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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (July 23, 1893)
r TTTfl OMATTA DA FLY UKl * SUNDAY. JULY 23. 1RM R1XTFRN PAOER. 13 J\r Legislative Battles in 1857 to Establish . _ These Corporate Beasts of Prey , MANLY VETO OF GOV. IZARD OVERRIDDEN rirmnrlnl Pnnlc following * ' Hortnnen of ArtUtlo lint WnrtlilcM Borlp.IIOO,000 . Imneit tijr Oinnlia to Krcct n Cnpltol IJnIltllnc. . Snmn .year * ago Mr. A. O. Warner , mum. licr of tlio State HUtorlc.il nocloty , contrib uted n highly Interesting paper on the liUlory of wildcat Jnnki In Nebraska. TUB UKC reproduces It from tlio published ro- ixjrls6f tlio society : Just nt tlio beginning of tbo prcsnilt century tury , In tbo ISmpIro state that congenial homo of nil forms of political rascality Aaron Hurr had tried his prcntlco hand nt tenting n bank charter through the Now York legislature nndor tlio giilso of n bill to Incorporate "A company to supply the city of Now York with water. " Following the lead of Massachusetts and Now York , vari ous states tried first apodal nnd then general - eral nrts of IncorK | > ratlon for b.uiks having the right to Issue currency , but llxo the traveler choosing between two roads In un Illinois swamp , whichever wny thov went they were sure to wish they had gone the other. When a special net of Incorporation was required for uach banking company , the only result was that specially active lobbyists were required to got the hills through. Ixg rolling and bribery were Ihu aurcninndoften the only way to cot a company sanctioned by the IcgUlaturo , and the p iss-wwl was vlr- ttially , "You tickle m-j und I'll tlcklo you. " In the legislature of Pennsylvania , in the year 18111. these who were engineering twen ty-live of thrso bills , Incorporating as many banks with an aggregate capital of $9,000- ( XX ) , coniblnuU nnd secured their passage. ( Governor Sn.vdor , however , vetoed the entire - tire lot , but the only ultimate result was that the next year a inoro generous policy on the part of the rollers of lops led thorn to Include - cludo forty-ono banks In their planning , hav ing an aggregate capital of ? 17 , ( > 00,000 , of which only one-fifth was reqiurcd to bo paid In , and they wore'then strong enough to In corporate them all over the governor's veto. A Iliter or U'llitoats , The birth of such a litter of wildcats as this was surely a great calamity , but the passage of a general enabling act which madn possible their spontaneous generation over u whole state seems to Imvo been worse. In 1837 Michigan passed such an net. It was thought that it had been care fully drawn , but almost Immediately after Its passage "banks wore springing up all f"over the state , In unheard-of places , In the depths of the forest , In saw mills , in nsherlcs and In ttio pockets of dishonest men. " Their circulation soon became so enormous that there were probablv S-'KX ) of it for every man , woman nnd child In the stato. II. M. Utley prepared for the Michigan Historical society a short but spirited nccount of this disas trous system , and this p.ipor seems to bo the only on'o heretofore published which deals directly with these corporate boasts of proy. Paper cities were brought into existence merely to plvo plausibility to the lie which made people bellovo that a sound bank was located In some uuvlsitud corner of the state , nnd mortgages on the lots of these alleged towns were shown as the real estate secur ity required by law. Speaking of the city nnd bank of tlrest ho says that the contemplative traveler who should penetrate to the desolate frog pond which the lithographic advertisements of thn place had filled with the navies of the world "would never dream what great possibilities ! had been unrealized on that spot. " Three unhappy commissioners were appointed to sec that the banks complied with the law. Spies dosrgod their stops and notified each bank as they approached it. A considerable amount of specie was carted along before : them to enable each bank In turn to make a good showing. "An examination into the affairs of the Lcnaweo County bank showed the requisite specie on hand. Sud denly descending upon the bank a few days later the nmounfbf cash In the vaults was round to bo Ml.20. At the same time the circulation of the hills of tno bank amounted to more than $20,000. " The bills from the Bank of Singapore secured a wide circula tion. One gentleman tells a doleful story aof how this bank "busted" while ho was wan dering about in the western part of the state looking for Singapore. There had never boon such a pluco in Michigan. In l&i'J the bank commissioners made a pathetic ro | > ort , in which they af firmed that at a low estimate tnoro were $1,000,000 of worthless notes In thn hands r > l the people. In an agony of linsto to get rid of the thing the law was repealed nnd de clared unconstitutional at the same timo. Hoforring to such banks in Indiana the governor of that state says in his mcssago for 1HKI : "Tho speculator comes to Indianap olis with the bundle of bank notes in one hand andtho stock in the other ; in twenty-four hours ho is on his way to some distant point of the union to circulate what ho denomi nates a legal currency authorized by the log- islatnro of Indiana. Hu has nominally lo cated his bank in snmo remote part of the state , dinlcult of access , where ho knows no * - , hanking facilities nro required , and intends that his notoH shall po Into the hands of per ; sons who will have no means of demanding their redemption. " NdliriKku * * 1'lritt Money Fnctnry. The experience of the older states seamed never to teach the now ones anything. Each one was as anxious as Its predecessors to try the Intoxicant Inlluenco of Inflation , nnd so each In turn had to go through the slukon- Inp , headachy process of recovering from its ' . financial snreo. Kvou Nebraska was no ex- if ceptlon. It has been said already that here If" llrst