Bank of Florence (Florence, NE)

Episode Information

Episode UID
8699216290697
Episode Type
Suspension β†’ Closure
Bank Type
state
Bank ID
869921629 hash
Start Date
January 26, 1858
Location
Florence, Nebraska

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
cf0039336fcecf96

Response Measures

None

Description

Legislature authorized a six-month suspension but contemporary reports assert the bank was effectively defunct; no clear receiver notice in these articles.

Events (1)
1. January 26, 1858 Suspension
Cause
Government Action
Cause Details
Nebraska Legislature authorized suspension of specie payments for six months amid insolvency and refusal to redeem large amounts.
Newspaper Excerpt
BANK OF FLORENCE SUSPENDED.
Source
newspapers

Newspaper Articles (14)
1. October 17, 1857 Muscatine Weekly Journal Muscatine, IA
Article from Muscatine Weekly Journal, October 17, 1857

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12 VOL. IX-NO. ICE. Oct. 13, 1857. in paragraph G& of and citizens our of the bank any cause. Florence Having had in little of some few hundred Florence, will state took place, and what to. on the from Monday? returned St. and asLouis, considerable that our were tonishment refusing Having fifteen Florence. hundred to of the dollars present in Rock the hed who "Will for our week the day, answer mornThursday On ing conin the interior of that the shape stating as they funds, parties as and raise could nothing Florence, not was that be useto On less the morning, to went the with up note the and who held Florence, if he my some Florence for and me, money other currency. He he to his me with would We did told were and his partner, in who then about one that they could to not set told them they This refused & Cook gargeant, and the same result or that not would &S.) 5 take per other currency and that them was pubfished card, following that and then have the funds: of "The the of by Bank are, proof lly visions ble all its for responsible will redeem of in the notes of in city of and either their at exchange, other are may bankers Gazette on is the not such selling can at all our buy case. To that be want. banks sure, be will that but in Now, Mr. New York, the but exchange the rates! de high, Why they other bankers to But receive we time would have there would not their customers even with BoWhy? Chicago it is not cause there. anything It if the Mr. seems found money Guzette at is in the that acRail par in this The counted are headquarters money Florence all this the day very is the bank's dollars the for one, her pay cannot it, and the with dues couence monthly as she is, such must forget use. the is that Farthermoro, will our away That place. to for may have any but the for Florence, is she for as+ now not bank, redeem her the that per more get# is the for My home worse from Far ideas quite differer editories a will of go mers get where choice we Mr. money interest, wo keep money have no Florence be To has sure, among Davenport She have has not splendid them built churches, of The thero when now, to and want money people panic, or their go.d convert castern are not they are selling exchange, IS for the us. much of the the hard le they Such mere and the will try had, all to such this Nebranka day been, less have money and les this leaves with money community he will old him, bring he which somebought Nebraska where person. ignorant no having better. As us the Let puss men shame upon such trash, such banks as can hard Look penics. at the and Ohio Indiana: are ;They Where, banks. above their countery. and don't they nothing I the and Illinois might holder knows Wisconsin he to has the money dollar. I am then and Once for him credit through, stating true. and of out having bankers

2. October 21, 1857 Weekly Council Bluffs Bugle Council Bluffs, IA
Article from Weekly Council Bluffs Bugle, October 21, 1857

