In force 21st July, 1837.
AN ACT to suspend, for a limited time, Certain Laws in relation to the Banks in this State.1
Force of law in regard to banks suspended a limited time.
Duty of Governor.
Duty of bank to resume specie payment.
Conditions, restrictions, limitations.
Sec.[Section] 1. Be it enacted by the people of the State of Illinois, represented in the General Assembly, That every provision of law, requiring or authorizing proceedings against any bank in this State, with a view to forfeit its charter, or wind up its concerns, or which requires said bank to suspend its operations and proceedings, in consequence of its refusal to pay its notes or evidences of debt in specie, is hereby suspended until the end of the next general or special session of the General Assembly, unless the banks shall have generally resumed specie payment at an earlier date, in which case the Governor shall give notice thereof by proclamation, and the said bank shall, within twenty days thereafter, also, resume specie payments: Provided, however, That to secure the benefit of the foregoing provision, said bank shall agree to conform to, and comply with, the following conditions, restrictions and limitations, viz:
First— That it will not, either directly or indirectly, divide or pay among its stockholders, or to any person for them, any dividends, interest, or profits whatever, until it shall bona fide resume the payment of its notes and evidences of debt in specie; which dividends shall be retained in bank as an additional security to the holders of its notes.
Second— That it will not, directly or indirectly, during the suspension of specie payment, sell, dispose of, or part with any of its specie, or gold or silver bullion, except for the purposes of change to the amount of five dollars, or un- the sum of five dollars.
Third— That it will furnish monthly, upon the oath of its president or cashier, to the Executive of the State, a full and complete statement of the condition and financial operations of said bank and branches, which shall be published in the newspaper of the State printer.
Fourth— That it will not, directly or indirectly, issue or put into circulation, during the period of its suspension of specie payments, any bank bill or note, or any evidence of debt by which the amount of its circulation shall be increased beyond the amount of capital stock actually paid in by the stockholders.
Fifth— That it will receive upon deposite any funds belonging to the State, which may be required to be so deposited, and pay the same out upon the order of the proper officer, or agent of the State, in kind, free from charge; and also all funds heretofore deposited by the State.
Sixth— That until the banks shall resume specie payments, citizens and residents of this State, who are indebt-
<Page 2>ed to them upon notes heretofore discounted, shall be allowed to pay their debts in instalments, at the rate of ten per cent, upon each and every renewal of the amount originally due, upon condition that such debtors shall execute new notes, with satisfactory security, and pay the aforesaid per cent. and the interest in advance, according to the usage and custom of banking. Provided, That this section shall not apply to notes or bonds assigned or endorsed to the bank.
Seventh— That any violation of the provisions of this act, or any failure to comply with and conform to the same, shall subject the bank in default to a forfeiture of its charter.
Duty of President of Bank to furnish Governor with certificate.
Governor shall issue proclamation.
Sec. 2. Whenever any bank shall accept the provisions of this act, and the president thereof shall furnish the Governor with a certificate of the fact of such acceptance, under their corporate seal, the Governor shall issue a proclamation, stating the fact of such acceptance; and from and after the date of such proclamation such bank shall be considered as being entitled to all the benefits hereby conferred, and bound by all the conditions, restrictions and limitations herein contained.
Rights of individuals not impaired by this act.
Sec. 3. This act shall not be construed so as to impair any rights required by individuals, or to exhonerate the bank from any liability to the holders of its notes, for the nonpayment of the same; and the provisions of this section shall apply as well to notes heretofore issued as to notes which may hereafter be issued. 2
Approved 21st July, 1837.
1Richard B. Servant introduced SB 10 in the Senate on July 13, 1837. The Senate tabled the bill and ordered it printed. On July 14, the Senate took up the bill, amending the sixth section, and agreeing to read the bill a third time as amended by a vote of 24 yeas to 10 nays. On July 15, the Senate referred the bill to a select committee. The select committee reported back the bill on July 17 with an amendment. The Senate amended the amendment by adding the last clause to the third section. The Senate passed the bill as amended by a vote of 25 ayes to 10 nays. On July 17, the House of Representatives referred the bill to the Committee of the Whole and made it the order of the day for July 18. The Committee of the Whole reported back the bill on July 18 with an amendment that struck out everything after the enacting clause. The House refused to table the bill and report of the Committee of the Whole by a vote of 36 yeas to 49 nays, with Abraham Lincoln voting nay. The House referred the bill and report to a select committee of seven. The select committee reported back the bill on July 20 with an amendment. The House refused to amend the select committee’s amendment by adding an additional section, and it also rejected an amendment to the proposed amendment. The House later voted to reconsider its vote on the amendment to the proposed amendment by a vote of 46 yeas to 36 nays, with Abraham Lincoln voting nay. The House passed the amendment to the proposed amendment by a vote of 43 yeas to 40 nays, with Lincoln voting nay. The House rejected the amendment to the select committee’s amendment by a vote of 38 yeas to 49 nays, with Lincoln voting nay. The House further rejected an amendment restricting the denomination of bills banks could circulate by a vote of 35 yeas to 53 nays, with Lincoln voting nay. The House also rejected an amendment regarding the charter of the State Bank of Illinois by a vote of 31 yeas to 55 nays, with Lincoln voting nay. The House concurred in the amendments of the select committee. On July 21, the House refused to amend the bill by making the stockholders and directors of the State Bank of Illinois responsible for the redemption of bank notes held by citizens of Illinois by a vote of 4o yeas to 41 nays, with Lincoln voting yea. The House passed the bill as amended by a vote of 53 yeas to 30 nays, with Lincoln voting nay. On July 21, the Senate concurred with the House amendment by a vote of 22 yeas to 10 nays. On July 21, the Council of Revision approved the bill and the act became law.
Journal of the House of Representatives of the Tenth General Assembly of the State of Illinois, at a Special Session of the General Assembly, Begun and Held in the Town of Vandalia, July 10, 1837 (Vandalia, IL: William Walters, 1837), 87, 90, 105-106, 132-36, 152-53, 155, 175; Journal of the Senate of the Tenth General Assembly of the State of Illinois, at a Special Session, Begun and Held in Vandalia, July 10, 1837 (Vandalia, IL: William Walters, 1837), 44, 53, 65, 70-71, 126, 127, 141, 146.
2On July 17, 1837, the Senate amended the bill by adding the last clause to the third section.
Journal of the House of Representatives of the Tenth General Assembly of the State of Illinois, at a Special Session of the General Assembly, Begun and Held in the Town of Vandalia, July 10, 1837 (Vandalia, IL: William Walters, 1837), 71.
Printed Document, 2 page(s), Laws of the State of Illinois, Passed by the Tenth General Assembly, at their Special Session (Vandalia, IL: William Walters, 1837), 6-7, GA Session: 10-S