Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1855-01-12

State Bank will expire; and. therefore,
II devolyes on the present Legislature
to make some disposition OF the inter-
est that the State holds in that 1nsti-
tuition. tits wisely provided by the
constitution that. hereafter. the State
shall not be stakeholder in any bank,
aor lend her credit to any corporation.
With the object of carrying out this
principle. and keeping in view the in.
terests which the State holds in the
Bank. consisting of stocks. sinking
fund, surplus revenue, real estate, and
other lssets, / recommend the APP
pointment of Board of Commission
ers with full authority to make set
clement of the affairs of the State and
the Bank, on the expiration of the
charter
The State is liable for the bonds
originally issued for the capital stock,
upon which the Bank has promptly
paid the interest, and the stock. at this
time, commands premium.
The whole Legislation Of the State.
as well rs the letter and the spirit of
the constitution, declares the expedi.
ency Of a separation ofthe interests of
the State from all corporations. Icon
cur,.fully, with the Auditor Of State
in his views rs 10 the propriety Of the
future investment OF the sinking fund
in the bonds Of the State.
The law upon the subject of Gene
raj Banking, has failed To- accomplish
the purpose for which II was enacted.
II has not furnished, for the use OF the
people, sound circulating medium.
The experience of the two past years
fully establishes the correctness Of my
remarks addressed to the last General
Assembly on the subject of banking:
and | may adopt, in its fullest mean
ing. the sentiment then expressed,
chat past events have clearly shown
that the restrictions provided by the
law are insufficient TO prevent abuses
Of the privileges granted"
II Is q matter Of regret that this
subject did not engage the attention Of
the General Assembly at its last ses-
sion. | again urge upon your consid-
Grafton, the views expressed on this
question az that time.
The country having overloaded.
necessary demand for exchange 70
meet Eastern liabilities, was crented.
This state Of affairs caused the bro
ker 10 seek for gold and, In pursu.
ing this object, he placed himself in
the position Of the merchant or bust
ness man. aud was fulfilling one OF
those vacations not uncommon in such
conditions Of the country. II was
fortunate circumstance that the broker
came early. We had. in less than
six months, issued more thar six mil
lions of currency--an amount not re.
quired for the maintenance Of n
healthy condition in our monetary af-
fairs; and il the broker had delayed
his visit fora year longer. greatly in.
creased amount Of paper circulation
would have resulted in greatly
increased pecuniary losses 10 tho peo-
pie.
The practical operation Of tho law
in many instances. has been that the
individual has not sought to locate
and commence the business of bank
ing to accommodate the commercial
community, but to borrow money for
himself under the sanction Of the law,
Men without capital or with. barely
credit sufficient to borrow few thou
sand dollars Of stocks, have been fur
nished facilities under the law, TO be-
come bankers 10 the extent Of millions,
With the currency procured upon the
first deposit Of stocks, other securi-
ties have been purchased, and other
notes procured, and thus large cir.
sulation has been created without n
dollar Of actual capital.
Directors and Bank Presidents are
now issuing this deprecated currency
over their own counters without any
effort. or, il is believed. intention ev-
er to redeem il. With this currency
they purchase bills payable East. and
the farmer instead of getting an equiv
alent for his products, is paid in a cir
culation which he cannot dispose Of
without sacrifice, nor retain in his pos
session without danger. Instances
are not wanting where the proprietors
OF Banks, after suffering their institu.
tons to suspend. have themselves EN-.
barked in lthe business Of buying up
their own paper at heavy discount,
and thus plundering the laborer Of his
hard earnings. You will be wanting
in your duty to1an outraged people IL
you fail to adopt prompt measures to
suppress this practice, which is not on
ly unjust and disreputable, but subver.
sive of public morals.
The indispensable duty Of protect.
ing the people Of the State from the
evils of deprecated paper currency
requires that no special indulgence
should. under any circumstances, be
granted to any banking institution that
neglects or refuses 10 redeem It's issues
in coin. Any bank refusing to redeem
It's circulation, with the constitutional
curreuncy Of the county, should be
Immediately wound up. No state Of
facts should be allowed to justify any
delay in closing the business Of
such bank. Every hours delay af-
fords TO the broker and the specula-
tor. a haryest-yielding as the delay
continues. richer and more abundant
fruits; and always at the expense of
the laborers and the business men Of
the country.
The law itself is not only glaringly
defective. but the construction given
4. 2. a II