Illinois ) SENATE. (HthAssem. 
 
 Legis. £ 2d Session. 
 
 DOCUMENTS 
 
 REFERRED TO 
 
 IN THE MESSAGE OF THE GOVERNOR, 
 
 AT THE 
 
 OPENING OF THE SESSION 
 
 OF THE 
 
 GENERAL ASSEMBLY. 
 
 Transmitted to the House, December 13, 1839. 
 
 \ 
 
 SPRINGFIELD: 
 
 William Walters, Public Printer. 
 
 1839. 
 
 [ 2 ] 
 
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DOCUMENTS. 
 
 Springfield, December 21, 1839. 
 
 Sir : I have the honor herewith to transmit to the Senate 
 a statement from the Secretary of the Board of Fund Commis¬ 
 sioners, showing the amount of drafts paid by the Fund Commissioners 
 from the 24th day of December, 1838, marked A, together with copies 
 of the contracts for loans referred to in my message of Wednesday 
 last, except document referred to marked C, which was to have been 
 furnished me by the State Bank, and which has not yet been done; as 
 soon however as it is procured it shall be transmitted. 
 
 Document marked D. referred to, being a copy of contract for $500,000, 
 between John Reynolds, agent for the State, and Anson H. Bangs on be¬ 
 half of the Farmers’ and Mechanics’ Bank of Onondaga, State of New 
 York, located at Fayetteville, is superseded by the accompanying do¬ 
 cument marked D. 
 
 The voluminous character of those documents and the necessity of 
 carefully preserving the originals, prevented me from furnishing them to 
 your honorable body at the time 1 transmitted my message. 
 
 1 have the honor to be, Sir, 
 
 Your most obedient servant, 
 
 THOMAS CARLIN. 
 
 To the Honorable the Speaker 
 
 Of the Senate. 
 
 Fund Commissioners’ Office, 
 
 Springfield , 2 6th November , 1839. 
 
 Gov. Thomas Carlin, 
 
 Dear Sir: You will please find herewith enclosed the statement 
 made out, I trust, agreeably to your request and wishes, as far as docu¬ 
 ments in this office furnish the means. Not having received any accounts 
 from the Bank of Philadelphia and New York, respecting the payments 
 made by them for interest due on State Bonds in July last, I have not 
 attempted to furnish any interest account. 
 
 The Fund Commissioners will meet here in time to have prepared by 
 the meeting of the Legislature, a full and detailed report of all the vari- 
 
 LIBRARY . 
 
 UNIVERSITY OF ILLINOIS 
 
4 
 
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 [ 20 ] 
 
 ous transactions they have had with the banks of the eastern cities and 
 banks of this State, and also an account of all the incidental expenses 
 necessarily incurred during their absence from the State. 
 
 The Fund Commissioners have made arrangements for paying the in¬ 
 terest becoming due (on State Bonds heretofore sold by them,) on the 1st 
 January, 1840, and payable in Philadelphia and New York. They have 
 requested me to inform you that no provisions had been made by them 
 to pay the interest on the canal bonds, as they were informed by Co¬ 
 lonel Mather that the Canal Commissioners had provided or would pro¬ 
 vide funds for that purpose. 
 
 1 have the honor to be, 
 
 Most respectfully, your ob’t serv r t., 
 
 WILLIAMSON GATEWOOD, Secy 
 
 
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5 
 
 [ 21 ] 
 
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 18 
 
 STATEMENT—Continued. 
 
 $56,530 
 
 280,755 
 
 50,517 
 
 16,616 
 
 485,510 
 
 4,043 
 
 19 
 
 88 
 
 52 
 
 00 
 
 50 
 
 26 
 
 RECAPITULATION. 
 
