Encyclopedia Dubuque
"Encyclopedia Dubuque is the online authority for all things Dubuque, written by the people who know the city best.”
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Affiliated with the Local History Network of the State Historical Society of Iowa, and the Iowa Museum Association.
MINERS' BANK
MINERS' BANK. The first territorial bank in the future state of Iowa, the Miners Bank was chartered on November 30, 1836, and opened for business on October 31, 1837. It remained in business for twelve years, longer than any other bank of the time.
Capitalized at $200,000, the bank was chartered by the Wisconsin Territorial legislature upon the request of nine Dubuque residents including John KING and Lucius Hart LANGWORTHY.
Because it was believed that small notes would be easily counterfeited and encourage inflation, the bank was authorized to issue no bills smaller than $5. The bank was granted permission to issue notes when $100,000 had been deposited including $40,000 in coin.
The Miners' Bank was in constant controversy until its closing in 1849. Only one month after opening, the state house of representatives sent a three-member committee to Dubuque to investigate the bank's business practices. Despite a positive report by the committee, a rumor campaign continued against the management of the bank.
During an investigation by the Wisconsin legislature, it was discovered that half of the bank's capital came in bank notes issued by the notoriously risky Jackson County Bank and Bank of Manchester located in Michigan. Lax business practices and the end of specie payments on March 29,1841, resulted in the community losing further confidence in the bank. Despite the purchase of the bank in June 1842, by the St. Louis Gas Light Company, the value of notes issued by the bank fell below forty cents on the dollar.
An attempt by the Iowa legislature to revoke the bank's charter caused the resumption of specie payments on April 19, 1844. Even a change in management did not save the bank as the legislature on May 21, 1845, repealed the bank's charter. Appeals filed by the bank were finally heard by the Iowa Supreme Court that upheld the loss of charter in July 1848, by which time the bank had closed its books and doors.
During its operation, the Miners' Bank issued demand notes and post notes, payable at a future date. Despite the bank's poor reputation, no record exists of the bank ever defaulting on its currency. In 1901 the site of the Miners' Bank was used to build the GERMAN SAVINGS BANK.
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Source:
Oldt, Franklin T. History of Dubuque County. http://www.ebooksread.com/authors-eng/franklin-t-oldt/history-of-dubuque-county-iowa-being-a-general-survey-of-dubuque-county-histor-tdl/page-8-history-of-dubuque-county-iowa-being-a-general-survey-of-dubuque-county-histor-tdl.shtml