16467. Park Bank (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
September 23, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
7d005c2c

Response Measures

Accommodated withdrawals

Description

September 23–24, 1873 papers report heavy withdrawals/requests at Park Bank; the bank limited payments to certified checks (refused greenbacks) and participated in Clearing House/loan-certificate arrangements. No article reports a suspension or permanent closure of Park Bank — it remained operating while restricting cash payments. Cause is the wider financial panic following Jay Cooke & Co.'s failure and nationwide currency scarcity.

Events (1)
1. September 23, 1873 Run
Cause
Macro News
Cause Details
Panic and currency scarcity after Jay Cooke failure and a general demand for specie/greenbacks; heavy out-of-town calls for funds.
Measures
Refused to pay out greenbacks; confined payments to certified checks; participated in Clearing-House loan certificate/pooling arrangements and sold securities as needed.
Newspaper Excerpt
Of all the banks in the city, only one in the afternoon-the Park Bank-refused to give out greenbacks, and confined itself to certified checks.
Source
newspapers

Newspaper Articles (6)
1. September 23, 1873 The Daily Phoenix Columbia, SC
Article from The Daily Phoenix, September 23, 1873

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or rad The Godelays without the tapes, "sis not added, verument Secretary trust and dou Institutionania of Congretion sanction niy to above allades using Thirty reserves. $40,000,000. to banks savings rigidly resolved the enforce clause. ..previous of New was James Jersey, in dead found City. Jersey He bad The in is the Trust Union of hands Now York to Stock day. closed Exchange The of the House manager Olearing says clearevery check passed through will ing He the says paid. banks in are and were never dauger the the 96 Irving doors of street, Warren Savings a were of crowd for their depositor The money. diately paying to set to work satisfy their howdemands; majority, ever, saw the was money willingis out, being paid they became quieted and left. the had bank out paid bad received a At deposits. the has present completely subsided Savings No. was Park Bank, Place, or being Broadwayiness no little usual; the paid to up did not 0.000, a while had been not do received. officials the Shortly Bank Bowery doors, this of delurge morning, beBOOD began to be came principal going, a The to run. decided ail p&y not believe the that of the One of the all money depositors were those The having say $12, got 000, trustees in 000 and bonds about in 000 New York $1,000,000 they which could 'draw run lasts, However, take they the thirty days but notice laws; clause will to even out up $200 or 80 $300. depositors from any The Union is beDime street, Savings a by 200 are sieged through the a doors closed plainside; iu the card BS that in off many paid is The to bauk able to-day. the meet about having will sell They 10-day $1,500,00 of 000 $500, bonds, going to run; they the sixty day by WS; this inThe Bank, 6th all checks are The being Green. wich has is promptly The met. all checia Bleecker is in upon at all paying tendance. of checks tion; are checks to quired days by-law. The bank day to sell States United resolved a securities, were, that jority Be there would them. The the day closed Evening 1111 with in the One with day more feeling; general the is will, Stock Exchange condithought, yo the tion, is reason will for prndent concerned, the business. This as bigh having by been paid Presi sident Vail, this said, Commence was confidence the of in action buying had in 5.203 highly loosening 4P. classca is of one of any the the and on crowds curious inquirs for with stocks street; in to purbut of chase, Stock No Exchange be Jay will meeting held until rebeen ceived from offices are now These throngbout de being the say to of duration

