USA > Illinois > Cook County > History of Cook County, Illinois : being a general survey of Cook County history, including a condensed history of Chicago and special account of districts outside the city limits : from the earliest settlement to the present time, volume II > Part 17
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HISTORY OF COOK COUNTY
Indiana, Iowa, and New York State bank notes and such Illinois banks as are not redeemed in Chicago at par, one-half per cent. dis- count. `Nothing but United States notes, national bank notes and such other notes as are at par in Chicago shall be paid on checks or in settlement of balances between banks and brokers.
"Resolved, That on and after Monday, May 9, 1864, the selling rates of exchange on New York shall be one-half per cent. premium for miscellaneous currency."
On May 7, 1864, at a meeting of leading bankers of the city, a resolution to fix greenbacks as the basis of financial transactions was at first voted down. A meeting of the merchants treated them the same way. One week later, however, so rapid was the change in business sentiment, influenced largely by the wise course of the Board of Trade, the bankers and business men reversed their previ- ous action and agreed that May 16 should be the date when green- backs and bank notes should be considered the basis. The Board of Trade in this emergency forced the issue. This fact should be stated greatly to their credit. Brokers did not care for the new order of monetary affairs. They could make more money by specu- lation with the various currencies under the old order and there- fore did not desire a change. The same is true of banks of that date; they were not concerned in ordinary business transactions and dreaded to change their method of banking and their basis of finance and accordingly were loath to vote for any change. The Board of Trade was solely responsible for the change.
The old Merchants' Savings bank of L. E. Alexander, which had failed in May, 1861, was reorganized in May, 1864, as the Mer- chants' National bank, located at 154 Lake street.
In May, 1864, Frederick Hertel, of the firm of Marc & Hertel, bankers and brokers, absconded, leaving many creditors.
It had been anticipated that much inconvenience and perhaps seri- ous loss would result from establishing greenbacks and national bank notes as the basis of monetary operations. On May 16, how- ever, when that date arrived, little inconvenience or trouble was experienced. People anticipated the change and had become so ac- customed to abrupt and unexpected financial upheavals that they were prepared apparently for any emergency; consequently the day passed without excitement. The rapid rise in gold in 1864 was taken advantage of by speculators who dealt extensively in that commodity. On May 28 gold was quoted here at 90 cents premium; on June 27 at $1.40 per cent. premium; on July 8 at $1.76 per cent. premium; on July 11 at $1.83 per cent. premium; but after that it declined again very rapidly and by October 14 was at $1.15 per cent. premium. In July gold was at its highest figure and wheat was worth $2 per bushel; corn, $1.34 a bushel; flour, $10 per barrel; whisky, $1.75 per gallon.
Despite the new National banking law many of the old bankers
191
HISTORY OF COOK COUNTY
regarded the same with distrust if not disdain and continued oper- ations under the old order of affairs. The result was that the most of them in a short time were driven out of business by the prosperity and patronage enjoyed by the new national banks.
In August and September, 1864, at the time gold declined rapidly there were many failures throughout the country and several im- portant ones here. Business houses and bankers were compelled to close their doors. All prices fell with gold. The people here, accustomed as they were to remarkable changes in business and financial affairs, nevertheless suffered severely under the immense decline in prices. C. C. Parks & Co., bankers, failed; J. G. Conrad also closed his doors ; the Western Marine and Fire Insurance com- pany failed in September. In the latter a Town committee of twelve had just deposited $7,400. This money was raised to pay to substitutes for the army and when it was known that the bank had closed, the depositors took immediate steps to secure either their money or revenge. A large crowd assembled around the bank and Mr. Tuttle, one of its officers, endeavored to allay the excite- ment by addressing the angry people outside. They gathered around him and finally assaulted and struck him, but a squad of soldiers under Major Williams, of the Veteran Reserve Corps, saved him from the clubs and clutches of the crowd. All further trouble was prevented by a body of soldiers under the command of the pro- vost marshal.