 Amount charged to Alton and Hillsboro’ railroad 
 Amount charged to Central railroad 
 
 Amount charged to Bloomington, Pekin &c. railroad - 
 Amount charged to Illinois river 
 Amount charged to Northern Cross railroad 
 Amount charged to Kaskaskia river 
 
 Amount charged to Alton, Shawneetown and Mount Car¬ 
 mel railroad - 
 
 Amount charged to Great Western mail route 
 Amount charged to Little Wabash river 
 Amount charged to Central Branch railroad 
 Amount charged to Great Wabash river 
 Amount charged to Peoria and Warsaw railroad 
 Amount charged to Rushville and Erie railroad 
 Amount charged to Rock river - 
 
 Amount paid by the Fund Commissioners for lands enter¬ 
 ed by William Kinney, not charged to any particular 
 work - 
 
 194,046 73 
 51,952 57 
 41,000 00 
 42,715 00/ 
 10,615 00 
 75,748 27 
 600 00 
 34,284 37 
 
 25,079 35 
 
 Aggregate paid by the Fund Commissioners, upon drafts and orders 
 of the Commissioners of the Board of Public Works since the 
 24th December, 1838 - 
 
 Amount paid under the Internal Improvement acts of the General As¬ 
 sembly, passed in 1837, and 1839, to counties which no railroad 
 or canal passes through, since 24th December, 1838 - 
 
 Amount paid to the Commissioners of the Illinois and Michigan canal, 
 under the act of Assembly, passed January 22, 1839 
 
 1,370,014 64 
 
 47,281 99 
 300,000 00 
 
 Amount of disbursements, as far as accounts have been received at 
 
 this office 
 
 - $1,717,296 63 
 
 Note.— The foregoing statement will not exhibit correctly the amount disbursed on 
 each of the different public works. The drafts of the acting commissioners of public 
 works, always state for what work the money is drawn, but they, the commissioners, fre¬ 
 quently pay it out to other works than the one mentioned in the draft. All the accounts 
 for disbursements actually made on each separate work are kept in the Central office, 
 and will be furnished to you by the Secretary of the Board of Public Works. 
 
19 
 
 [ 35 ]- 
 
 STATEMENT—Continued. 
 
 STATEMENT showing the amount of funds remaining on hand on the 24th 
 day of December , 1838 ; the amount that has become available since that peri¬ 
 od; also , the amount of State Bonds disposed of by the Fund Commissioners, 
 as far as the accounts have been received at this office . 
 
 1838. 
 
 
 
 Dec. 24 
 
 Amount remaining in the different deposite banks 
 
 $1,019,604 04 
 
 1839. 
 
 Jan. 1 
 
 Do of dividends received from the Bank of Illinois - 
 
 35,000 00 
 
 July 1 
 
 Do u do u u do 
 
 40,000 00 
 
 June 12 
 
 Do u do “ “ State Bank of Illinois - 
 
 80,000 00 
 
 July 1 
 
 Amount to the credit of the Fund Commissioners in the 
 
 U. S. Bank, being 1st instalment on a sale of State bonds 
 made by Canal Commissioners to the New York Bank- 
 
 • 
 
 
 ing Company ------ 
 
 50,000 00 
 
 Oct. 
 
 Amount to the credit of Fund Commissioners in the Bank 
 of Illinois, being the 2d and 3d instalments on said loan 
 
 
 
 by the New York Banking Company - 
 Amount to the credit of the Fund Commissioners in the 
 
 100,000 00 
 
 
 Bank of Illinois, for interest and premium on exchange - 
 
 8,514 55 
 
 May 
 
 Amount of State bonds sold by the Fund Commissioners to 
 
 the New York Banking Company - 
 
 283,000 00 
 
 Sept. 12 
 
 Amount of State bonds sold by the Fund Commissioners 
 
 
 to the Farmers’ & Mechanics’ Bank of Onandaga, N. Y. 
 
 250,000 00 
 
 Oct. 2 
 
 Amount of State bonds sold and delivered to same bank 
 
 50,000 00 
 
 2 
 
 Amount of State bonds sold to the Bank of Commerce, at 
 
 
 
 Buffalo, New York. 
 