2. September 23, 1873 The New York Herald New York, NY
Article from The New York Herald, September 23, 1873

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NATIONAL AND DEPOSIT BANKS. The general feeling yesterday among the banks after the scare of Sunday was surprisingly good. Of all the banks in the city, only one in the afternoon-the Park Bank-refused to give out greenbacks, and confined itself to certified checks. All others paid in greenbacks, all day long. though some announced that where the demand for greenoacks was suspiciously large it would be refused and certified checks given. That, however, was a necessity very little resorted to. The consolidation plan, which was spoken of on Saturday, and which is generally calculated a good one in times of local monetary stringency, was not favored much yesterday by houses in good standing-just those ones which could do most in restoring confidence. It appears the consolidation would simply have been one in which the suspended banks and the weak ones would have been aided at the expense of others, and it was thought much better to follow the other plan-of issuing loan certificates, guaranteed by the Clearing House and received at the Clearing House as legal tender, being issued upon good and undoubted securities. The fact that the system worked well was proved by the generally easier feeling, the rally in the price of stocks, Western Union bringing 65, cash, and New York Central selling at par and other stocks showing a like increase, and the amount of money on the street-one firm, William Heath & Co., lending $15,000 at seven per cent.

3. September 24, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 24, 1873

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PRESSURE UPON THE BANKS. CURRENCY EXCEEDINGLY SCARCE-DEMANDS FOR LOANS POURING IN FROM THE COUNTRY-THE CROPS MUST BE MOVED. upon of the downtown to ascertain their viewa. A reporter the banks Presidents of THE of TRIBUNE many called, leading The yesterday, questions asked had reference chiefly to the demand for loans from city customers and e drain from banks out of town. The reporter found a marked difference between the banks doing business for the brokers and those transacting a strictly mercantile business. Money was scarce everywhere, and discounts could not readily be obtained. The best commercial paper was offered at two per cent a day, but the money could not be had. OUTSIDE DEMAND FOR LOANS. W. K. Kitchen, President of the Park Bank, told the reporter that the calls on the bank were not very great from the city, as they paid large amounts only on certified checks from the Clearing-house, and the demand for loans was not so large as one might suppose. The demand from country banks, however, was simply enormous, and could be in the banks to country amounted to not be raised in an banks met. banks which could The in the deposits city hour. a belonging The vast not sum, haven't got it; they ought to have taken on Saturit day the action which they took on Monday, and was a great mistake that they failed to do so. To a customer who called for a loan-We will let you have the money as soon as we can. Send around to your customers and make them pay up. This is a good time to collect in money. THE COMMERCIAL WORLD NOT AFFECTED. Geo. S. Coe, President of the American Exchange Bank, said that his institution was not a brokers' bank, and the demands for loans from merchants were not greater than usual. The commercial world was not affected in the least as yet, and he saw no reason why they need be. The out-of-town demand for money is always large at this season of the year, but is larger now than usual owing to the panic. Their deposits are small in proportion to their capital, and they are meeting demands from all sources. He looked upon the trouble as a stock-brokers' affair which need not troubln outsiders. The stock gamblers, he said, were drawing money from the banks, and stood ready with it in their pockets to buy stocks whenever they could put them down low enough. MONEY NEEDED FOR MOVING CROPS. John E. Williams, President