CHAPTER XIX
AT the April election of 1846 thirty-two delegates were chosen to frame a State constitution. The convention met at Iowa City on the 4th of May and was organized by the election of Enos Lowe, President, and William Thompson, Secretary. The work was completed on the 19th day of the same month. The boundaries of the State were fixed as they now exist and many of the provisions of the Constitution were almost an exact copy of the one lately rejected by the people. The most important changes were those prohibiting the establishment of banks and the issue of paper money, and dispensing with a Lieutenant-Governor. At an election held on the 3d of August this Constitution was adopted by the people by a vote of 9,492 for, to 9,036 against it. The absolute prohibition of banks aroused a strong opposition which came near defeating the Constitution.
The boundaries proposed were generally acceptable, though the conflict with Missouri was not settled until several years later. It must be conceded that this first Constitution was, in the main, wisely framed and well adapted to the conditions of the people of the new State. The country had suffered severely from bank failures, depreciated and worthless bank bills, until public confidence in banks and paper currency was nearly destroyed. The only bank chartered by the Territory had failed and the people of Iowa determined to protect themselves from further disaster in that direction by absolute prohibition. The majority could not then foresee that such a policy would result in flooding Iowa with currency of doubtful value from the banks of distant States, over which our State exercised no control.
