Gallipolis journal. [volume] (Gallipolis, Ohio) 1837-1919, 1854-10-26

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by these failures. On Thursday last,
10Th inst, the Kentucky Trust COmpa-
ny Bank at Covington, Ky, also the
Newport Safety Fund Bank, at Newport,
KY, suspended. The president of the
Kentucky Trust Company Bank is the
owner of the Connersville Indiana }
Bank, and simultaneously with the
bursting up of the former the latter also
suspended. This caused a general
panic among note-holders of the India
na Free Banks, and as a natural conse-
quence heavy run was made upon
these rotten concerns. We have not
learned the result of this run, but the
notes of nearly all the Free Banks are
refused by the Cincinnati Bankers and
business men. To complete the havoc
we believe the owner of the Connersville
bank should be suspended-5y tie neck.
The only notes of the Free Banks that
are received as bankable by the State
Bank of Indiana, are those of the banks
at Indianapolis, Terra Haute, Madison
and Westfeld. In this place the notes
of all Indiana banks have been refused
for several days, except the State Bank
of Indiana, which is perfectly sound.
Within the past two months upwards
of eight hundred and fifty thousand dol
lars of this Free Bank paper has found
its way to the Office of the Auditor of
State for cancellation. This, together
with the general sweep of the outstand-
ing notes of these banks, will cause
deficiency in the currency which will be
felt for some time. The State Bank
cannot fill the vacuum, for the extraor-
dinary demand for coin has rendered
her powerless to give any relief.
In relation to the future, the Cincin-
natl Gazette announces that an arrange
ment is in progress between the Cincin-
natl Bankers and the Banks of Ohio,
Kentucky, Wheeling, and the State
Bank of Indiana, to which the former
have already agreed, which promises to
bring relief to the money market
Under this arrangement the Bankers
agree not to sell exchange above one
half of one per cent. premium, for six
months, and not to return the notes of
any Bank for redemption for the same
period. This will put stop to the Gas
sorting" business, and the good Banks
will, therefore, be able to keep out their
circulation. This arrangement will go
into operation on the 1st proximo.
Some arrangement of this kind might
with profit to all concerned be made
The public mind is unnecessarily ex-
cited, and something should be done to
give assurance. The issues of the Free
Banks are secured on what are consid-
cred good public stocks, and if these
securities are not forced on the market
in an untimely manner are unquestiona
bly, sufficient to redeem the issues with
small loss to the public. A panic forces
the issues and the securities on the mar
ket, and the labor of the country suffers
the loss.
The following sensible remarks with
reference to the Indiana Free Banks,
we copy from the Madison, Indiana,
Courier:
1t seems to us that in the present
state of affairs it is necessary that a
proper discrimination be made. 1t is
admitted that some of the Indiana Free
Banks are doing a regular legitimate
husiness-the local business of the place
where they are situated, receiving de-
posits, making discounts, and redeem
ing the notes when presented. AS a
specimen of this class, take the Indiana
Bank in our city, whose securities, also
filed with the Auditor, are undoubtedly
good. Let no man suffer loss on such
There are other concerns that
have neither banking house, President,
Cashier, or other officer in the State of
Indiana, and do nothing in the regular
business of banking; their owners re-
side in New York or elsewhere, and
very frequently their notes are got up
with titles expressly to deceive the pub i
lic-sometimes in imitation of notes of
New York Banks, and at any rate in
such way as scarcely to indicate that
the place of payment is in Indiana,
These are virtually frauds, and what
ever may be the character of the secu-
rites in the hands of the Auditor. it is
very certain there is nothing in the char
acter of the owners which entities such
paper to general circulation. We
think the sooner such paper is put to the .
test the better, and if the holders of it
can. by any of the recent charts fnd the .
place where they can get the metal for
this kind OF money, the sooner it is done
the better.
The Neacport Safety Fund Bank.-
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