In March, 1864, the Fifth National bank was authorized to begin business. In December, 1864, the Producers National bank was authorized to begin operations with a capital of $200,000, and with C. H. Doolittle as president. In August, 1864, the Northwestern National bank was also established here. In January, 1865, the First National bank in four days sold $579,250 of the new 10-40 bonds.
In January, 1865, the Chicago stock exchange was organized with J. C. Hilton, president; Solon McElroy, secretary; W. W. Goodenow, treasurer. Early in 1865 the Merchants National bank, with a capital of $450,000, opened its doors with C. B. Blair as president and John De Koven as cashier. At this time Cushing, Harden & Co., private bankers, began business. In January, 1865, the Union National bank, with W. F. Coolbaugh as president, be- gan operations. It was noted by the newspapers in January, 1865, that the Secretary of the Treasury had drawn on the Chicago banks for nearly $1,000,000 and that the draft was promptly honored. This was regarded as something to brag about. In January, 1865, the Commercial National bank was authorized to begin business. At this date gold had fallen rapidly, being on the 21st at only 97 per cent. premium. Late in January, 1865, the Manufacturers' National bank, with a capital of $235,000, was commissioned to begin business and William H. Brown was president and D. J. Lake cashier of the same.
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HISTORY OF COOK COUNTY
From February 1 to February 21, 1865, Jay Cooke's agent in this city, the Second National bank, sold for him nearly $2,000,000 worth of the 7-30 government bonds.
In October, 1864, the First National bank had a capital of $600,- 000; the Second, $100,000; the Third, $300,000 and the Fifth, $200,000. The deposits of the First National bank on October 3, 1864, were $481,409; those of the Second were $135,417; those of the Third, $628,872, and those of the Fifth were $50,001.
On October 3 the Illinois State Savings institution, located on Washington near Clark, withstood a hard run. At this time the Western Marine company issued a statement and arranged terms of settlement with creditors.
By the evening of October 4, 1864, the runs on the various banks had almost wholly subsided but business was at a standstill. All banks having temporarily ceased operations, necessity forced busi- ness of all kinds to do likewise in a large measure. Merchants could get no currency. It was noted at the time that while gold was quoted at 90 per cent. premium in New York it went begging here at 80 per cent premium. People did not want gold with which to transact business. By October 5 the panic was almost wholly over and banks and business men were doing business about as usual. The failure of the bank of J. G. Conrad amounted to a loss to creditors of about $212,000. He had dealt extensively in grain and whisky products. In November gold rose and fell with fright- ful frequency. In two days it passed from $1.10 premium to $1.40 premium, then fell to $1.29 premium and then jumped to $1.35 premium. A few days later it was down to $1.13 premium and by the first of the year was less than $1 premium. However, as all business here was based upon greenbacks and national bank notes and as gold and silver had become commodities, no serious effect was noted.
"This morning the public was again startled by the announcement that the Western Marine and Fire Insurance Company's bank had failed. This caused a tremendous panic among all classes, and many of even our ablest business men were alarmed to a degree beyond conception. The various banking establishments were soon crowded with depositors eagerly desirous of withdrawing their balances. A few of the strongest institutions escaped a severe run till the after- noon, but many of them were thoroughly taxed to meet the drain. Some banks of good repute were forced early in the day to refuse payment of checks for large amounts till Monday or Tuesday, while others paid their checks in greenbacks as long as they could and then paid in New York exchange. This method of procedure on the part of the banks, is, to say the least, irregular, but it was deemed the most prudent course under the circumstances."-(Tribune, Oc- tober 2, 1864.)
"The fall in gold is simply a rise in the value of greenbacks. Gold
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HISTORY OF COOK COUNTY
remains stationary, but the purchasing power of the legal tender is enhancing. National currency which five weeks ago was worth but 38 cents in coin, is now worth 55 cents. This is due to the splendid victories of Farragut, Sherman, Sheridan, and Grant."- (Tribune, October 3, 1864.)
