The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1854-11-01
[For the Evansville Journal.I
THE EXPOSE.
A. H. SANDERS, ESQ:


A. H. SANDERS, ESQ:
Pursuant to my promise in your paper Of
yesterday, proceed to lay before the pub.
lie the evidence under my control, of TN
character and condition of "The Indiana
State Mining ard Manufacturing Company"
and "Conant's Coal Bank" as Banking
corporations, which character they have
both assumed, by the issue of notes pay able
to bearer to be used as money.
offer first sections l, 9, 8, d, 5 and 6, of
article eleven of the present Constitution Of
Indiana, to show that no Banking Corpor-
alton except the old State Bank, whose char.
ter has not yet expired, can exist in Indiana,
unless constituted in conformity with the
provisions of the Constitution here quoted.
would here add that the Legislature has
enacted a general Banking Law, pursuant to,
and strictly adhering 10 provisions of the Sd
Section, and embodying the individual liza
bility pro, ision of the 9th section quoted;
which law will be found in Rev. Code, 1852
Vol. l, page l52 to 16l, and is also published
and to be found with all the free Banks, in
pamphlet form.
ARTICLE I.-CONSTITUTION.
Sec. l. The General A ssembly shall not
have power TO establish, or incorporate any
bank or banking company, or moneyed in
situtiOn, for the purpose OF issuing bills Of
credit or bills payable to order or bearer, ex-
cept under the conditions prescribed in this
constitution.
| SEC. 2. No banks shall be established
otherwise than under general banking law,
except as provided in the fourth section oi
this article.
| SEC. 3. If the General Assembly shall
enact general banking law, such law shal
provide tor the registry and counte rsigning,
by an officer OF State, OF al paper credit de-
signed to be circulated as money; and ample
collateral security, readily convertible into
specie, for the redempt N o. the same in
gold or silver, shall be required, which col
lateral security shall be under the control Of
the proper officer or officers of State.
Sec. 4. The General Assembly may al
so charter bank with branches, without
collateral security, as required in the preced-
ing section.
/ OH. u IL tue OeHeTdI Assembly SndI
establish bank with branches, the braach-
es shall! be mutually responsible for each 9TH
er's liabilities, upon all paper credit issued
as money.
| SEC 6. The stockholders of every bank
or banking company, shall be Individually
responsible to an amount over and above
their stock, equal to thei7 respective shares
Of stock, for all debts or liabilities of said
bank or banking company.
The conditions and restrictions requisite
to the existence of al banking corporations
to be created in Indiana, being thus definite.
y fixed by the Constitution, and the banking
law, faithfully executing the constitution. il
follows, that every banking corporation
thereafter created in Indiana is created un
der and by virtue of this organic and Stat
ute Law, or else in fraud and violation uf
that law.
And | will here assert that "The Indiana
State Mining and Manufacturing Company"
and "Conant's Coal Bank were organize
as banking Corporations, and have proceed
ed to exercise banking privileges in fraud
and violation and open defiance of bo,h9the
Constitution and the general banking law
of the State.
Having made this broad assertion, | will
now proceed to the proof, and will show that
this thing has been done under color and
cover of an act and an amended act of the
Legislature to encourage Manufacturing, Min.
hor nd
and that the public may Judge for themselves
what sort Of pretext the acts of the legisla-
ture thus sought to be perverted from man
ufacturng to bank purposes, afford for the
latter purpose, quote so much of the origi-
nal act as bears upon the case directly, and
give the substance Of other portions which
may incidentally effect the case, and give
the amended act which is short entire:
AN ACT for the incorporation of Manu-.
featuring and Mining Companies, and
Companies for Mechanical, Chemical.
and Building purposes. [Approved May
90, 1852.
SEC. /. BE ii enacted by the General As
sembLy of the State of Indiana, That when.
ever three or more persons NAV desire to |
form company 10 carry on any kind Of man. |
ufacturing, mining, mechanical, or chemical
business, they shall make, sign, and ac-
knowledge, before some officer capable to
take the acknowledgment of deeds, a CERT.
ficate in writing, which shall state the cor.
porate lame adopted by the company, the |
objects of its formation, the amount of the |
capital stock, the term of its existence, not.
however, TO exceed fifty years, the number
Of directors, and their names, who shall |
manage The affairs of such company for the |
first year, and the name of The town and
county in which its operations are to be
carried on, and file the same in the office of
the recorder of such county, which shall be