Click image to open full size in new tab
Article Text
The Nebraska Banks, [Fr the Omaha Nebraskian, Feb. 41 When the first bank of issue was organized in Nebraska we deprecated it as an unfortunate event believing as we did, that its ultimate effect would be an Injury to the peo. pie. Indeed, 80 strong was the feeling in the first year of the Territory, and in the first Legislative Assembly against banks, that the party who asked for the first charter dare not ask for a charter granting emphatic privaleges BS n bank, but effected their object by procuring & charter for an insurance company, authorized to receive deposits, and "under such regulations as might be prescribed by the laws of said company to issue certificates therefor. Under this clause, the company proceeded to organize R regular bank of issue, and, in the similitude of bank bills, put in circulation certificates of deposit to a large amount. This company-Western Fire and Marine Insurance-continued from its organization up to September last, to onjoy a high degree of credit, when it burst up and disclosed the fact that it had done business for a long time on credit, its capital stock having been with drawn by its owners. Que bank of issue having been instituted, it became comparatively easy, through the agency of a weak kneed Governor, to procure the charter of others Accordingly, the succeeding Legisla ture chartered five banks. This was followed last winter by the creation of two more. Taking advantage of A general law of the Territory in relation to corporations. two other banks have been put in operation. This law, however, was repealed by the Legislature of last winter. which puts a quietus to any more creations in that direction. Owing to the failures that have occurred, and a consequent general feeling against the creation of any more new banks, no serious swempt was made in the late Legislature, which has just expired, to procure any more new charters It may, therefore, be set down as a fixed fact that no more banks will be created in Nebraska. or the above ten banks three have failed, one is now in a failing condition, and one other is giving premonitory symptoms of dissolution, judging from a recent act of the absquatulating Legislature, at Florence, by which M in authorized to suspend for six months, and without requiring it to have any specie in its vault, to issue three dollars of paper for every one of its capital stock. We allude to the Platte Valley Bank, at Nebraska City. One of the before mentioned three (the Bank of Fontenelle, at Bellevue) is a dead cock in the pit, and sleeps the sleep that knows no waking. Nemaha Valley Bank. at Brownsville, and the Western Fire and Marine Insurance Company, at this place, claim to be only suy. pended. They shut down on the holders of their bills and depositors in September last, and have since given DO evidence of vitality at their respective places of doing business in Nebraska. We understand, however. that their currency bas been kept in circulation in Illinois by certain parties interested in them there. The Bank of Florence has been for some time in discredit although it has continued to redeem its issues, provided not over fifty dellars was offered at one time Its bills have also been forced into circulation in eastern Iowa by the credit of Cook. Sargent A Co., of Davenport They are not taken in the Territory at all, and it may be considered a defunct institution.