"The money market to-day was again convulsed and panic-strick- en. As soon as the banks opened a determined and persistent run on some of them was kept up all forenoon, but toward the afternoon it had evidently spent its force and there was increased confidence. One of the savings banks had a very large crowd of depositors at its door all day. There were no failures. There were no signs of weakness exhibited by any of the banks."-(Tribune, October 4, 1864.)
The Board of Trade passed resolutions to accept certified checks of solvent banks for all transactions with the board; this was done to relieve the bankers.
The most important business feature of 1864 was the establish- ment of the national banks. "The outset of the year (1864) found us with one national bank organized and that coldly received by its fel- low institutions. It found us with a miscellaneous currency which made the sorting process laborious to our bankers and noxious to the community, a mixed and motley mass of Eastern rag issues."- (Tribune, December, 1864. )
In former years, in the best times, exchange on New York had cost 1 to 5 per cent. and in panics 15 to 20 per cent. and worse. Im- mediately after the establishment of the National banks exchange on New York was at par. The relief to business of all kinds was enormous. By December, 1864, the following National banks were in existence :
First National. .E. Aiken, president
Second National. .J. A. Ellis, president
Third National .. .J. H. Bowen, president
Fourth National. B. Lombard, president Fifth National. Josiah Lombard, president
Mechanics National. J. Y. Scammon, president
Northwestern National. .B. Sturgis, president
Manufacturers National. W. H. Brown, president
"The year 1864 has been a most prosperous one to all our banking institutions. A brief but boisterous flurry in October, in the sudden fall of gold, brought down three hollow institutions and that was all. The wonder only grew, when the storm was over, that these had lived so long. The other banks stood erect, some of them a little pale, and warned by the lesson given, but the majority went safely through secure in the channels of legitimate business."-(Tribune, December, 1864.)
"The banking transactions of Chicago are all for cash. It stands as the paymaster of the great Northwest and disburses the millions in currency required to move its great food staples, each year, by Vol. II-12.
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HISTORY OF COOK COUNTY
the opening of new channels and the development of new currents of trade. The great Upper Mississippi region no longer follows the flow of the Father of Waters. The new territories, the far West with its new Eldorados, have been added to the pay roll of Chicago. The banking capital of Chicago at the close of this year (1864) has more than doubled in the last twelve months and is three times as large as that of 1862. For the last sixty days the amount handled by our bankers daily is ten millions of dollars. Within the past fortnight one of our leading banking houses in a single day shows transactions reaching two millions and a half of dollars. It must be remembered that this is currency actually han- dled-counted, piled and carried away. One million dollars a day goes into the country to the producer. Well may the bankers re- joice that the days of rag money are over. Imagine a banking house 'sorting' two millions and a half of 'red dog' a day. . The question of establishing a clearing house in the city has been long discussed by our leading bankers and business men and it meets with general favor."-(Tribune, December, 1864.)
First National.
S. Aiken $1,000,000
Second National.
.J. A. Ellis. 100,000
Third National.
Jas. H. Bowen. 750,000
Fourth National. B. Lombard .. 200,000
Fifth National.
.L. Lombard 503,000
Mechanics National.
J. Y. Scammon ...
250,000
Northwestern National.
C. G. Hammond ..
500,000
Merchants National.
.C. B. Blair ..
450,000
Union National.
W. F. Coolbaugh ..
500,000
Commercial National.
.P. R. Westfall .... 200,000
Manufacturers National.
.W. H. Brown ....
250,000
Traders National
J. A. Rutter ..
160,000
City National
A. P. Reed.
250,000
Merchants Loan and Trust Company. . .. S. A. Smith.
500,000
Marine National .
.. J. Y. Scammon ...
500,000
State Saving Trust.
.C. A. Haines ..
100,000
Producers Bank.
.N. Doolittle.
200,000
Creamery Bank.
J. N. Wadsworth. 160,000
Branch Bank of Montreal. .(An agent)
250,000
Estimated capital of private banks.
