Weekly Indiana State sentinel. [volume] (Indianapolis [Ind.]) 1853-1861, 1855-03-15
Veto M Message.


entitled "An Act to amend an act to author
ize and regulate the business of General
Banking" which originated in the House of
Representatives, with brief statement of the
reasons for Withholding my signature re-
gret that so short time has been allowed me
for examining the bill Git having been re-
ceived by me ut a late hour last night) but
return it this early in order to afford to the re-
presentatives of the people as much time for
re-considering its provisions as possible.
The most serious objection to the bill is the
almost unlimited discretionary powers which
it confdes to single oficer-the Auditor of
State-sueh as the power, at any time, to
change the stocks which are a security for
the issues of a Bank (; the power to determine,
in organizing Bank, the question of resi-
dsnce the power to determine whether a
good defense exists or not to protested note
thus determining in effect whether the
Bank shall be wound up Ornot.
There is an ostensible effort, to be sure, to
distribute the powers under the bill to the
Governor, Auditor and Secretary of State /;
but on examination it will be found that those
powers which should be most narrowly watch
ed are coufded to the Auditor alone.
There can be no objection to the Auditor
signing and registering the bills, but here his
duties should cease. 1t is not good policy to
confde a trust requiring so much judgment,
so much reflection, so large a knowledge upon
financial questions, and so delicate caution
at every step, to any one person, and especial
ly to one the onerous duties of whose office,
it is known are quite enough at least, to en-
gross the entire attention of any one man.
An error of Judgment, whether committed
through ignorance or haste or incaution, Is
equally disastrous. Besides, while | have
not the slightest reason to call in question the
integrity of the late Auditor OF the present
incumbent yet it is not too much to say, that
the vast interests which might be brought to
bear upon an Auditor under the present law
to secure a particular construction, or the
doing or forbearing to do, particular act,
might be well calculated to shake the integ-
rity of any man who is not fortified by a more
immovable virtue than usually fall to the lot
of men.
1t is proposed, however, by the present
bill, to devolve share of the responsibilities
and labor of the system, upon the Governor
and Treasurer of State. To show the impolicy
of this provision, it is sufficient to say that the
duties now imposed by law upon those Off
GERS are as great as they are able fitly to per-
form. To assume properly to discharge the
duties imposed, would necessarily involve a
neglect of some other of the public interests
1t is not well to impose duties so great and
multifarious upon any one officer. There is
a limit to those which he h. is able to perform
or properly supervise; and when that limit j;
passed, the duties have to be entrusted tC
Others, who are not elected by, and are ire
sponsble to the people.
The bill of 1852 was surely loose enough
but the construction given to it by the Audi
tor ard the power exercised under it by him
have abundantly satisfied me that nothin:
short of a separate Bank Department, havin,
the custody of the securities, the bills, tn,
plates, the dies, &C., will insure a system
worthy of the slightest confidence of tn
people.
We have been sufficiently warned by tn
| experience of the past two years, that wher
corporations have once obtained power, it i
almost impossible by legislation to arrest tn
evils to which they give rise. An earnest ef
( fort was made in the legislature two years ag
| to correct those evils in the Free Bank sys
TEN which were obvious to every rehectin
person yet nothing could be effected An
now again after the lapse of two years, durin
I which period shaipers and brokers have liter
ally been rioting upon the substance of tn
people, and after eight weeks labor of tn
peoples Representatives, measure is offere
which does not at all strike at the root of thes
5 evils; and which in its effects, it is feared wi
: rather aggravate than allay them Owing {
the general loss of confidence in the preser
=, Free Bank system, which has grown out
u the shameless frauds which have been praC
r tised under it, the evils which those banks al
), able to commit, have to considerable extel
r. been corrected by the general distrust of thos
institutions But it is feared that the presel
II Bank bill would increase those evils, by DR.
: viding no sufficient safeguard against the
e recurrence, and by exciting confidence frcl
! being ushered in under the auspices of an e
fort to put an end to the causes of the preset
= discomfort
e By the present bill, stocks of every Sta
l. and territory of the United States, at wha
e ever price spectators and brokers, may gil
them in New York, ara to furnish the bas
of banking; and the scene is again to be r
'i newed Of spectators and brokers seekil
lie our State, to issue paper to circulate as none
IN and, when the ripe moment arrives, TO depr
ciate the Stocks upon which they are base
80 Ouy up thelr paper at neaVy ulsCouht, al
" reap from the industrial classes of the Sta
~ immense gains.
n The experience of other States, where
ne system of banking based upon public Stoc
a has been tried, has demonstrated to them {
insecurity resulting from the indiscrimina
b. reception Of all State Stocks; and after t
ly calamities of the past two years, it would
re well for us to defer to that experience.
ut New York, it is believed, that no stocks q
be received as a basis for banking but those
rs that State and the United States. If Ii
on system were adopted by us, the intellger
of the people as to the resources and financ