company over incorporated by a No- x brnskn legislature was an Insurance com pany. This was the "Western Flro and Marino Insurance nnd Exchange company , " nnd was Incorporated March 10 , 1855. The powers-of this body to duul In nil sorts of ex change which had been granted In the charier were so btrotohod as to enable it to do n general banking business , and thus the llrst wildcat got itself surreptitiously Into existence as the " \Vcstorn Exchange Hank of Omaha. astt The cashier of this company was Levy H. , Tiittlo , who was nflorwnnls , under Lincoln , treasurer of the United Stntos ; the paying teller of the bank was A. M. Wyinan , wheat at a subsequent period hold the same high ofllco. Other bank bills came up in the llrst legislature and excited hot debate. A. I I ) . Jones , then a representative of Douglas I'ounty and htlll a resident of Omaha , claims to have been the only man who voted con- tlitently against all of them. In a speech ngnlust thorn ho became uxcltcd and rhetor > ical , concluding with the declaration that "whou ho should be gathered to hli fathers nnd nn liumnlo monument had boon erected to his memory upon thn site of his beauti ful homo' lu 1'nrk Wild , It wouhl gratify his soul to look clou n ( rum thu high battlements of heaven the region of the blessed and read upon that monument the simple and truthful Inscription ; 'Hero lies an honest man. Ho voted against 'wildcat' banks in Nebraska. ' " Allen II. Bradford , who was represent Ing Otoo county In the council , was a large , fat man , with u squeaky voice. Concluding a short and sputtory pooch In answer to Jones , ho spoke as fol lows : "Ho ( Mr. Jones ) talks about the time when ho shall be n-iooUiug down from the high battlement of heav-en. I wUh ho was there now , a-slnging forever more among the blessed , Instead of being down hero a-makln' speeches which don't do any food away out here In Nobras-ky. " J. Hturllnir Morton' * Oi | > < T ltliiii. Whether Jones' burst of eloquence won the day ur whether the nohomera could not agree among themselves Is not certain , but at any rate no other bank charters were _ ' grunted during that icsiion. In the asscm- f bly of 185U the question again came up. MJ. . > V Sterling Morton was then 33 years old and la member of the lower house. Fresh from college and full to the brim with tlio princi ples of Wayland's Political Economy , ho was convinced that a legitimate bank could only bo made up out of surplus capital , and no urged that obviously there was no such cap ital In the infant territory , From that time to this Morton has been active lu the politics of the state , always making n brilliant tight , uml nearly always an unsuccessful one. In f this early legislature he was made chairman fc if a iiMJclal committee to which was referred V > & bill incorporating tliu pro ) > osed bank of ulchardson county. From this committee Ho submitted a minority ruporl adverse to the chartering of this or any other bunk , but this rnport wan denied a plaeo in I In house Journal , though It subsequcn'lv appeared In the newspapers of the timo. In that report It was urged that the legend on each bill Issued by any of these so-called banks "to pass as nionny , to act as a tool of exchange in measuring values , or merely as a mod turn of exchange should be : 'Hill holder * Individually liable.1" Morton's two colleagues on the committee .Messrs. \ \ ll Ham H. Hall nnd John C. Campbell reported favorably to the Incorporation of the bank , only malting certain changes In the per sonnel of the company , which one suspects might have much significance if only some one yet able to Interpret It could bo fonnd , Till * U thuVnj - They Old It. The Richardson Oounty bank was not fin ally chartered , but on the ISth of January , 1830 , live hanks were chartered , as follows ! The Pintle Valley b.ink nt Nebraska City , the Fontcnollo bank of Hollovite , the Hank of Florence , the Bank of Nebraska at Omaha , nnd the Ncmalm Valley bank at Urnwnvlllc. The fact that all the bank bills were approved on the same day Is liullcatlvo of the methods by which tholr passage was secured. The.lr charters had been nil drawn In the same form. Kach company was made up of less than a dozen persons. Thu stock was cither $50.000 or $100,000 , to bo Incroised nt will to f.VW.000 , and was divided Into shares of tlOif each. When &UXX ( ) of the stock had been subscribed the com pany could organize nnd go to work. The stock was assignable and transferable according to such regulations as the directors might think proper. The hank had power to Issue notes , bills and olhor cortltlcatcs of indebtedness , to deal In exchange nnd do a general hanking business. The stockholders were Individually liable for the redemption of the currency Issued , but there was no provision for a fixed specie reserve , nor other guard against Individual rascality or Ineompotcney. There was. In deed , a provision for nn annual re | > ort of the condition of the bank , to bo made under oath to the territorial auditor , and to bo pub lished In three newspapers In the territory , but no such report was over made. Didn't Want SnfojctinrcU. \Vhllo the act Incorporating the Platte Valloybanic was under consideration , some attempts were made to throw additional safeguards about It. Miller moved to reduce - duce the amount of possible stock from $500,000 to $300,000. Tabled. Kirk offered the following amendment : "Provided , That no person shall become a stockholder In said bank , by transfer or otherwise , until such person shall Illo a cer tificate with the commissioner , showing on his oath that ho has.real or personal pronorty worth twice the amount of stock that ho wishes to subscribe , and that over and ahovo the amount of his Indebtedness , and that there is no mortcrago or incumbranco on said property. ' Provided further , That said stockholders shall bo hold individually liable for the issue of said bank while they arc stockholders , even tliouch they may transfer tholr stock before said issue shall bo presented for redemption. " On motion of Mr. Decker , amendment tabled. Mr. Kirk also offered the following amendment : "Provided. Said bank shall not issue more than $3 for $1 denosltod , and shall not payer or loan out of its specie for any other pur poses than for the redemption of its own notes. " Tabled , and bill passed with all the ortxlnal loopholes in a line state of prcscrva- tlon. Tim CiMillillttrii Mount Wall. In the third session of the territorial assem I- bly in 1857thero was a perfect swarm of bank companies struggling for future existence ; but by this time there was a growing sus picion that there might ho"somothing rotten in Denmark. " and Mills S. Hooves and James S. Allen , a majority of the selett com- mlttco of the council to which were referred "sundry bank hills , " made a report dis couraging the incorporation of moro banks. This report was not so much the outcome of , the teachings of economic science as it was an ebullition of good sense and common honesty. The two men boldly say at the beginning that they nro "not at all infavor ot banking in ecncrnl , but neither do they feel positive that the now state can got along entirely without banks , for they think that in that en so eastern banKs would send their money hero and monopD o the gold and silver themselves. Yourconimittec would further state that If it was true that a llttlo.thlng was good therefore more was hotter , ' 'this legislature might go on and charter a bank for every county in the terri i- tory. Cut .where are lo bo found the honest men who would invest capital in"a banking operation when every twenty-four square miles has a mu'chino for grinding out a mean representation of money. Your committee can easily conceive that they are recreant 10o the Interests of the persons who would read ily engage in the business of securing char ters and putting bills In circulation to the extent of their ingenuity , and wnon no more could bo Issued n failure would ensue and the blllholdor would have the privilege idu holding them. " Then in a style as ungram- matlcal nnd as innocent of punctuation u13 the above , they consider the evils of infla tion , and again shifting the view , they 11af "Look now , sir , at this machine as a bank of exchange and toll us whal banker In any of ouroastorn cities would honor our pauer , uono would dare because they would have no cer tainty that the soulless thing would haveany > existence when the draft should return ) rf. V . " Further "But suffer express. .on they say : fer us again to return to the issue. Wo have now six banks ; add six more and wo have twelve ; a hank for every 1,000 Inhabitants there , with a capital stock of RKW.OOO ; each : would bo equal to WO,000 ( f 1.000,000 evi dently intended ) ; throe times that annu ally , which is the remaining sum which they have a positive right to issue , would bo ? ' . )00,000 ) ( & > ,000OUO ) ; this , upon equal divi ' sion , would give to every man , woman and 'child $750 currency ; allowing every fifth of our 12,000 inhabitants to be business men , then we would have for each man $1,750. Now , sir , your committee would ask if there is a man upon this lloor that docs not sop how perfectly absurd and ridiculous this whole afritir Is ; oven in the supposition that the capital stock was reduced to f.50,000 for each Institution this would still leave for every man $750. Wo would ask again , of what use would this bo the ofk money to bank - ers except to loan ; but If they _ should Joan , ' where would bo their security for $187,5801 Oiitildori 1'rnyliiR lljion the htute. "There is another view of this matter it would bo well to look nt. Who are the Inon that ask for these charters ? Are they sovereign squatters of Nebraska ? Not at all ; most if not all the loading men nro in other states , who would bo much obliged to us now to legislate to them the opportunity of filling our pockets with their bills , but who would laugh us to scorn when they had our gold nnd property In their possession , pn In speaking of those banks as placcs'of de posit , the committee says ; "Who In his senses would think of intrusting money in the vaults of such Institutions , if past ex periences would teach us anything. xfo would dread them as a highway robber , for hundreds who have ludconfidence in thum have woke up lu the morn ing and have found that the body of the soulless thing had evaporated and that there was nothing to represent their IMieketful of bills but an old store , a counter , and a broom. " The committee next takes high moral grounds , for after saying that it will avail us llttlo to wall our folly and wickedness when the territory Is bankrupt , M it points to the fact that " "privileges , ex emption and facilities for speculation" encourage - courage and multiply rascals , "Tho honest portion of the community with vlco con- ntanllyihoforo thelroyes becomes asslmulutod with It , its odious features and soon becomes familiarized , they wink at the moustor and it la well for them if they are not fascinated nnd become parlies in a grand swindle def the confiding and unthinking portion of ofu manity. " Ilnneiljr Almoit 1'rcvallecl , Thus far the report of Messrs. Hooves and Allen is climacteric , and one only wishes that the public printer had helped them out moie on the grammar and punctuation , but conclusion U weak , They "aro not willing to assume the responsibility of saying that there shall bo no moro banks chartered at this fosslon of the legislature , " and only ! recommend certain amendments In case the council should see fit to pass any of the bills referred to them. The amendments recom mended limited the amount"of stock Ullo 100,000 , , reduced the maximum interest chargeable to IS per cent per annum , pro vided for the deposit of adequate securities with the state treasurer mm made tno stock iiontrauafurablo ! except after three mouths notice of