$2,000,000
Total
$8,820,000
Among the private bankers were: Solomon Sturgis Sons, J. M. Adsit, Meadowcroft Bros., L. Silverman, L. Meyers & Co., Tyler, Williams & Co., A. C. Badger & Co., Scripps, Preston & Kean, Greenebaum Bros., C. L. Nichoff & Co., Hardin, Cushman & Co.
The following is a condensed statement of the seven National banks for the quarter ending December 31, 1864:
Discounts
$3,244,181.71
Currency and specie on hand.
3,095,693.87
Individual deposits 3,081,893.38
Government deposits 1,460,969.43
Circulation
1,678,800.00
$6,820,000
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HISTORY OF COOK COUNTY
The following bids of over $1,000 for the Government loan of $75,000,000 ordered in 1864 were presented by Chicago bankers :
W. J. Egan & Co. .$ 3,600 at 3
per cent premium
Henry Thompson
4,000 at 10
per cent premium
R. N. Shaw
2,000 at 6 per cent premium
Second National bank.
25,000 at 61/2 per cent premium
S. Sturgis
10,000 at 3
to 5
per cent premium
Hiram Hance
1,800 at 61/4
per cent premium
C. B. Blair
19,000 at 3 to 61/2 per cent premium
D. R. Halt
5,000 at 51/2 per cent premium
C. & B. Clark
5,000 at 5
W. L. Peck
10,000 at 3
per cent premium per cent premium
C. H. Warner
2,000 at 61/2 to 71/2 per cent premium
Fourth National bank.
12,000 at
2
to 6
per cent premium
Fifth National bank.
20,000 at
51/2
per cent premium
W. H. King
20,000 at 3
per cent premium
The National banks here January 1, 1865, had a capital of $2,318,- 300. On April 1, 1865, the total was $4,837,420.
BANK.
Capital.
Discounts. Deposits.
$1,377,622
Cir- culation. $514,800 97,500
$ 260,685
$14,800
Second National.
100,000
115,395
354,274
1,000,848
..
Third National ...
750,000
268,124
1,389,385
290,000
881,225
5,267
Fourth National.
186,000
182,755
129,989
163,000
59,375
3,632
Fifth National ...
500,000
513,910
364,311
357,950
289,125
Mechanics
250,000
214,344
327,410
126,500
104,940
1,521
Commercial
200,000
138,682
82,840 515,761
184,500
211,749
. ..
Union
500,000
873,509
2,329,683
420,000
1,532,266
.....
Northwestern
500,000
349,420
176,674
450,000
160,234
.....
Manufacturers
. .
225,000
124,332
184,610
82,500
132,041
.....
City
176,420
81,125
103,880
.......
35,604
.....
Total
$4,837,420
$4,245,907
$7,336,445 $2,718,750
$4,733,067 $25,221
-Tribune, April 5, 1865.
The officers of the City National bank early in February, 1865, were A. D. Reed, president, and J. P. Taylor, cashier. In March the capital of the Manufacturers' National bank was increased to $300,000; in February the capital of the Fifth National bank was increased to $500,000; in March the Fourth National bank removed to the Lumbard block near the post office. In March Cook county scrip was worth from 86 to 87 cents on the dollar. About this time Cook county 7 per cent. war bonds, payable in fifteen, twenty and 25 years, sold at par. Cook county scrip could be exchanged for Cook county war bonds at par. This fact finally raised the value of the scrip to 97 and 98 cents on the dollar. Notwithstanding the fall of Richmond and close of the war the price of gold con- tinued to rise, much to the surprise of everybody. It had been thought that the war alone kept the price up, but it was learned that the quantity of paper currency in circulation and the possibility that it might never be redeemed were the primary causes to keep up the price. About April the Cook county scrip was quoted as low as 83
. .
Merchants
450,000
442,998
34,000
63,974
Currency Specie on hand. on hand.
First National ... $1,000,000
$941,308
.