 100,000 00 
 
 2 
 
 Amount of State bonds sold to the Erie county Bank, at 
 
 
 
 Buffalo, New York ----- 
 
 100,000 00 
 
 2 
 
 Amount of State bonds sold to the Commercial Bank, at 
 
 
 Buffalo, New York - 
 
 100,000 00 
 
 2 
 
 Amount of State bonds sold to the Atlantic Bank in the 
 
 
 
 city of New York ----- 
 
 150,000 00 
 
 June 12 
 
 Amount of State bonds sold to Messrs. January A Dunlap, 
 
 
 
 contractors on the Northern Cross railroad 
 
 100,000 00 
 
 Sept. 
 
 Amount of State bonds sold to the same gentlemen 
 
 100,000 00 
 
 $2,566,118 59 
 
 Col. Mather, on his return from New York, placed to the credit of the Fund Commis¬ 
 sioners in the State Bank of Illinois, the sum of $30,000, which was paid in New York, 
 from some of the late loans made by the Fund Commissioners, $25,000 of the same has 
 been paid to the Bank of Illinois, in part for advancements by that institution to the 
 Commissioners of the Board of Public Works, and the Fund Commissioners are making 
 arrangements to reimburse the whole amount so advanced by said Bank. 
 
 Note.— Mr. Tillson writes me from New York, October 26, that the Farmers’ and 
 Mechanics’ Bank of Onandaga, New York, had not, up to that date, made any payment 
 under the contract for the 250 State Bonds, the first instalment was due on the first of 
 October last. 
 
20 
 
 Certificates of the Secretary of the Board of Public Works, 
 
 Fund Commissioners’ Office, 
 
 Springfield , November 26, 1839. 
 
 1 certify that the foregoing statements contain a true account of all 
 the disbursements and receipts of the Fund Commissioners since the 
 24th December last, as-far as the accounts have been received at this 
 office, and also all loans obtained and reported by them since that 
 period. 
 
 WILLIAMSON GATEWOOD, Sec, B. F. C. 
 
 Fund Commissioners’ Office, 
 
 Springfield , December 10, 1839. 
 
 I would further state, that since furnishing the above, the Fund 
 Commissioners have filed in this office a contract made with Messrs. 
 Wright & Co., in London, by which the Fund Commissioners are 
 bound to forward to that house, bonds to the amount of $>1,500,000, by 
 the first day of January next, (and which have been already forwarded) 
 that being the amount of requisitions made by the Board of Public 
 Works for the year 1839. By a construction of the Internal Improve¬ 
 ment laws, (in England,) it was believed that the Fund Commissioners 
 were not authorized to contract for a larger amount than the requisition 
 called for. For the balance of $4,000,000, (say $2,500,000,) a condi¬ 
 tional contract is also filed in this office, to be completed when requisi¬ 
 tions have been made by the Board of Public Works for that amount. 
 On receipt of the $1,500,000 in bonds by Messrs. Wright & Co., the 
 Fund Commissioners are authorized to make drafts on them for £50,000 
 sterling. The Fund Commissioners have also filed in this office a 
 contract made with Messrs. Thompson & Forman, of London, by which 
 they are bound to furnish 9,500 tons railroad iron at £9 10 00 sterling 
 per ton, the first shipment to be made (say to the amount of £10,000,) 
 so soon as the above bonds are received by Messrs. Wright & Co. 
 The contracts are so made that all the bonds are to produce to the State 
 of Illinois, par. 
 
 WILLIAMSON GATEWOOD, Sec B, F. C, 
 
21 
 
 [ 37 ] * 
 
 B. 
 
 Contract with John Delafield for the loan of $)300,Q00. 
 
 Article of agreement, made this twenty-third day of April, in the 
 year one thousand eight hundred and thirty-nine, between Moses M. 
 Rawlings and John Reynolds, Commissioners appointed by the Governor 
 of the State of Illinois, to effect the sale of certain bonds hereinafter 
 described, parties of the first part, and John Delafield, of the city and 
 State of New York, banker, party of the second part, witnesseth: That 
 the said parties of the first part, by virtue of the power and authority 
 in them vested, and for and in consideration of the covenants and 
 agreements on the part and behalf of the said party of the second part, 
 hereinafter expressed, to be kept and performed, have granted, bargained, 
 sold, assigned, transferred and set over, and by these presents do grant, 
 bargain, sell, assign, transfer, and set over unto the said John 
 Delafield three hundred bonds or certificates of State indebtedness, 
 
 issued by the State of Illinois, numbered from —-to-both 
 
 inclusive, each for the sum of one thousand dollars, and of the tenor 
 and effect following, viz : 
 