the contemplated transfer. A minority report > from the same select committee favored the chartering of the six bank * in question , but later tno standing committee on ra , lloni , S. ' M. Kirkpatrick , chairman , re ported adversely , as more than a dozen banks had applied , and It would bo niaduesa ! to charter them all The result of the struggle was th.it during the third session oaly two moro banks were turned loose to prey upon the wealth of the young territory the Hank of Io ota and the Hank of Toknmah , ! > oth acts being finally passed February W , 1S.17 , Uoth were vetoed by the territorial governor. Mark \V Izard. nnd lx > th were pissed glibly over his veto. In the message relative to the Hank of Tekamah.ho snld complacently that ho bad many good reasons for refusing his assent to the bill , but ho thought It only nee.fill to atllrm his honesty In pursuing the course ho did , and concluded as follows ; "Acting upon the prin ciple that it Is bettor that ono man should dlo for the state than that all should perish , I most cheerfully take the responsibility of withholding my signature from the bill nbovo recited , and herewith return It to the house In which It originated for Its recon sideration. " As hinted above , the legisla tive gulf swallowed down this would-bo Uurtius without the slightest difficulty and still yawned horribly for moro. 1 lu-y "ItiHiod" Itimiiliiioinly. This ended the Incorporating of banks by the territorial assembly of Nebraska , for In the summer of 1S57 came a financial panic , and these in existence failed unanimously. Hut yet another attempt was made In 1S.VJ , and that-ofn more ambitious kind than any that had preceded It. In the autumn of 1WS. during the fifth session of the terri torial assembly , n sleek gentleman by the 11:11111 : ; of Hiclmrson appeared In Omaha nnd began to "wire" through a bill to Incoriwr- ate the "State Hank of Nebraska. " This was to bo an extensive affair , having direct dealings with ' .ho stato. It was to bo lo cated In Omaha , but to hn\-o branches In other parts of the commonwealth. The council passed the not of Incorpora tion , but rumors of bribery and other illegitimate methods of Inlliiencini ; votes began to circulate and finally , accord ing to a newspaper nccount of the time. Dr. Miller found upon his desk a note promising that if ho would support the measure ho should receive Si" > 0 in cash and the privilege of making a loan of $5.000 without Interest as soon as tbo bank should get to doing business. Ho made a public exposure of the attempt to Or I bo him and the result was that the legislature joined In the general cry to hunt down the wild "cat" that had thus been lot out of the bag. Mason , In the house , moved an investigation of the charges of bribery , but nothing came of it. 1 have dwelt thus at length upon the origin of Nebraska's territorial banks because - cause the political part of political economy Is so often the most important portion , and because this Is especially apt to bo true where strictly economic forces hive their origin In what is known as "practical politics. " A Few Stntlntlcii. The only statistical statement relative to the condition of these early banks which I have been able to find Is the ono given below , taken from the report of the comptroller of the currency for 1870. Correspondence with that plllccr assures mo that the statements from which the table was compiled are no longer In existence. In the study of this table it is to bo no ticed : (1) ( ) That not nil the banks reported , and that only these which were lu the best condition would do so ; ( : ! ) that the returns seem to have boon made for Juno of the year to which they are assigned , and so the panic which reached Nebraska in the fall of " ' 57 is not indicated by the table till 18TS ; and , (3) ( ) that for this year the names of some banks that had already fulled must have been counted , as there were certainly not six sol vent banks in the territory nt any time ilIn 18.V3 ; nnd , furthermore , it is not credible that there could have been six banks doing > business with an aggregate capital of only $15,000. Before taking up the story of the panic of 1857 it may also bo of Interest to see how far the assertion that the banks were not owned ) by "sovereign squatters" of the territory , made by our valorous committecnicn , Hceves and Miller , was berne out by the faets. After ruin had struck the banks in ca a correspondent of the St. Louis in thus places the ownership of thocapitul that had boon nvested In them : isemaba Vnllov b.uik , Galcsburg , 111. Platte Valley bank. Nebraska City , Nob. Fontanello Bank of liellovuo , Elgin , 111. Western Kxohaugo , Fire and Marino In surance bank , Gatvn , 111. Dank of Nebraska , Council Bluffs , la. Bank of Floronoo , D.ivenport. la. Hank ot DcSota , Wisconsin. Bank of Tekama , Uloomington and Goss- port , Ind. Thus wo see that with ono exception the banks were owned by men who had nothing ! moro than a merely speculative Interest iu the territory. lud In September , 1857 , what Morton called : "John Lawisui" In Nebraska came to Its usual calamitous conclusion. The panic of this year bocan in Cincinnati by thu fnlluro of the Ohio Life and Trustcompany , and the collapse In Now York of the then famous broker , John Thompson. Financial storm signals nro of ten but tardily hooded ; news papers especially are inclined to insist that everything Is secure. Tim Kihlor 1'uU In Illi Our , Thus the Omatm Nobrasklan on Septem ber 1' ' , 1857 , published u clipping from the Chicago Times , which speaks of tlio failures of eastern bankers , und congratulates the west on the sound financial condition of this region in general and of the western banks in particular , and then adds complacently ; ' Kven should there bo a much greater tumbling among these Institutions ( the east ern banks ) than wo now have any reason itto expect , our western banks will hourcoly feel the shuck , Wall-street