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Shall Rise SDAY MORNING, OCTOBER 21 Lie Roy BUGLE was This gentleman the cashier of the to 1857. 21, and was regarded by all that know him to to an honorable, altaight forward busi IMPENTER, ness man. The Bank haying failed some STORS. persons are ready to attribute the blame & to him Welnow that the last issues of 12.00 Fax Year in Advance. the Bank were made against the advice If the of and bote of Mr. Tartle. This, nor in in Western lows fact did any of the Nebraska banks do of business in the usual mode of banking. 1,600 CIRCULATI Instead of loaning their issues at the Y counter of the bank, we are credibly inNeighbors." formed, that when a new issue was made mey, It is somewhal strange that our.neighthat it was divided among the stocking to bor of she Floreans Courier cannot give holders in proportion to the stock ownNew ed by each and loaned out by them at anybody credit for honesty of purpose in such rates as they could obtain, they beanything unless such person devotes all anof his time in neeling Florence and the ing bound to protest the amount put in circulation. When the last issue was citisens whose interest is concentrated made, Mr. Tuttle and Menera, Henn, WilLL. at that point. we speak of things as liams & Co. noted against making the they are and of Flarence as it is we are issue, but were out voted by the other denominated If we do not directors, and they refused to receive speak of them in any manner we are contheir proportion of the issue. A subsetinually misrepresented by the Courier. quent meeting was had and it was voted If we as journalists publish a current 26HE that the now issue should be returned to port relative to the bank at that place, in the issue following the Courier will the bank. With this requirement all of be half filled with "the Bugle at its dirthe stockholders except Mr. Tuttle and if Benn, Williams & Co. could not or wo'd ty work," and a labored attempt will be made to prove that we published the runot comply, and the effect is known-the mor knowing it to be false, because we bank was forced to suspend as soon as this new issue was run back upon it from regarded Florence as a rival to Council Bluffs. its If a resident of Crescent City the east. It is due to Mr. Tuttle to say its writes a letter to the paper published at that be owned but a small amount of that place, and falsely dates it at Couny stock in the bank and was legally boand ng eil Blude and in it takes occasion to for the indebtedness of the bank to the misrepresent our action, the Courier amount of stock owned, but that he has seizes upon it as a precious morsel and pledged hie private property to seven a. copies it, under the head of "Malicious times the amount of stock owned by him, to secure depositors and bill holders Neighbors. It would seem that the edT itor of the Courier, being governed himIn short he has pladged every dollar's self by interested and mercuanary motives worth of property be has, to sustain the in all his actions, cannot appreciate any bank. This is the right course, if peoad thing which does not emenate from the ple engage in banking, let them be zesame source. We have noticed this subsponsible for their debts, in the same jeet for the purpose of assuring our manner that men engaged in other busidi friends in Florence, that we have no deness are held responsible. The course sire to retard the growth of their city, pursued by Mr. Tuttle speaks volumes or in any sense to injure the prosperity in his favor. Though legally not bound of her citizens. We did in two issues of to pay off the debta of the bank & greatR our daily paper, place the Bank of Floror amount than the stock owned by him; ence in the list of "suspended banks." yet he pledges all the property he has in We supposed that the authority was rethe world to secure the payment of the yo liable upon which we based our action, bank's debts and has thus proved that and in publishing the Cashier's arrogant he is one of the noblest works of Godth an honest man. as letter, -giving our authority for placing the bank in the list and in striking it

3. January 23, 1858 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, January 23, 1858

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Will it Suspend? We clip the following from the preceedings of the Nebraska Legislature, January 11th. Kirkpatrick gave notice of a bill to leg alise the suspension of specie payments of the Nemaha Valley Bank and Western Ex. change Fire and Marine Insurance Compa ny, and to authorize the suspension of the Bank of Florence and the Platte Valley Bank.

4. January 26, 1858 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, January 26, 1858

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# BANK OF FLORENCE SUSPENDED. The people of this region, who have been swindled by the circulation of Florence paper, have been repeatedly met with the assertion that the Bank of Florence, located away out in the wilds of Nebraska, had never suspended specie payment. The "wild catters" adroitly managed for some time to keep the rags from going there for redemption so that this bubble might not be exploded. But, as we are creditably informed, Mr. Haas, of Iowa City, recently undertook a pilgrimage to Nebraska with about a thousand dollars in these promises to pay. He found the Bank had suspended. He couldn't even pay his hotel bill in Florence with the trash. Let us hear no more about the bank redeeming in specie at its counter. It's a dead cat! - Muscatine Journal.

5. January 28, 1858 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, January 28, 1858

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Bank of Florence Dead Broke ! The Wild Cat in the Throes of Dissolution !! Last week we announced that the Legislature of Nebraska was about to authorize the suspension of specie payments by the Bank of Florence. By a private letter just received from Florence, we learn that the deed IS done, and the proprietors of the Bank of Florence may now with impunity flood the country with reams of their wretched trash. The period for which the suspension is authorized is nominally aix months, but the "Bank" will NEVER resume specie payments. We are thus placed in a fearful position by that firm which has been the recipients of a thousand kindnesses and indulgences from this community. Cook & Sargent have shoved their notes on the people till there is hardly a poor man in the State that has not more or less of them ; now, they choose to let the bubble burst, those who trusted in their honor must suffer for their folly. There may be a distinction between the moral guilt of counterfeiters and that of these "honorable" wildcatters, but we can't perceive it.

