" and Mr. Hackelion afterwards, from the same co
committee, Reported that on this day they laid the above-mentioned bills before the Council of Revision.
Mr. Stadden, from the select committee to which was referred the bill for defining the extent of possession in cases of settlement on the public lands, and the proposed amendment thereto,
Reported the same back with an amendment,
Mr. Allen of McLean, from the select committee to which was referred the bill from the House of Representatives for the relief of ihe heirs of Mason Paine and Michael Dillon,