1
198
HISTORY OF COOK COUNTY
cents to 84 cents on the dollar, but after that it rose steadily until it was 98 cents on the dollar. In April the Trader's bank was trans- formed into a National bank with a capital of $200,000; J. O. Rutter was president and T. P. Tallman cashier. In June, 1865, Preston, Williard & Kean were the government loan agents with office at 47 Clark street. In September, 1865, the stock of the First National bank sold at $1.25 on the dollar. At the same date stock of the Third National bank sold for $1.03 on the dollar. In September, 1865, Chicago city 7 per cent. bonds were worth 90 cents on the dol- lar ; old Chamber of Commerce bonds sold at $1.1012 on the dollar and new Chamber of Commerce bonds sold at par.
In January, 1865, a number of bankers assembled to discuss the proposition of establishing a Clearing house. It was agreed that the project should first be tried as an experiment and if successful and satisfactory, would be continued. All of the leading banks participated in this meeting except the Mechanics' National, Solo- mon Sturgis & Co., Montreal Bank Agency, and the Traders'. They agreed to join the movement if the experiment proved successful.
On March 10, 1865, the Clearing house was formally organized with W. F. Coolbaugh as president; Joseph Lumbard as vice-presi- dent, and A. C. Badger, E. I. Tinkham, E. E. Braisted, Ira Holmes and John De Koven as executive committee.
On May 13, 1865, at a meeting of the bankers the subject of issu- ing clearing house certificates was discussed. The meeting passed a resolution authorizing bankers of the association to issue such certificates to be used to settle balances between the banks and clear- ing house to the extent of 3 per cent. of their capital; and as security for the redemption of the certificates they were required to deposit with the clearing house committee legal tender or coupon United States notes for like amounts.
COURTS AND LAWYERS
P ROBABLY the first lawyer that ever came here to reside was Charles Jouett, who was sent here as Indian agent in 1805. He was a native of Virginia. He studied law at Charlottesville, Va., and was appointed by Jefferson Indian agent at Detroit in 1802. April 2, 1805, he was appointed com- missioner to hold a treaty with the Wyandottes, Ottawas, and other Indians in Northwestern Ohio and what is now Southeastern Mich- igan. The same year he was appointed as Indian agent at Chicago, and on October 26, 1805, assumed charge, by direction of the Gov- ernment, of the Sacs, Foxes, and Pottawatomies. He was again appointed Indian agent for Chicago by President Madison in 1815, and moved here with his family in that year.
The next lawyer that took up his abode here was Russell E. Hea- cock. He arrived in Chicago July 4, 1827. Under date of August 5, 1835, he is advertised as an attorney, and his name appears in the Chicago directories as late as 1848. He was one of the four delegates from Cook county to the Constitutional convention of 1847, the others being Francis E. Sherman, Patrick Ballingall, and E. F. Colby.
The next lawyer that came here was Richard J. Hamilton. On the organization of Cook county he turned his eyes northward and was elected by the General Assembly as the first probate judge January 29, 1831. His friend, Judge Richard M. Young, appointed him clerk of the Cook County Circuit court, and Governor Reynolds commissioned him a notary public and recorder. According to all accounts he arrived in Chicago in the very early days of April, 1831, and was present at the organization of the county on the 8th of that month.
The first lawyers who came here to make a living by their pro- fession were Giles Spring and John Dean Caton, who arrived here about June 18, 1833. If they did not try the first lawsuit, they were engaged in the first prosecution for larceny that ever occurred here.
