"Truly yours,
"Seymour D. Carpenter."
The first constitution of Iowa made the following reference to banks:
"The General Assembly shall provide for the organization of all other corporations, except those with Banking privileges, the creation of which is prohibited."
For this reason early banking was conducted as a purely private enterprise, or as a branch of some bank incorporated in another state.
Prior to the adoption of the second constitution in 1857, it became evident that the state was very much in need of a more stable banking system, so provision was made for incorporated banks, when approved by vote of the people and for "The State Bank of Iowa," which was incorporated July 29, 1858, with power to establish branches and issue circulating notes. Elihu Baker, a Cedar Rapids banker, was the first secretary of the State Bank, and in time fifteen branches were established at different points in the state.
Although none was located here, our business interests received substantial benefit from the improved financial conditions that resulted from a safe system and a sound currency.
With the coming of the railroad in 1859, Cedar Rapids entered the field of commerce and forever put an end, not only to frontier banking, but to one of the most wonderfully heroic, and, in some respects, beautiful scenes of its human history—the pioneer life.
