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

der this Constitution, shall extend beyond the term of
sixty days any called session beyond the Of
forty days"
The question was then taken on the passage Of the
section and decided in the Affirmative ayes 49, 29
The Convention then resumed the consideration of the
Bank question.
Mr.. Allen thought it would be no purpose to enter
into full discussion Of the question under consideration.
The question, he believed, had been settled that we
to have banks, and the thing to decide was,
what kind Of banks should have? He then proceed
ed to give his opinions on the subject -
First, he in favor of ample security being given.
Second that stockholders should be individually liable
Third there should be State stock such banks and
Fourth he believed that Banking should be free all.
With regard to the first proposition he thought the
description Of securities should not be designated, be-
cause this was purely legislative in its character and
because should securities deprecate had been con-
tended others could be substituted The safety Of the
Banks demanded liability of stockholders. Whether
unlimited not, question for consideration For
his own part he would prefer unlimited liability, be-
would increase the credit of the issues He be-
leyed the State should have stock interest in
banks because there was no proprey in the State enga
gng in such business particularly when it conferred
elusive privileges individuals. The monopoly
elusive privilege of the State Bank one Of its most
Objectionable features. Banking, like commercial
actions should stand its merits, and Banks
should only be established at such points would be
necessary Tor the business OF the country Banks too,
should stand each its foundation which would
prevent combination OF Banks
1t had been urged that some Of the Free Banks of
New York had failed, and only paid seventy-six cents
the dollar. This was because ample security had
not been taken, and because stockholders not nd
vidualy liable But Of the greatest evidences in ia
OF the New York SYSTEM that the Constitution
al Convention of that State had readopted it. He then
took up Mr. Fimores report in relation the failure
OF the 81 banks in New York and contended that from
that report, out 81 lhe immense sums issued by said
Banks only $4,000 were lost to the bill holders In
ID
to the report from which he read the failing banks
went into existence, time when immense amounts
of State stocks were in market, of various and uctua-
ting values. Republication staring many States iu
the face Besides these banks took the place oil the
Safety Fund Banks which went down.
The Free Bank system is the settled policy oil
New York. 1t has been efectuay tried for the last
twelve years. and has improved render the
notes entirely safe
Objections had been made that bonds amounts
of $1,000 each, which would prevent the poor from
obtaining stock This would be easily obyiaed by the
appointment of agent, the part of the Bank, TO
purchase stock which would enable all take part.
1t had been contended that the concentrated power OF
the State Bank its best feature; but this might be
turned into its feature, in monopoly like this
He had complaints TO make against that institution
duty impelled him TO the course he had pursued
| Mr.. Robinson said he State Bank mana friend
Of State Bank she is with notifications and
he had choose between and system which he beiev
ed ruinous he for banks at all. He believed the
counry demanded paper circulation, but that circua-
ton should be good-a circulation that would be safe
and sound like that of State institution. He beev
ed that other Banks would satisfy the people. The
interest the State has in the Bank of the best
1t gave the credit, both at home and
abroad than that OF any Bank that could be established
Ii had been said, there this floor to de-
end the State Bank. He stood here for that purpose
Notwithstanding she into existence at unprop
tous period, she obtained high credit, and has
been of great advantage the great agricultural inter
est Farmers, as general rule, should not 60 into
han he. hnf hapH fhau, ha CT
Bank Of Indiana has afforded to the traders
purchasing the produce of the country They 60 the
very doors Of the farmer and with money from the Bank
purchase his produce Withdraw this circulation from
the country and nothing but calamity would follow
the agricultural interest Charges had been made OF
this foor and out Of this convention, against the State
Bank, but these charges had not been sustained He
believed Bank charter had not been framed that
superior to our own. In the 5h section he found thai
the humble citizen in the State, should the Banl
fail comply with her obligations, had the right of
dress. 1t objected that she had right conferred
to deal In bills OF exchange This right does not confer
greater power than conferred private citizens She
denied the power of holding real estate to any
tent beyond that necessary for erecting buildings only
excepting the power certain cases. take real
in payment of debts but this property had to be imme
diatey offered for SALE He contended that instifu
ton like this should not be put down for the benefit
the Wall street brokers of New York, of whose
agents might be in the lobbes Of this Convention
He admired the mutual liability principle of the State
Bank. 1t that would always render her notes
good Another section in the charter Of the State
Bank, made judgments obtained against the Banl
subject collection without valuation appraisemen
laws. The Bank is prevented from embarkng in othe
business.
Charges have been made against the Bank, which,
true should be investigated The Legislative Halls ar,
OPEN the Bank charter provides the mode Of invesga
tion and he asked, why sustain the charges in this
manner? 1t had been said that the bank officers
not making true reports that the bank was rotten anC
corrupt He referred the section in the charter
king any such reports felony He thought, the othe
hand if the curtain could be drawn aside interested cap
tasts would be feuud at the bottom of Free Banking
Indiana.
There was another principle that he believed the Fre
Banks would not submit to. The stock OF the Stat,
Bank liable to taxation. He then replied to th
gentleman from Tippecanoe (Mr. Pettit) in reference
10 the trust funds imposed upon the Bank by the Leg
islature because they were in unsafe hands For th
trouble Of managing these iuunds the bank has the priv
ilege Of issuing small notes.
/ IL the Bank has to go down, she should, at least
have the credit of her good acts About half million
ef treasury notes in the vaults OF the Bank
which she compelled to take in payment Of advance
made to our citizens for work done on our publ
works Is she 90 down for taking Of the trus
funds of the State! Is she to 90 down for giving sa
and sound circulating medum2 These some Of th
good acts of the Bank
He spoke of free banks and asked, who are such in
stutons free tot Are they free to the farmer, witt
his hundred bushels OF grainz o. no. The rich capi
talist the wealthy bond holder, the Lords and Dukes
England might take part but not the hardy yeomanr
of Indiana. The security to be ampe-a Very beau
; tiful word-and individual liability to be added
What the basis Of Banks in New York under thi
ample securityi Out Of capital OF near eleven million
when the Banks went into existence. only S49 900
specie to be found in their vaults OF these bank
4S have been closed having failed to redeem their notes
Whom these banks went down the stocks sold. In
diana bonds sch, OF 50 cents the dollar Ilinoi
bonds at less, and some as low as IS cents. .s...
He said, long the provision remains in the Stat
Bank charter making it felony for the officers OF the ban
make false report, he must believe their statements
Tho moment he convinced the contrary he woul