 Know all men by these presents, that there is due from the State of 
 Illinois, to the State Bank of Illinois, or bearer, one thousand dollars, 
 lawful money of the United States, with interest at the rate of six per 
 centum per annum, payable half yearly on the first Mondays of January 
 and July, at the Bank of the United States in Philadelphia, or at its 
 agency in New York, at the option of the holder; on the presentation 
 and surrender of the annexed warranty; the principal is reimbursable at 
 either of the above places at the pleasure of the State, after the year 
 one thousand eight hundred and sixty; for the performance of all 
 which the faith of the State of Illinois is irrevocably pledged, as also 
 the properly, tolls and revenue of the Illinois and Michigan canal, 
 agreeably to an act entitled “An act for the construction of the Illinois 
 and Michigan canal,” approved the ninth of January one thousand 
 eight hundred and thirty-six, and which said bonds are signed by the 
 Governor, Auditor and Treasurer of the State of Illinois, and have the 
 seal of the said State affixed, and bear date the first day of July, one 
 thousand eight hundred and thirty-seven, to have and to hold the said 
 bonds and the money thereby secured or intended to be, with the interest, 
 and all the right, title, and interest appertaining thereto, or in anywise 
 appertaining, unto the said John Delafield, his executors, administrators, 
 and assigns, to his and their own proper use, benefit and behoof forever; 
 and the said parties of the first part have made, constituted and appoint¬ 
 ed, and do hereby make, constitute and appoint the said John Delafield 
 their true and lawful attorney for the said State Bank of Illinois, and 
 in its name, place and stead, to do all necessary and proper acts for 
 collecting the said bonds and interest when payable according to the 
 tenor and effect thereof, and in case of default therein, to take all 
 proper means and ways to recover the amount secured thereby, or 
 intended to be, and the interest thereon. And the said parties of the 
 first part further covenant and agree that interest shall commence 
 
22 
 
 # [ 38 ] 
 
 running on the said bonds in favor of the holders thereof from the day 
 of their delivery to said party of the second part, and that they shall 
 be delivered to the party of the second part in New York, on or before 
 the tenth day of June next. And the said party hereto of the second 
 part, for and in consideration of the premises, and of one dollar to him 
 in hand paid by the said parties of the first part, the receipt whereof is 
 hereby acknowledged, does in like manner covenant and agree to and 
 with the said parties of the first part, that, upon the delivery to him 
 of the said bonds in due form and properly executed, he will give 
 therefor the sum of three hundred thousand dollars, and pay the same 
 in manner following, that is to say—first, that within fifteen days 
 after the delivery to him of the said bonds in manner aforesaid, he will 
 place to the credit of M. M. Rawlings, as Fund Commissioner of the 
 State of Illinois, in the New York Banking Company of the city of 
 New York, the sum of fifty thousand dollars subject to be drawn for 
 by the party entitled so to do by drafts on said Banking Company, at 
 not less than ten days sight. 
 
 Secondly. That he will pay at New York aforesaid, the further sum 
 of fifty thousand, part of said three hundred thousand dollars to said 
 Bank of Illinois, or its authorized agent, on the first day of August next, 
 in banknotes of some bank or banking association of the city of New 
 York, of denomination not exceeding ten dollars, and in such propor¬ 
 tion as regards the denomination, as the said party of the second part 
 mav choose. 
 
 Thirdly. That in manner, and at the place last mentioned, he will pay the 
 further sum of fifty thousand dollars on the first day of September next; 
 the further sum of fifty thousand dollars on the first day of October 
 next; the further sum of fifty thousand dollars on the first day of 
 November next; and the remainder, to wit, the sum of fifty thousand 
 dollars, on the first day of January, in the year one thousand eight 
 hundred and forty. 
 
