Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1842-02-15

INC BtieIdI government or any OF Us OlIlcerS.
u ever opportunity afforded a banking in
st'uuOn To- dIsprove the chlrEes which had been al
legged against II. certainly that opportunity existed
the case Of the United States Bank of Penn>yI-
vanIa. And what has been the result At TINS
day " behold her pro-trate. an Acknowledged bank
rupt, with her paper selling at ess than twenty-five
cents 10 the dollar. the curses OF an outraged and
med community have filled the ar aglin,t her, and
her officers and directors those To whose manage
ment all s attributed. arrajgncd before the
Judicial tribunals of the country, charged with the
commission OF crimes their Official capacity, 20
which the most Infamous punishment is attached.
Nicholas B,ddle. the president, but yesterday the
deni-god ofmodern whiggery, to-day an arraigued
fel0n. The marble palace over which he presided,
with It's tretted roofs, polished columns, and It's
golden inscriptions, Is tenantess and deserted.
Nlthin It's courts tine smiling face and cringug form
OF the courtier i- no longer be the voice of
the parasite mute. Crushed by the weight of her
own corruption the Bank Of the L. =. OF PennsyIva-
MIA exists hereafter but
"To point moral and ad0n tale
In thus leaving the subject before the House to
pursue the arguments of gentlemen who nave pre-
ceded me- trust am justified Ia the estimation of
the House rs could not otherwise have addressed
myself on the present occasion
In relation 10 the bill before us. when stripped o.
the false gloss with which it has been shrpuGed 10y
the ingenuity Of gentlemen. 1t seems to me to present
but one or two very plain features. by the law of
last winter, certain funds winch the state holds ~
trust to be applied exclusively for school purposes
were withdrawn from their legitimate destination,
and converted INTO bank stock, upon the faith ot
which the bank was authorised to issue small bulls
10 an amount not exceeding million OF dollars.
These funds constitute the entire education lund OF
the State. The Bank. consideration OF this act of
the lat session. agreed To issue. and u j. contend
ed has actually issued the amount Of smt bills con-
templatcd. the present oil proposes u Withdraw
these school funds from the bank, and relnslate
Them IN the hands OF the appropriate agents Now
Is contended by gentlemen that We have no power
20 pass this bill, because the whole matter was
contract between the last Legislature and the Bank
and that do -. violates the Constitution, by im-
plring the obligation OF that contract. u seems TO
me otherwise. In the first place. let enquire
what IS necessary to constitute valid contract at
law. or one that Is binding IN equity. The first
great requisite that there shall be - parties able
To contract" The terms liable to contract IMPLY
every ia ng that is understood by tHe right of pro-
perty IN. and ownership over the particular subject
of contract. II implies the absolute right 10 DIS
pose at W OF the property contracted Tor. Had the
last Legislature then the right 10 dispose Of these
funds At viii and was that body authorised 10 eXer
else any such absolute act Of ownership over them
a to dispose of them by contract for indefinite
period or IN perpctuty TO answer this question
/ think II s entirely sufficient for To refer 10 the
terms upon which the funds have been placed IN the
hands of tine Stale authorities. They are deposited
here for the exclusive purposes of Education, and the
State of Indiana holds them merely as trustee with
no rght To divert them IN any manner from their
spec fc desunlton. How then can it be maintained
that the law OF last winter contract. lrrevoca6le
nm all It's parts Ii she has done that which she had
no right To do; II she has asserted an arbitrary au
thoritv To dispose of property, contrary 10 her
powers over aud duties u such property, then the
act itself is void and We have only to declare 1t So
But to make the case still stronger. The bank au-
thprtics well knew the condition OF these funds and
the manner and purpose OF their creation. These
authorities were fully aware that the only ground
assumed by the Inst Leg sl1iurc-tic only ground
that could be assumed Tor placing he funds in the
custody of the bauk-was the security of the funds
themselves. With what show of reason then, can
gentlemen come forward here and advocate the
right of the bank as vested. and nviolaLe under
the acknowledged law of contracts u the act |
have referred 10 contract between the state OF
Indiana ami the Bank, by which all rght to these
trust funds coded to that institution Tor an IN
definite period then their disposition To all in
tents and purposes final, and IA no event would the
State be authorised. M any manner, to interfere
with their future appcation BY this act the state,
as gentlemen assert, has yielded all further right TO
control the funds for the time beng; and If the
surrender must BE- unqualified, tor IN the act itself
there is 10 contingency named in the occurrence of
which the state can withdraw them from their pre-
sent custody. may be told that the act IN question
provides that the dividends arising from the stock
created BIZ these funds. shr be set part and appro
pra'ed provided for by pre-eNlstng laws, and
therefore no diversion OF he funds b. occasioned
THIS is answer 10 the OBJECTION, Tor il may very
probably occur, IN these tunes az disaster, that even
for series of wears the bank might not be able Ia
declare any dividend upon this my other portion
o.; her stock. SUCH things arr daily occurring with
other banks in nelghbosug States, AMI what gu1r-
antec have wc of exemption from a similar condi-
tlon Certainly We cannot draw the most favorable
onens from the conduct of those who claim 10 be
the exclusive friends of the Bank upoa TINS floor.
GEM lemen whom We have every reasos 10 believe
are IN possession alike at kuowicdge az her conGl-
ton and her WISHES and who appear 20 move aut
a. IN this floor IN obedience - her mandates. Ger
tainly evince seu~itlvcncss on all questions ln
which the Bark or her interests are involved, which
Is calculated 10 arouse feclaE Of suspicion 90 m nds
the most coufidng and uuNary.
But 10 assume grounds ,tiil stronger and which
are not IMPOSE Die extreme let us suppose that
from all info nation 10 the power Of Tins House -
obtain and upou which re- rance could be placed,
u was asce-tained that the bank was involved TO-
such an extent that her bankruptcy NJ no distant
dav was incvitable.-is there member upon tins
ho1r who would dare rise 10 his place and say Ne
10 the proposition under consideration Is there
one here who At such time would address the
House ~ support of the right OF the bank 10 hold ON
10 these funds BY virtue OF this anomalous contract
Wv life upon IT, no such voice would be heard.
five are authorised ut all in drawing differences
from circumstances such state ofthings may arse
The bank has NOW been under suspension nearly
four years and every effort TO bring her iary To re-
sumption Is met with resistance little short OF
ferocity. This resistance combined with the ac-
knowledred misconduct Of several branches their
doubtful condition and the news which we continu-
ally receive from adjacent states, is sufficient TO
authorize ~ saying that there = much cause Tor
dread before The rns at least are sufficient 10
justify MS in preparing or a threatened storn-to be
on the alert for impendng danger. say tIls IN no