of the Metropolitan Bank, told the reporter that they did a strictly commercial business, and were not affected in any way by the panic. There was great demand from out of town for money with which to move the crops. That was the cause of the trouble. "Our wealth in us poor and when a sudden call for grain Wall-st. Cooke's made failure created in currency, money Jay in it was n't in the city. The wheat was nor one was in a good." never 80 Every large the foreign hurry demand crop to get so his crop to the sea, and his bank sent out $100,000 a day for five or six weeks. The demand had somewhat increased, and some of the country bankers had gone wild. One man was day or two ago who had $70,000 on deposit and $40,000 in greenbacks in his pockets, and still wanted to get a discount. Mr. Williams told him to go home and cool off. The national currency, Mr. Williams said, is all out of the city; there is probably not more than $1,000,000, and perhaps not more than half a million in the banks. If they had all been paying out gold they would have been compelled to suspend. The great trouble was caused by the large amounts of worthless railroad bonds and stocks forced on the market by false representations. A JUBILANT BANK. At the Fourth National Bank the aspect of things had greatly changed since Monday. There were few persons at the paying teller's desk, but there was a long line of depositors at the window of the receiving teller reaching half around the bank. At 3 o'clock the line had not been shortened, and half an hour later it numbered 26. Mr. Lane, the cashier. told the reporter that they had found themselves a creditor bank at the Clearing-house, and were feeling quite jubilant over it. Heretofore they had been on the debtor side. The worst of the trouble, he thought, was over; there would still be ruin among the bankers, but the trouble of the banks, he thought, was over. After the suspension of Henry Clews & Co. a report was circulated on the street that the Fourth National Bank had suspended. The reporter returned, and was told that the report had probably arisen from their refusal to clear for Henry Clews & Co., but that the situation was unchanged since the former visit. The cashier pointed to the line of depositors, as if this were a sufficient answer to all questions of their elvency. A THRUST AT BROKERS' BANKS. W. H. Scott. President of the Hanover National Bank, said that they kept no brokers' accounts, and there was no unusual city demand, while the number had increased from the not be met: pouring the of panic their in, began. depositors and could Demands largely country there was since were currency to meet no which did a who dealt in business; fears for enough the the bankers banks in the city strictly them. stocks banking He would had not probably have to go down before things became settled. BROKERS MAKING SETTLEMENTS. Tappan, President of the Gallatin National Bank, said that the demand for loans was light. The brokers seemed to be settling up their affairs, exchanging stocks, and getting rid of collaterals, rather than incurring new obligations. There was a process of liquidation going on all around. They had no correspondents except in Philadelphia, and the out-of-town demand was limited to that city, but the demand from there was heavy. NO UNUSUAL CITY DEMAND, The reporter found everything quiet at the Continental National Bank. T.G.S. Flint said that a report had been telegraphed all over the country on Saturday that the bank had suspended; and the result was that their out-of-town customers were calling in their deposits. There had been a tremendous run by letter telegraphal day Monday and yesterday, and they did not know what was the cause until yesterday. They had responded to all calls, and unless there were a change within a few days they would liquidate their entire out-of-town indebtedness. The false report was circulated in had been no unusual denot how much ruthem, but it had inthe mand. mor country, had He caused could and there say certainly harm been city the inrious to their customers and to many from whom