 In witness whereof, the said parties to these presents have hereunto 
 set their hands and seals, the day and year first above written. 
 
 M. M. RAWLINGS, for the State of Illinois. [l. s.] 
 JOHN REYNOLDS, Agent for State of Illinois . [l. s.] 
 
 J. DELAFIELD, [l. s.] 
 
 Sealed and delivered in presence of ) 
 
 Edgar S. Van Winkle. ( 
 
 Contract with the Bank of the United States for the loan of $1,000,000. 
 
 This agreement, made at Philadelphia, this 29th day of April, 1839, 
 witnesseth: That the undersigned commissioners, duly empowered in 
 pursuance of law by the Governor of the State of Illinois, have this 
 day sold, and the undersigned, Thomas Dunlap, has bought one 
 million of dollars of the Illinois and Michigan canal stock, to be issued 
 in sterling bonds of 9f225 each, with coupons attached for the payments 
 of the interest annually, at six per centum; interest to commence on 
 the first day of July, 1839; said bonds reimbursable by the State of 
 
23 
 
 [ 39 ] 
 
 Illinois on the first day of July, 1870, both principal (at the rate of 
 4 — 6 sterling to the dollar) and interest payable at the banking 
 house of the agency of the Bank of the United States in London; 
 and the said commissioners agree to deliver to the said Thomas Dunlap, 
 in Philadelphia, the whole of the said bonds for one million of dollars, 
 as above, as soon as they can be executed and returned, not exceeding 
 forty-five days from this date; and the said Thomas Dunlap agrees to 
 pay to the said commissioners for the use of the State of Illinois, or 
 to their order for the sai'd stock, the sum of one million of dollars in 
 ten equal instalments of one hundred thousand dollars each, monthly; 
 the first monthly payment of $100,000 to be made on the delivery of 
 the whole of the said bonds; said payments to be made without interest, 
 and to be made in ten dollar notes of the Bank of the United States, 
 which notes shall be disbursed, under the direction of the said commis¬ 
 sioners, on the public works of their State, in actual payments to those 
 employed thereon. Executed in good faith, at the city of Philadelphia, 
 this twenty-ninth of April, A. D. 1839. Witness our hands as above 
 described. 
 
 M. M. RAWLINGS,) Commissioners 
 
 JOHN REYNOLDS,) State of Illinois . 
 
 J. DUNLAP, 
 
 Witness present, 
 
 Thomas S. Taylor. 
 
 April 29, 1839. The said Thomas Dunlap has this day advanced to 
 us, in consequence of the pressing demands of the work on the canal, 
 the sum of one hundred thousand dollars, the first instalment mentioned 
 in the foregoing memorandum of contracts in anticipation of the 
 delivery of the bonds, and we hereby acknowledge the receipt of the 
 said $100,000, and agree for ourselves and our constituents, that interest 
 upon this sum, at the rate of six per cent., shall be allowed to the said 
 Thomas Dunlap, from this date until the delivery of the whole of the 
 bonds is made to him and credited upon, and deducted from his second 
 monthly payment under the foregoing contract; and in the event of 
 any accident preventing the delivery of the said bonds, we bind our¬ 
 selves and the State of Illinois to return to the said Thomas Dunlap the 
 said sum of $100,000, with lawful interest until paid. Witness our 
 hands, the date last above mentioned. 
 
 M. M. RAWLINGS,) Commissioners of 
 JOHN REYNOLDS,) the State of Illinois. 
 J. DUNLAP, 
 
 Witness present > 
 
 Thomas S. Taylor.) 
 
 On behalf of the Bank of the United States, I do hereby guarantee 
 the faithful performance of the foregoing contract by the said Thomas 
 
 Dunlap. 
 
 J. CONPERTHWART, Cashier . 
 
 Philadelphia, April 29, 1839. 
 
[ 40 ] 
 
 24 
 
 D. 
 
 Article of agreement between John Reynolds , Agent for the State , and the 
 President , Directors Company, of the State Bank of Illinois . 
 
