The Daily Dispatch: July 1, 1861., [Electronic resource]

Cause of the Disturbance at Milwaukee.

Some three months ago, about forty country banks were thrown out by the banks of Chicago on account of the character of their securities, their entire assets being in Southern bonds. Subsequently the remaining banks met in convention at Milwaukee, and agreed to receive on deposit the bills of all banks which were then considered good, some eighty in number, until the first day of December, when their new banking law comes into effect. By that law the banks of the State were not obliged, between March and the first of December, to redeem their bills in specie.

Recently, several of the banks in Milwaukee, which were represented in the Bankers' Convention, viz: the State Bank, Bank of Milwaukee, Juneau Bank, and Mitchell's Fire Insurance Company, the heaviest in Wisconsin, repudiated their own action, and refused the bills of the country banks. This action prevented the country dealers from making payments in the usual way to the wholesale merchants of Milwaukee, causing great interruption and difficulty in their business. Hence the uprising and mobocratic demonstration.