Papers Of Abraham Lincoln

In force Jan.[January] 31, 1840.

AN ACT in relation to the State Bank of Illinois.
1

Charter of State Bank revived.

Time of revival of charter.

Proviso.

Sec.[Section] 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That the State Bank of Illinois is hereby revived, and the forfeiture of its charter for refusing to pay for its notes, or other evidences of debt, in specie, is hereby set aside; and said bank is hereby anthorized to transact all business as a body corporate, in as full and complete a manner as she might have done if said bank had not suspended specie payments; and every provision of law requiring or authorizing proceedings against said bank, with a view to fotfeit 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, and other evidences of debt, in specie, is hereby suspended, until the close of the next session of the General Assembly of the State of Illinois: Provided, however, That to secure the benefit of the foregoing provisions, the said bank shall agree to conform to, and comply with, the following conditions, restrictions, and limitations, to wit:

First.

First. The said bank shall not hereafter make any loan on an hypothecation of the stock of the bank.

Second.

Second. That it will not, directly or indirectly, during its suspension of specie payments, 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 under the sum of five dollars.

Third.

Third. That it will furnish monthly, to the Executive of the State, a full and complete statement of the condition and financial operations of said bank, and its branches, verified by the oath of (the) president or cashier of said bank, which statement shall be published in the newspaper of the Public Printer.

Fourth.

Fourth. That it will not, either 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 its circulation will be increased beyond the amount of the capital stock actually paid in.

Fifth.

Fifth. That it will receive, upon deposite, any funds belonging to the State, which may be required to be so deposited,

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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.

Sixth. Hereafter, any stockholder in said bank, owning five shares of the stock of said bank, shall be qualified to act as director of said bank.

Seventh.

Seventh. That until said bank shall resume specie payments, citizens and residents of this State, who are indebted 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 upon 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 uses (usages) and customs of banking: Provided, That this section shall not apply to notes or bonds assigned or endorsed to the bank.

Eighth.

Eighth. That the said bank shall not, after their acceptance of the provisions of this act, suffer any person, firm, or house, to become indebted, at any one time, to the parent bank, or either of its branches, as principal, or maker, of any promissory note, or notes, in a sum greater than ten thousand dollars. That it shall not suffer any person, firm, or house, to become indebted to the parent bank, or any (either) of its branches, as security or endorser, on promissory notes, in a sum greater than ten thousand dollars, and that it shall not suffer any person, firm, or house, to become indebted to said bank, or either of its branches, as drawer, or endorser, of bills of exchange, in a sum greater than twenty-five thousand dollars; and in case any person, firm, or house, shall, at the time of the acceptance of this act by said bank, be indebted to it in any manner greater than is allowed by the preceding limits, said bank shall proceed to call in said debt by instalments, until it shall not exceed the amount allowed by the above provisions.

Ninth.

Ninth. That at the next election for choosing directors of said bank, under the provisions of its charter, not less than three persons not now Directors, shall be chosen Directors by the stockholders; and thereafter, at each election, at least two new Directors shall be elected.

Tenth.

Tenth. After the acceptance of this act, if said bank shall fail to comply with any of the conditions, restrictions, or limitations, herein imposed, it shall be liable to be proceeded against as may now be done for a violation of any of the provisions of the original charter of said bank.

Shall receive its own bills.

Sec. 2. The State Bank of Illinois shall at all times receive its own bank bills in payment of any demand, debt, or claim, due to the bank, from any individual or corporation whatever.

Acceptance of provisions to be filed with Sec.[Secretary] of State.

Sec. 3. Whenever the State Bank shall accept the provisions of this act, and the president thereof shall file, in the office of the Secretary of State, a certificate of the fact of such acceptance, under the corporate seal of said bank, then from and after the filing such certificate, said bank shall be considered

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as entitled to the benefits of this act, and shall be bound by all the conditions, restrictions, and limitations herein contained.

Rights not impaired.

