Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1855-02-09

Branches. introduced into the Senate
BY Mr.. Withsrow. Of Hendricks last
week.
LET. II establishes bank with 90
many branches - may be organized
20 be called "Ths Bank Of the State
Of Indiana"
Cd. Commissioners are appointed
70 divide the State into not less than
6ftesn or more than twenty bank dis
tricts. and 10 locate . branch in each.
selecting. 20 FAR - they can, the same
places where there is now branch Of
the present bank.
3. II the commissioners do not
make the whole number Of districts
authorised. the board Of directors Of
the bank may, from time to time, in
crease the number 10 that extent.
4. No branch Is to be organized
until one hundred thousand dollars are
subscribed and the first instalmens
paid.
s. The remaining instalments are TO
be so graduated that 500, 900 shall
be required to be paidin toeach branch
on or before the frst Of January, 1857.
8. The board Of directors have pow.
or to cause the capital Of any OF the
branches 10 be increased from time 70
time by organizing additional SUBJ
scriptions TO such an extent that the
aggregate capital Of all the branches
shall not exceed 90, 000. 900.
2. The State Board Of Directors
II to be composed Of four members
elected by the Legislature. and one
member elected by each Branch Board.
rs differs only fromthe present Bank
Board In this-thatthe Board elects
the President, who 10 now elected by
tho Legislature. "a ..
Q. When not less than ten branch
90 are organized and elect their MEM
bers, the latter are 10 meet and form
the State Board. and the bank Is then
20 be considered organised for all pur-
poses. except that no bills or notes are
70 be issued until after the first Of jan
uary 1857. [Thisis the period when
the present bank Is required to 90 into
liquidation.
Q. The Bank Is TO purchase Of the
State all her stock in the present Banks
1t It's value to be affixed Ivy Commits
sioners elected by the Legislature. who
in making such estimate are to take
into account not only the value Of the
stock. surplus funds. &c., but also the
advantages to the new Bank in the
mode OF payment provided.
10. At such payment the Bank Is
TO pay and surrender to the State such
IN amount Of the outstanding Bank
Bonds OF the State as shall be equal
to the estimated value Of tho stock
sold. the Bank having the samo privi-
lege as to the time and manner OF pay
ment that the State has. Any excess
Of the value Of the stock, over the
amount Of such outstanding bonds, il
TO be paid to the State in two annual
instalments with interest.
II. The State is secured by n first
lien not only the stock sold. but on
all the stock and property Of the new
BA1f; and by provisions that no part
Of such stock or lis proceeds is TO be
withdrawn from the old Bank until Il
may be paid over in the process Of
liquidation, after its charter expires.
and not then, unless ut least 81, 500,
600 have been paid in to the branches
Of the new Bank In specie on the sub
seription Of stock.
i2. The State Board Is to distri-
butte the stock purchased Of the State
10 the branches established. in equal
proportions, and the branches are TO
furnish the means 10 make the requir-
cd payments. The branches can make
no disposition Of the portions Of stock
90 allotted 10 them except for the pur-
pose Of having the proceeds invested
a. permanent capital.
Is. No part Of such stock or its
proceeds is 10 DO Withdrawn from the
Bank or lessened in value, but the State
Board is required to withdraw it from
any branch and invest il in others in
case Of Encouragement.
IL. Stockholders IN the present
Bank may subscribe their stock or its
proceeds in the new Banks. and the
latter may purchase the property and
assets or assume any debts and liabili-
ties Of the former on such terms as
may be agreed upon.
Is. The Bank is 10 pay ten cents
on each share of stock annually as a
bonus to the State for the benefit Of
the school fund. and its capital and
other property Is subject TO taxation as
in other cases. The present Bank
pays i2f cents on each share 10 the
school fund, hut IL Is only subject to
taxation for State purposes. not exceed
ing one per cent.
rs. In all other respects. the new
Bank is TO be organized precisely like
the present Bank, with the same priv
ileges, powers. and restrictions, the
exact words Of the old charter being
adopted as far as they are applicable.
~. The State reserves the privi-
lege TO establish new branches with
the consent Of two-thirds Of the mem
bers Of the State Board.
The advantages Of this system are :
Ist. The continuation of good
currency and system Of banking, which
twenty years experience he's proved to
boone Of the best in the United States.
cd. The time II affords for paying
all the instruments gradually so as to
be ready to commence operations with
q strong capital when the present
Bank Is compelled to wind up.