Weekly Indiana State sentinel. [volume] (Indianapolis [Ind.]) 1853-1861, 1855-02-10
STATE SENTINEL.
For the sentinel.
Review Of the Currency.

Review Of the Currency.
The money crisis of the times is not one Of
words but of deeds. Its work of desolation
is rapidly pervading every avenue of trade and
every ramifcation of business" leaving not
rose of the valley to tell where the garden
had been"
In reviewing the subject, the past and the
present must be carefully considered-point-
ing out the evils and bringing them forward
as beacon lights to guide our footsteps in the
hidden future.
The State Bank and Branches Of Indiana
were established on sound principles and well
adapted to the demands of its period, and ca
pabe of performing all that v as expected by
its organization. Man was created in the like
ness of his Maker for noble end, but his
brow was soon furnished by transgresSion; and
so with the fiscal institutions under notice
they too have transgressed and set up rule
for themselves-and by subterfuge, (more
c'nningly devised than the sewing of fig
leaves,) in the similitude of business transac-
tons, began their clandestine acts of prosttu-
ton.
The Bank was created for noble and useful
purpoSes-to assist the farmer and manufac-
turer by furnishing means to carry to market
the surplus products of the industry of the
State, and for a number of years it was con-
tent to fulfil the legitimate purposes Of Its Gre
alton.
All safe business men obtained accommoda-
tions to facilitate the exchange of the products
of the field and shop-the paper stood de-
servedly high with the exception of the Pc
Rod of its suspension between 1889 and 1912.
During that trying period, our State Legis-
lature did all in its power to sustain and aid
the Bank, and it is a matter of some question
whether the Legislature did not transcend its
CONSTITUTE NAL bounds, in its efforts to enable
this Institution to weather the financial storm
of that period. When Ohio compelled her
banks to pay specie, under a forfeiture of their
charters, by a given day, Indiana only de-
manded of hers that they should pay coin TO
her own citizens, but not to brokers' or to for
eiqners The officers of the Bank were left to
decide who were brokers or who foreigners,
and from this decision of the Bank officers
appeal was provided for. During this period,
the paper of the State Bank was only worth
from eiglty-seUen and one-haIf to ninety cents
on the dollar-yet the people freely took it in
payment of debts and for all articles which
they had to sell, and no one murmured.
The officers of the Banks then stood behind
the counters and craved mercy, and the peo-
pie generously extended it--and thus. after lay
ing under a suspension of years, Ia which time
she made money enough off the people to
enable her to pay her debts, she resumed and
again lead off in her proper sphere, dispensing
her favors to all classes of commercial men in
small sums, and this course pursued meas
urably until after the adoption of the new con-
stitution.
By the provisions of that instrument, her
re-charter was effectually cut off, and no al
tentative presented but to wind up its affairs,
or, by stratagem, fasten itself again upon the
people. From this time forth the observing
man cannot fail to see the finger of policy d.
recting the operations of this monetary mo-
nopoly. Loans were then made in large
sums, to individuals and business firms, with
out regard to the wants of the country. Many
of the Branches loaning one-half of their
means to one or two favored customers, thus
enabling them to control and monopolize the
leading branches of trade by having the CON-
mand Of the money of the Banks. These
Pet borrowers of one two, three hundred
thousand dollars, from single Branch, rit-
NOR says. has compelled them to call for help.
The State has large interest in this. Let
the Legislature look to it soon.
The charters of the Banksformed under
the Free Bank Law, we find by experience,
were not well grounded. While these Banks
which have been put in operation and owned
by our own citizens, have in all most all cases
redeemed their circulation on call in coin, vet
it is unfortunately true that travelling cashiers
from other States, have, under the too liberal
provisions Of the law, organized institutions
that have proved no credit to the system and
and no honor to the gudDdGD1 Bankers, whose
fostering care warmed them into existence
1t is certainly matter of surprise and as
constituent to those who are at all conversant
wits the foul and diabolical conspiracy which
was entered into and prosecuted with unre-
lenting blood thirstiness-tha there is at this
day one Free Bank left, a spared monument
Of grace to mark the desoa'ing truck OF the
late terrific whirlwind The writer of this
was informed by a letter from a well informed
Wall Street Banker, dated in j une last, that a
plan had been matured by the Indiana State
Bank, the Ohio State Bank, and some of the
Bankers and Brokers of Cincinnati, for the
purpose of returning all the notes of the In-
diana State Stock Banks for coin, and from
what has since transpiied no mau in his sen
ses can for a moment doubt that this conspir-
acy to destroy the Free Banks of Indiana had
been fully and detcrmnedy united on by the
two State Banks and their useful friends, the
Cincinnati brokers'
Among the many circumstances that go to
prove this fact, is
1st Our State had long been fine field for
the circulation Of Ohio notes, and remained so
until the issue of the Free Bank paper drove
it out.
2d. The movement of the business men in
Cincinnati to settle upon and revive the issues
of the Stock Banks at par, was only opposed
and dissented to by the Ohio Life & Trust
Co., and Groesbeck 81 Co., both of them par
ties to the conspiracy and special pets of the
two State Banks
Sd. The fact that almost every br; nch of
the State Bank of Indiana, ceased simultane-
ously the receiving of stock money on de-
posite and Immediately commenced buying it
at a discount, through the medium of its pet
Brokers offics (of which L will speak hereaf-
teri and unanimously decried it from one end
of the State to the other. The grand object
of this conspiracy seems tn have been to force
e-charter Of the old State Bank, and 20 ac-
cOmpish this, it was necessary as far as
. possible to destroy the confidence of the COM
muuity in the issues of the Free Banks For
the past three months the Branches of the
State Bank have been discounting very SPAR
ingly, but now on the eve of the meeting of the
Legislature, they have been scattering their
funds with liberal hand with view to drive
all other Banking out of the State AS far as
the BROKERS were concerned it was only a
matter OF pay and how well it succeeded in
that respect let the impatient creditors oil
Ellis & Sturgss; Smead, Collard & Hughes
and other suspended specimens of duped
Cincinnati Brokers and Bankers answer. Be-
fore this run on our Banks commenced, two oil
the Branches of the Ohio Institutions failed