may be thu money center , tho.proat stock und curroncov regula tor , but thu money strength of the country Is In the west. " This rather obscure and Illogical declaration of llnaucial Inde pendence tailed to nullify the laws of trade. The live elder banks , these chartered o.in 1S5U-7 , were "circulating" their paper cur rency as fait nnd far as inisslblo. As the wave of bankruptcy swept toward the btato it became the journalistic duty of Hobert toV. Furnus , who had started and at that time still edited the Browuvlllo Advertiser , to ex press his conildcuce In the solidity IXof Nebraska banks. September .M , ho gives It as his opinion that thu failure of the Ohio Insurance , Loan and Trust company Is only used by a certain rotteu concern as an ox- euso for falling nnd thut no ono need four for really well established Institutions. On the day previous to this issue of the paper , the 23d day of September , 1857 , the Western Kxchauge und Flro and Marino Insurance surance bank of Omaha closed Its doors , and thu president , Thomas II. Bon ton , sr. , issued un address to the public saying that the business would bo wound up as quickly and economically us possible. Lowe , Parker and Wyinan were appointed trustees. The com pany had been the tint ouo of any kiud in corporated by the territorial legislature , land its life , dating from tlio lOtn of March , Ib55 , HAVE YOU HEARD ALTERATION SALE ? 1 We are not figuring for profit while our alterations are going on. , - We are closing1 out lots of goods cvciy d jxy , , . fiom bar gain tables on the. first floor. We shall take out our front middle window Monday night. Secure some of the special' bargains which arc to be had during the sale. Now is your chance. Books , ribbons.laces , embroideries , hosiery , under wear , shoes , boy's clothing at prices you must consider. Besides the above lines we shall place on sale Monday as long as they last PARASOLS , Every parasol to be closed out this week.x Parasols 250. Parasols soc. Parasols $1.00. Parasols $1.50 , Parasols $2.50. None of these were made to sell for less than $1.00 and from that up to $5.00 , so you get them at half price and under. They are on our bar gain t'xble near the door , in surah silk , changeables , stripes , figures and plaids. DRESS GOODS. A choice lot of worsted serges go cheap. 45-inch steamer serges in navy , green , tea > and slate , a most serviceable cloth for this season of the ! year , opening prices were Ssc'and $ i. oo. ALTERATION PRICE , 49c. was quite extended for an Institution of the kind and timo. It had issued currency with out check , apparently , as its charter con ferred no power to do so. and therefore no regulations regarding the Issue. Kovicwinff thn IluliH. The assets , as given in 'tlio schedule pub lished by the trustees , would not bo very satisfying to anxious creditors. There were $28S.oklof "bills receivable and notes dis- "Oimtcd. " There also purported to bo stock certificates to the amount of 30,000 , and besides - sides these moro than doubtful resources was only $191.80 In specie and $121 in bills of the insolvent banks. The Ncmaha Valley bank had begun op erations November 10,1850 , under the presi dency of S. H. Uiddle. Ho had beer suc- ccedeiLby Barkalow , and the latter by Mc- Key , and at each change of administration the Brownvillo Advertiser expressed re newed confidence In Its.soundness. A John L. Carson was sitting in his pri vate bank at Brownvillo , ono line midday In the fall of 1857 , Alexander Hallam , cashier of the Nemuha Valley bank , came in at the rear door with an anxious look on his laco. Carson understood the condition of things well enough so that ho guessed the cause , "What's tno matter , IIallambank closedl" "Well , not closed exactly , " was the answer ; "no use of closing , nothing to closb up on. " But the cashier was not quite so confiden tial with everybody. At his request Editor Furuas of the Advertiser inspected the ac counts of the concern , and finds that the bill- holders are secure aiwlnst all poisiblo loss. The resources of the bank are : Stock notes , $7:1,000 : ; discounted paper at thirty and sixty days , over 15,000 , ; cash , over $1,000. The books also show that there are $3y,000 , of the bills of the bank in circulation. Ilo Never Vnino H. cU. rho Brownvillo Advertiser noted St as a misfortune that McICoy , the president of the bank , was absent in the east at the time of the crisis. This may have been a misfor tune , but certainly it was not so for the gentleman himself. Nor did ho hasten KJ got back with all the syood that hud been expected of him. In fact , ho never came bacic at all. The paper that had regretted his absence on his own account came eventu ally to regret it on account of others. "Legal notices" were published to inform him that ho wns wanted , and the calls worn loud and frequent which summoned "Thomas L. McICoy to come Into court. " It might have been thought that when the steamboat tied iip ut the Brownvillo landing that line Sop- tombornoon nnd the Uimls and others started uptowntopotthelrsupplyof Nomaha Vulloy currency turned into syoclo , that the end of the thing had come. It seemed quite filial to the men that held the bills when they found that Hallam had closed the front door und slipped out of the back one. and they had to return to untlo tholr steamboat , and float off , somewhat wiser and a good deal poorer thun they had landed. But some of the most interesting Incidents concerning such money mills uro apt to come out lifter their emaciated ghosts go' to haunting the law courts. Ill the cramped plgaqpi holes "whoro sleeps In dust" all thai l legally mortal or memorable of bygone 'misfortunes and departed - parted villainies , ono mnynt.tltnes even hap pen on to a sort of Intimation of something that might In its time have "been almost hu morous. In the rrcordi-Uf the district court , which then sat nt Brownylllo , wo find four cases against the Neinaha