Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1855-03-16
TnE AMERICAN.
VETO MESSAGE.
Gsnfz<men Of the House

RtnafUen OF me H0uSe
Of Representatives.
I respectfully return to you bill No.
93, entitled AN act to amend an &C.
to authorize and regulate the business
ofgeneral banking which originated
in the House Of Representatives, with
brief statement Of the reasons for
Withholding my signature. I regret
that 80 short time has been allowed
me for examining the bill (it having
been received by me at late hour
last mighty but / return ii this early
in order to afford to the representa-
tives Of the people as much time for
reeonsidering its provisions as posi-
bic.
The most serious objection to the
bill is the almost unlimited discretion
airy powers which il con6des to sim
gle oficer--the Auditor OF State
such as the power. at any time, to
charge the stocks which are secure
.ty for the issues Of bank, the ques-
ton Of residence, the power to deter
mine whether q good defence exists
or not to protested note-thus deter
mining in effect whether the bank shall
be wound up or not.
There is an ostensible effort, to be
sure. to distribute the powers under
the bill to the Governor, Auditor. and
Secretary Of State; but on examination
it win be found that those powers
which should be most narrowly watch
ed. are con6ded to the Auditor alone.
There can be no objection to the
Auditor signing and registering the
bills, but here his duties should cease.
II is not good policy to con6de trust
requiring so much judgement. so
much reflection. solarge knowl-
edge upon financial questions, and
so delicate a caution lat every
step, TO any one person. and es-
pecially.to one the onerous duties Of
whose Office, it is known, ar equite
enough at least. to engross the en-
tire attention Of any one man. An
error Of judgement, whether commit
ted through ignorance or haste or in
caution. Is equally disastrous. Be-
sides. while I have not the slightest
reason to call in.question the integrity
Of the late Auditor or tie present in
cumbent, yet It is not too much to
say. that the vast interests which
night be brought TO bear upon an
Auditor under the present law to Sc
cure q particular construction, or the
doing or forbearing to do. a particular
act. might be well calculated to shake
the integrity Of any man who is not
fortified by more immovaLle virtue
than usually falls to the lot Of men.
Its proposed. however. by the
present bill. to devolve share Of the
responsibilities and labor Of the sys.
tenn, upon the Governor and Treasur-
er Of State. To show the impolicy OF
this provision. il ia sufficient to say
that the duties now1 imposed by
law upon those officers who are as
great as they are able fitly to perform.
To assume properly to discharge the
duties imposed, would necessarily in
volve q neglect OF some other of the
public interests. Il isnot well to i'm
pose duties so great and multiIarious
upon any one officer. There is a
limit to those which he is able TO per-
form or properly supervise; and when
that limit is passed, the duties have to
be entrusted TO others, who are not
elected by, and are irresponsible to the
people.
The bill Of 1859 was surely loose
enough, but the construction given to
itby the Auditor add the power ex-
ercised under II by him, have abun-
dainty satisfied me that nothing shor,
Of separate Bank Department. hav-
ing the custody Of the securities. the
bills, the plates. the dies. de-, will in
sure . system worthy Of the slightest
confidence Of tho people.
We have been sufficiently warned
by the experience Of the past two
years, that where corporations have
once obtained power. Il is almost i'm.
possible by Legislation TO arrest the
evils 10 which they give rise. An ear.
nest effort wss made in the Legisla-
ture two years ago to correct those
evils in the Free Bank systam which
were obvious to every rejecting per.
son: yet nothing could be effected
And now again after the lapse of two
years. during which period sharpers
and brokers have literally been rioting
upon the substance Of the people. and
aitsr eight weeks labor Of the peo-
ple's Representatives, q measure is Of.
lered which does not ut all strike al
the root Of these evils; and which In
its effects It's is feared will rather ag
gravate than allay them. Owing te
the general loss Of confidence in the
preset Free Bank system. which ha,
grown out Of the shameless frauds
which have been practiced under II
the evils which those banks are abl
to commit, have. to q considerable ex
tent been corrected by the genera
distrust Of those institutions. But
IL feared that the present Bank bill
would increase those evils. by provi
ding no sufficient Safeguard agains
their recurrence, and by exciting con
euce from being ushered in under tn
auspices Of an effort to put an end 4
the causes Of the present discomfort
By the present bill. stocks Of ever,
Stat. and Territory Of the Unite'
States. at whatever price speculator
and brokers may give them 10 NJ,
York. ara to furnish the basis OF bank
ing; and the scene Is again TO be re
newed. Of spectators and broker
seeking our State to issue paper to cir
culats as money. and, when the rip
moment arrives to depreciate tn
stocks upon which they are based
buy up their paper at heavy discour
and reap from the industrial classes {
the State immense gains.
The experience Of other State,
where system Of banking based NJ
on public sstocks has been tried. HI
demonstrated 10 them the insecurii