Sec. 4. This act shall not be construed so as to impair any rights acquired by individuals, or to prevent the holders of its notes, and other evidences of debt, from bringing and maintaining suits against said bank, for any notes, or other evidences of debt, which they now have, or may hereafter hold, against it: and the provisions of this section shall apply as well to notes heretofore issued, as to notes which may hereafter be issued by said bank.

Branch at Chicago to be removed within six months.

Sec. 5. The Directors of the parent (bank) shall, within six months from the passage of this act, remove from Chicago the branch located at that place, and establish the same at such other place as the bank may deem proper.2

Approved, by the Council, January 31st, 1840.

1On December 13, 1839, William W. Roman introduced HB 18 in the House of Representatives, but the House refused to concur in a second reading of the bill. On December 17, the House heard a proposed amendment to the bill and laid the bill on the table. On December 20, Ninian W. Edwards introduced the bill again, and the House allowed a second reading of the bill and referred the bill to the Committee on Finance. On December 20, the Committee on Finance, which included Abraham Lincoln as a member, reported the bill with an amendment and recommended the bill’s passage. The House agreed to the committee’s amended bill, and approved an additional amendment. The House then voted against a motion to lay the bill and amendments on the table until the Fourth of July next by a vote of 26 nays to 58 yeas, with Lincoln voting yea. In addition, the House voted against a motion to refer the bill with a series of instructions to the Committee on the Judiciary by a vote of 24 yeas to 57 nays, with Lincoln voting nay. The House then considered and passed further amendments by a vote of 49 yeas to 38 nays, with Lincoln voting yea. After a motion for an additional amendment, the House refused the following motions: to commit the bill and amendments to a Committee of the Whole House; to lay the bill and amendments on the table; and to refer the bill and amendments to the Committee on Finance with instructions. The House voted against the last motion by a vote of 11 yeas to 78 nays, with Lincoln voting nay. After that vote, the House voted to engross and read the bill a third time by a vote of 67 yeas to 22 nays, with Lincoln voting yea. On December 23, the House read the bill for the third time and passed an additional amendment by a vote of 61 yeas to 24 nays, with Lincoln voting yea. The House then passed the bill. On January 27, the Senate referred the bill to the Committee on the Judiciary, and the committee reported the bill with an amendment. The Senate then considered and voted on further amendments. On January 28, the Senate voted to lay the bill and amendments on the table until the Fourth of July next. On January 29, the Senate considered and voted on additional amendments and passed the bill. On January 29, the House concurred in the Senate’s amended version of the bill and considered additional amendments. On a motion to lay the bill on the table, the House vote against the motion by a vote of 41 yeas to 42 nays, with Lincoln voting nay. The House then voted in favor of a further amendment by a vote of 47 yeas to 36 nays, with Lincoln voting nay. The House then voted on a series of additional amendments as follows: 42 yeas to 41 nays, with Lincoln voting nay; 28 yeas to 55 nays, with Lincoln voting yea; 41 yeas to 39 nays, with Lincoln voting yea; 50 yeas to 32 nays, with Lincoln voting nay; 47 yeas to 36 nays, with Lincoln voting yea. The House then informed the Senate of these new amendments. On January 31, the Council of Revision approved the bill and the act became law. Journal of the House of Representatives of the Eleventh General Assembly of the State of Illinois, at Their Called Session, Begun and Held at Springfield, December 9, 1839 (Springfield, IL: William Walters, 1839), 37, 64, 66, 67-69, 72, 80, 104-05, 134, 228-29, 230-32, 237, 244-46, 277, 284-86, 306, 317; Journal of the Senate of the Eleventh General Assembly of the State of Illinois, at Their Called Session, Begun and Held in Springfield, December 9, 1839 (Springfield, IL: William Walters, 1839), 53, 66, 173, 181-82, 190-91, 191-92, 193-96, 198, 209, 209.

2In February 1841, the General Assembly repealed this section with this act.