Soon after there came James H. Collins, Justin Butterfield, George Manierre, Alonzo Huntington, Ebenezer Peck, James Grant, E. W. Casey, A. N. Fullerton, Isaac N. Arnold, Henry Moore, Grant Goodrich, Buckner S. Morris, William B. and Mahlon D. Ogden, Mark Skinner, Lisle Smith, N. B. Judd, Thomas Hoyne, William H. Brown, Henry Brown, and George B. Meeker. The names of these lawyers are not in the exact order of time of
199
200
HISTORY OF COOK COUNTY
arrival, but Spring and Caton came here in 1833, Grant Goodrich, Buckner S. Morris, James H. Collins in 1834, William B. Ogden, George Manierre, Alonzo Huntington, Ebenezer Peck, Jonathan Young Scammon and Justin Butterfield in 1835, Isaac N. Arnold, John Wentworth, Mark Skinner and Henry Brown in 1836, Lisle Smith, Thomas Hoyne, N. B. Judd, George Meeker and Mahlon D. Ogden in 1837, Edward G. Ryan in 1836, Hugh T. Dickey in 1838. Calvin De Wolf came October 31, 1837, John Wentworth October 25, 1836. William H. Brown came here in 1835. In 1834 the number of lawyers was eleven and their names were : Rus- sell E. Heacock, R. J. Hamilton, Giles Spring, John Dean Caton, E. W. Casey, A. N. Fullerton, James H. Collins, James Grant, Grant Goodrich, Henry Moore, and Buckner S. Morris. Five of these men reached the bench, and all attained distinction.
The first meeting of the Chicago bar was held some time in July, 1835, and was called to pay respect to the memory of Chief Justice Marshall, who died July 6, 1835. The members present were: A. N. Fullerton, E. W. Casey, Grant Goodrich, Buckner S. Morris, Henry Moore, and Royal Stewart.
From 1834 to 1840 many young men of education and family distinction came to Chicago to locate and engage in the practice of the law, but all who thus came did not remain. Among these were Henry Moore, Joseph N. Balestier of Brattleboro, Vt., George An- son, Oliver Beaumont, Fisher Ames Harding of Rhode Island, and Fletcher Webster, the son of Daniel Webster. While here in 1837 Webster was at the head of the firm of Webster & Harding.
The celebrated Thomas F. Marshall came to Chicago just before the breaking out of the war and engaged in the practice for a short time. Joseph Blackburn also practiced here for a short time in con- nection with his brother just before the breaking out of the rebel- lion.
The career of Judge Caton is not only unique in local history, but is something extraordinary. He arrived in Chicago on the 19th of June, 1833. He was here when Chicago was nothing but a small collection of huts. He prosecuted the first criminal who was ever brought before a court of justice in Chicago and commenced and tried the first civil suit in a court of record in this county and was engaged in the very first jury case ever tried in Will and Kane counties.
James H. Collins came to the State in 1833 and took up a claim to some land at Holderman's Grove, in Kendall county. At the solicitation of Judge Caton, who knew him while residing in New York, and who had studied in his office, he abandoned farming and entered into partnership with him in the practice of the law in 1834. This arrangement lasted but a year, when a partnership was formed between himself and Justin Butterfield under the firm name of Butterfield & Collins, which soon took a very high rank, not
1
201
HISTORY OF COOK COUNTY
only in the city of Chicago, but throughout the State. They were both well grounded in their profession, and were men of great determination and perseverance. Collins was a man of iron will. He was one of the earliest and most violent abolitionists in the West. He belonged to that group of men like Dr. Charles V. Dyer, Ichabod Codding, Z. Eastman, L. C. P. Freer, Farnsworth, George Manierre, Carlos Haven, H. B. Hurd, Chancellor L. Jenks, and the Lovejoys. He was engaged in the defense of Owen Lovejoy, the brother of Elijah, who was foully murdered at Alton by a pro-slavery mob in 1837.
Grant Goodrich occupies a high rank among the pioneer lawyers of Chicago. He became a partner here of Giles Spring in 1834. No one who engaged in the practice here ever pursued his profes- sion with greater diligence and success than he, and no one has a better record for honor and fidelity than he. He was for some time a partner of George Scoville, and in 1854 entered into partner- ship with William W. Farwell, who was afterward elected to the circuit bench, and in 1856 Sidney Smith entered the firm, and it became Goodrich, Farwell & Smith. In 1857 he went to Europe and remained there until the spring of 1859. Upon his return he was elected one of the judges of the Superior Court of Chicago, which he held for one term.
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