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Missouri Historical Review HISTORICAL REVIEW JULY 1967 George Caleb Bingham Home, Arrow Rock Published Quarterly By The State Historical Society of Missouri COLUMBIA, MISSOURI THE STATE HISTORICAL SOCIETY OF MISSOURI The State Historical Society of Missouri, heretofore organized under the laws of this State, shall be the trustee of this State—Laws of Missouri, 1899, R.S. of Mo., 1959, Chapter 183. OFFICERS 1965-68 LEO J. ROZIER, Perryville, President L. E. MEADOR, Springfield, First Vice President * WILLIAM C. TUCKER, Warrensburg, Second Vice President LEWIS E. ATHERTON, Columbia, Third Vice President RUSSELL V. DYE, Liberty, Fourth Vice President JACK STAPLETON, SR., Stanberry, Fifth Vice President JOHN A. WINKLER, Hannibal, Sixth Vice President R. B. PRICE, Columbia, Treasurer FLOYD C. SHOEMAKER, Columbia, Secretary Emeritus and Consultant RICHARD S. BROWNLEE, Columbia, Director, Secretary, and Librarian TRUSTEES Permanent Trustees, Former Presidents of the Society E. L. DALE, Carthage E. E. SWAIN, Kirksville RUSH H. LIMBAUGH, Cape Girardeau ROY D. WILLIAMS, Boonville GEORGE A. ROZIER, Jefferson City Term Expires at Annual Meeting, 1967 WILLIAM AULL, III, Lexington GEORGE FULLER GREEN, Kansas City WILLIAM R. DENSLOW, Trenton GEORGE H. SCRUTON, Sedalia ELMER ELLIS, Columbia JAMES TODD, Moberly ALFRED O. FUERBRINGER, St. Louis T. BALLARD WATTERS, Marshfield Term Expires at Annual Meeting, 1968 FRANK P. BRIGGS, Macon W. C. HEWITT, Shelbyville HENRY A. BUNDSCHU, Independence ROBERT NAGEL JONES, St. Louis R. I. COLBORN, Paris LEWIS E. ATHERTON, Columbia VICTOR A. GIERKE, Louisiana *WILLIAM C. TUCKER, Warrensburg Term Expires at Annual Meeting, 1969 *BARTLETT BODER, St. Joseph W. WALLACE SMITH, Independence GEORGE MCCUE, St. Louis JACK STAPLETON, SR., Stanberry L. E. MEADOR, Springfield HENRY C. THOMPSON, Bonne Terre JOSEPH H. MOORE, Charleston ROBERT M. WHITE, Mexico EXECUTIVE COMMITTEE The twenty-nine Trustees, the President and the Secretary of the Society, the Governor, Secretary of State, State Treasurer, and President of the Uni­ versity of Missouri constitute the Executive Committee. FINANCE COMMITTEE Five members of the Executive Committee appointed by the President of the Society at each annual meeting of the Executive Committee constitute the Finance Committee. T. BALLARD WATTERS, Marshfield, Chairman WILLIAM R. DENSLOW, Trenton W. C. HEWITT, Shelbyville ELMER ELLIS, Columbia GEORGE A. ROZIER, Jefferson City * Deceased CONTENTS Page BANKING IN EARLY MISSOURI. By Harry S. Gleick 427 DALLAS COUNTY RAILROAD BONDS. By Virginia Rust Frazer 444 WILLIAM S. STEWART LETTERS, JANUARY 13, 1861 TO DECEMBER 4, 1862. Edited by Harvey L. Carter and Norma L. Peterson 463 THE CHARITON RIVER FISH TRAP. By Wayne F. Shields 489 MISSOURI'S NATIONAL HISTORIC LANDMARKS. By Dorothy J. Caldwell 497 HISTORICAL NOTES AND COMMENTS Bishop Ivan Lee Holt Papers Presented to Western Historical Manuscripts and State Historical Society 510 University of Missouri Holds Inauguration for President Weaver 511 Views from the Past: Missouri Recreation 512 News in Brief 514 Local Historical Societies 517 Honors and Tributes 528 Gifts 529 Missouri History in Newspapers 533 Missouri History in Magazines 538 Book Reviews 541 Book Notes 551 In Memoriam 554 THE IRON HORSE 592 PHOEBE COUZINS Back Cover THE COVER: The George Caleb Bingham Home, Arrow Rock, after the second restoration, 1964-1965, by the Missouri State Park Board. For additional in­ formation about the Bingham Home see pages 505 to 509. Volume LXI July 1967 Number 4 MISSOURI HISTORICAL REVIEW Published Quarterly by THE STATE HISTORICAL SOCIETY OF MISSOURI COLUMBIA, MISSOURI RICHARD S. BROWNLEE EDITOR DOROTHY CALDWELL ASSOCIATE EDITOR JAMES W. GOODRICH ASSOCIATE EDITOR The MISSOURI HISTORICAL REVIEW is owned by the State Historical Society of Missouri and is published quarterly at 201 South Eighth Street, Columbia, Missouri 65201. Send communications and change of address to The State Historical Society of Missouri, Columbia, Mis­ souri 65201. Second class postage is paid at Columbia, Missouri. The REVIEW is sent free to all members of The State Historical Society of Missouri. Membership dues in the Society are $2.00 a year or $25 for an individual life membership. The Society assumes no responsibility for statements made by contributors to the magazine. Furs were used as the medium of exchange for many years in early Missouri. Spanish dollars, acquired by Missouri merchants in the 1820s were often chopped into quarters1 and halves and made into "hits", each worth 12V2 cents. Mo. Hist. Society St. Louis Banking in Early Missouri Part I BY HARRY S. GLEICK At the beginning of the nineteenth century there were neither banks nor banking associations, nor was banking in any form carried on in that part of the Upper Louisiana Territory out of Harry S. Gleick, an Ohioan by birth, has received the A.B., LL.B. which the State of Missouri was and J.D. degrees from the University later carved. In 1803, when the of Wisconsin. In 1917 he was admitted to the Missouri Bar. He is the author United States purchased the of numerous articles in legal publica­ territory, the region was still in tions and a former member of the 1 faculty of the Washington University a state of truck economy. The and St. Louis University Law Schools. inhabitants of the ceded terri­ A founder of the International Junior Chamber of Commerce, Dr. Gleick is tory were to be incorporated in a member of the American Bar Asso­ the Union upon the principles ciation, the St. Louis Bar Association 2 and the Lawyers Association of St. of the Federal Constitution. Louis. 