Plymouth banner. (Plymouth, Marshall County, Ind.) 1852-1855, 1854-11-09
State Stock Banks.

tuition authorizing the establishment Of
individual banks.
The 9TH Section Of the 1lth article Of
the Constitution SAYS: "Ali bills or
notes issued as money, shall be, at all
times redeemable in gold or silver, and
no law shall be passed, sanctioning, di-
rectly or indirectly. the suspension. by
any bank OF banking company, OF specie
payments"
Ii will be well to notice particularly.
the wording of the Section quoted, and
how determined its authors must have
been to prevent suspension of specie
payment either directly or indirectly.'
and that the notes of all. banks should
be lat all times. redeemable in gold or
silver" Past experience had taught our
representatives in Convention and great
majority of the people, the evil conse-
quences of Bank suspensions-hence the
positive and unequivocal requirements
in the foregoing Section of our State Con-
stitution.
The act authorizing the institution of
those banks, authorizes the holder of their
notes, alter ha'ing demanded specie up
on them, TO have them protests ted for non
payment by Notary Public in the usual
manner. and forwarded to the Auditor of
State for collection. who shall forthwith
give written notice TO the maker or ma
kers OF such notes to pay the same; and
If not done within thirty days after such
notice. the Auditor shall Immediately
(unless he is satisfied tina, there is Just
ard legal cause for such refusal to redeem
give notice in one of the newspapers pub
lished at Indianapolis, that all the eircu-
isting notes issued by such person or as
sociation will be redeemed out of the
Stocks held by him in trust for that pur.
pose. &c.
Thus the law controlling those ins.i-
iuiions directly authorizes suspension
of tr1enty nine days. and the sill holder
Is unable to help himself--without the
slightes, compensation for his time and
trouble. nor even provision in the act
making the banker responsible for the
costs Of protest.
This was not the intention Of the 9TH
Section of the Constitution which we
have quoted. The bank may suspend
to-day. and in % days from this time, re-
deem its paper as fast as presented for
one day. and on the next suspend and
continue to refuse for 20 days more, and
the bill holder never can indemnify him.
self according to the provisions of the
act-fur;her than to get dollar for dollar
on the Banks Issue.
1t is certainly the greatest species of
FOLLY to renderir necessary BY legislative
enactment, that the Undertaking re-
fused to redeem his paper--must have a
'uritten notice from the State Auditor
that if he does not do it. he will, lin thir.
fy days. make it out of the stocks pledged
as security. The banker knew this be.
fore. The law providing the bill holder
such protection was plain 5efore him,
and his bank should be promptly closed
upon the issue Of the notice of the Au-
ditor.
Bank panics are generally of bu, short
duration. but the effects produced by the m
are often lasting and injurious to every
branch of business. The intention in au-
thorizing the issue of bank paper By law.
Is, that it shall be convertible into coin
lat all times" as our State constitution
correctly provides. Should those issues
read as matter Of fact interprs alton
make them read; /. G. 1.-THE Tippecanoe
Bank will pay one dollar to the bearer
on demand. provided he is not in hurry.
and don't get this note protested, then in
twenty nine days after we receive notice
from the Auditor of State that it is our
duty to do SO" &c. With this filing up,
dated and signed by the President and
Cashier it might get such a run, that lop-
cared hound could not keep trail. and we
could not wonder that brokers and sha-
vers should Try the bottom of such issues,
if they had any. Such is fair reading
of the Indiana State Stock issues. when
the officers managing their affairs. see
proper to make them so.
We have no disposition to visit the
Sins Of delinquint institutions upon the
heads of those that promptly redeem their
issues as fast as presented at their eoun-
ters. one of which is located at this place.
Will another State Legislature adjourn
without an effort to correct this error,
That there is gross error both in the act
and in the practical operation of the in
situations it has created, there can be no
doubt. Their trial was but an experiment
at best, and surely the people are realizing
the benefit of what little experience they
have already had, and would gladly return