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

This single individual determines upon
the validity OF the organization, the
character and value Of the stocks, is
sues the circulation. holds the secu-
rites, passes upon the>correctness Of
the reports. delivers powers OF attorn-
ey for the collection OF interest, and in
short settles oil questions connected
with the banks according TO his own
unaided judgment. With bond Of
only $4,000 he is the custodian of
near $4,000. 900 OF the public secu-
rites.
II it be the design OF the Legisla-
ture TO continue this system. II will, in
my judgment be necessary.in order to
secure the confidence Of the people,
and to protect their interests, to pro-
vide for the organization of bank
Department, with a Board Of Bank
Commissioners, with full powers TO de-
termine upon the locality Of the Bank,
the necessity for its creation. the SOL
vency ofthe securities offered. and who
should, also, be charged with their Gus.
tody.
also recommded, that, inasmuch
as the term Of the present incumbent
is about to close, committee of the
two Houses be appointed to investi-
gate fully the condition OF all matters
pertaining to the Banks connected
with the Office ofthe Auditor Of State.
A full report will doubtless do much
to alIay the apprehensions of the pub
lie, and establish confidence wherever
merited.
The valuable and interesting report
Of that officer will present you in detail
the operations ofthe Free Banking sys-
TEN in his hands.
Il will doubtless be the policy ofthe
Legislature to provide for the imme-
date closing, and withdrawal from cir
culation of the paper. of all such in.
stitutions as persist in the violation OF
the palpable provisions Of law. In
doing so. due regard should be had
both 10 the interests Of the people,
and Of the banker, so rs to prevent
undue excitement and apprehensions
on the one hand, and loss md insol-
vency on the other. A contrary poll
cy might involve the solvent with
the insolvent the upright man in bu-
siness with the dishonest and corrupt.
With the state of things VIC have
had for the last year il was not posi-
bic 10 avoid revulsions and monetary
excitements.
The circulation Of tho
State Bank in Oct,
1853. was 1884. 765 so
Circulation In Oct. "a, 2,o03 6I8 90
Decrease, 1,o3L1I7 90
The Stock Bank circu-
lation July lst "a, o,299, 575 0O
Circulation January lst,
1855, 5,565,099 90
Estimated am'tin hands
of Bankers not in cir.
culation. 100000 0C
Decrease in months 4,734,475 90
The precise amount SUR
rendered at the Audi.
tors office up TO the
LIST day Of January,
1885, is 3.734,475 90
Here we have withdrawal from
circulation in twelve months, and the
greater in four months. of SO. 766. l23-
90, or more than Of all this cir
culation is deprecated; lis value being
at the mercy of the broker and spec
ulstor The same facts in regard TO
the decrease Of the currency. ARE true,
although perhaps in less proportions
in the adjoining States with which we
have commercial intercourse. How can
any people have stability under this
state Of monetary affairs?
We shall alwaya have revulsions,
expansions, contractions, and derange-
ment in the whole business Of the
country, so long as We foster any sys-
tenn that makes promises to pay, mo-
ney, instead of gold and silver. If
the inferior circulation were this day
withdrawn, l have no doubtwc should
find a sufficient amount of the consti-
tutional currency among our people
for all ordinary business purposes.
We have not only deprecated
currency, issued under the authority
of law. but we have depreciatedcur
rency, issued by railroad plank road,
and insurance companies, without the
authority OF law. Thousands Of dol
lars of this latter kind Of deprecated
paper have been thrown into circula-
ton, and left to represent anuncertain
and variable value in the ordinary
transactions Of business. The credit
of the State, and the interests Of the
people, demand an abatement Of this
evil.
No subject Of legislation is calcula-
ted to awaken more pleasing anticipa.
tions for the future than our system
of popular education. Indiana,und
the auspices Of her new Constitution,
has, upon the subject of eduea ton,
adopted u policy that has commanded
the admiration Of some ssof the older
States Of the Union. Let Us, by the
most judicious course Of legislation,
prevent a retrogade movement on the
part of the State, with respect TO this
very important interest.
The recent decisions Of the Supreme
Court. on the constitutionality OF the
consolidation Of the ayalls ofIhe school
sections, and on the township tax for
school purposes, while they have set.
tied those questions in u manner sat
isfactory to the parties that raised them
do not, in the least degree, disturb the
broad basis on which our system OF