Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1846-01-08
The Condition of the Bank.

to-wlt that the Banks are strongest uhen they haze
the least specie 30 This during the U. S. Bank
time, regarded first rate financial philosophy
by the federal Wing papers but we have yet to see
whether the Democracy of Indiana ready to re-
ceve it, dug up il is from its grave of dis
grace, by President Morrison.
And then, assuming a tone of exceeding uisdon,
the Bank President goes to say:
"Those who understand the subject look more to
" its discount line, its active business paper, and 9TH
"er convertible assets, tor the ability to meet its
" engagements, than to the coin in the vault and
L" on this point the Sentinel has attempted another
deception, by deductng the amount of specie only,
" from the liabilities of the State Bank, if she had
"nothing else to show. Intelligent business men,
will of course notice this attempted Fraud
Now the President of the Bank himself, and not
the Sentinel is the only guilty of deception and
fraud, and every really intelligent business will
say so. We did not, as Morrison falsely afirms,
deduct the of specie, from the liabilities of
the Bank, as if she had nothing else to show" bat
we merely showed the excess of circulation the
specie in vault, as given in his report We did
this because it is a state of things most easily ap
preciated by people who do not pretend to the won
derful degree of ,cisdom which Morrison claims as
an especial attribute of his family.
But let us examine some of the other items which
Morrison asserts are of so much more Importance
than silver and gold, in determining the strength and
safety Of the Bank. The " balance sheet" of the
Bank for this year will be found in Morrson's an
nual report, pages and g. Among the resources Of
the Bank, and the other items of strength spoken of
by Morrison, will be found the following
Bills discounted, 81, $50, Isl "a
Bills of exchange, 1877 435 %
40 n1- n
Showing an increase over last year, in these two
items of 1872, 123 IA. Nearly S734,GOG of this
increase is in bills of exchange, sharing paper
alone. Now how much of this is bad, nobody knows.
1t may some of it be like bill of about ;Sl2 900
shaved by the Indianapolis Branch about four years
ago, and which totally lost, we told or
like another for about $4,000, shaved about year
since, and which proved to be worthless the
other.
The next item of " strength" is the
Suspended Debt Of $685., 92S So
How much of this is good for any thing, except to
help out the balances, is than any body can
guess. We suppose the editor of the Family Organ
has large share in it. If so, every 50 intelligent
business man" here knows how much that part of it
is worth: not more, probably, than stock in Faro
bank.
The next Sampson items are -
Banking Houses, $17S635 43
Other real estate, 163,6Sl "a
Furniture, 1888 90
- S34S, 100 9!
These now would enable the Bank to redeem
how many dollars do you think, Mr.. Farmer Why,
sir, not 80 in 100. The banking houses and furni-
ture are, we presume, rated at their extravagant
first cost The real estate was taken for desperate
debts, in many cases at any price, because nothing
else to be got, in the case of A. W-n, of this
county, year more ago.
We pass over a few other humbugs to come to
still richer items. which 20 to square the balance
Sheet and to exhibit that great strength" not de-
pendent on coin, which the Bank President thinks SO
very vulgar and worthless substance, to.wit
Suspended items, Protest,
Bank stock, and other
items SOS, I55 SO
Suspended items for robbery, 81, los 90
S95, 260 SO
This, of course, is worth just about much the
assertions of the Bank President, when his ire is
reused no more. Nevertheless, they are among
those assets which Morrison talks about being Of
much more value than specie
Then there are S37 900 90 in Indiana Bonds, and
$4,000 in bills of other Banks, worth perhaps as
much or more than the bonds, to help exc out the
ron-specie strength which Morrison talks wise
ly about.
That other, and disinterested persons put the
estimate Of value upon these assets we do, may be
seen by the following extract from the Money Arti
Gle of the New York News, under date of Dec. "a,
1915, last month:
We have frequently had reason to animadvert
upon the progressive expansion OF the currency of
the Western banks In Indiana, the State Bank has
put out inordinate quantity of paper, far beyond
Its ability to pay, and the privilege of issuing notes
of small denominations that was sold to that concern
is now about to EXPIRE and probably will not be re-
newed The Bank is essentially rotten, and cia
sooner or later inict screre loss upon the People Of
Indiana
Here is the opinion of one who is acknowledged
to be one of the soundest financial writers In the
country.
But we viii not pursue the subject further here,
except to express deep regret and disappoint-
ment, that professed Democrat should be willing
not only tolerate the present degree of roennesss
In the Bank, but that he should desire or
niye at an extension of It's privileges, and of Its
means of further corruption, by the continued issue
of shinplasters.
The Legislature has the power to check this evil
by vetoing the continued issue of small bills. This
cil not prevent the $500, $50 chich are already out
from remaining qfOat, II the people choose to hold
them But an increase Of the issue should by all
means be prevented. Let no man in the Legislature
= LET no Democrat, at least, who would stand well
with the people hereafter, dodge direct vote this