Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1845-12-18
State Bank--smaiI No,es.

of interest that Of the general condition of the Bank
and that OF the extension Of the privilege of issuing
small notes
In relation to the latter subject the President takes
the position of tue votary of paper money. Grown
great, like Cesar. upon the meat he has fed on, he
now cooy claims, sort of prescriptiye or "vest
ed right" what year ago he prayed from the egis
lature as boon of favor. Listen to this beautiful
specimen Of Bank Democracy. He says:
"By resolution of the Board of Directors AZ their
quarterly meeting in November 1874 the undersigned
made the vehicle uf requesting from the last General
Assembly continuation of the privilege Of issuing notes
ct less denomination than i've dollars, permanent
PrlNhege during the life of the charter, aud il was
sumed by the undersigned, that the existing privilege
would expire during the present session This conclu-
sion was not fr"m examination Of the law comforting
inc privilege but was adopted In with what
appeared o be the then opinion Of the Board Of Direct
4" lie was, however after convinced on careful
examination oil the law. that such construction
roneou and he came TO the opinion that The privilege
as conferred is continuing one until repealed by the
General Assembly. Report p. T.
Last year the language of the Bank President on
The SAME sh5ject was as follows:
The arrangement FOR an extension Of tie privilege
aud at the present session, and claimed have been
tested by past experience, was that the public sentiment
was in favor of it, that the consequences
thus FAR had not been of the injurious character aniic
/
specie clrculaon on the contrary that it had suPerse
ded and driven fIrsisn small note circulation that
not only of doubtful but dangerous character that
There are now but few small notes circulating State
except own, and that the public have confidence in
them; that it may be reasonably expected that other
States will fill up the made 10y the withdrawal
OF ours; that The eIistRg privilege barring yet year
might be considered that action could very proper
" be delayed till the of the General Assem-
bly, but that by the middle of that session. prrege
'cH hare erpred and that the IcihOding of the issue
the ftftflOn frnun fla
will consequently before the legislature
could act, and the Branches, without legislation, will
meanwhile be naturally shaping their business accord
/ ingy-See Report, Doc. Jour. p. lie.
Now in this extract, the fact that the privilege in
question expired this winter by Limitation, is stated
and admitted in four five different forms of words
This shows that at that time the opinion of the Bank
President corresSonded with that of the Legislature
which passed the law of the State Bank Directors
whose rehicle" he was; and of the public unver-
sally. T1ke into view also the fact that when the
law was passed. the Bank President occupied the seat
of Circuit Judge whose duty it certainly was to uri-
derstand the laws in force and it surely will strike
every one as remarkable change of opinion or an
equally remarkable degree of careeSSneSS. But we
presume the mystery may after all be solved by the
well established fact that the moment you put man
into Bank, you subject him to a subtle virus which
inevitably produces sort Of moral blindness to every
thing calculated to retain and expand the prvi-
leges by which such institutions profit at the expense
of the community.
There two laws passed in 1S4l in relation
to the issue of small notes by the bank. They may
be found in Chapter CXII, Sec. Z, and CXXI, Sec. 6,
of that year.
Chapter 12l Sec. G. provides that it shall be lawful
for the State Bank to issue notes of less denomna
ton than So to amount not exceeding Sl,0G0,-
600; provided; that this privilege shall be subject to
the control of the General Assembly from and after
the 2Sth January, 1874 about four years and pro-
yided further that the Bank should pay into the State
Treasury one per cent. on the amount Of such small
notes issued.
This did not suit the Bank exactly, especially the
one per cent LOnus to the State; and therefore it
chose to adopt Sec. 7, of Chapter 1l2, which
little more accommodating. 1t is follows:
Tiat the privilege Of issuing of less denomina
ton than s. granted the Bank by this General Assembly
be- and the same is hereby enlarged, TO from
the first day Of January 1871, through period of flee
years"
And it further provided that the trouble and re-
sponsbility of the Bank, in managing the trust funds
of the State converted into Bank stock, should be
taken in Leu of the per cent bonas before men,
toned.
1t is under this section that the Bank issues her
small notes. The law first quoted, conferred the pri-
yilege four years; the last, fire years.
Now legal qui5bler may possibly maintain with
some FEASIBILITY, that the law Of 1871, docs not
positively nhBit the exercise Of the privilege after
the fire gears specified, therefore the Bank may law
fully exercise it. But such was not the intent OF
the Legislature which passed the law, nor has the
law ever been construed as the Bunk President now
construes it. 1t is another and striking evidence Of
the fact, of which we have thousands Of examples,
that Legislatures may graft as many privileges to
corporations they please but 1t is the hardest thing
in the world to take any of them back.
The 22i section of the law chartering the Bank is
in these words:
UNo note shall be issued of a less denomination than
fire dollars and the Legislature Hereby reserves The
right, any after years. to restrict and protlb
the circulation and Issue OF any note for less than ten dol
lars"
The provision of the charter would cut off the prvi-
ege in question, of continuing the issue of small notes
bv the Bank unless it be superseded Sc: aside by
chapter IL of the Revised Statutes, entitled act
to prohibit the making. issuing circulating small
notes or Bills This chapter declares all such Is
les, by any person corporation, other than the
State Bank, to be null and void; all contracts based
, on such bills as of no effect and, excepting the
State Bank imposes penalty of from one hundred tc
five hundred dollars, upon any person or corporation
making and circulating such notes
These exceptions in favor of the State Bank were
probably made to cover the limited privilege which
was conferred by the law of 15tl; bat the law may
be 50 loose in its terms to justify the assumption
which the Bank President makes, though notorl
ouslv and totally at variance with universal opinion