4. September 24, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 24, 1873

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# ANOTHER DISPATCH, Special Dispatch to The Chicago Tribune. H. M'CULLOCH INTERVIEWED. NEW Yonk, Sopt. 23. Ex-Secretary of the Treasury Hugh McCulloch, a member of the London firm of Jay Cooke, McCulloch & Co., was questioned yesterday rolative to the report that the fiscal agency of tho Navy Department in Europo had been removed from tho house of which ho was a member, Ho replied that thero was no truth in the rumor. In response to the inquiry whether or not the London house was affected by the panto here, he said advices wero of a most cheerful character, When ho left London thero was no suspicion that a financial revulsion was imminent. There seemed to bo moro disposition to practico economy on the part of Americans, Огорь аге abundant: there is a demand for them abrond of good prices; and trade is prosperous. Under these circumstances there was no ground whatever for ex-pecting a disturbance in financial matters, Had ho supposed there was a likelihood of such a contingency, ho would have remained in London to attend to the business of the houso there. IHe received THE FIRST INTIMATION of any disturbance when the steamer reached Quarantine, on Monday. He had scarcely recovered from the stunning effect of the unexpected news. He was naked whether he thought the present panic would become wide-spread and seriously affect the mer-cantile, as well пя financial, community, Mr. McCulloch replied that ho could see no reason why it should. The country was in good condition-if good crops and good prices for them could be taken as a criterion, Financial panics were always senseless. That of 1857, which caused such wido-spread ruin, and for a time brought busi-ness to a completo stand-still, began with the failure of the Ohfo Life & Trust Company. There was no money to be had, and as a result there was a general suspension, Wililam Lucas, one of the richest men in St. Louis, worth $4,000,000 or $5,000,000, failed because he could not raiso $100,000, When the panic subsided, it was found that theatro was actually 110 reason for it. So it would probably be in this in-stance. Everything depended upon THE MAINTENANCE OF CONFIDENCE, The great trouble was that, in times like the present, men became frightened, and held on to all the availa-ble funds they possessed. In the present instance, the community was alarmed by the failure of Kenyon, Cox & Co., and the Warehouse and Security Company, and became distrustful of those houses and banke whoso resources and credit were ample to meet ordinary requirements of busi-ness, or even to withstand a considerable run. Each ono endeavored to prepare for the coming storm, and in this way precipitated the panic which was now taxing the emergencies of financiers. Ho could see no reason for its extending to the mer-cantile community, and disturbing and disarranging commerce. He counseled confidence in the resources of the country and in the ability of the greater portion of the mercantile community to pay its liabilities. Distrust and suspicion would aggravato and oxtend a calamity which could be avoided if the community acted wirely and discreetly. MORE CONCERNING THE JAY COOKE FAILURE, F. O. French, who has been appointed attorney in fact, to represent the house of Jay Cooke, McCulloch & Co., in this city, ponding the arrangement of Jay Cooko & Co.'s business, stated yesterday that the report of Jay Cooke & Co.'s assets, and liabilities was not yet finished, The examination into accounts was going forward as rapidly as possible, and a statement would be made public in a fow days at farthest. The question of resumption would also soon be settled. AT THE SUB-TREASURY, United States 6-20s were purchased at the Sub-Treasury yesterday to the amount of $205,200, Bonds were redeemed to the value of $7,000, and $532,000 wero paid for interest. The banks drow on their greenback reserve, and presented cortificates for redemption to the valuo of $1,230,000. Thero was a crowd at no time during tho day, and Gen. Hillhouse said $20,000,000 could have been paid out if it had been demanded. He again declined to furnish the names of sellers of bonds for publication, The purchases for three days have amount-ed to $9,271,350, Thero 18 a marked difference between banks doing business for brokers and those transacting strictly mercantile business. Money was scarce everywhere, and discounts could not readily be obtained. The best commercial paper was offered at 2 per cent a day, but the money could not be had. W. K. Kitchen, PRESIDENT OF THE PARK DANK, told a reporter that calls on the bank were not very great froin the city, as they paid large amounts only on certified checks from the Clearing-House, and the demand for loans was not so large as one might suppose. The demand from country banks, how-ever, was simply enormous, and could not be met. The deposits in city banks belonging to country bauks probably amounted to $200,000,000, which could not be raised in an hour. Banks haven't got it. They ought to have taken on Saturday the action they took on Monday, and it was a great mistake that they failed to do Bo, To a customer, who called for a loan, the President said, "We will let you have the money as soon as wo can; send around to your customers, and make them pay up. This is a good time to collect money." GEO. L. COE, President of the American Exchange Bank, said that his institution was not a brokers' bank, and demands for loans from the merchants were not greater than usual. The commercial world was not affected in the least, as yet; and he saw no reason why they need be. The out-of-town demand for money is always large at this season of the year, but larger now than usual, during the panic. Their deposits are small in proportion to their capital, and they aro meeting domands from all comers, He looked upon the trouble as a stock-brokers' affair, which need not trouble outsidors. Stock-gamblers, he said, were drawing money from the banks, and stood ready with it in their pockets to buy up stocks, when-ever they could put them down low enough. JOHN E, WILLIAMS President of the Metropolitan Bank, told a reporter that they did a strictly commercial business, and were not affected in any way by the panie. There was a great demand from out of town for money with which to move the crops. That was the cause of the trouble, "Our wealth in grain imado us poor in currency; and, when Jay Cooke's failure created a sudden call for money in Wall street, it wasn't in the city. The wheat crop was never so large, nor the foreign demand so good. Every one was in a hurry to got his crop to sea, and his bank sent $100,000 a day for five or six wooks, The demand bad somo-what increased, and some of the country bankers had gono wild. One was in, a day or two ago, who had $10,000 on deposit and $40,000 in greenbacks in his pocket; and stili ho wanted to get a discount. Mr. Williama told him to go home, and cool oft. The national currency, he said, is all out of the city. There is not probably more than one million, and perhaps not more than hal

