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

officers to attend the funeral Of Mrs Beach, which
| tion prevailed, when
| The Convention djourned.
In the afternoon the Convention resumed the consd.
GRAFTON of the Bank question.
Mr.. Read of Monroe commenced his remarks by quot
ing the language of Mr. Webster against the issue OF
paper money He denied the validity OF the argument,
that because other States have Bank paper, must
have it also. Banking was convenient contrivance to
enable live upon the money they owe for every
bank bill in existence, only certificate of some
ones indebtedness The gentleman from Vanderburgh
(Mr. Loskhart) had referred, this morning, the i'm
mense products Of the Wabash river, reason why
we should have paper circulation But, this, in his
opinion, was not necessary. Bills Of exchange would
answer for the products of the whols State He was
opposed paper circulation altogether and he would
engraft in the Constitution provision for Bank
ing but the Of the Convention had determined
in favor OF Banking of kind il the duty oil the
Convention place all necessary restrictions around It.
Banking, in England, grew out of a public debt and
that debt had continued accumulate until could not
now be fully computed. 1t had been of Great
ing distinctions society," and had filled that country
with palaces and poor houses nnumerable He object.
ed to the State Bank of Indiana, because it mo-
nopoly system founded on securities, placed beyond
the control Of the banker, far preferable and
far State bonds concerned he did not give up the
right of taxation, and read several authorities in proof
of the right to them. He wished distinctly
derstood, that he would support distinct system o
Banking. He would sustain restrictions in Banking, and
would encourage gradual return TO specie eircua-
| ton.
question, the decision of which, would be for the veal
or of Indiana. Although this subject had been con.
sderably discussed, he also wished give his opinion
He regretted to be compelled to differ with his colleague
1t is that he supported free banking while
ing in the county they both represented; but, the
other hand he supported the State Bank aterHa
vc and he believed that large majority OF the voters
of Monroe county in favor of State Bank. Few
he believed yrillinu the Free Ranklnr
| system. He had been many years in Monroe county,
and believed that he understood the wishes OF the people
better than his colleague. He then went into history
o Banking In the United States. He sad when he saw
number of distinguished wings this floor advocating
Free Banking, it looked to him that there party
movement concealed behind it, for these gentlemen
| well known to have been the advocates OF National
Bank, and may now have an idea of reganing political
power In Indiana this Free Bank question. He cvn
tended that if Free Banking is established it will
bic spectators TO band together 1t Appeared that the
attorneys on this floor generally opposed to the
State Bank because it is monopoly; they very
CAREFUL at the same time, preserve the monopoly o
the law. He then gave description Of FreeiBanking
Gentlemen on this floor seemed to think that State
Stocks were better than specie What is the
such securities hundred thousand dollars might bt
deposited to-day; but in three months might be cnly
worth fifty thousand. With such fluctuations this
the result must be disastrous in the extreme Whereas
when specie made the basis for banking the security
could not be essene1. Up this time, when the ques
tion OF Bank or Bank up he had voted agains
banks but after this time he would vote for modified
State Bank 10 come into existence after the presen
Bank charter expires.
Mr. Hendrick; said he believed that the time woulc
yet when the general opinion of Banking would be
that IL was wondrous imposition; but SO long as othe
States around have all kinds of Banks, oundet
specie basis others stocks and on landed
tate 1t became necessary to have banks Of our own, 4
avoid loss and that the citizens might know their ru
condition and sovency. He would offer amendmen
the original scction when opportunity offered Hi
amendment proposed but system of Banking in tn
Sate-he banks to be liable for the issues of each other
He would not make the branches mutually liable Tor th
deposits because these could be regulated by law
He would give the Legislature the power establis
branches wherever the business wants of the coun
try demanded it, He then answered objections that ha
) been urged against a State Bank He opposed t
the State taking any stock any bank He then drew
a contrast between Free and State Banks In Stat
Bank, shares divided into of twenty-five ff
y dollars; and the farmer, the mechanic, the laborer-
all could procure interest. In the Free Bank sys
|, tenn, founded upon State securities could obta
. a share without having thousand dollars. In 1857
when the charter OF the present bank OUT there vii
be some six millions Of Indiana per cent. bonds out
standing Let issue of Bank paper be made upon these
and loaned six per cent and these bonds would
once be worth II per cent The distinguished agent
our bondhoders is in this city He knew not wheh
he had any connection with this subject but could tn
bonds be raised from per cent eleven per cent,
would be the best speculation that had ever been mad
out of Indiana.
Mr. Cookery said, the agent was here for the purpos
Mr.. Hendricks continued. In establishing Bank tn
bonds had be deposited with the Auditor of State.
had been said, that the State Bank by tue influence
money might have the power overawe if not over
egislation but what might be effected, if tn
concentrated power OF the banks, leveed against
single individual who registered the stocks? By the re
port of the Comptroller of New York. when ten million
Of stocks registered for free banks, 81 900 O0
in New York stocks 81 500 900 in United State
stocks and another 81 900 landed security Thi
very fair proportion, and shows that there oh
fho,l lo,1o4 fha Aop
that wound up only realized seventy-six cents
# the dollar. The people lost the balance. He couend
ed that in monetary crisis, tire free banks would la
because they could not sustain each other. But tn
State Bank, by mutual interest and liability of tn
! Branches, would uphold each other. Two Banks lo
Gated IN the city, might find it to the interest
one break the other down. in order to its bus
ness; but it would be different with Branches of tn
d same system.
Mr. Chapman did not intend or wish to make speech
but he did intend to errors, which gentle
men had fallen into Asweeping charge had been made
. that 81 Free Banks in New York had failed He woul
read from Mlard Fimores report of these 81 aiu es
where it would appear that there deficit OF S3l
: 600 in winding them up year afterwards, It appear
ed, from another report, that there had been no loss
wished ample security for all notes issued The Stat
Q Bank system depends altogether its management.
is well managed now but have security for da
J, of its existence SO far Banking State stocks
concerned he thought it very desirable that our Stat
bonds should be brought home. An argument had bee
L made against the Free Banks of New York by coupn
y them with the Safety Fund Banks. This Safety Fun
: Bank system better than own had its origin:
design been carried out but in making its funds liab
for deposits, instead Of preferng the billholders ii
e Banks failed to pay their notes. The principle Of m,
tual liability in Bank, much praised on this foo
was borrowed from the Safety Fund system Therews
= exstng with regard to the present sccurtt
!, of the New York system. No other than New York
y United States stocks received. He was oppo
ed TO any system being incorporated in the Constitution
Z He for placing restrictions Banking and the
~ unter these