HISTORICAL ENCYCLOPEDIA OF ILLINOIS.
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SMITH, George, one of Chicago's pioneers and early bankers, was born in Aberdeenshire, Scotland, March 8, 1808. It was his early intention to study medicine, and he entered Aberdeen College with this end in view, but was forced to quit the institution at the end of two years, because of impaired vision. In 1833 he came to America, and, in 1834, settled in Chicago, where he resided until 1861, meanwhile spending one year in Scotland. He invested largely in real estate in Chicago and Wisconsin, at one time owning a considerable portion of the present site of Milwaukee. In 1837 he secured the charter for the Wisconsin Marine and Fire Insurance Company, whose headquarters were at Milwaukee. He was really the owner of the company, although Alexander Mitchell, of Milwaukee, was its Secretary. Under this charter Mr. Smith was able to issue $1,500,000 in certificates, which circulated freely as currency. In 1839 he founded Chicago's first private banking house. About 1843 he was interested in a storage and commission business in Chicago, with a Mr. Webster as partner. He was a Director in the old Galena & Chicago Union Railroad (now a part of the Chicago & Northwestern), and aided it, while in course of construction, by loans of money; was also a charter member of the Chicago Board of Trade, organized in 1848. In 1854, the State of Wisconsin having prohibited the circulation of the Wisconsin Marine and Fire Insurance certificates above mentioned, Mr. Smith sold out the company to his partner, Mitchell, and bought two Georgia bank charters, which, together, empowered him to issue $3,000,000 in currency. The notes were duly issued in Georgia, and put into circulation in Illinois, over the counter of George Smith & Co.'s Chicago bank. About 1856 Mr. Smith began winding up his affairs in Chicago, meanwhile spending most of his time in Scotland, but, returning in 1860, made extensive investments in railroad and other American securities, which netted him large profits. The amount of capital which he is reputed to have taken with him to his native land has been estimated at $10,000,000, though he retained considerable tracts of valuable lands in Wisconsin and about Chicago. Among those who were associated with him in business, either as employees or otherwise, and who have since been prominently identified with Chicago business affairs, were Hon. Charles B.
