The first Legislature convened at Kaskaskia in 1812. Not a lawyer or attorney is found on the roll of names. Pierre Menard, of the French settlements at Peoria, presided in the Council.--The Legislature of 1817-'18 incorporated the "Illinois Bank of Shawneetown," the "Bank of Cairo" and the "Bank of Edwardsville."--They all became depositories of United States money. The latter failed soon afterwards, by which the Government lost $54,000. The two former failed, but were galvanized into life during the Internal Improvement mania of 1835-'36, and by their subsequent failure contributed to the distress of the people in 1841 and 1842. In 1818, Illinois became a State. Her constitution was not submitted to a vote of the people. Shadrick Bond, of Kaskaskia, was the first Governor and Pierre Menard first Lieutenant Governor. Gov. Bond, at the first session of the State Legislature, recommended the construction of the canal. In 1820-'21 the "State Bank" was incorporated.--The faith of the State was pledged for its issues. It failed and the State made up a deficiency of one hundred thousand dollars which she borrowed of or through a gentleman named Wiggins. This was the famous Wiggins loan and the foundation of the State debt.
The suggestion of the canal was made as early as 1814, in Niles Register. The extract is as follows:
"By the Illinois, it is probable that Buffalo, in New York, may be united with New Orleans by inland navigation, through lakes Erie, Huron and Michigan, and the Illinois, and down that river to the Mississippi. What a route! How stupendous the idea! How dwindles the importance of the artificial canals of Europe!" Many Acts were passed for forwarding this work--one in 1824, one in 1825, one in 1827, one in 1829, but the law, under which the work was actually commenced, was not passed until 1835.