Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1837-12-16

Of Congress, viii b iniurious the interests OF
/; the state. An investment Of that instalment IN
the stock named by the Law Of last session, would
have welded an interest Of not less than 825, OOO
per wear. which was set apart by las towards the
ex,incuishment of the interest on our Internal I'm
nroyemcnt loans. II will, therefore, cevolve on
you 10 make prov ision for q sum equal to the cx-
pec,ed IT, ,eres:, to supply the deficit.
The annual report Of the officers OF the State
,co,,ired by a provision Of their charter will fully
exhibit The condition OF that institution and aus
branches.
The disoriered condition Of the monicd affairs
Of the country so sensibly felt in the cast during
Lac. s,-ing. induced the banks of the city OF New
York in Nav last. to resort a measure OF pre-
caution, to a temporary suspension OF specie pay .
ments. That step was followed by general and
almost simultaneous suspension tnrocsnout '"e
Union The intelligence arrived ct the seat OF
Government, during the session o. the State board.
After giving that anxious deliberation due TO the
magnitude Of the interests involved, they deter
mined TO recommend an immediate suspension 70
the Branches The latter were in q safe and
prosperous condition. es shown by the exhibit OF
their resources and liabilities made at the time.
They h..i, however. in their possession more than
,.ilion Of dollars in notes and credits OF the sus-
pendnc banks Cnlcr these circumstances u
continued redemption of their paper amidst the U,
ni.ersal suspension of neighboring banks, would
have led unav oidably. TO almost entire apsirac
ton of the specie basis ofour circulating medium.
The fatal tendency OF the latter would have pee"
seen, not merely in Gripping and Prostratin: the
bank but in the severe and lasting injuries 'neIc-
by resulting to the State. The members OF the
State Roard would therefore have been faithless
TO their trust il they had neglected TO adopt
measures designed to prevent the capital wh'cn
the state had furnished for the benefit OF her ct
izens from being Withdrawn 70 supply INC s.u.' 49,
of tareion banks tic doors Of which were closed
,rainst avery similar demand W might make up
on them >.
The establishment OF the State Bank Of lndi-
ana was rather a matter OF necessity than choicc
and tina. necessity grew out OF the discontinuancc
of the late Nationa! Bank. Inc iato Cn'eI VEG
is;rate havin. determined to refuse to that IN
sti,utton a renewal OF her charter, zeaIousiy
recommended the State Bank as possessed OF the
ability 10 furnish more sound AND unhosi" GU.
rcncv The local Banks instsn'ancous'y mutt
piled. and with the withdrawal OF the paper OF INC
bank Of the United States, IT was esiocn. 'u.'
the notes Of the local Banks would supply ITS
mace We were therefore under the obigasion
10 furnish our ciiizcns with substitute 10 place
them On an equal footing with those OF othcf
States. and TO avoid the necessity OF supplying
or deficient circulation by the paper OF banIs o.
which we could know but little. With these iac's
and views before them; with tho general consent
of all parties. and the marked appreciation OF thc
DeoD,c. the State Bank with its Branches was cs-
,ahi; shed by the Legislature. In order more e.
fectually 10 identify it with the public interest
ord welfare. the State became the owner OF nan
tho stock. reserved to herself ample supervisory
rowcrs over it, and retained the right OF selcc'-
r. so,,o of the more important Of its officers.
7ro,,x her half of the stock, and to furnish IN
div ;.I.,,Is with Il part Of the means OF paying
their subscription III specie, the otate oo'1o"o
in all the sum of $l,39O,OOO, Mt hso per CENT
pavablc in from twenty to thirty years. one re-
Gives on this sum an average interest OF ninc
cic annual
300 which is again loaned out at nine per cen'
-, tho principlc OF compound interest. Long oe
f,re the expiration Of her charter, there Will re-
mai, in the hands Of the Commissioners OF ',e
Sinking Fund, after the extinction OF the yc'''y
:utercst on the Bank loan, SUM s,ifilcient 70 pay
off the entire principal. leaving the whole Of the
stock Of the State profits In accoroance
with provision Of the charter. this IS to be useo
rs fund for the support OF frce-ochoo's' Col
hank is therefore cmphai,cally State Institution
cl ,sev identified with the interests CT inc S'a'e =.
her citizcns and as long she continues 70 dis,
CHARGE her Ii climate duties with the hdelity ana
success, 90 honorably characteristic OF hcr pas,
history, she will retain the UNDIVIDED support a''u
neritcd confidence Of the people.
The necessity Of sustaining tho sound banking IN
stit,,tions of the States apparent and genera'iy
admitted. The suspension of specie payments
'no-L.d forfeiture of the charters Of the Banks
in several Of the States. The Legislature on De-
mo convened to advise with regard to the snpJec'
hive uniformly adopted protective enactments.
| Tn many states, US in our own, the Legislature
have no, deemed it proper to annex the penalty OF
forfeiture to a suspension OF payment. Car
R,pks are made Liable for twelve per cent. when
thew fail to redeem their notes, and may be win
drawn and wound up at the discretion OF tne
Safe Board. The wisdom of not cxacting Tor
fe,,urc is now fully attcstcd. 1t has enabled our
Kinks quietly and efficiently to discharge their
accustomed duties, land aid in ward'ng OH from
our trading agricultural and manufacturing inter
es,s. the threatened disasters OF the Crisis. IL
the State had reserved to herself the authority 70
,esume the charter on such a contingency ana
had with rigid and infcxible regard to hef r'ghts
exorted it, the step would have saPPed the found
atoms of our credit, and inflicted a blow on our
interests winch would have required years OF un-
interrupted prosperity 10 repair.
On viewing the amount OF interest inc o'a'e e
nossess in the stock Of the Bank, the nature Of
The objects its establishment was designed 70
subserye. the beneficial influence 1t has exc1'eo
., every branch of taterprse, and the i"e"se
cain that will utimatcl, accrue to the people, you
Will find in the range Of your duties, no SUBJECT
moro W ,r,hv OF YOUR attention. The safety OF
The Rank is found in the prudent management.
If her ample means, and secured by the personal
responsibility Of her directors, and stockholders
Her charter derived from the state - not sus