5. October 22, 1873 New-York Tribune New York, NY
Article from New-York Tribune, October 22, 1873

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CURRENCY RESUMPTION. P. OPINIONS OF W. K. KITCHEN, SHEPHERD KNAPP, APCALHOUN, AND _RESUMPTION MONEY PROACHING C. BY NATURAL PROCESSES PANIC ABUNDANT-WHOLESO EFFECTS OF THE ON THE BANKS. The question of an early resumption subject of payments by the banks was again the currency investigation by TRIBUNE reportere, yesterday, of an bank officials. W. K. Kitchen, said that while be believed was a bad one at the arrangement of among the Park the Bank. beginning, President the Park it pooling would Bank be.injudicious to break it up hastily. The rather no benefit from it, but on the contrary was to derives all the large banks must, but its effect distress amoug weaker institutions, a | reflex of distress among all. to freely, and would doubtless as save loses. quent ing in as prètty Currency continue and giving was conse- com involume. His own bank was able crease accommodation in to merchants as it was to, much but it had paid out a great part of its deposits. Further and not able to give as much as it would wish. The was this, there had been no practical suspension. ability than of currency according to each bank's doubtpayment the rule throughout. Bank reforms would would prove less was out of the trouble, and so far it was grow a beneficial panic. Over-certification he to evils which would be one the banks that had been in the habit had already learned caution. certifying believed have of the been remedied, that way. The of and over- Park Bank itself had never done business in 33 Shepherd Knapp of the Mechanics' Bank, No. Wallsaid he did not believe it best to force full resump banks st., of currency payments just now. Most of the tion had paid out a large proportion of their deposits some of them might be seriously depleted paid and the understanding that currency would be if freely should get abroad. It was better to let the the currency out work its way back gradually, and, with great influx of gold here from abroad, he thought specie payments might be the result. That, of course, would it be better for everybody. Although we could not use for currency, yet it afforded a solid foundation upon and which all values and all paper could stand steadily, a continued apparent suspension of currency seemed to up the event of a resumption of specie. had been entered The likely pooling hurry arrangement into endangered, by the solid banks because the weak ones were and it would be unwise to break it up before all are fully prepared. He knew of no intention on the part and of the large banks to withdraw from it, he certainly had formed no such intention himself As to the loan certificates. they were already being retired. The Mechanics Bank had purchased $300,000 of them at the beginning in order to relieve the merchants and to be ready in case of an emergency; but recently they had returned them and taken back their securities. There had, indeed, been more than twenty millions issued, for it was understood the Committee could issue ad libitum after the last ten million was issued. He (did not know, therefore, just how much therew to be redeemed, nor when they would all be redeemed. Other banks, doubtless. found the loan certificates very convenient. The Mechanics' had no use for them. It had continued to give merchants about as much accommodation as they demanded, and its discounts had increased $160,000 since the days before the panic. One reform likely to grow out of the erisis was a reform in the matter of over-certifying checks. His bank at present required full securities before it certified anything. P.C. Calhoun, President of the Fourth National Bank. said.there had never been any practical suspension. The banks have all paid National bank notes. and there is now an actual surplus of currency in all the