6. January 30, 1858 Muscatine Weekly Journal Muscatine, IA
Article from Muscatine Weekly Journal, January 30, 1858

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SATURDAY, JANUARY 23, 1858. BANK OF FLORENCE SUSPENDED.- The people of this region, who have been swindled by the circulation of Florence paper, have been repeatedly met with the assertion that the Bank of Florence, located away out in the wilds of Nebraska, had never suspended pecie payment. The "wild catters" adroitY managed for some time to keep the rags m going there for redemption so that this bubble might not be expleded. But, as we are creditably informed, Mr. Haas, of Iowa City, recently undertook a pilgrimage to Nebraska with about a thousand dollars in these promises to pay. He found the Bank had suspended. He couldn't even pay his hotel bill in Florence with the trash. Let us hear no more about the bank redeeming in specie at its counter. It's a dead cat !

7. January 30, 1858 Muscatine Weekly Journal Muscatine, IA
Article from Muscatine Weekly Journal, January 30, 1858

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[From the Davenport Democrat of Jan. 28th.] BANK OFFLORENCEDEAD BROKE! The Wild Cat in the Throes of Dissolution! Last week we announced that the Legis lature of Nebraska was about to authorize the suspension of the Bank of Florence.By a private letter just received from Flor ence, we learn that the deed is done, and the proprietors of the Bank of Florence may now with impunity flood the country with reams of their wretched trash. The period for which the suspension is authorized is nominaily six months, but the "Bank" will NEVER resulte specie payments. We are thus placed in a fearful position by that firm which has been the recipient of a thousand kindnesses and indulgences from this com. munity. Cook & Surgent have shoved their notes on the people till there is hardly a poor man in the State that has not more or less of them ; now they choose to let the bubble burst, and those who trusted in their honor must suffer for their folly. There may be a distinction between the moral guilt of counterfeiters and that of these "honorable" wildcatters, but we can't perceire it.

8. February 2, 1858 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, February 2, 1858

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A Reasonable Excuse. The 'bank' has invented one of the most reasonable excuses for bursting we ever heard of. It seems that in October last, some high toned public spirited individuals petitioned them to burst, which they then declined to do ; three months prayerful consideration has, however, satisfied them that their duty to the public required that the bank should break, and accordingly they have lobbyed a bill through the Legislature of Nebraska, authorizing them to suspend specie payments. What accommodating, gentlemanly fellows those Nebraska legislators must be! they pass the bill enabling the bank to suspend without the knowledge, privity or consent of Cook & Sargent. Of course, they did. The simple fact of the business is this; for the last three months the bank of Florence has been hopelessly bankrupt, though it has paid specie in sums under fifty dollars, so that its proprietors might have some excuse for saying that they were still redeeming; if, however, a call was made for the redemption of any sum over fifty dollars, the party presenting the bills was told that Cook & Sargent redeemed at their counter is Davenportwhich, of course, was false. There has been throughout the whole course of Cook & Sargent in relation to Florence, an unfairness, a disengenuousnessΒ» and double dealing, disgraceful to their character as business men. We have no doubt that in less than six months, they will have agents scouring the country to buy up their discredited Florence notes at 25 cents on the dollar. Those notes are at this time not really worth a dime on the dollar, tho' they circulate by sufference at the nominal value of seventy five cents. We raise our voice in warning to our friends in the county-the crash is impending over us the next four months will witness either a change in the course of Cook & Sargent, or a change in the condition of Davenport. The worst is yet to come.

9. February 6, 1858 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, February 6, 1858

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We extract the following remarkable paragraph from the Boston Post : COOK & SARGENT.-" We are pleased to see that the citizens of Davenport, Iowa, have risen almost in a body to express their confidence in the unspotted integrity and wealth of Messra. Cook & Sargent of that city,-a highly honorable firm who are engaged in the banking and real estate business in Davenport, Iowa City and Demoines in Iowa, and Florence in Nebraska. As proprietors of the Bank cf Florence, (an institution chartered by the laws of Nebraska, which bank has alone of all others in Nebraska gone through the panic without suspending specie payment,) Cook & Sargent have been slandered by the envious and jealous, who if they could not rival, would detract from the well earned reputation of that eminent firm, and do all they could to retard the prosperity of Davenport" It is evident from the above that Gen. Sargent has reached Boston. Wonder how much he paid for the notice, and in what kind of funda. Probably the Gen. was not aware, when he caused that notice to be inserted, that the "Bank" had suspended. The Post is evidently misled; for it is a straight out Democratic paper-of old, has been a firm supporter of sound currency, and opposed to all wildcat systems of banking. What would it say if informed that the firm of Cook & Sargent were buying this money in one day at from so to 90 cents on the dollar, and compelling their depositors to take it again the next day at par, or get nothing? Where did you get your information Mr. Post as to the rising of the people in Davenport, in behalf of Florence!

