Indiana State sentinel., 1851-01-16
CONSTITUTIONAL CONVENTION.


special order for this day postponed until Wednes
day next.
Mr. RaTiden resumed his remarks in favor of Stat,
Bank. Alter general remarks in reference the ques
uon Of banking, he said the men who the Wabasl
and Erle eana-running from one extreme to the othe
Of Indlana-own our bonds They have the Transports
ton c the produce of the immense valley Of the Wabasl
and other portions OF the State. These wisl
10 Drive out the paper OF the State Bank and substitute
system founded State Indebtedness thus making
them not only creditors the transportersof pro
duce but the owners and controllers Of banking in
sutuilons. What would be the condition Of the great
farming interest," along the beautiful valley of the Wa
bash, under these crcumStancesi You might ask the
farmer with his hundreds of of grain who the
owner but under state OF things gentlemen would
BRING about, his only answer would be, have living
from theSe lands but the profits belong the holders o
our bonds, the transpoters oil produce, and the
banks, and these immnnities lodged in the
dlylduals- His remarks here Interrupted by the
expiration of his half hour.
Mr. Pepper Of Ohio then offered an amendment TO the
amendment of Mr. Watts providing that the State shall
not be stoekh0der any bank after the expiration
charter OF the present bank shall the State lend its
credit for the purpose Of aiding the establishment OF
any bank or moneyed Incorporation whatever and that
the State Bank shall be closed at the expiration Of lis
present charter.
Mr.. Pepper of Ohio made few remarks in favor of
his amendment, showing the necessity of such proys
ions, should State Bank be established.
Mr.. Hit advocated useful restrictions; but in ia
Vor OF as lew details as possible in any system that
might be adopted
Mr. Mcfarland had made some preparation for a dis
eussion Of this questions bat of his arguments had
been used by others In the OF the debate which
nad relieved him from going over the same ground Be-
hevlng that there determination have banks Of
some kind, choice had to be made. 1t had been
tended by gentleman who preceded him, that the idea
OF Tree banking came from the commercial cities of the
wabash He would ask where did the proposition Tor
State Bank come lrom2 1t from those who had
derived great benefits. The State Bank had exclusive
privileges OF loanng money above legal Interests at
least such was the practice under the laws. They had
the exclusive right 10 issue and circulate small notes.
which Is denied to all others He contended under
statute OF the State that the bank under ordinary
note had the right sell property without valuation
right denied to all others He pointed another law
where the exclusive right given in certain cases. to
take greater interest than is allowed 10 others
complained that in another law the bank possessed the
veto power compelling this young giant State bow at
her feet. He asked, whether gentlemen had forgotten
that of the sixteen years existence Of the bank
was four and half years in a of suspension, du-
ring which time her were at a discount of fifteen
per cent. During this suspension, he calculated thar
S36OOO OOO had been lost in difference of exchanges on
account of this suspension. II had been said, that
million had been gained but when looked the mill
Ion lost, we would be Just where we commenced, in this
particular; and with loss the State of from three
hve millions, traceable Immediately the bank. 1t
had been said that the money invested the bank would
be repaid That the reports show it. He would say
nothing about these reports; but all experience had
proved that bank reports had been altogether worthless
He then took up the report OF the bank item by item
and commented on each, contrasting them with the
ports Of banking institutions that had proved be
worthless At this period Of his remarks his half hour
expired, and leave refused proceed, by vote of
ayes 50, noes 54-it requiring two-thirds.
Mr.. Borden then moved that the whole subject be
referred to committee of from each judicial cir
cult.
After remarks from Messrs. Borden Ritchey, and
others.
Mr.. Pepper of Crawford moved that Mr. Borden's
motion be laid upon the table; which prevailed.
Mr.. Cookery said for the time being, he would move
to lay Mr. Pepper Of OhO's amendment upon the table;
which motion prevailed.
Mr.. Cookery then moved that Mr.. Watts amendment
Tor State Bank, be laid upon the table, which motion
prevailed, ayes u, noes 81.
Mr.. Owen said, it had been agreed, upon all hands,
that there should be restrictions in banking He would
offer section commence with, to which additions
could be made, as follows:
"SEc. - The General Assembly shall not have pow.
er to establish incorporate in this State any bank or
banking company, moneyed institution for the pur-
pose OF issuing bills of credit bills payable order
bearer except under the conditions prescribed in this
Constitution"
After discussion Mr. Rarden moved to refer to a select
committee OF six not carried
Mr.. Watts moved to amend that all banking shall
be on a specie basis actually paid in.
Mr. Petit moved that the amendment be laid upon the
table; which motion did prevail ayes 3d. noes S2
Mr.. Owen said, the question being on the amendment
If II is adopted, will altogether prevent free banks
The no bank men and State Bank can vote down
free banks. The no bank men and free bank men can
vote down State Bank. This would bring US 10 a
stand still on the question.
Mr. Watts had no desire 10 prevent banking; but If
banking is adopted he wished IT established specie
Mr. COlfax moved 10 re-commit the amendment TO
the bank committee with instructions amend that
the specie basis shall be dollar for dollar.
Mr. Bddle moved additional instructions by adding
that the specie shall be deposited with an officer of
State.
Mr. Stephenson thought that all that could nov be
done, was a compromise between the State Bank and
free bank men In order accomplish that object and
IN order that proposition OF this kind might be offered
he moved that the amendments be laid upon the table
which motion did not prevail, ayes 49, noes so.
The Convention then adl lourned.
In the afternoon the Convention resumed the bank
questionable pending question being committing
with instructions.
Mr. Niles again took the floor in favor of free banking
He contended that free banking should be established
because it would constitute system safe beyond ali
doubt. The only danger in the securities would be,
restriction Of circulation He opposed to the
restrictions advocated by the gentleman from Posey
(Mr Owen.) He wished ample security to be ia
KEN bat he did wish the hands OF the Legislature
tied up. as to the securities to be taken.
Mr., Taylor was in favor Of re-commtting. He saw
no end 10 the discussion here, and little possibility OF an
agreement He good growing out Of the discus
SION, but 70 get wider apart He convinced that
the State Bank party-to which he did not belong
could not accomplish their objects The free bank par
ty-to which he did belong-coud not attain their ends
ia the Convention, and hence the necessity Of refer.
snce.
Mr. Hamilton belonged to neither the State nor free
Dank partles he was Tor botn but he had no anxiety
10 have the matter referred the bank committee In
deed he opposed that notion but would vote for
commitment to a select committee.
Mr. Cookery said this matter Of vital import.
question in the decision Of which would
depend the adoption rejection of the Constitution by
the people he believed his constituents were for the free
bank system He had fought for that system; but the
Convention having failed to adopt any system, he was
now for Cancellation and compromise
Mr.. Ritehey opposed re-committing
After remarks from DIR. Hall, Mr. Cofax modified his
motion commit refer to a select committee
Of one from each judicial circuit.