The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1851-01-29

on the dollar, that being their value at the
Time they get 100000 OF paper TO bank
4 upon; IN month these stocks increase In
value IN the market, and are worth sixty-slx
and iwo-third cents on the dollar. Is II not
clear that the banks will ask for and obtain
another hundred thousand dollars IN paper
oh these stocks ? Then suppose that the
price OF stocks fall in The market 10 335 cents
on the dollar again. what will then be the re-
suit? Why, sir, The bank wall he closed, the
stocks pledged, sold, aud The bill holders paid
of at fifty cents, or less, on The dollar.
! But il may be said that This state Of facts
will never happen. trust they never may !;
but those who have watched the stock market
Tor the last ten years, will say that. reason
ing irom the past, just such results may hap
pen.
From the best examination | have been
able To give this subject. after careful read
ing oil such statistic ii information as Was
within my reach. am clearly of opinion that
ii system of banking based npon socks, or
stOrk and mortgage securities. instead of gold
aud silver, ought not 10 be introduced into
Indiana. With my present views upon this
subject, | would much prefer that We should
say nothing upon the subject of banking in
the Constitution, than to incorporate this as
IN exclusive system trusting TO The Legisla
inre TO deliver Us from so great a curse.
/ Some gentlemen who have spoken upon
this question. were unable to fad terms in
the English language bitter enough to ex-
press their Indignation against the Stale
b..nk Ii has bren denounced as bankrupt
/ and rotten, and its officers ntted OF ly to be
associates of robbers and cut threats. Such
declarations. made without evidence TO sup
port them are unworthy of any gentleman VIII
has been honored with IL seat upon this Hoo.
| In making This declaration do not wish To
be understood us presenting myself before the
Convention as The champion or defender of
the State Bank or its officers. have. how
ever, felt It 10 be due to truth TO give posi-
i've denial To any ,uch assertion. | must be
permltt' d 10 express The opinion, that much
of the opposition Of the State Bank manifest
ed this Convention. grows out of the fact
that her c..;,i,l is too small 10 afford he ac-
cc..iaiodaions required by The wants of the
community, and because she has refused To
establish branches where she ought 10 have
done.
In regard to this later objection, can on
| ly say that think the bank did wrong in not
establishing branches where desired. | think
ii branch ought TO have been established al
any point where the requisite amount OF stock
was taken and paid in under the charter
that am in favor OF leaving that clause CIT
of the Constitution wiiicn limits the mum
Der OF branches to one for every three couu-
! S. Equ ,hiy Of privileges ought to be
Guaranteed by the Constitution. But. sir
this free mixing system is one OF ephemeral
growth. Ii was not until within the last ten
or twelve years, that free banks were intro
duced into The United States. Ii was not
until SOU, 0U0,0U0 oil the stocks Of the differ
ent States were found TO DE IN the hands oil
European capitalists, that This scheme OF bunk
iny OH stocks was comcocicd. Ii Was de
vice, sir. gotten up i'm the Offices of The brok-
ers and money chargers 40 New York. Lon
don, Amsterdam and Paris: TO enhance the1
value OF American stocks, many OF whch
were then selling at iu.nous discounts. The
plan adopted was 10 make il,es c stocks the
basis OF banking, instead oi gold AMI silver
As soon s the scheme reed upon
efforts were inn aiciy made ID u, II INTO
operation. New York, under the control III
brokers AMI slocs-lobhers, bit readily at IN,
bait, and so did Michigan; and now the at
tempt is b, ing IN ,de 10 make Indiana swal-
low his sugar coated pill and all to enable
the foreign banker, broker an stock l0bber 10
send home our bonds Tor bank capital, draw
his regular interest, and, in addition thereto
make SIX or eight per cent through the bank
ing operation, and that, too, without invest
| ilg a single dollar. BOnd-hoIders an1 stock
jnbbers, aft IN. at The bottom Of this
movtm ut. They are now looking wi h anx
Ious eyes 10 the decision vi this Convention
on this question. l state, upon the most
liable Inform ,tIon. that prominent broker
and stock jsbber, residing in the city Of New
York. has been la this city slice this Con
venton commenced It's session. urging upon
his friends Tie Importance vi havi,:. this free
banking system adopted by this body; and
when asked by "a irieIid where the bonds were
to come from, !,r replied by sd ing that there
wc:...i ne 10 difficulty; bonds were plenty,
and could easily be had.
! Mr. President the bond-hOlders have a
twc-.old object in view in urging this system
upon u.s. They know That tins Stale cttnIlo;
CT sisienly, witt honor, tax her bonds IN the
hands OF Tie holder hence, il they employ
ihem here DIS bank capital, they not only get
the interest upon the bonds. but they get The
bank dividend upon them, and, mt the same
time avoid taxation. This is IL refinement
upon financiering that the people OF the State
never dreamed OF, much less thought OF yet
il will prove true TO The letter, II Tree banking
| is established.
| IL has been clearly decided by The Supreme
Court of the United States thai State has
no right 10 tax Uuited States bonds. That
question has been settled liz terms 20 clear,
mat my honorable friend from Monroe Mr..
Read) has been compriied yield the argu-
ment.
Mr.. BlDDLE (interpoSing) was under
stood to Say that the question Vi the taxation
of bonds was seitlrd, perhaps. tie would Ia
quire what was The difference, whether our
bonds were in floating circulation or consiitu-
ted The biss Of banking system, SO tar as
the question of taxation is concerned!