Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1850-11-14
[For the Indiana State Sentinel.l
The State and the State Bank.

Mr. EDIT oR:-Several papers Of the State mako
suggestion, that 1t is not unfair to charge against
the profits the Bank has made for the Common School
Fund, the of the loan which the State did not
furnish the Bank for aiding the Internal Improvement
system.
If the facts are understood this would certainly not
be deemed just. The State asks the Bank what has
earned with the funds entrusted TO 1t, and receives for
reply that hundred fold has been secured the State
of which million is cleared. and the remain
ing $500 900 or more will be earned by the close Of
the charter-and that than half million
could safely be relied be cleared in the eight years
further elapse, before the States Bonds duema
king in ALL fully tcO millions Of dollars clear pro-
fit TO the State.
Is then fair to require the Bank also 70 answer for
the further MEANS which the State tried procure to
increase its capital in the Bank which having failed
receive, ii invested Il would indeed, be as
hard master, demanding to gather where it has not
strewn. The Bank prosperously managing the
funds committed to her, and earning favorable profits
for the Common School Fund when the State, for her
purposes and SrithOt the request Of the Bank d.
rected the Commissioners of the Sinking Fund being Of
cers elected by the State through the agency of the
President of the Bank the Fund Commissioners to
for loan for additional State capital The board
of Fund Commissioners not being then organized, the
Commissioners under the law appointed the President
carry the wishes the of Legislature who doubtless
made as loan could then have been made, in
the depressed state of the money market arising in a
great degree from the OVERLOOKING of State Bonds
from this and other States crowded forward raise
ney
the Bank had nothing whatever do with them with
the Loan
And if this is the Of Justice, which is to be
dealt to her. that she is to be censured for making
money out of what not furnished to her, may be
well for the advocates Of the proposed free Banks
guard in their enactments that they shall suffer here.
after for the loss of the hundreds of thousands of dollars
which the State sunk in the sales of her Bonds the
Binghampton and other free Banks, acting under the
General Banking Law of New York; as they will find
that writers will seek any grounds Of prejudice against
them, while their hostility may arise from the Banks
not loaning them their friends all the money they want
The question, far the State is concerned is
whether the State shall again try borrow money for
banking, but how shall the best profits he made for the
School Fund the capital the Bank will clear for the
State, while the time sound currency is
ed and the of the State developed by Bank
cities.
! Many modes of banking which may successful
when all is favorable, may have bend to the in
times of financial trial. did some of the largest free
Banks in New York in past DAYS.
] If safer, better, and more productive system Of
banking he devised and manifested than that OF the
State Bank of the people will rejoice TO adopt
it but in the possibility Of the experiment proving
cessul it may be, that the wisdom of the policy may be
questioned which would take away from the people the
power of having also in operation in Ohio or Of re-
turning to a system which they have proved to be safe
under all tralsand productive to the best trust Of the
state. r.