 An article of agreement made and entered into this eighteenth day of 
 September, one thousand eight hundred and thirty-nine, by and between 
 John Reynolds, agent for and on part of the State of Illinois, appointed 
 by the Governor of said State, by authority of an act of the General As¬ 
 sembly, passed on the twenty-third day of February, of this same year,, 
 and entitled “An act to provide for loan for canal purposes,” of the one 
 part, and the President, Directors and Company of the State Bank of 
 Illinois, of the other part, witnesseth: That the said John Reynolds agrees 
 and binds the State aforesaid, to deliver to the said President, Directors 
 and Company of said Bank in the State of Illinois, at their banking-house 
 in Springfield, or their agent in the city of New' York, at their choice,, 
 sterling bonds of the said State of Illinois, to the amount of one million 
 of dollars, to be delivered as aforesaid on or before the first of January 
 next, for safe keeping, and to be disposed of as himself, agent, or by the 
 parties to this contract, said bonds being and containing two hundred 
 and twenty-five pounds each, of British currency, equal to one thousand 
 dollars currency of the United States ,] and containing a blank for the 
 place of paying the principal and interest, said interest being at the rate 
 of six per cent, per annum, and the said bonds payable in the year 
 eighteen hundred and seventy; the said John Reynolds agrees further 
 on the part of the State with the President, Directors and Company of 
 said bank, to pay the principal at 
 
 in the said ci,ty of New York as said bonds are due and payable; and 
 the interest semi-annually on said bonds after the interest accrues on 
 them at the place mentioned above in the said city of New York, the 
 bank paying the interest on the State furnishing the means to do it in 
 funds current in said city. 
 
 In consideration thereof, the said President, Directors and Company 
 of the State Bank of Illinois, agree and bind the said bank to pay 
 to the Governor of said State of Illinois, or his agent, one million of 
 dollars of the paper of said bank in post notes thereof, at the following 
 periods and in the following manner, to wit: on the first days of the 
 months of January, February and March next, fifty thousand dollars, 
 on each of those days, amounting in all to one hundred and fifty thou¬ 
 sand dollars of said notes of said bank; on the first days of the months 
 of April, May, June, July, August, September, and October next, in the 
 year eighteen hundred and forty, seventy-five thousand dollars on each 
 of said days, amounting in all to the sum of five hundred and twenty- 
 five thousand dollars of said notes; on the first days of the months of 
 November and December, in said year eighteen hundred and forty, fifty 
 thousand dollars on each of said days, amounting in all to one hundred 
 thousand dollars of said notes; on the first days of January and Februa¬ 
 ry, in the year eighteen hundred and forty-one, fifty thousand dollars on 
 each of said days, amounting in all to one hundred thousand dollars of 
 said notes; and on the first day of March of said year, seventy-five 
 
25 
 
 [41] 
 
 thousand dollars of said notes; and on the first day of April of said' 
 year, fifty thousand dollars of said notes; all of which said instalments,, 
 amounting to one million of dollars as aforesaid; said notes are to be 
 payable six months from and after demand, and at any time on one 
 thousand dollars of said notes being presented, the same may be paid in 
 the bonds of the State at par, at the option of the holder, and the same 
 to be received at all times by the Bank for debts due the Bank; said 
 payments, as abovementioned, are to be made at the State Bank at 
 Springfield, Illinois, or at such of the Banks thereof in said State, as the 
 Governor of the State and the Bank may agree upon. 
 
 It is further agreed by said parties that the interest on said bonds of 
 the State, is to commence accruing and running from and after the 
 respective periods when said instalments are paid by the Bank to the 
 State, so that the State pays no interest on said bonds until the respective 
 payments are made. 
 
 It is further agreed by said parties that the said bonds are to remain 
 in the custody of said Bank until the respective payments are made under 
 the stipulation of this contract, and then the amount so paid for to be 
 delivered over to the said Bank for the payment of the amount, and 
 then and not before, to become the property of the Bank. The safe¬ 
 keeping and delivery of the bonds are to be done free of expense to the 
 State, at any of the said Banks; and may have the sterling bonds exchang¬ 
 ed for dollar bonds on paying the necessary expenses for the same and 
 delivering the sterling bonds to the State in lieu of the others. 
 