Vnlley bank , Hallam , McICoy nnd all that hail boon con nected with the bank- suddenly vanished. Advertisements failed tpfcrjug them to light , but each time as a given case was about logo ; against them by default an attorney would put in an nppearaoco > 'miid spend his time making tochnica ) ; , , picas designed to dilay proceedings. PropQrtjf was levied on that turned out to belong to 'other folks ; a lot or two was sold. Finally , in Juno , 1K50 , Sheriff Plasters levied VI99-A safe , n table , a stove and a letter proas , which altogether brought ftti , und subsequently , iu the case ofS. F , Nuckolls vs the Nomalm Valley bank , nn execution is returned unsailslled , the sheriff reporting that ho can find noth ing to levy on. Stored away with the other evidences In this case is pearly $1,000 wortti of the old currency. The engraving is ex cellent. The writer thoughtfully held one of the old , worthless promises to pay up to thn light , expecting to Und a water mark representing a wild cat rampant , but none was visible. ' The printer hud done his utmost to make the bills valuable , and so well had ho accomplished his purpose thut long after the bank had failed un en terprising citizen of Brownvillo took a pocketful of thu currency tlowu below St. Ixmis and passed it as good money. The last plea which McKoy over ventured to uuko ( oven by attorney ) iu a Brownvllle court was that the "Neaiaha Valley bank , " GRAND PRICE CUT IN OUR BASEMENT. We shall have a gran I clearing sale hen commencing Mon day. The following bargains are on sale as long as goods last. A beautiful French Bisque Statue of Christopher Columbus that retails for $2.00 , will be given away this week with a $1O purchase or over. Muson'a pint fruit ji\ra COo dozon. Mnson's quart fruit jura 05c. Tin top jolly tumblers lo. i-'OO ilo/on tnblo tumblers 5o. 25 Per Cent Off on All Granite Ware. 50c goods go for 88c. 7oc ( roods ijo for 50c. SI.00 gootb ire for 75c. Blue and White Steel Ware. An immense , assortment of pieces worth 90c to SI.5 each , nil on sale nt 63c. All f > 0c and Y6e baskets to bo closed out nt ! 25c. All tin nnil wooden wnro out down to nothing. Dinner Sets , All 340 sots reduced to $11.40. All $12 sots reduced to $7.05. All 822 sots reduced to $0.08. All $10 ton sots reduced to $1.93. Toilet Sets. Decorated sots , 0 pieces , 51.75. S5.50 § ots , with jnr , $3.05. $7.00 sots , with jar , $4.05. 810.00 sots , with jnr , $5.90. All 815.00 sots go at $11.75. All $20.00 sola go nt $11.75. ' 'All through our basement the same cut prevails. Anything in housekeeping ; goods you can pick up now at very attractive prices. lie sure and see our lOc and 15c bargain tables filled with choice pieces of Chinaware at less than half price. YOU CAN GET A $2 STATUE of COLUMBUS Very dainty for the parlor , FREE WITH A $10 PURCHASE IN THE BASEMENT ONLY. so called , could not legally bo sued , since , as n matter of fact , It had never been in corporated nt alll Only a KomliilKrenrn. Most of the other concerns died Ignobly , without the formality of "trustees" or "ad dresses" or "statements , " or anything else pertaining to a decent or orderly taking off. For Instance , wo Und the Bank of Tekamah leaving more than ? 3,000oflts currency to gather dust in the vaults that hold the records of the district court of Omaha. The bills are quite captivating. Miss Columbia , at the top of the ones , is leaning over to tickle , with the rod of Mercury , the ribs of a very Grcekliko Indian , and from the op posite ends of the lives James Buchanan seems to bo carrying on a Illrtatlon with a lackadaisical girl , who has curly hair and bare foot. This bank was also adver tised for In the Nebraskian , and reported by the sheriff of the county as "not found. " The last suit this bank was engaged in , Messrs. Frank and Matsenbaugh put W2S of the currency In evidence , and J. M. Woolworth - worth , as attorney of the bank , moved to quash the attachment , because In the peti tion the plaintiffs had brought suit against "the Bank of Tekamah , iu Hurt county , " whereas , the institution had been incorpor ated as "tho Bank of Tekamah , In Burt count ; , Nebraska territory. " The only record wo iludof the assets of the Bank of Nebraska at Onaha , Is in thu ro- tnrn of n writ of execution by the sheriff of the county , when ho reports having levied upon and sold the folio wing property : "Thir teen sacks of ( lour , ono largo iron safe , ono counter , ono desk , ono stove- drum and pipe , three arm chairs , and ono map of Douglas county. " Though there was much trouble about finding some of these hanks , yet others have continued to keep their existence , or rather their having existed , before the puullo for n very long time , The namu of the Bank of Florence remains in trill letters upon the old building oven unto this day , though the old Mormon town of Florence has long censed to be Mormon nnd has also ceased to bo a town. Da Seta was also ut one time an ambitious place , but has since evaporated to such un extent that tliero Is nothing left of It but an old mill building. Kountzo , at that time a real cstato man of Do Sota. and still prominent lu Omaha business circles , redeemed the issue of the bank of Do Seta In a sort of desultory manner , buy ing it up for what It was selling ut In the market , and so getting most of it out of the way. This bank did not try to start up till after the panic of 1857. and aomo of its bills boar a date us late as 16i > 3. One lluiiott Hunk. When ono of these banks was in any nonso secure It was because the men who es tablished it were honest enough to be willing to suffer themselves rather than to lot others do so In consequence of their mis takes. This was the case with the Platte Vulloy bank. So great was the conlldeuco of thu people iu thut institution that oven after the banks at Omaha had failed nnd the rush on this ono at Nebraska City had be gun , manv of those who happened to have gold or silver