10. February 9, 1858 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, February 9, 1858

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The following is from the Omaha Nebraskian, a paper published in the vicinity where Florence kittens purport to be kittened : STAND FROM UNDER-BANK OF FLORENCE GoinG.-We deem it our duty to caution the public against the " wild cat" institution in this Territory, known as the Bank of Florence. We give the facts, well known in this community, and leave the public to judge of the soundness of this concern. A gentleman of this city, last week presented about $1,800 of its bills at the counter of the bank in Florence, and wasmet with a peremptory refusal to redeem-the teller, or cashier, alleging as a reason for such refusal, that he would not redeem it, because it was evidently a run on the Rank. It is currently reported, and believed, that upwards of $300,000 of this Bank's issue is in circulation in Eastern Iowa and Western IIlinois, and we are credibly informed that parties in Iowa City, holding $2,000 of its notes, are deterred from sending it home for redemption, only through fear of losing it by an immediate suspension of the Bank. With this state of facts, people cannot be too cautious of taking the stuff, as the Bank is evidently prepared to fail at the slightest warning. It is to be hoped that but little of this money is in circulation in Nebraska. In connection with the above the Clirton County Democrat, published at Camanche, makes the following sensible remarks Some three weeks ago we cautioned the people in this section, of the unsoundness of this wild cat institution, and we now say, with all candor, that we firmly believe if these miserable bastard issues and shinplaster promises to pay" are countenanced much longer in our midst, that somebody will have to suffer. The blow will not fall upon the shrowd business man ho has been aiding in putting these pictures" in circulation, but the honest farmer and hardworking man will be the sufferers. We be lieve we are advocating a protective policy, and one that will benefit rather than injure Camanche and Clinton county, when we adjure you to no longer receive funds that have no security save the honor of a dishonored firm. Let the farmer refuse to receive for his produce, and the laborer for his work, any bills whatever, unless they have positive evidence that the securities for their redemption are ample. This is a right which you enjoy, and if you fail to exereise it, disastrous consequences will follow, and upon your hands will they rest.

11. February 13, 1858 Muscatine Weekly Journal Muscatine, IA
Article from Muscatine Weekly Journal, February 13, 1858

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There is a very good reason for discrediting Florence money. For more than a month, specie payments have been refused at the counter of the bank, and the absquatulating members of the late legislature who assembled at Florence, passed a special a ct authorizing the bank of Florence to suspend for six months. Its bills are now universally refused in this Territory, no one having any confidence in the concern.Omaha Nebraskian.

12. February 17, 1858 The New York Herald New York, NY
Article from The New York Herald, February 17, 1858

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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.