 It is further agreed that if from any cause said notes should depreciate 
 so as not to answer the purposes of paying the contractors and other 
 disbursements of the canal, the Governor, in such case, may annul this 
 contract. In testimony whereof, the said agent of the State, and Presi¬ 
 dent of said Bank have hereunto set their names. 
 
 JOHN REYNOLDS, [l. s.] 
 
 THOMAS MATHER, P. S. P. of 111 . [l. s.] 
 
 Whereas, Thomas Mather on the part of the State Bank of Illinois^ 
 and John Reynolds as agent for the State of Illinois, have, on the eigh¬ 
 teenth inst., proposed a certain contract for the sale of one million of 
 State bonds to carry on the works of the canal in said State, to the Go¬ 
 vernor of said State for his approval, and to the Bank at Springfield, also, 
 for their ratification, in case either of the parties does not approve of 
 said contract, the same is null and void. 
 
 THOMAS MATHER, [l.s.] 
 
 JOHN REYNOLDS, Ag’tfor the State , [l. s.] 
 September 19th, 1839. 
 
 Article of agreement between John Reynolds and Anson H. Bangs . 
 
 An agreement made and entered into this nineteenth day of Septem¬ 
 ber, one thousand eight hundred and thirty-nine, by and between John 
 
26 
 
 [ 42 ] 
 
 Reynolds, agent for the State of Illinois, of the one part, and Anson H. 
 Bangs, President of the Bank United States at Syracuse, State of New 
 York, of the other part, witnesseth: That the said John Reynolds agrees 
 and binds the State of Illinois to deliver to the said bank, one hundred 
 bonds of the State of Illinois, for the Illinois and Michigan canal on 
 the first day of December next, and twenty-five bonds every thirty days 
 thereafter, until the whole number shall amount to five hundred bonds 
 sterling money of Great Britain, containing each one, two hundred and 
 twenty-five pounds sterling, equal to one thousand dollars United States 
 currency. The interest on said bonds is to be^ix per cent, per annum, 
 payable quarter-yearly, at the Bank of the United States in New York 
 city. The principal is reimbursable at the pleasure of the State of Illi¬ 
 nois, after the year eighteen hundred and sixty; said bank is to pay the 
 State of Illinois twenty-five thousand dollars on the first day of Februa¬ 
 ry, eighteen hundred and forty, and twenty-five thousand dollars at the 
 end of every thirty days thereafter, until the whole sum shall amount to 
 five hundred thousand dollars in current bank notes of the State of New 
 York, of the denomination of five dollars, which are to be taken to the 
 State of Illinois, and paid out to the contractors on the canal in said 
 State; said bank reserves the privilege of making the payments when 
 they become due, in notes of the State Bank of Illinois, or the Illinois 
 Bank at Shawneetown, the principal on said bonds is payable when due 
 in the city of New York. It is understood, if it should become neces¬ 
 sary to guarantee to the State of Illinois, the delivery of the above notes, 
 the bank is to give the Governor of the State of Illinois, or his agent, 
 satisfactory security. In testimony whereof, the said John Reynolds as 
 agent, and the said Anson H. Bangs, on the part of said bank, has signed, 
 sealed and delivered this agreement. 
 
 JOHN REYNOLDS, Agent, [l. s.] 
 ANSON H. BANGS, [l. s.] 
 
 Witnessed, in presence of I 
 Henry W. Depuv. ( 
 
 Article of agreement between John Reynolds , agent , and Anson H. Bangs , on 
 behalf of the Farmers ’ and Mechanics ’ Bank , Onandaga , JVew York. 
 
