The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1855-01-06


In such c,niraction of circulating me-
dium of Slate, s, vigorous, industrious and
enterprising Indiana, much embarrass- I
msnt and d fficI | y must ensue unless some
other and better ejaculation shall fiji this sue.
den vacuum.
II will be one OF the most difficult and i'm
portant duties Of the Legislative department
to devise system which can furnish, on
safe aud reliable basis, so large a sum, or
sum Sufficient for the trade, business, and 1
commerce of our people. The want OF con-
fidence. now SO generally diffused. in refer
ence TO banks or bankers, will make it ex
ceediugly difficult to organize any system of
credit, as represented by paper promises to
TO pay, which will command the confidence
of The public. W
II b.nk notes issued upon The stocks of
States which have never failed to pay the |
the interest as it became due upon their
bonds, with the additional securities of per-
sona re possibilities, in maay cases worth
more than the whole issues OF the bank, aud
the whole specie and assets of tile bank faitl-
fully applied to the redemption of their notes,
are insufficient to inspire confidence, in the
safety and value of the paper, then indeed, it
would seem to be very questionable whether
7 /
gartei with public favor Indeed, those
banks which have been most prompt and
unceasing in the redemption of every note
as it is presented, have met with but little
more favor, than have those who convent
emily allowed the brokers', bankers, and
other bill holders to take what they can get
under the compromises of parties or the
strength of the Law.
| If this want OF public conf ence. this de-
sire to make trade aud traffic Of exchange
and of coin shall continue, what shall
abate it! What hope is there that the old
system Of mere confidence banking, with
power to issue two or three dollars in paper
4 to every dollar of specie in their van is, and
in many cases FIVE dollars 10 one in coin, ca IN
ever again obtain favor, countenance or con-
fdence among people who can compare
the advantages and disadvantages of real Sc
i curly and nominal words of confidence. Ii
I is true that the paper OF the Indiana Stock
Banks has deprecated under the genera
panic, aud has been sold at loss, but to all
I who took the troubE. to read and to learn, it
was always manifest, that there was no great
necessity for large losses. Whilst on the
other hand, old and resi- ectabe confidence
banks which failed in Ohio and elsewhere,
were so little upheld by public opinion, and
the protesta,ons OF their officers, that their
! no es fell almost valueess in the hands of in
noceni holders.
i TIE securities of no blnk have been les
sened in any instance, but, where parties, by
agreement have surrendered mites and taken
bonds, Care has been taken TO give the least
valuable securities first, that no deteriora-
lion should ultimately occur.
! Where banks have failed. or may fail, 10
protect or take Up their notes to the salisiac-
ton of holders thereof, have determined To
COLLECT the occurred interest upon their bonds.
and re nves. it ia additional securities, TO
strengthen the fund for the retention of
their notes, by the action OF compound in
ierest.
i 1t is quite proNable that number of the
ex sting stock banks will voluntary close
their operation and finally wind up. Several
have already sgnilicd their ini ation to clio Sc.
and are enguged iIsrcdes ming all tbeirissre
Others have ira lie their arrangements TO con-
Iiinue business in q egnate and regl lar
manner, provided the acton OF legislature be
such as to permit them To operate without
embarrassing and impracii.abl restrictions.
/ IL is obvious that e existing banking law
requires careful revision and amendments.
/ The great amount OF capital which has
| been invested in banks in the State, should
! be permitted TO remain, Il it be content to
remsin upon terms compatible with the
public interest. aud that interest can only be
properly protected by requiring the most
certain and prompt paym of all the notes
of every bank that may be allowed to issue
bills. $50
/ No security should be taken upon any
other pre,ext or basis, than the absolute in
trlnsic value OF such security. Five rer
cent and six per cent. bonds should only be
established at the relative value between
them. without reference to any fuc lting
condition Of the market, which may be made
to vary according to the cupidty and stock
jobbing schemes Of those who expect to
profit by cphemeral prices Of fictions Or fancy
4 rates Of the stock market.
l The reliable character of the State and its
ability TO pay the interest upon its bonds,
should form the principal estimate of their
value.
T. There are some alterations and resolu
tions to be made to the present law which
seem TO attract general attention. 1t is con-
ceded that every bank should have loca-
ton and business house, of permanent
character. That it should be subjected TO
the ordinary rules of banking business. L.
; should be kept open at least five hours in
4 each day-it should have due portion of re-
sponsible stockholders should never be
permitted to suspend specie payments ex-
cept upon the forfeiture of all of its franchi-
ses-it should give such undoubted security,
as to availability and value as would leave
no Apprehension on the mind of the bill hol-
: ders, of It's ability and certainty TO pay the
last cent o: its issues. 1t is suggested, as
; TO location, TO prevent the practice OF select
ing reno and unknown situations, that no
bank should be located at any point which
ldops moi contain from two To three thousand