on hand went to the bank and deposited it. This mark of perfect conll- donco and tender of practical assistance could not , however , prevent the suspension of specie payments. But in this Instance public confidence had been well placed. All the ollls of this bank were redeemed at pnr , and it was the only territorial bank of Issue of which thU could bo suld. It was true of the Platte Valley bank , not because the In stitution was Intrinsically sound and pros perous , but oecauso S. F , Nuckolls would never allow it to be said that paper bearing his name had been worth less than its face value. , Ono effect of the circulation of so much bad money in the territory was that people came to feel us though anybody had a right to start a bank If only ho could got the bills property engraved. All thu banks that had taken the trouble to secure charters noon violated even the loose provisions of these sllpihod documents , and therefore it did not seem very extraordinary that banks should start business without any charters at all. Tli y Hail to UUTO Miinny. Such , for instance , was the "Wnubeek Bank of lo Sota. " In July , 1857 , the Ie Seta Pilot felt It Us duty to warn people against this institution , saying that the bills were being circulated at u distance and that when the crash cuuio thu reputation of the town would suffer , The Omaha Nobraskkm alluded to the Item In the Pilot und urged that such a bank was just as safe as these that had charters , since it must nt best depend on the individual stockholders , and then took advantage of the occasion to call atten tion to the Waubcok bank in another col umn. Other banks that operated without charters or under a strained construction of some general statute were numerous. Such were tbo Omaha and Chicago bank , the Bank of Dakota , the Corn Exchange Bank at Do Seta and the Omaha City Bank and Van company. The paper ot these banks looked as well as that of the others , and no OHO seemed to have cared whether the date and factof charter were in one cornororjiot. The state was in much the condition In which Wisconsin found herself when , ris is stated by a sometime member of her seilnto- ; ho members of the legislature used to have o sort their money each mornlntr'after read , ng the paper , and throw away what was vorthless. % Vhero Oninhn Fleurml. An article that might haveserved forsunh i purpose appeared In the Omaha Times of Vpril 5,1S58. This article was clipped from the Council Bluffs Bugle , nnd from its gen eral " tone may , 1 think , bo taken to bo unro- "iablo. According to this statement the ssues of the bank of Nebraska and of Do Sola and of Platte Valley and of the Wau- : > cok banks were then at par : Nomaha Vul oy at 50 per cent , Western Kxchango at 75 : > or cent , Fontonollo Bank of Bellevue at 00 , : > or cent and Bank pf Florence nt 80 per cent discount ; Tokama nowhere. So gre.it was the tendency to manufacture money that oven the "Brownvillo Hotel com- ) any" Issued scrip to enable them to put up a hotel , and the Advertiser endorsed their notion. Omaha early took ndvantugi * of the sumo method of borrowing money without interest. The need in this case was cer tainly pressing. The ponoral government lad inudo n limited appropriation for the erection of u capitql building on the spot where the Omaha High school now stands. The territorial authorities , sottiug an example which has Jeen assiduously followed by their sincessors of th < ; state , adopted plans for the building which called for more than double the amount of money at their com mand. The general government , strange to say , refused to bollove that more money was needed , and the walls of the abort ! vo struct ure stood piteously incomplete , ruined nnd stormed oil , and vapidly falling Into decay. Other towns that wanted the cupltul them selves were greatly tickled at the prospect. So , during the recordorship of II , C. An derson , and while Jeiso Lowe was mayor , the city Issued $50.000 of scrip. This sum being speedily exhausted , and the capitol still being unfinished , another issue of the same amount was mado. There are still dark rumors wandering through the back alleys of Omaha that some of this was not applied in a manner to promote most rapidly the building of the needful edifice , but they are Intangible and it is Idle to pursue them. The scrip issued at first passed at par , hut soon depreciated , was good only to pay elty taxes with , und most of it was a dead lois in the hands of the holders. The people of Omaha were quite complacent regarding thu Issue oven after ii had become worthless. They looked upon it as "a war measure" necessary to keep the capitol , and ns citi/.ens of the town were for the most part the losers by the depreciation of the stuff , so they also were the chief gainers by the completion of the canitol. In the possession of Byron Hood of Omaha Is an almost complete collection of the Issues of all the above named . banks. Only the Platte Valley and the Bank of Nebraska are not represented , and the collector would gladly glvo face value for specimen notes Idif thcso minks. Looking at the two largo frames filled with these , for the most part dishonored , promises to p.iy , ono may have a very Instructive object lesion in finance. Only two of the banks Issued bills of u de nomination ns high as f 10 , nnd none higher , and the Intenttlon was obvious that they 7 should wundor away and never come : k for redemption t'.ll the concern that id thorn sluuld bo "beyond redemption. " We have trlc.l thu experiment of cheap state * begotten banks , and the experiment has taught us that thu power to issue money should not be loft to the regulation of vari ous state legislatures , because many of these are sure to provo unwise , and some of thum dishonest. The currency must , on the other hand , bo controlled by a power wise , nnd honest , and strong enough lo properly under ! stand and minister to the needs of thu wnolo people. If