 An agreement made and entered into this nineteenth day of Septem¬ 
 ber, eighteen hundred and thirty-nine, by and between John Reynolds, 
 agent for the State of Illinois, of the one part, and Anson H. Bangs, 
 on behalf of the Farmers’ and Mechanics’ Bank of Onandaga, State of 
 New York, Seated at Fayetteville, of the other part, witnesseth: That 
 the said John Reynolds agrees and binds the State of Illinois to deliver 
 to the said Anson H. Bangs, at said Bank, fifty State bonds of the State 
 of Illinois, on the first day of February, 1840, and fifty bonds every sixty 
 days thereafter, until the whole shall amount to five hundred bonds, 
 sterling money of Great Britain, containing each one, two hundred and 
 twenty-five pounds sterling, equal to one thousand dollars United 
 States currency: the interest on said bonds at six per cent, per annum, 
 
27 
 
 [ 43 ] 
 
 payable quarterly; said interest is to be paid at the said Farmers’ and' 
 Mechanics’ Bank until the whole amount is paid, and after that period 
 the interest and principal are to be paid in the city of New York, at 
 such place as said Bank may designate; said Bank is to pay fifty 
 thousand dollars on the first day of April, 1840, and fifty thousand 
 dollars at the end of every sixty days thereafter, until the whole sum 
 shall amount to five hundred thousand dollars; the interest on said bonds 
 to be paid quarterly by the said Bank, free of charge to the State of 
 Illinois, on the State furnishing the amount of money for the same, during, 
 and until the said bonds are paid for, and after that time, quarterly in 
 the city of New York, the said Bank paying the same without charge, 
 as above mentioned, on the State furnishing the money as aforesaid. 
 On condition thereof, the said Anson H. Bangs, on behalf of said Bank, 
 agrees and binds said Bank to pay and deliver to the Governor of the 
 State of Illinois, or his agent, at said Bank on the first day of April, 
 1840, fifty thousand dollars in notes of said Bank, and the same sum of 
 money to be paid at the end of every sixty days thereafter, until the 
 whole shall be paid, amounting in all to five hundred thousand dollars; 
 said notes are to be on demand and current in the State of New York 
 and Illinois, and one half of said payments may be of a denomination 
 of below five dollars, which are to be paid out by the State of Illinois 
 to the contractors on the line of the canal; it is understood, if it should 
 become necessary to guarantee to the State of Illinois the delivery of the 
 above notes, the said Bank is to give the Governor, or his agent, satis¬ 
 factory security. In testimony whereof, the said John Reynolds, as 
 agent, and the said Anson H. Bangs, on the part of the said Bank, 
 have signed, sealed and delivered this agreement. 
 
 JOHN REYNOLDS, Agent. 
 
 ANSON H. BANGS, on behalf of the Bank . 
 
 Witness in presence of ) 
 
 Addison Pratt, > 
 
 Thomas Mather. \ 
 
 Bangs ’ and Reynolds ’ conditions , fyc. 
 
 Whereas, Anson H. Bangs, on behalf of the Farmers’ and Mecha¬ 
 nics’ Bank at Fayetteville, in the State of New York, and John Rey¬ 
 nolds, on the part of the State of Illinois, have written and signed a 
 contract for the sale of five hundred State bonds, of one thousand dol¬ 
 lars each to said bank, on the 19th September, 1839, and the same con¬ 
 tract is laid before the Governor of the State of Illinois for his approval, 
 and until he gives his assent to the same it is not binding on either 
 party. 
 
 ANSON H. BANGS, in behalf of the Bank , [l. s.j 
 JOHN REYNOLDS, Agent. [l. s.] 
 
 September 19, 1839. 
 
[ 44 ] 
 
 28 
 
 A. H. Bangs to John Reynolds . 
 
 Astor House, New York, 
 
 September 21, 1839. 
 
 Hon. John Reynolds, 
 
 Dear Sir: Since you have left I have seen the law in relation to 
 small bills, and am satisfied that it would be inconsistent with your laws 
 for the Governor to ratify the contract, and you may hereby consider 
 that part of it void. Since your departure, Mr. Tillson has returned. I 
 am at present dissatisfied with his course, and if he does not do as I think 
 he ought to, he cannot have the funds; if he should not, I am ready to 
 take your bonds as soon as you can deliver them. I wish you to write 
 to me in relation to our affair at Fayetteville. 
 
 Your friend, 
 
 A. H. BANGS. 
 
 i. ' Hu /I 
 
 311 1 ’ \> 
 
 
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