The Richmond Indiana palladium. [volume] (Richmond, Ind.) 1854-1855, 1855-01-12
Number 4.

| The securities of no bank have been lessened
IN any instance, but where parties. by agreement
have surrendered notes and taken bonds Care
has been taken TO give the least valuable securi
lies first that deterioration should ultimate
lHnccur.
Where banks have failed or may fail to protect
or take up their notes 10 the satisfaction of hold
ers thereof. have determined to collect the ac-
crued interest upon their bonds and reinvest it
! in additional securities, to strengthen the fund
for the redemption of their notes by the action Of
compound interest.
/ II is quite probable that number Of the ex-
isting stock Banks viii voluntarily close their op
erations and finally wind up. Several have al
ready sgnfed their intention to close. and are
engaged in redeeming their issues. Others have
made their arrangements 10 continue business III
a legitimate and regular manner, provided the
action of the Legislature be such as to permit them
TO operate without embarrassing and impractica-
BILE restrictions.
1t is obvious that the existing banking law re-
quires careful revision and amendments.
The great amount Of capital which has been
invested in banks in the State, should be per-
mtted to remain, if 1t be content to remain upon
terms compatible with the public interest. and
that interest can only be properly protected by re-
quiring the most certain and prompt payment of
all the notes of every bank that may be allowed
to issue bills
No security should be taken upon any other
pretext basis, than the absolute intrinsic value
!! Of such security. Five per cent. and six per
cent bonds should only be estimated at the rela
tive value between them, without reference to any
iluctuating condition of the market which may
be made to vary according to the cupdity and
| stock jobbing schemes of those who expect 10
profit BY ephemeral prices or fictitious fancy
rates of the stock market.
The reliable character of the State, and lis
ability to pay the interest upon its bonds. should
form the principal estimate of their value.
f There are some alterations and restritons to be
r made to the present law which seem to attract
, general attention. 1t is conceded that every
D bank should have a location and business house
5 of permanent character. That 1t should be
i subjected to the ordinary rules Of banking busi
n ness. 1t should be kept open at leas. five hours
Il in each day-it should have \ due portion Of re-
: sponsible stockhoders-lt should never be per-
h mitted to suspend specie payments except upon
the forfeiture of all its franchisest should give
such undoubted security as to availability and
f value would leave no apprehension on the
mind of the bill holder of its ability and certain
h IL to pay the last cent of its issues 1t is sug-
a cested as to location to prevent the practice of
J selecting remote and unknown situations. that no
# bank should be located at any point which does
n not contain from two to three thousand perma-
i nent citizens. That an amount of from twenty
d to twenty FIVE per cent. of securities, over and
|, above the amount of bills in good interest pay
n ing bonds, equal TO six per cents or in good re-
i al estate, valued at two-thirds value, without
n reference to the improvements of perishable
is nature thereon to be appraised by disnterested
appraisers under oath, in such manner as SINH
lar real estate is taken in security for the trus
t. funds of the State.
D. 1t is also respectfully suggested to require the
establishment of An agency of equalization or re
1T demption, al indianapolis, at other con
ay,d he StoS, ybar IL
several banks will be compelled to have their pa
II per redeemed in eastern sight exchange at a rate
varying from to and half per cent
l. where bill holders may be disposed to receive
al such exchange at such rates A plan similar tc
ar this in principle, is in existence in New Yorl
d and in Massachusetts, and serves to keep up uni
4 form value Of the notes of all the banks. howev
N er remotely they may be located.
IT, under such regulation. bill holders refuse
to receive exchange, as before suggested then thc
:, bank upon which they may hold bills. should
ID have such reasonable time may be Just to fur
J. nish and pay coin
ii With these and such other improvements a.
/, experience and She wisdom Of the Legislature
ii may indicate, it is confidently believed that
1r very useful, safe and necessary system Of Bank
a. ing may exist, capable of resisting the effects
e pan'cs and pressures, and Of affording circula
ir ting medium which will have credit both a
home and abroad and which is absolutely neces
j sary to the business wants Of our enterprisins
a. community.
I'd Whilst have never been the advocate of an,
er system Of banking as being better than the US,
of the precious metals, L am free to say that
r think the day has passed when the people vii
e be willing to create or sustain any 5ther system
ID of banking than that which is based upon th
Mt most positive and available securities.
IT The Auditor also calls the attention Of the lie
gisature to the fact that the charter of the Stat
s. Bank will expire before another Legislature shall
" convene and that it win be the duty of the pres
i ent Legislature to make disposition Of th,
Of interest of the State in that institution He ais,
gives the statement of the Bank, made by its Of
IS fcers, on the 31st of October, 1854, which WI
it have heaetofore published He recommends tha
a. board Of commissioners, unconnected with th.
" present business Of the bank, to make final set
,e tlement between 1t and the State. sf
TX - 80 ss@ sTs
Shaving for Money.
y We pity the man who wears out his energie
d in the accumulation of riches. which, when
N massed, he win have lost the capacity to enjoy
, He finds himself at the end Of his labo.s {
guest at his feast, without an appetite for it