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Encyclopedia Dubuque

www.encyclopediadubuque.org

"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.




STATE BANK OF IOWA

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STATE BANK OF IOWA. In 1858 F. N. Goodrich, president and R. E. GRAVES, cashier opened a new bank in Dubuque, the Dubuque branch of the State Bank of Iowa. (1) The State Bank of Iowa with 109 shareholders was the first legalized bank in Iowa. Most of the fifteen branches became national banks after the passage of the Banking Act of 1864 which closed the State Bank in 1865. (2) In 1866 the National State Bank of Dubuque (FIRST NATIONAL BANK OF DUBUQUE), the successor to the Dubuque branch of the State Bank of Iowa, was capitalized at $150,000. (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 being 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. Advertisement. The Herald, September 19, 1866, p. 4

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