13. July 8, 1858 Nebraska Advertiser Auburn, Brownville, Calvert, NE
Article from Nebraska Advertiser, July 8, 1858

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Banking in Nebraska. We are opposed to granting any more Bank Charters in Nebraska, and in favor of wiping out all heretofore granted, that have closed their doors; and, further, around those that have sustained themselves, we are in favor of throwing such guards, protections, or restrictions as will give confidence to the bill-holder. We are opposed in the first place to granting Bank Charters in Nebraska, because the United States law, passed July 1st, 1836, Section 1, which reads as follows, is yet in existence, and such grants, therefore would be unconstitutional. "Sec, 1. No act of any of the Territories of the United States incorporating any institution with Banking powers or privileges, hereafter to be passed, shall have any force or effect whatever until approved and confirmed by Congress." We are not prepared to say we are opposed to Banking in toto, and in every form, or by any principle whatever. There is perhaps, owing to the nature of the business of our country, a demand for something of the kind. But where and when they do exist, the most ample security should be given the bill-holder; and the Banker or Bankers should be money lenders not money borrowers. We are opposed to more Banks in Nebraska, because we have not the home capitol to engage in a legitimate safe, reliable and healthy system of Banking, and the consequence would be as has been, that non-resident operatives, unknown, unreliable men conduct affairs, and upon regular "wild cat" principles, and in the end the people are most shamfully swindled out of their hard earned means. As shedding further light and in substantiation of the forgoing idea, we give place to the following extract from a communication in the St. Louis Republican, written by a resident of this Territory evidently well posted. He says: "The Nemaha Valley Bank, located at Brownville, and which is suspended, is wholly ownedin the State of Illinois. A part of the Stock of Platte Valley Bank, located at Nebraska City, is owned in the Territory, the balance in Missouri and Illinois. The Fontenelle Bank of Bellvue, located at Belleve, which is hopeS lessly defunci and the grossest swindle of the whole is wholly owned in Illinois and Iowa. The Western Exchange Fire, and Marine Insurance commonly called the Western Exchange Bank,) iccated at Omaha City, and which is also suspended S is at present wholly owned at Galva, Iir linois, and was formerly owned in Iowa and Ill. The Bank of Nebraska, located at Omaha, is wholly owned in Iowa. The Bank of Florence, which has also suspended is also owned in Iowa. The Bank of De Soto, located at De Soto, is owned in Wisconsin, and the Bank of Tekamah, located at Tekamah, and which has recently suspended, is owned in Indiana and Missouri. These are all the d banks in the Territory--all others have no legal existence whatever. Here then are the facts-these institutions are not owned or controlled by the citizens of Nebraska, (except the controlling influence of one of them-the Platte Valley) d but are managed by the citizens of other states, and are made the vehicles of the grossest frauds upon community-and ]then the whole charge of fraud, corrupis tion and swindle, and all that is mean, to dishenest and dishonorable, is heaped on or the citizens of Nebraska! Is this fair ?

14. December 30, 1858 The National Era Washington, DC
Article from The National Era, December 30, 1858

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AFFAIRS IN IOWA. LE CLAIRE, Iowa, Dec. 14, 1858. To the Editor of the National Era: A rΔ™view of the financial condition of this part of Iowa, for the last fifteen months, may be worth the notice of your readers, as illustrative of the workings of a credit currency. Previous to the panie of last year, our circulating medium was mainly made up of the issues of Eastern, Illinois, and Wisconsin banks, and the bills of the Bank of Florence institution located at Florence, in Nebraska, but owned by a responsible firm in Davenport, Iowa, where its notes were issued, and in which place and surrounding country it had, in Octobes, 1857, upwards of $200,000 in circulation. The panic" caused an entire withdrawal of Eastern notes, a scarcity of Illinois and Wisconsin funds, and a great stringency in the money market. At this juncture, a well-known mercantile firm of Davenport issued their " promises to pay," in the form of checks, until they had some $150,000 or $200,000 in circulation. This relief was generally received with joy and thankfulness, and the new money freely passed from hand to hand it bought produce, purchased farms, and was loaned on real estate security at 20 and 25 per cent. Soon, however, it was discovered that neither 'Florence" nor the new checks would pay Eastern indebtedness, or even purchase a dinner 100 miles from home ; and as the merchant was compelled, month after month, to pay from five to ten per cent. for Eastern exchange, and this was at last paid by the consumer, the desire to be rid of the shinplasters became greater than was the joy at receiving them; so that, after a long paper war and a series of currency meetings," the checks" were refused, and Florence was redeemed and withdrawn. Thus, during the months of August and September last, an amount, variously estimated from $300,000 to $400,000, was suddenly withdrawn from circulation. After having caused an inflation which was really injurious, though apparently beneficial, it inflicted a still worse injury by becoming valueless at the very time when a failure of the crops and the maturing of indebtedness created an extraordinary pressure on the money market, thus causing an embarrassment which became general and extensive. Had we in 1857 manfully struggled along, relying only on such good money as could then be obtained, no one can doubt that we should have been saved the loss and disappointment which a recourse to a doubtful credit money has occasioned. For the disease under which we-and indeed the whole State-are laboring, a remedy is about to be applied, on homeopathic principles. The State Bank, with its eight branches, is in operation, and in less than a month will issue its notes. There can be no doubt that the law legalizing the existence of this bank was carefully framed, and that its provisions are such that the issues which it authorizes will be as worthy of currency as those of any other State in the Union. Numerous are the projects to relieve us from our present financial difficulties, but the pro-