Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1851-01-16
NO. 33.


been transmitted to us from British ancestors was
one OF transferring rags into money. Gentlemen seemed
to have no idea beyond the present State Bank The
experience of the world had proved that it was exrems
y difficult to eradicate old errors The question under
consideration of vital interest. IL depends on
this Convention, whether Banking shall be free open
to ALL and like other matters OF business be made to
depend upon Its own merits whether the presest
State Bank monopoly shall be continued with ali ex-
elusive privileges He answered the argument that the
State should have interest in the Bank account Of
the benefits This argument was deceptive and false in
theory The same principle would make the State q
partner in mercantile farming and all other kinds of
business Many of the arguments urged were used
in the with the United States Bank The true
principle OF government not interfere in any
branch o business but TO leave all matters of this kind
open to all. Banking business as much as any,
thing else 1t the duty of the State place proper
guards and restrictions around IT, With these restric
tons, banking might be left free The experience of
New York. for the last twelve years, had proved that
Banking might 90 on like any others business The gov
ernment of the United States had been more pros
percus than its dsconnection with Bank of the
United States. So he believed it would be with the
| On motion Of Mr. Howe the Convention adjourned.
In the afternoon, the discussion the Bank question
was resumed
Mr.. Chapman made an explanation in relation to
New York securities noticed in his speech Of yester
day. tr,
Mr. Howe said, he had no opposition to make to the
State Bank Ii had afforded safe and sound currency
But there other objections So far the question
OF Bank Bank concerned, he had no doubt
there those who, in theory, would oppose all
Banks He believed, himself that Banking as exist
ed In the United States, founded a false basis
From the very nature of the basis there would be fire.
quent expansions and conractons But it was unneces
sary discuss this question. We would have Bank pa
per circulation If did afford the five or SIX
millions of Bank paper other States would afford il for
US. The States of Kentucky and Ohio and the East
would have all the advantages of this circulation. As
things existed, he thought citizens should have
the profits OF Banking; instead of those OF other States
He would now, he said. speak TO his anti Bank friends
He thought that IN preference between the two sys.
TENS they should sustain free Banks, the that
would enable the country gradually to 90 back to
specie circulation He would make the security so am
pie that there could be failure. For the first ten or
fifteen he would take other securities State
or United States stocks, at their market value So far
the uctuation of stocks concerned he thought
there would be difficulty. Stocks used for Banking
were more apt to appreciate than to depreciate He
favored free Banking rather he would call it. restrict
ed Banking because he believed the country would be
less liable to contractions and expansions. $50
Ii had been urged that the free Banks Of New York
had less specie in their vaults than our State Bank
This only proved, his mind that under this system
less specie required. The being well secured
| but little specie necessary.
He utterly opposed any securities but State or
United States stocks Mortgage security in Indiana
insufficient, because il could be converted in
short period into cash. The time might come when
this would answer but that least fifteen years
ahead. He had amendment, which, at the proper
time, he would Offer confRing the securities State
stocks, their market value, for the first fifteen years.
leaving the Legislature determine the securities
thereafter. With regard to system of State and free
Banking, he thought system would be best He had
doubts that free Banks would be able stand alongside
| of State Bank.
! Mr.. Shoup answered the arguments of the gentleman
4 from Decatur (Mr. Robinson.) That gentleman had
said, that no farmer would prefer Indiana bond
State Bank paper. That would depend upon the uses
to be made Of them. The State Bank paper was GER
tainly founded a foundation. 1t
contended that Delegates here looked through spec
taces with but one eye and that led them TO look only
Il to OF MED
! with bondholder, and the charge might well be
i made that gentlemen looking to the State Bank.
The Commonwealth Bank Of Kentucky had been cited
That Bank founded solely mortgage secarities
and had similarity the present free Bank system
A parison between the free and State Banks would
be found result the fact that free Bank notes
sued on good and valid securities dollar for dollar
whereas the Of the State Bank there would only
be dollar security for every two dollars and half
issued. 81. I'D
1t had been contended that the New York Banks had
issued eighteen dollars of for every specie dollar
in their vaults. This without explanation might
strange But when il considered that these notes
were secured dollar for dollar, and that this specie
surplus to meet present contingencies, it was
much additional security
1t had been urged that in the winding up Of some of
the New York Banks Indiana bonds had been sold at a
large discount This could never occur again. and with
the guards now thrown around the State, which pre-
vented further public debt, such result could
again take place.
/ Some gentlemen were in favor Of State Bank, but
without the State having any interest stock This
would be wrong. The name would convey that which
was Ii had been minated that gentleman,
now in this city, who had much 10 do with State
bonds, had advocates this floor. He believed such
not 10 be the case. r-- e- =
Il The proposition he offered days since, contain
ed provision that Banking sho uld be free all This
he believed to be the true doctrine His first restric
ton was that greater than the legal interest should
be received. This required comment. The second
was, that the should be registered and ample
curity for their redemption The third was, that the
stockholders should be individually liable. This would
deter persons from taking stock and would give the
Bank great credit ThcI fourth was, that the blhod
ers should have preference. This was right and would
the honest labore recompense for his tolls be-
yond the liability Of ordinary Bank failures The fifth
was that there should be suspension Of specie pay
ments but failure to redeem their notes, the Banks
should be wound up
Mr.. Steele SAID, there great tendency TO
issues this floor From the number Of amendments
in the hands of gentlemen, il appeared that We would
never get through He hoped that speeches would be
short and as little time wasted possible. Il
Mr.. Barbour contended that Bank OF some kind
must be established This is agricultural State, and
il would be impossible to get along without Banks. We
might have circulation from other States, but II would
be at expense. He contended that had there been
sufficient Bank capital the Wabash this season. the
pork Of the valley OF that stream would have brought
at least twenty hive cents more on the hundreds and ~
least seventy-hye thousand dollars would have been
saved TO the people He in favor Of free Banks,
system bat he would be in favor Of leaving il open
question. He would have been grsfi6ed il the eene
man from Decatur had stated, IN advocating State
} Bank what kind Of one he would have established
He would oppose any State Bank where there was
State stock. He would preserve the mutual liability
principle and he would oppose modification that would
enabc Banks be bhed without the consent OF
the Branches.
e He then drew comparison between State Bank OF
$500 600 capital and free Bank The first could Is
sue $500 OO0 and would have the good and solvent
notes Of our citizens besides the 5000 Of specie 10