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Early Michigan Early Banks Of Michigan
The taint which marked their origin marked also the after progress of many of these institutions. The examinations of the bank commissioners were frequent, thorough and searching, and faithful reports of their investigations were officially made.
The books of the banks were kept in so imperfect a manner, sometimes through incompetency, sometimes with fraudulent design, as frequently to give little indication of the transactions of the bank or of the true condition of its affairs. Thus the amount of bills issued was frequently found to be understated. A practice prevailed of putting large amounts of bills into the hands of individuals, prepared for circulation, and intended to be used by the holders under pretense of exchange, but without receiving any security for them, and sometimes without even making a memorandum of their issue. In one instance bills of the bank amounting to $18,000 were ascertained to be in the hands of one individual, and $6,500 in the hands of another, without security or any entry in regard to them; while the books of the bank showed a circulation of $13,210, and the specie in hand was less than $100.
Michigan
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