Weekly Indiana State sentinel. [volume] (Indianapolis [Ind.]) 1853-1861, 1855-02-10


cured beyond any doubt, undsr all circum-
stances He would, for this purpose, go fur
Their than the amendment Of Mr.. NewcOmb
proposed to go-he would vote for the amend
ment of the gentleman from Boone, Mr..
Landers. As to the security of twenty-five
per cent in the 46'h section. he did not ap-
prove it. If it was based upon real estate.
and by mortgage, he would e. for the bill.
Mr.. Bonner-as the bill now was he would
vote against it. He was in favor of Mr.. New
combs amendment, for if no higher security
was demanded than specified in the bill, the
bankers may prefer to have their banks wound
up, when stocks are very fluctuating, than to
depOsiie additional security. The Indiana
five per cents were once at par, but now so
much below that that with the amount spe-
clhed ia the bill, there would be loss Of
fve per cent. to the bill-holder. The tweHty-
five per cent specified in the 40 section. is
no security, for it is based on taxable property
alone-if on real estate it would be very diff
fereut.
Mr.. Sidwell thought that the system would
work if the securities were raised TO one hun
dred and tIce1ty fue. The anxiety for bank
ing Investments under the present law salts
fled him thaqthere would be banking enough,
if this amendment should prevail. As a sys-
stem he approved it in preference to any
other.
Mr.. Murray remarked that the best way to
ascertain what the people will approve is to
consider what we think is right The people
are men just like Us; what strikes US as right
will be approved by them. But we ought
not to be controlled by preconceived opinions,
we must act according 10 circumstances. SO
controlling are these, that laws cannot be en-
forced against them, as is seen in the ten dollar
law of Ohio. lie b-leved that If the 46th
section wai so amended as to require mortg-
ages on unncumbered real estate, il would
be sufficient. No capital will be uselessly
locked up, and the bill holder could be still
further secured. 1t is true that bankers de-
clare they cannot 81 into operation under this
law as IT Is, but be was not governe by what
they might say. BY our own convictions.
aud not by what Others say, ought we TO be
controlled. We must have some system of
banking. and the question is, whether it shall
be one secured, or one that by the Ascending
OF cashier, the bill holder may suffer?
Mr.. Frazer said thai the class Of men who
bank in Indiana are energetic, but not wealthy,
and unnecessary security should not be de-
mauded of them. To require a real estate Sc
curity would prevent its sale.
! Mr.. lIervey said that under existing cir
cumstances the securities demanded must be
greater than simply necessary to redeem the
notes issued-enOugh must be required to re-
store the shaken confidence of the people in
the sy stem. No banking system can be Sc
cure unless ii embraces the individual liability
clause, so as TO operate on all the stock holders
There must also tie mutual liability
among the different banks, for if none, they
will wage war upon each other that will i'm
pair public conf ence Another objection 10
the bill was that 1t gave control to the
State over the ag5resa te amount Of their
Issues So much may the circulation be in
creased that inflated prices will be created, and
then the banks, governed by their own especial
interests, may suddenly depress the value of
every thing.
MI. NewcOmbS amendment then prevailed.
Ayvs7l noes %, and aud the securities fixed at
one hundred aud twenty five, excep; in cases
where all the stockholders were residents of
this State, and 6aaa Jfie own,rs of the stock.
when no greater than one hundred and fifteen
should be required. In behalf of making
such dissemination in favor of resident and
bona fide stockholders.
Mr.. llillyer 81 that such di<criu ination
could be safely lade, because the individual
liability clause would operate in connexion
with other provisions Of the bill, to its fullest
extent. The control exercised by the ndi-
vidual ability, Is seen in the operation Of our
present law. There are thirty four Of our free
banks which have always paid specie, all these
are owned by bOna fte holders Of the stock
and residents of the State. They all have a
regular place Of doing business; no complaint
has been made of any Of these, although some
of them are based on FIVE per cent securities.
These results have been brought about, by the
controlling Influence of the individual liability
clause. IL has proven a Wholesome restraint;
a security sufficient to protect the bill holder
in connection with the deposites, now required.
This bill demands still greater depOs ties and
contains provisions giving greater efficacy to
the individual lIabiaty clause. Under such
circumstances. it is entirely unnecessary to de-
mand of them greater deposite than one
hundred and fifteen dollars worth of bonds.