Weekly national intelligencer., 1854-11-11
INDIANA FREE BANKS.

The reader is already apprized of the general panic
which has spread the country in regard these
banks. They all based upon State stocks
rites for the redemption of their circulation but the
amount Of specie small alarm their solvency
easily spread when started report from the
Auditor Of Indiana gives the Of the banks and the
stocks upon which they based from which it appears
that twenty of them had large amounts of Virginia
6s The Cleveland Herald gives the following account
Of their organization and probable condition:
By the Constitution Of the State of Indiana the stock
holders of banks individually liable an
and above their stock equal their respective
All bills at all times redeemabe in gold and silver,
and no law can be passed authorizing the suspension Of
specie payments Bill holders have preference over other
creditors and bank is allowed take greater rate of
interest than individuals can take.
"Ata bank meeting of the business Of Indianapo-
lis the report Of the Auditor of State read and gave
great satisfaction. The Journal says:
Our citizens the utmost confidence in these nstitu
TONS and will do not doubt contiIue receive the
money in the transaction Of their business Those who
tor as fast possible and within very short time currency
will be too do the business of the country per-
holding this money ought to sacrifice single
and where people viii not receive it in discharge of
debedness why let them keep cool until they better
In very short time the panic will be and all will 60
smoothly again.
The banks rapidly returning the bills to the Au-
dtor and at the date Of his report October 25 he was
canceng from thirty to fifty thousand dollars per day
The Auditor winds up his report as follows:
1T to me, from efu examination of the
and with kind of forbearance the part of the public
they would be all fully prepared high po
stion they have attained under upon them unparalleled
in the history Of banking in the United States
Recurring this subject on the 4th instant the Cleve
land Herald says
ssWe lately published statement showing the names
of the Free Banks of Indiana and the character Of the
stocks deposited with the Auditor of State for the re-
dempton of their bills That statement doubt would
satisfy every that the bill holders of Indiana Free
Bank money could ultimately suffer only that loss which
would arise from depreciation of those various Stocks
and so far as that fact will give confidence very we'll
But the availability Of bank bills and their value as
circulating medium depends entirely upon the facility
with which they be converted into coin The public
must be satisfied that there is place convenient Of ac
where those bills redeemable without delay dol
lar for dollar in specie Those requisites the Free Bank
bills Of Indiana as general thing lack The banks
in many instances located at of-the-way places at
points little knswn and when those points are reached it
is discovered that the banks nomnay located there
but that their business is done in Ohio Disguise the
matter you may the fact is too garng that these
banks do wish do business their counters
but expect to make their profits by getting circulation
abroad and to retain that circulation throwing embar
easements in the way Of the bill holders getting their
money into specie Such banking cannot prosper.
" Ultimate security alone win not do the basis for the
circulating medium Besides this ultimate security is
beyond the reach Of the bill holder, and formal process
heOooooIAiy
rive any benefit from it, and the remedy for
is too tedious expensive and remote to satisfy the keen
demands of trade.
'sWben these Free Banks Of Indiana established at
business points where the exgences of trade and
require banking facilities and where their doors
thrown open for the regular and legitimate ransao
ton of daily business and when a summary and cheap
process is afforded to compel immediate redemption Of
bills in gold and silver then will that money be good
and not till then
"We notice that Auditor Dunn Of Indians, has given
notice that he will not sell the deposited stocks until after
sixty days notice in New York. London or Paris and
then should he deem it for the interest of the
to postpone the SALE This needs
no comment upon the Indiana Free Banking system. No
comment is necessary upon system Of banking which
must give notice to England and the Continent that far
has presented fve-dolar bill for redemption and
chin reasonable time after sixty days notice the bill
will be redeemed by sale Of State stock"