Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1851-01-09

door to make stealing become general The expansion
and contraction OF the currency wenld be greater
Small Banks were evil. Under system OF Free
Banking there would be almost every village and
combinations of these small institutions would be
injurious than those of the present SYSTEM He stated
that people agricultural people, whilst those
of the States, where this system prevailed
commercial and manufacturing people. Our country
would be flooded with the OF these small banks
counereiting would be much greater and our farmers
and mechanics had the time to study the plates and
signatures and the end the poor must he the loser
The scenes of 1887 would be re-cnacted. He not
the friend Of the State Bank it exists now, but he
would throw around it all necessary guards and restc
tons He would have the State the endorser of the
State Bank nor did he wish the State become apart
ner, or be liable for its debts
He read the following proposition as embodying his
views which he would offer, if opportunity presented
itself.
Sec L. The legislature may authorize the establish
OF State bank and branches thereof 90 into OPP
GRAFTON after the expiration OF the charter OF the present
State Bank.
SEC 2 The State shall not be partner or have any
interest in the said Bank of lis branches except
may be occasoned by the investment of trust funds Of
the State therein loans which funds shall be secured
by their preference in payment in of insolvency
the stocks of any individual in the bank.
SEC 3. Neither the Bank any Of its branches shall
shall either directly indirectly receive any inter-
est than shall be allowed by law persons loanng ind
yidnal money.
SEC A. The Auditor of State shall register and coun
tersgn all bills notes issued put circulation and
security shall be required for their redemption specie
by depostng with said officer. United States stock
Indiana State stocks their market value and above
par and bearing six per cent interest.
SEC. 5. The bill holders shall be entitled to preference
over all other creditors in the of insolvency.
SEC 6. The stockholders shall be individually respon
s5le to an amount IN proportion TO their respective
shares Of stock for all the debts and liabilities OF every
kind.
SEC 7. No authority shall be given sanctioning the
suspension Of specie payment in any manner
SEC. 8. The Capital of said Bank and branches shall
note Hvor Of oil
SEC. 9. The bank and branches shall issue more
than dollar for dollar the amount of security deposit
ted.
SEC. TO- The stock of said Bank and branches shall
be taxed other property for State, county, township
and corporation purposes.
SEC. H. The branches of any Bank which may he es-
abshed under this article shall be mutually bound for
each others liabilities.
SEC. r. The Legislature shall provide in the charter
of said Bank supervisory control over the same.
SEC. 49, The Legislature shall extend the charter
Of the present State Bank, allow it privileges
than it now possesses.
Mr.. May offered amendment insert after the
words General Assembly the words shall here
after establish any Bank corporation with banking
powers continue beyond the term of its present
charter any such Bank corporation already establish
ed unless upon and after the separate submission to the
people at general election of thequeston Of Bank
Bank, majority of all the electors of the whole
State voting at such election, shall vote in favor Of
Banks; y which,
On motion of Mr.. Chandler, was laid the table,
ayes 80, noes 49,
Mr.. Halls amendment, introduced on yesterday, was
laid the table
Mr.. Shoup offered an amendment cmbodyng the prin-
cipes Of Free Banking.
Mr.. Bascom moved to amend the amendment fol-
lows:
Thcre shall not be established Incorporated in this
State any Bank or banking company, moneyed insti-
tuition for the purpose of issuing bills of credit, bills
PAYABLE 10 order or bearer"
Mr.. Bascom remarked, that the principles of his
amendmant part of the Federal Constitution.
which bad been much praised up here and he hoped
this portion of that instrument would be retained in
Constitution. He wanted test vote taken. whether we
should have Banks or not Ii are to have them at
all, he wished to guard and restrict them. He was,
however, in favor of putting down the whole system.
MIR. Dunn of Jefferson moved to Law the amendment
to the amendment the table Adopted ayes SO,
A.
Mr. Kilgorc moved an amendment embodying the
principles OF the State Bank; which,
On motion of Mr. Cookery, laid the table.
ayes 10. noes 81
Mr.. Pepper Of Ohio moved to re-commit the whole
subject to the committee on Banking.
MIR. Watts, member of that committee, hoped it
would not lc re-commited that committee If recon-
mitted at all.
Mr.. Rarden moved to instruct the committee to re-
port proposition authorizing the Legislature estab.
lsh State Bank.
Before the question taken, the Convention adj
Iourned.