The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1854-11-21
Bank Matters.

man, farmer, and every body else who han.
dies dollar. Why, we have just got this
to say-that, as you very well know, bank
matters are in terrible muss. and il becomes
every fellow of you to look out for himself.
Blu, how does the whole affair standi you ask.
Well, we intend having now little socia-
BILE chat on this very subject. You know
very well that the present"Free Bank Law"
was established after long debate and much
difficulty, as the best compromise of a law
which could at the time be enacted. II was
thought to give ample security to bill hold.
ers, to hold stockholders sufficiently respons-
ible. and to afford those disposed TO enter
into the Free Banking business full oppcr-
tunity of making enough to repay them am
ply for the capital, responsibility and labor
invested. Advantage has been taken of
this law no doubt. by certain parties. Nearly
one hundred Estate Stock Banks" were
started, each one placing with the Auditor
certain amount of reliable stock to secure
it's circulation, the stockholders at the same
time being esp,nsible to the amount of their
subscriptions. The people entered into the
arrangement with full confidence in the law
their representatives. had established, and
State Stock money went everywhere-on
river and on land-everywhere as circula-
ting medium, and we were all very happy
in obtaining it. Tue people knew the law
was defective in some parts, but hoped il
he'd excellencies ofits own which would car
ry it out.
But most formidable hostility was com.
mcnced against these banks, and probably
from where We should have least expected
it. The Cincinnati brokers attacked it, and
commenced the system of gathering up the
notes of the respective banks, sending agents
to the institutions and demanding specie
They had evidently fully matured the at
tack before il was commenced, and thous
ands of dollars were returned to many banks,
time and time again, until certain ones re-
fused to further accept such orders, and sus-
pended so far as they were concerned. In
return, these very sharpers who had started
the whole trouble, were compelled to close
their shops, and in some cases to flee from
an outraged community. The merchants Of
Cincinnati, aud afterwards the merchants Of
Louisville, sought II sustain the credit Of
our banks, but IN vain. The people only
knew they could not deposit the funds, could
not purchase goods with them at par, and
Nh Ep. iix of raf,, sot 70 tai 10
notes. The brokers of other large cities en-
deavored to speculate on these notes, and
ruined their reputation in the respective
cities in which these brokers fourished-
And such is about the condition OF things
now. The people are asking-ure these
banks secured!-are they all swindlng
shupsi-what must we do with their notes!
must we sacrifice what we have, and re-
fuse TO take any more! They say, the STATE
Bank refuses to have anything to do with
these banks. with but few exceprions--bow
then can ice trust them! II is probable, and
has been charged, that the State Bank has
interested motives i'm condemning these Free
Banks-but with that we shall have nothing
TO do, at least so far as the present evidence
is concerned. The State Bank here " Ill
take nothing on deposit OF our Free Banks
but the notes of the Canal, Crescent City
and ". Y. g. Va. State Stock Banks OF Ev-
ansvlle. 1t thus says the notes of some
ninety other Banks in the State are not re-
liable funds for the transaction of our bust
ness. Are they not!
These banks are all secured or pretended
to be secured. Mr. Gregg, of the N. A.
Tribune, has taken the trouble to visit the
{ A udiicr. look over his books, and make a
: table Of these securities. We make the fol-
lowing extract from his remarks:
Taking this table as the criterion by which
a to Judge. and at present we know OF no bet
}, ter criterion, there are but ten or twelve o!
d the whole list that we would discredit.-
These may be summed up as follows:
Bank OF Connersville, ConaersviLle.
i Bank of Bridgeport. Perry co.
a Bank Of Attica, Attica.
S Western Bank, Plymouth.
4 Bank of America, Morocco.
al Government Stock Bank, Lafayette.
Traders Bank, Tsrre Haute
Drovers' Bank, Rome.
e Plymouth Bank, Plymouth.
e Orange Bank, PoseyriIis.
o. Perry CO. Bank, Ccaaelton.
The reason why We would discredit these
Banks. in the absence of any information
"a calculated to inspire public confidence il
r their ultimate soundness, is simply thls:-
They are all based upon Indiana cents
which are at present discount of Is to II
1, per cent, ard being owned and controlled By
non-res,dents, the Individual liability claus,