1 A good description of trading in early St. Louis may be found in Walter B. Stevens, St. Louis, The Fourth City, 1764-1911 (St. Louis, 1911), I, 217; and J. Thomas Scharf, History of Saint Louis City and County (Philadelphia, 1883) , II, 1370. 2 Treaty for the Cession of Louisiana to the United States (April 30, 1803) , Art. 3, in Treaties and Conventions—United States (Washington, 1889), 332. 427 428 Missouri Historical Review The only provision which could restrict banking and currency in the Missouri area according to the Constitution was included in Article I which read: "no State shall . coin money, emit bills of credit, make anything but gold and silver in payment of debts."3 Not infrequently trades were made by barter in early Missouri.4 A traveler in 1819 noted that "the furs and peltries which are col­ lected during repeated excursions in the woods, are taken down the river (Mississippi) at certain seasons in canoes, and disposed of to traders who visit the lower parts of this river for that purpose. Here they receive in exchange . articles of primary importance. Very little cash is paid, and that in hard money only, no bank bills of any kind being taken in that quarter."5 Lead, peltry and salt, the principal articles of export, were legal tender, and debts were usually paid in this way.6 St. Louis grew out of a trading post, and peltry naturally became the chief medium of trade. The different varieties of furs were redeemable in one another,7 and a note was payable in peltry unless there was an express stipulation that the payment should be in Spanish milled dollars.8 The first recorded payments in coin in Missouri consisted of silver sent to pay the Spanish garrison at St. Louis,9 but the offi­ cer who took possession of Louisiana for the United States in 1804, was impressed by the fact that Upper Louisiana was practically destitute of a circulating medium.10 The cession of the territory stimulated commerce, especially with the Southwest, trade was extended as far South as Chihauhua. Payments for tinware and dry goods were made in Spanish and Mexican dollars, small change being acquired by cutting the dollars into quarters and "bits."11 The growth of commerce and industry resulted in a demand for banking facilities. The first attempt to do a banking business was made in 1808, when Wilkinson and Price at 3 Constitution of the United States, Art. I, Sec. 10. 4 Thomas J. Farnham, Travels in the Great Western Plains (London, 1843) , I, 193, in Reuben Gold Thwaites, ed., Early Western Travels (Cleveland, 1906), XXVIII, 174; Henry R. Schoolcraft, Lead Mines in Missouri; . (New York, 1819) , 249-250. 5 Ibid., 250-251. 6 Louis Houck, A Flistory of Missouri (Chicago, 1908) , III, 190; Scharf, History of Saint Louis, II, 1367; Stevens, St. Louis, Fourth City, I, 217. 7 J. J. Knox, History of Banking in the United States (New York, 1900) , 779. 8 Major Amos Stoddard, Sketches, Historical and Descriptive, of Louisiana (Philadelphia, 1812), 282. 9 Knox, History of Banking, 781. io Stoddard, Sketches, 282, 459. 11 Knox, History of Banking, 781. Banking in Early Missouri 429 St. Louis advertised bills of exchange drawn on the government.12 In the meantime state banks had been developing in other parts of the country, particularly in the East. The period of the First Bank of the United States, a period of sound banking cur­ rency,13 saw the introduction and development of state banks; there were twenty-six banks by the end of the century, and by 1811 the number had increased to eighty-eight.14 The refusal of Congress to recharter the United States Bank was followed by an immediate increase in the number of these institutions, until in 1816 there were two hundred and forty-six in operation.15 The notes of the state banks superseded those of the United States Bank, and great profits were anticipated by the founders of the new institutions.16 The same tendency showed itself in the West. In Illinois a bank was organized at Shawneetown in 1813, but it did not begin business until 1817.17 During the same year the Bank of St. Louis was organized and chartered by the General Assembly of the Ter­ ritory of Missouri.18 One of the most active of the founders was Auguste Chouteau, a name well known in the annals of early St.
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