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

therefore, taken from the Cincinnati Gazette the
following synopsis and extracts. II is but
stump speech re-yamped at best, and col
umns can be occupied with far more interesting
matter:
" The ordinary expenses OF the State Govern
ment the present year are S54, 26l A, being only
per capita, four and onethird cents for each in
dividual. The value of taxable property in tie
State is $3.50, ,418, las, which Is an increase in
ten..years of Sl74,18O, l88 Since the year 1874
there has been paid of the principal and interest
of the State scrip, So, pa, 705,92, and of the in
terest on the State debt, S1,798,4l2,9 80. The
Governor says
On the first dav Of November, 1854, the State
debt of Indiana amounted to S703l ,O03:50,-
OF this sum, the State has iquidated the amount
of S2e7, ,864:5o, leaving of the public debt the
sum of So, ,803, l39, of which sum 81, 763, 139
is bearing two and half per cent. interest, and
the balance to-wit S5,o4O, 900, is bearing FIVE
per cent. interest. The aforesaid sum of s227,
684 80 having been paid by the State, under the
act OF the General Assembly creating the Sinking
Fund, these stocks remain on the books OF the
Agency the interest credited and applied annu-
ally To the reduction of the principal of the pub
lie debt Hence, so far as the interest Is concern
ed, the stock belonging 10 the State is still con
sidered outstanding
The Governor reminds the Legislature that be-
fore the next session the charter of the State
Bank will have expired. and he recommends the
appointment of Board of Commissioners to
make settlement with the Bank, and that the
funds of the State which the Bank holds shall
be invested in the bonds of the State. This is
also the recommendation of the Auditor
The Governor does not spare the Stock Banks
and Bankers of the State. In speaking of the
law he repeats the words he used two years ago,
''that past events have clearly proved that the
restrictions provided by the law are insufficient
to prevent abuses of the privileges granted. -
He says demand for eastern exchange caused a
run upon the banks for specie by brokers and
others. 1t was fortunate circumstance that the
brokers came early, for the bankers in less than
six months had issued more than six millions of
currency, and if the broker had delayed his visit
year longer, there would have been a larger pa
per issue, which in the end would have increas-
ed the losses sustained by the people. The Gov
eTnor says
.sThe practical operation of the law in many
instances has be en- that the individual has not
sought to locate and commence the business of
banking to accommodate the commercial commu-
ns bn Of to h b2rr3w W for himself Hnder dc the
barely sufficient to borrow a few thousand
dollars of stocks have been furnished facilities un-
der the law to become bankers to the extent of
millions. With the currency procured upon the
first deposie of stocks, other securities have been
large circulation has been created without dol
lar of actual capital
He says the banks are now issuing these bills
over their counties without the ability. or. 1t is
believed, the intention, of redeeming them that
/ there are instances where proprletors of banks
after suffering their institutions to fail, engage III
! the business of buying up their own paper at q
heavy discount. g You will be wanting says
/ the Governor, ''in your duty to an outraged peo
/ pie if you fail TO adopt prompt measures to sup
( press this practice, which is not only unjust and
/ disreputable, but subversivesof good morals.'
We give entire the remainder of the message
in the Governors own words, so far as it relate;
| to the Free Banks:
The indispensable duty of protecting tht
I people of the State from the evils of deprecia
ted paper currency, requires that no special in
! dulgence should, under any circumstances, b
i granted to any banking institution that neglect:
or refuses to redeem its issues in coin. ANY banl
refusing to redeem its circulation with the con
stitutonal currency of the country, should bt
Immediately wound up. No state of facts should
be allowed to justify any delay in closing the bu
siness of such bank Every hours delay af
lords 10 the broker and the specuator harvas
yielding, the delay continues, richer and more
abundant fruits; and always at the expense o
the laborers and business men of the country.
i Tie law itself is not only glarngy defective
but the construction given it, and consequently
the practice under 1t. 1t was evidently contem
plated by its trainers, that no bank should be es
tablished with capital of less than fifty thousand
dollars, that it should have convenient anC
accessible place Of doing business, that It Should
redeem It's issues promptly demand, and tha
It's proprctorS should be at least men of pecunia
ry ability, and that it should embark in no othe
than legitimate bona tide banking business
And yet in how few instances have these requ
sites been complied with.
nj +1a OIL nd Z II,
it was undoubtedly competent for the Auditor Il
wind up any Bank not doing business at tn,
place where It's bills were payable. To give NOR
efficiency TO this provision, and to make the duty
imperative upon that officer, | called the attention
of the Legislature 10 the subject in nv last an
nual communication, but having failed to pro
cure the required legislation, l renew nv recon
mendations this point.
The great error in the law, is, that the entire
responsibility Of the system is placed in tht
hands Of a single individual, and he an officer o
the State already charged with duties and trust
of the most important character. This singl.
{ individual determines upon the validity of tht
organization, the character and value Of til,
stocks issues the circulation holds the securities
;, passes upon the correctness Of the reports, de
livers powers OF attorney for the collection of in
tegest and in short. settles all questions connect
ed with the banks according to his own unaidel
Judgment. With a bond Of only $40 1000, he i:
tie custodian OF near $4,000 900 Of the publ,
securities.
If it be the design of the Legislature to con
tinue this system, in my judgement it will b,