Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1851-01-16

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upon the liable.
Mr. Cookerley called for division Of the question;
when the question first taken laying Mr. Dor,
dens amendment upon the table, and decided IN the al
6rmalive, ayes 80, noes %.
amendment npon the table, and decided IN the afnrma
tive, ayes l07, noes Is.
Mr. Peut said that he was in favor of the first Sec
ton reported by the Bank committees and though,
the 60ht should be made ON that section he mad
amendments to perfect the other sections and now rose
give notice that he would move the previous question
on the hrst section on tomorrow morning ne .nen
moved an adjournment; which motion did not prevail
Mr. Owen then moved to strike out the first section
and insert the following;
"The General Assembly not 10 have power TO estsb
lish any Bauk except the following conditions The
State not 10 be stakeholder Bank bill shall
issue for circulation until countersgnedby the Auditor
nor until shall have been deposited security lor
the same dollar for dollar stocks Of the United States
or Of such States of this Union may be designated by
law to be estimated at their market value IN the city
of New York, but above par provided that such
stocks DO, made to be- equal 10 stock
six per cent per annum there shall be law directly or
Indirectly saneOnng suspension of specie payments
bhoders have preference over other creditors IN
cases of insolvency. stockholders 10 be individually a
bic TO an amount not less than that oil their respective
shares stock Bank receive directly Indirect
w. greater rate of interest than shall be allowed by
law to be received by individuals loanlng money; no
Banking Institution to have exclusive privileges not
granted to similar institutions shall any such insti
tuition be created by special charter; the General As
semby shall have the right alter, from time to time,
repeal all laws that may be passed. creating Banks
or Banking Institutions"
Mr. Read of Clark moved to amend by striking out
and Inserting series Of against special charters
for banking providing hat associations may be formed
under general laws for such purposes against suspen
sion of specie payments providing for registry oil
bills put circulation money and ample security ior
their redemption in specie; stockholders to be ndIvd-
uay liable after the year 1852 and in case OF insoven-
cy the iholders have preference other cred
itors" rrr- n~r
Before any question was taken, the Convention adj
journed.
THuRspAY January 9, 1850 The Convention
opened by prayer by the Rev. Mr.. Jamison.
The Convention then resumed the consideration oil
the Bank questOn-pending questions being the amend
ments of Mr.. Owen and Mr.. Read Of Clark.
Mr.. Owen after introductory remarks in relation to
the general principles of Banking said, there two
systems brought forwards one Of Free Banking and the
other the State Bank, both OF which might be
adopted. The gentleman from Decatur (Mr- Robin
SOM had detained long and loud against New York,
and effort seemed to be made to excite prejudice
citizen of New York, in this city, had been men,
toned in connection with this subject That gentleman
had done much restore Indiana to her present high
position, and deserved gratitude rather than
He then took up tho report OF Mr. Fillmore, the
Comptroller OF New York. and read his testimony IN IA
OF the Free Banking system; after which he enter
ed into detailed argument in favor OF the Free Bank
inc system contrasting its safety to the bhoders with
that of the State Bank system In relation to the Free
Banking system of New York, in its inception, mort
gagged securities allowed. These mortgages were
taken under the direction Of the officer with whom they
deposited. Under this system, ont oil lO4 banks
there 81 suspensions. There capital of Sl0
00c 0C0 but the suspendng banks had only capital OF
million and half and the loss less than third OF
hundred thousand dollars. After that time the Con-
sttuon Of New York revised and the system, it
exists, established Since that time banks
have failed The system he proposed had the revised
features of the New system, with additional guards
Stockholders were to be Individually LIABLE and
pension of specie payments. He coutended that the
present New York system (not the old one) had been
fully tested and had proved to be good. We should
have mohopolies. The gentleman from Laporte
(Mr Nies) had preferred ample securities desgna-
ton Of stocks inasmuch State Indebtedness might,
in few years, lie preferred more definite pro-
vision-one that he knew be safe and secure inde
mite securities When State indebtedness ceases, it
might be the interest of the country that banks should
also. IL not, amendment might be easily made
10 the Constitution, clearly defining the description OF
securities to be taken.
Mr.. Walpole said, without having dollar of stock in
any Bank, without owing any bank cent he stood
forth the advocate OF the great agricultural interest
of the State. The commercial and other facilities of
New York might enable that State sustain Free
Bank system but Indiana could He then proceed
ed show the fuctuating character Of public Stocks
and how inadequate they would be in crisis like 1899
through which we had passed. Indiana has now one of
the best Banking institutions in the world. The Bank
Of Scotland is equal it, This Bank pass
away and II IS duty to replace II with another Had
Charles Butler, when he came to this State some i've
years since in connection with State ndebt-
edness made IL condition of settlement, that we
should be compelled to bank bonds would the peo-
pie have accepted any such condition. They would
The question now presented was, whether should
have paper metallic basisi He appealed to the rep
resentaves of the great agricultural interest, not
those OF the towns and cities TO the He
appealed not TO Madison, with her connection with for
eign capitalists nor 10 the cities oil the Wabash with
their canal connections but the great producing
est OF the State. The people generally Of the State
could obtain no stock in these banks few only with
thousands In their obtain the bonds
System like this might appreciate bonds to be
worth dollar for dollar These bonds might be sold and
it might end in no banks being established The State
Bank was no monopoly. The poor and the rich might
take stock in it, The money Of the widow and the
phan might be invested All were interested in its pros.
pery The amendment before provides for bonds Of
all the States Arkansas Mississippi Texas and other
bonds might be taken In relation 10 the present State
Bank there some objections which ne would obyi
ate The provision permitting only one branch for every
three countless in the old Constitution he would alter.
The provision in reference to the location of branches he
wonld modify. He thought the Bank should have at
least capital OF co., with permission to issue
SIS, 500, 900.
Mr.. Mcguire said, in reference this question, he
only intended 10 make few remarks He differed with
OF his colleagues and he would be derect in his
conceived TO be the opinions Of the people Of the county
he represented He believed that the people OF Marion
county OF Indianapolis of both political parties,
largely in favor OF modification OF the present
State Bank The main objection the present Bank is
that il adequate the business of the
try. This is true; but modification, in this particular
should take place. Another objection was that it
qures the appreciation OF every Branch order esab
lish q bank That provision might be modified !;
and that much odium had been cast upon the
State Bank by the action OF the Lafayette Branch,
refusing Bank at Logansport. He thought the Dele
gates from TiPpecanoe, who are the leaders OF Free
Banking this hooT, should have explained the action
Of their Branch II his business TO do il. He
exDlanad the loss of million of our bOnds that had