Bank of Illinois (Shawneetown) - MINUTE BOOK B., June 1836 - March 1845

385 pages; gift of Frank b. Elliot, Oct. 8, 1942.

The BANK OF ILLINOIS at Shawneetown was incorporated in 1818, Shawneetown being the chief town of the eastern side of the State, and the landing place of a great portion of the immigrants coming via the Ohio river. Money being too abundant, as it cold not be used in legitimate commerce in a State where the material for commerce did not exist, by 1820 everyone there was involved in debt. The bank was closed for 12 years, its charter then revived in 1834 with a capital of $300,000. Legislation resulted in general ruin in a few years, and in March of 1843, the bank of Illinois finally went into liquidation.

Ref.: Ford, History of Illinois from 1818 to 1847

Pooley, The Settlement of Illinois

MINUTE BOOK B. contains the record of meetings of the Directors of the Bank of Illinois from June 8, 1837 to March 19, 1845. In its pages the development of the bank can be followed - its expansion and contraction, its prosperity and its distress.

There are the bank elections: John Marshall, President; John Siddall, Cashier - Marshall succeeded by James Dunlap of Jacksonville as president in January, 1843; the appointment of Henry Eddy as attorney to go to Vandalia "to make an amicable arrangement" between the Bank of Illinois and the State Bank of Illinois at Vandalia, and discussion of the subsequent increase of capital stock and legislation affecting both banks; matters of discounts, dividends, collateral, payment on stock, loans - one "for the purpose of grading and paving the River Bank"; suspension of specie payment "unless in small sums to accomodate travellers," resumption, and suspension again; establishment of branches in Jacksonville, Alton, and Lawrenceville, February 14, and in Pekin November 29, 1838; the vote to "contract for and superintend the building of a proper Banking House in Shawneetown" February 15, 1838, and the laying of the cornerstone in July 1839; the by-laws, Rules and Regulations of the bank of Illinois at Shawneetown, and Rules and Regulations for the Government of Branches of the Bank, May 8, 1838; authorization by the Internal Improvement Act to sell $500,000 worth of stock belonging to the institution; a motion to open a branch at Galena, and later withdrawal of the motion, and tabling of a motion for a branch at Springfield; call made of ten percent on stockholders who had loans on their stock, the cutting of staff and salaries; the consolidation and closing of branches; the Act passed by the Legislature "to reduce the State debt by one million dollars and to put the bank of Illinois into liquidation; the pro rata payment of a dividend of 20 cents on the dollar at liquidation, March 29, 1843; copies of the indentures and assignment to the assignees duly executed by the president and Cashier, March 1845.

IN AUTOGRAPH LETTER BOOKS:

Vol. 48, p. 213

Letter, John Marshall, President of the Bank. Shawneetown May 25, 1819, to Ninian Edwards, Edwardsville, regarding bank business; the part played by Edwards in procuring advantages for Illinois; the attitude of the receiver at Kaskaskia injurious to the Shawneetown bank, also that of the Bank of Missouri; friendly feeling of Shawneetown bank towards Edwardsville bank - though order to receive Edwardsville notes was rescinded, Marshall hopes to have them renewed; sensible of Edwards help in having Shawneetown bank made a place of deposit for the public money.

Vol. 50, p. 30

Letter, John Marshall, President of the Bank, Shawneetown, Sept. 2, 1826, to Ninian Edwards, Belleville, saying that "state paper is very scarce;" expressing deep regret at the defeat of Mr. Cook, and wonder at Edwards' election, after Edwards' impolitic utterances regarding "the management, the finances of States' Banks etc ..."