Plymouth banner. (Plymouth, Marshall County, Ind.) 1852-1855, 1855-01-11

ital or with barely credit sufficient to
borrow few thousand dollars in stocks,
are furnished facilities under the law. TO
become bankers TO the extent OF millions.
With the currency procured upon the
Grst deposit OF tocks. other securities
have been purchased, and other notes pro-
cured and thus large circulation has
been created without dollar of actual
capital.
Directors and Bank Presidents sre now
issuing this deprecated currancy over
their own counters without any effort.
or, it is believed, intention to redeem it.
With this currency they purchase bills
PAYABLE East. end the farmer instead OF
getting an equivalent for his products. is
paid in circulation which he cannot
dispose of without sacrifice nor retain
in his possession without danger. In
stances are not wanting where the pro-
prisiors OF Banks, after suffering their
institutions 20 suspend, have themselves
mbarked in the business Of buying up
their own paper at heavy discount, and
thus plundsring the laborer of his hard
earnings. You will be wanting in your
duty TO an outraged people if you fail TO
adopt prompt measures to suppress this
practice: which is not only unjust and
disre Puta Bile. bu, subversive of public
morals.
The Indispensable duty of protect
ing the people of the State from the evils
of deprecated paper currency. requires
that TO special indulgence should, under
any circumstance, be granted to any
banking institution that neglects or re-
fuses to redeem its issues in coin. Any
bank refusing TO redeem its circulation
with the constitutional currency of the
country should be Immediately wound up.
No state of facts should be allowed to
justify any delay in closing the business
OF such a bank. Every hours delay Of
harvest-yielding as the delay continues
richer and more abundant fruits; and al
ways a. the expense OF the laborers and
business men OF the country.
The law itself is not only glaringIy de-
fective. bat the construction given to il,
and consequently the practice under il.
Ii was evidently contemplated by lis
fra mers. that no bank should be estab-
Used with capital of less than fifty
thousand dollars, and that ii should have
q convenient and accessible place Of do
ing business. that it shouts redeem its
issues promptly on demand. and tina: lis
propTietors should be at least men of
y. 4
mbark in no other than a legitimate bona
fde banking business. And vel in how
few instances have these requisites been
complied with.
Under the 18th and 29ih sections OF
the law it was undoubtedly compe ;ent
for the Auditor to wind up any Bank not
doing business al the place where Its
bills are payable. To give more effcieD
cy TO this provision and 10 make the du-
ty imperitive upon that officer. | called
the attention Of the Legislature to the
subjsct in my last annual communications.
but having failed 10 procure the required
!egisla tion. | renew my recommen da.icns
on this pcint.
TIE great error in the law. is. thu the
entire responsibility of the system is
placed in the hands of single individual.
and he an officer Of State already charged
with duties end trusts of the most i'm
porrant character. This single individ-
ual determines upon the validity Of the
organization. the character and value of
the stocks, issues the circulation, holds
the securities. passes upon the correctness
OF the reports delivers powers of at
tornev for the collection of interest, end
in short settles ell questions connected
with the banks according 10 his own un.
aided judgment. With bond of ONLY
SO Coo he is the custodian Of near
500 coo OF the public securities.
If ii be the design OF the Legislature 10
continue this system, ii will, in my
Judgment be ne necessary. in order to secure
the confidence of the people. and 10 pro-
tect their interests. to provide for the
organization o! a Bank Department. with
a Board of Bank Commissioners, with
full power to determine upon the local
ity of the Bank. the necessity for its
creation. the solvsncy Of the securities
offered. and who should, also. be charged
with their custody.
also recommend, that, inasmuch as
the term Of the present incumbent is
about 10 close. committee of the two
Houses be appointed TO investigate fully
the coalition Of ell matters pertaining
TO tho Banks connected with the Office
OF Auditor OF State. A full report will
doubtless do much TO allay .he spprehen-
sions Of the public, and establish conf
dence wherever merited.
The valuable and interesting report of
the Auditor will present you ia detail the
opera items Of the Free Banking system m in
his hands.
1t viii doubtless be the policy of the
Legislature to provide for the immediate
closing, and withdrawal from circulation
OF the pa per. of all such institutions as
persist in the violation of the palpable
provisions of law. In doing so, due re-
gard should be had both to the interests
Of the people, and OF the banker, so IS to
prevent undue excitement aud apprehen.
sions on the one hand, and loss and in
solyency on the other. A contrary pol