Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1838-12-08


The sum appropriated by the Internal Improve
ment bill to the construction of the Madison and
Indianapolis Railroad is now nearly exhausted so
much SO that to prosecute IT further with
the requisite energy, an additional appropriation
becomes necessary. That this will be done. |
cannot for 4 moment permit myself to doubt. Ii
would speak but poorly indeed In behalf either OF
the wisdom or stability of the State To refuse IT,
Having alluded to State Bunk. and having
repeatedly animated that we might probably
it an instrument To relieve the people from the
threatened burthen of taxa ton, prudence suggests
howeve before the adoption OF such measure
that we carefully scrutnize its capacity for such
employment. Especially so, as experience teach
the fearful lesson that there limits be-
yond which IT Banking privileges and Banking
operations carried, they cease to do good and
become engines of incaiculabe mischief. In
deed think express more than the common !
sentiment of the people of Indiana when say that
would much sooner submit to the inconv enien-
ces of increased taxation than to the State for
a single hour flooded with deprecated or rredeem-
able bank paper, the offspring of institu-
tons. 1t attempting therefore to escape from or
elude the one evil it becomes You to be
ceedng y careful not 10 call down upon ourselves
the other
Nv recommendations would perhaps. III the
course oftime. lead to the addition of some four
millions of dollars to our present Bank Capital.
Would this be too much? Would this IN other
s
community require! More than would be neces-
sarv to keep up and maintain sound and healthy
action, IN and between the various departments
of our agricultural, mechanical and commercial
interests throughout the STATED For beyond this
we ought not to go. In attempting to answer these
questions, confess that find myself circumscri-
bed by very serious difficulties The most I'M
tportant facts-tacts too without which correct
decision can DO had are not within my reach:
steps having been heretofore taken either to gath
err or treasure them up. Who for example tell
me the probable amount OF our own exports
imports the past or present year! Who. the a
mount even of our agricultural produce, the basis
of all our wealth. the basis upon which all sound
and safe calculations at least SO far Indiana is
concerned, can alone be made to rest2 No one.
In TRUTH through out the wide field, there but
two facts observable that shed any, the least light
upon this subject; and these are the sum total of
our population, and the aggregate of their wealth
all else connected with them Is or less wrap
ped in the mists ofdoubt and uncertainty. Hence
the enquiry resolves itself at into this; will
a population of 100000 inhabitants, possessed oil
property, the estimated value of which is one hun
dred and ten million of dollars. Justify the estab
lIshnent of Bank capita! of SIX uillion of dollars
I think they will: and it would be difficult
matter to sustain this opinion, by the experience
C of sound Banking operations in other States di,
v time and the occasion permit; but lest in ihi
o there might be error, would recommend that tn
l. increase be gradually made, and that steps be ia
IS ken, IN the mean time, to procure the necessar
n information such as have just named, to enabl
y you to graduate this increase iudiciously and t
le stop short of the limits which common saCact
k and prudence may designate For hope neve
Y, to hear it charged to Indiana that she converte
II her Banks into swindling shops, or that she
he or manner whatever
e. By the courtesy Of one of its oflicers-for III
re charter gives the executive right to call tn
n Bank officially for information--I have been pc
ne mtted to learn that the operations of the Ban
at have enabled her to make an annual dividend
IT lOper cent; that after paying the interes. II
ed amount of the capital borrowed 800 900 dolla
m she has accumulateda sinking fund of 276 OS6 !.
IT cents. Facts certainly which connected with tn
as other one--no less gratifying to State priC
fe -ofthe acknowledged credit and sovency Of It
Isl Institution speak, not only loudly in its 5ohalfb
augurs we'll for it in the future. In addition
n! the foregoing items, have also learned that II
ap present capital of some of the branches requir
of no increase while others do; that some declare
om dividend of ten and twelve per cent. while oihe
II only divide seven and eight Circumstances e
to identity which should not be lost sight of when "
on arc making provisions for tine increase of the
ION capital, particularly when YOU are determine
It'll to invest the State funds in their Stock-Poi
- and expedency both seem to dictate that the
eat funds should be placed where they would at
be times be the most available. For should the war
his and interest of the State at future period
are der the sale Of portion of her stock necessa
IN it requires not the wisdom of Solomon deciC
iro that stock in branches that divide ten and wei
rse per would sell reader and command bet
out price than stock branches that divide only
Ell en- and eight. The tax payer too, unless l
most egregiously, would feel that profit of
of and twelve per cent on the States capital wo
be occasion much lighter draw on his pocket tt
ers, profit of seven eight. Wherefore would
To- commend, if you resolve upon such inv es sinner
cen that it be made the duty of the President Of
the State Bank, and the State Directors the ST
Erie Board, to distribute the State stock and to p
anal the State funds especially where they would
col the most good and produce the greatest profit.
that would devolve this duty these indiv iduals
aing cause they always command full knowles
GARD Of the capacity and of the different Bran
paw and above all because they elected by
,res- Legislature and would therefore be held more
sand rectly responsible to the people.
fifty Now that | am on the subject of the Ban
ould seize the occasion to call your attention to
rs a er matter connected Herewith. In their anx
itlon to guard the people and the public against
dol evils which Banks unchecked by any supervis
orps power, are but too apt to generate. the Leg
cipai ture. among other things enated, that when
each Governor of the State shall have reason to