Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1854-12-15

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the partial failure Of others. and the
I general discredit Of bank paper. and
tho consequent commercial embarrass'
; ment that pervades the country, make
/. the subject of banks and banking. an
absorbing one. 1t is one Of the living
questions that is worthy OF discussion
in an Independent Journal. 1t is q
question too, of no mean magnitude,
and should be met calmly and earsfal-
Ily. Ia some respects, the present is a
most favorable time to consider such q
question. The breaking up Of old par
ty organisations, and the manifest de-
termination of the people to meet new
Questions independent Of party dicta-
tion. and to meet them on their own
merits, gives US cause to hope that the
investigation Of this question will be
carried on without arousing party feel
ings. but in the spirit Of true Ameri-
canism. ~
We have already intimated our
views in reference to banks and bank
ing. We have said that sps OIjsetto all
banks. This, we are aware, is an OBJ
IjecIionable position. Systems of bank
ing are so time-honored, that it will
appear like Vandalism to make an in
discriminate attack upon such venera-
bic institutions. Be it so. We ask
only candid hearing, and then we
leave the reader to Judge for himself.
We approach the investigation Of the
subject, not to promulgate the views
of any party. for. so far as we know,
there is neither bank or anti-bank
party in this country. What there
may be hereafter we can not predict.
1t is understood that we are treat
ing now only of banks Of issue. We
have no objection to banks Of discount
and deposite where they are regulated
by wholesome laws, and are not per-
mitted to enjoy privileges that all citi-
zens, in private life, may not enjoy.
We have one principle objection to
the issues Of notes, as circulating me-
dunn which we will consider in a fu-
ture number. In this we shall allude
only to few minor objections.
We object to paper circulating me-
dium, because of the facility with
which it is counterfeited, and the diff
Guilty of the common peoples becom-
ing so we'll acquainted with bank notes
as not to be imposed upon. This is
but small objection, and we pass 1t
with no further remark.
We object, secondly, because it is
impossible to make the bill holder Sc
cure, on any saytem Of banking here
tofore adopted, except those banks
that are owned and controlled, in part
at least, by the general or state gov
ernments. 1t is useless to talk about
what can be done, if so and so is done.
We have had practical lessons for more
than half century on this subject,
and the result is well known. Banks
have failed and failed badly, and bill
holders have been the losers. Even
State Bank paper has been discrcdited,
and sold at home, at discount. Even
now, the State Bank Of Indiana, one
Of the best in existence, is from one
to two per cent discount for gold-no
small loss to those who happen 10 have
it in large quantities.
But take the banks in general
Who can tell what are their assets
and liabilities? A few professional
bankers or brokers may know what
their published accounts are, but all
experience has shown that there is a
strong probability that the real state Of
the case is very different from thatpub-
lished. Take an instance which is
painfully fresh in the memory of thou
sands. Such was the published ex-
hibit Of the condition Of the Kentucky y
Trust Company. that the shrewdest
Bankers and Brokers were caught
with large amounts Of it on hands. and
many Of our best business men were
savingit as the most reliable bank in
the land. Yet. when the crash came,
the President announced that it had a
circulation Of 0o,000, on available
assets of 100000 and the paper is
now selling at forty cents on the dollar.
The "Safety. Fund.- is even worse. and
selling ut about fifteen cents, though
its exhibits" had induced shrewd
business men to have large amounts
on hands.
But, says the friend of banks these
were chartered long ago, and the law
regulating them was defective. We
admit both-the latter in particular
But whois to know, when a pictur.
) ed piece Of paper is presented, what
law regulates it? Who. that work,
I for living. can keep posted in the
, minude oil bank charters? Money, tc
be money. must be portable. Being