banks. A man was there yesterday rushing about to sell $100,000 of National bank notes, and he could not find a buyer. The currency is coming in in great quantity, faster than it ever aid before, and because of the accommodation afforded by loan certificates. it accumulates in the bank If man comes with a check for $100, $400, or the counter, of course; if $500, vaults. he is paid over the amount is larger, $1,000 or $2,000, he is paid by certified check Reporter-As to the loan certificates, Mr. Calhoun, are they likely to soon redeemed if Mr. Calhoun-They could all be redeemed at once, the holders care to do it. We have been carrying $1,200,000 of them, merely to relieve the needs of our customers, but we could return them to-day, if we wished, take back our securities. But we do not think it We consider the loan a best and to so. certificates very good substitute for currency, and while they continue in use the actual currency accumulates. It is not drawback on any of us to make use of them. Brokers' checks are all certified, and always will be certified as long as there are any brokers' checks. The pool arrangement of the Associated Banks does no harm, and ittmay do good. The banks I believe could all draw out of it now, but it might strain some of the weak ones, and again threaten the mercantile interests. It is better to keep up the pool, although we larger banks suffer a little by it, than to break two or three mercantile houses, and have distrust and panic on us again. The accumulation of currency forms very desirable reserve to facilitate, when necessary, the movement of the various crops. But even in that particular, matters are exceedingly easy. A gentle man from the South was here to-day, who says that there is currency enough in the South to move the cotton crop provided we can give them slight advances on five and ten-day bills, due when the cotton arrives. So you may say that currency payments are resumed. There will be no formal proclamation of resumption by the Bank Compittee. Currency will simply assert itself. and in the course of the week every bank in the city will be paying currency as freely as ever. J. E. Williams, of the Metropolitan National Bank. had time only to say, when asked as to the prospects of an early resumption of currency payment, that he thought it best to let it come about naturally rather than to force it by any formal action by the banks. THE IRON TRADE SUFFERING FROM THE STRINGENCY. A TRIBUNE reporter yesterday conversed with several extensive dealers in iron, both American and imported, to obtain their opinions as to the present condition of business and the prospects for the future. Edward Oothout of the firm of W. Oothout & Co., No. 3 CHiff-st., said that the iron trade is now almost at a standstill. The transactions of the past month have been little over 50 per centrol those of the same time last year. Money does not come forward to set in motion the products of the mines and mills, and to move the crops. Moreover, dealers want both confidence and ready means to sustain them in giving orders. At the beginning of the panic collections came in pretty well, but as the alarm and the consequent monetary stringency spread over the country, the receipts stopped, and now there is little coming in. Many of the mills and employing firms are embarrassed to pay their MCD. and either defer full payment or give part of what is due in orders on some bank. In the case of the larger mills and houses this difficulty is chiefly due to the limitations put on currency payments by the banks. Mills and firms which have less resources, beside trouble from this cause, find difficulty also because they can little or and because their not meet their Merchants get their not more. Some usually sell money among obligations nothing, and the will promptly. trustworthy, buy debtors cannot now buyers, do most can only meet their bille with

