STATE BANK OF IOWA

STATE BANK OF IOWA. In 1858 F. N. Goodrich, president and R. E. GRAVES, cashier opened a new bank in Dubuque. It was called "The Dubuque Branch of the State Bank of Iowa at Dubuque;" there were 109 stockholders. (1) The State Bank of Iowa was the first legalized in Iowa. There were fifteen branches of the State Bank of Iowa in Iowa. Most became National banks after the passage of the Banking Act of 1864. The State Bank was closed in 1865. (2) The local branch of the State Bank of Iowa eventually became part of FIRST NATIONAL BANK OF DUBUQUE. (3)

On October 21, 1865 the Dubuque Herald reported that the other banks in town refused to accept the notes of the State Bank of Iowa at par, the discount being one percent thus a dollar bill was only 99 cents. The article continued that it was its understanding that each branch redeemed its own issue at par. After November 1st, the circulation was to be called in for redemption at its face, by each bank throughout the state--the amount in circulation small. (4) This report was corrected the following day. The National State Bank received all Iowa money at par from its customers and returned it to the branches where it was issued. The National Bank received money at a discount from other banks and bankers. (5)

The 1859-1860 Dubuque City Directory listed Molony's Block.

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Source:

1. Oldt, Franklin T. History of Dubuque County, Iowa. http://www.ebooksread.com/authors-eng/franklin-t-oldt/history-of-dubuque-county-iowa-being-a-general-survey-of-dubuque-county-histor-tdl/page-14-history-of-dubuque-county-iowa-being-a-general-survey-of-dubuque-county-histor-tdl.shtml

2. Preston, Prentice Hall. The History of Banking in Iowa, Iowa City: University of Iowa, 1922, p. 101

3. Miller, Jim, "City Groups Willed Portion of Booth Fortune," Telegraph-Herald, November 10, 1968, p. 1

4. "Iowa Money at a Discount," Dubuque Herald, October 21, 1865, p. 4

5. "Iowa Money Not at a Discount," Dubuque Herald, October 22, 1865, p. 4