this lesson has beau thoroughly learned it is worth what it has cost. The tomb of Mahomet is covered with diamonds mends , sapphires and rubles valued ut til- ) OOO.OOU. "A legal fence" has been defined In Ken tucky as one that is "pig tight , horse hiifh and bull strong. " The much-maligned Kngllshsnarrow seems to have found a mission of usefulness at last. ilo has boon devouring the devastating pluo beetle la West Virginia by the million , H. B. Tingle of Perrydalo , Polic county , claims to possess u most rotnurkablu hen. The very next day after hatching a brood Ml.Of chicken * this reiaark&blu fowl astoulahoi SILKS. SILK GRENADINES BADLY WOUNDED , We take the balance of our stock , embracing high cost lovcltics which have brought $3 a yard and give them to you at our alteration sale for 98c [ n plain mesh , satin stripes and jrocacled stripes. These goods will not last long ; they are sure sellers. One lot of printed pongee and canton cloths , price all the season was 150 , alteration sale price One lot of choice high grade satines , opening price was 6oc , alteration sale price 25c Hosiery Underwear Our 250 jersey ribbed vests Alteration sale price 12 A fine summer Swiss vest Alteration sale price 19c Ladies' opera length hose Alteration sale price 43C Men's 350 fine colored hose Alteration sale price 15C Boys' heavy double knee , heel and toe hose , regular 350 quality Alteration sale price 140 bor owner by laying three fresh CRRS , all with tlio shell on , within tlio space of a few hours. According to n ronnrt by the French min ister of linunuo 1-13,803 families In Franca have clnluicd exemption from certain Taxes recently voted by tlio parliament on account of having seven or more children. The supreme court of Louisiana has do- elded thut several clubs which soil tholr members liquor must pay the regular Hconso fee of JI.UOO a year. The clubs' itofonso wa that they bought and sold liquor to mombori nt cost. Farmers of Mexico use oxen of ono color In the morning and another color in the afternoon. They have no reason for doing so beyond the fact that tholr forefathers did it and they conclude it must bo the right thing to do. According to statistics 2-14 persons were killed ] in the streets of London in Ib'Jl by the different vehicles , \vhllo the total number of railway accidents In the whole United King dom had only 100 deaths to account ( or. The omnibuses ulono killed as many persons us died from the collisions of trains. It is thought that these figures fall below the actual reality. Lagrnnd I arow of Harton county , Mis souri , who Is six feet In height , has whiskers just seven foot In length. Ho was born In Tompkins county , Now York , and comes of a family whoso men were noted for tholr long boards. Some of his friends think ho ought to becotno n populist statesman , but ho rofus to leave his farm for thu uncertain prizes of political life. Probably the most ronmrkablo Icnlfo In the world Is that In the curiosity room of the factory of Joseph Hodgcra < fc Sous , In Shofliold , Knghind. It has l.b'.K ' ) blades , nnd ton blades nro mldod every ton years. An other curiosity Is three pairs of scissors , all of which can bo covered by n thimble. "Hit with a brie ! : " is nn expression cred ited to America. Hut it had Its origin in Homo. The standard coin In Homo w.is thu nes , or libra , ami It weighed u pound. It was the shape of n brick , and when the lu- lluonco of a Homan senator was wanted It was obtained by giving him a libra , nnd his constituents alluded to him as being "hit With a brick. " Prof. J. S. Nowinnn , professor of ngrlcnl- turo In Clomson collcgo , South Carolina , has told n gcntlonrm In Berkeley county , that state , who said that land there had been much moro productluu slnco tlio big earthquake - quake , that this Is due to the fact that the oarthquaku provided belter drainage. Tlio s.imo gentleman Hald that there have been no chills and fever In his family since the uiirthqutiko ; whovcas boforu that soismlo surprise they suffered greatly from that scourge. A man who has a homo on the Hudson , a few mlles nbovo Now York city , numbers among his llvo stock properties n large , fat toad. Kvory evening In warm weather this animal umergcs from a holn under thu walk before his front door , Just as the gas U liuhtod.nml hops about the lawn , apparently all nlirht , iiroylng on Insects , In the morn ing he retires to his hole boneiith thu Hag- stones , for "John" h a fellow of regular habits. Tbo man occasionally picks hlm-up , to the astonishment of tint servants , who bo- llovo the skin uf the toad to bo poisonous. A common belief in rural neighborhoods Is that it causes warts to appear on the hands of these who touch It : i belief th.it prob ably nrisi's from the similarity of warts to the roughness on the to.ul's slcln. AT T11KHV.MMl'Jt HUTEC. Kent York Sun , On. nn tlio llthn ynmiK maiden spoil , With partu JJIM. | anil < > yes Thut burned with tliu resolution which All obstiiclo-i ( lullei ; On , un Him npud , scarce touching earth , U'ur liuacli uml urutul walk. Till Kliostooil on tliu porch of thublg hotel With buruly bruulli to talk. "I haw " sin ) ucroamod ; then Htoupml foi lireath j , faint , undone , Whllii nlmity inaldniix Kiilliurud 'round And Hcromiod bur from thu sun ; "I saw " Lho gaspud iwaln , and iitoppud , And thun , while they piled tlio fan , " 1 haw " HhoNHlil , with a llnul KU P , " 1 saw I saw a Man ! " Busy pnopiu nave no unit1 , and sons bid people have no Inclination to 1110 pilh that make thorn sick a d.iy for every dose they take. They have learned that the use of Do Witt's Llttlo Uarly Klser.i does not In terfere with their health by isausiug iruaoi pain or griping , These llttlo pills are pur , foot lu action and rosulto , regulating the s to ouch and bowels sa that headaches , dU- ziiiessand lassitude are proventul. Thov cleanse the blooJ , cloir thu uomploxlon unl onoiiplUoayatoui. I > jt of h jlth io " littlofellowa.