6. November 27, 1873 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, November 27, 1873

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COURT RECORD. WEDNESDAY, NOVEMBER 26, 1873. the courts have adjourned till Friday and a Thursday All being thanksgiving day. legal holiday United States Circuit Court. Cockrem. receiver of the tion, New vs Or H. Reynes John National Banking Asso National leans & Brother and Park Bank of New York. of complaint in orator's bill The identical grounds with those in the case of Cock rent are vs. Schneider et els. Superior District Court. State Robert Ray vs. Charles Clinton, State and Antoine Dabuclet. Trea. following modifications of surer. A auditor, The decreed the injunce and tion have been counsel for the widow are On motion of Henry of J. Spotts, succession $465 30 the heirs permitted to be paid to that General, motion of the Attorney the pay. On enlarged to permit prosecuting ment injunction of $1000 is advance costs in defaulters. On motion of Richard enlarged Pritchard, to allow inter the the payment the venor, the injune out of the is general fund of at Insane Asylum, appropriations the Deaf. to Dumb and the Blind Charity Asy Jackson; Baton Rouge, and revenues 1mm. at at New Orleans, the to be kept lected Hospital, for these appropriations separate. State ex rel. William Durbridge State ex rel. vs Eagar, The Clinton, Auditor: the same important Charies Ellerman & Co. vs. the decision The following most in the above cases. At General Mr. was J. given .Q.A. vesterday Fellows appeared for the fal within torney presented in this case parties contractors The questions a narrow compass Two with the claim for to the have purpose been of improving act the of navi the State gation of Red river No. 59 under of 1868), an authorizing Legislature (act be made in that river improvements to State had agreed in to that act for the They allege execute that the her bonds work at twenty done under years a in contract payment as provided contract in the $85.000 Of the amount and, of that alleged, $50,000 has is to the caused bonds has yet due. been paid, It is allege be that executed the State by the into them over give proper officers, the and Auditor has to be delivered deliver those On the hands of Auditor reiused to whose demand to the the claimants or persons for the in reason bonds favor they have been the issued, act authorizing their ap that in his opinion The parties issue was unconstitutional mandamus to complied to the court for a pel him to deliver them in 187: (act No. 21 Under an act Legislature passed directed the where Attor of 1872), General the to appear or in any all cases other State officer employ ney the Auditor, is a party Treasurer to defend private them counsel They is were their not defense. allowed to The Attorney act -and General which also for authorized by in the the same nature of his herever office- 111 duties seem to be the State w ap the to be the defender it becomes of necessary. also for He and State, alleges, it pears his judgment here for the Auditor. on the part and of the State that tutional; hich lates that this act article 111 of the constitution, from creating W any prohibits without the providing Legislature the would means accrue of pay on debt. The ment debt of the and interest also providing which constitution for the pay this act. ment that of the principale when consid ered stitution, in refer ality to of that provision ascertaining of the whether ence be determined by imagine it must this is debt or not. to elaborate at all scarcely necessary question. Wherever shall the be done, State by claim any to provides on this that anything shall be satisfied iven running the or execution of time, of and bonds does not when provide it for might is cases extinction period of the debt principal against the State. That with mature, would seem to dispose as of these far as the bends concerned framers out going any further, I must conclude of that the con that was are the intention because of in the 1870 they caused be sub- an stitution. to the constitution for ratification to amendment mitted to the ratified people on the fourth and which of was November 1870. above prohibiting a certain or fifth of the State debt $25,000,000 the increase limit, which was constitution fixed at must be That provision reference of the to article 111 that of the the same shall not create considered const itution, in which provides a debt without in it wishing providing Legislature the means amount of extinguis above $100,000 It the same the was seen same act. that to an debts might manner. be creat Under provided 111 for debts in had been were created, increasing conrate article tinued to be creat and and it was found neces conform it to think that. t sary it au to alarming make another must provision prov be considered to as that the Legislablishing constitutionally, the doctrine no Legislatures power to system reate ure has, debts. In other words of general public an not enter on and create debts ained their own that improvement it was alarmdiscretion. When created debts an they had al ready and had enacted privileges conng the amount shape of franchises in and corpora II investing power it was found racts to create debts, in order that ions to make a provision bankrupted of he necessary State might not be entirely the Legislature, The y hich the was indiscretion unlimited in discovered its cha racter not to be rst limitation coercive was to prevent the Legisla and afficient from exercising too much of creating latitude debts provision a became discretion are in the was matter therefore placed part of in the the or anic stitution, law from and the necessary date ot to its annul adop fr his ion. act It of is the not Legislature constitution, on account be ause t question that there provision are so of many the other and acts. might It be could be revolution rplexing in the public unexe securi roduce a held. But here is au enforced nted es already claim which is sought the to nntitutional be is my opinion equally that binding with the I other will act mitation, sufficient determine unconstitutional this case. off ac article, ot un declare of its the infringi ing to on the previous prohibition I. aced but in the contine amendment it to the constitum Sp adopted evidence in 1870. discloses in this case with that Oliver in The was made, first Red river 0 Alban, contract to construct a dam That in contract dercertain under specification the provisions works of act to No be lik adop is of made 1868. authorizing these ion of the con al no. In 187 after hibition the 06 1870. limiting made the and an nst made. tutional $25. 00,000. of the be to was ne in the Board work of engine ho had giv by and were the been CITY State in such mattere to represe the ignment was not made is the the cons in tation. and there unexecuted con pr tation applied to all out after the is which he were const carried stution. It is not very