The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1855-01-10

authority to make q settlement OF the affairs
oil the State and the bank, on the expiration
of the charter.
The State is liable for the bonds originally
issued for the capital stock, upon which the
bank has promptly paid the interest, and the
stocks, at this time, commands premium.
Tn: whole leg station of the State, as
well as the letter and the spirit Of the Con-
stituiion, declares the expedency of sep
aration of the interests Of the State from all
corporations. concur fully with the Au.
ditor of State in his v exs as to the propriety
of the future investmen mt of the sinking fund
in the bonds of the State.
The law upon the subject of general bank
ing, has failed TO acc, mplish the purpose for
whichit was enacted. Ithas not furnish ed
fer the use of the people, sound circu,a.
ing med um. The experience of the two past
years fully establishes the correc ness of my
remarks addressed to the last General AS.
sembly on the subject of banking; and may
adopt, in its fullest meaning, the sentiment
then expressed, "that past events have clear
ly shown that the restrictions provided by
the law are insufficient 10 prevent abuses of
the privileges granted"
1t is matter OF regret that this subject
did not engage the attention of the General
Assembly at this last session. again urge
upon your consideration, the views express
ed on this qIesti n at that time.
The coun ry having over traded, neces-
sary demand for exchange To meet Eastern
liabilities, was created. This state OF affairs
caused he broker TO seek for gold; nd, in
pursuing this object he placed himself in the
position OF The merchant or business man
and was fulfilling one Of those vocations not
uncommon in such conditions OF the country
IT was fortunate circumstance that the
broker came early. We had, in less than
six months, issued more than six millions OF
currency-an amount not required Tor the
maintenance OF healthy condition in oar
monetary affairs; and il the broker had de-
layed his visit for year longer, a greatly in
creased amount Of paper circulation would
have resulted in greatly increased pecuniary
loss TO the people.
| The practical operation of the law in many
instances, has been that the individual has
not sought to locate and commence the bus
mess OF banking TO accommodate the com.
mercial community, but to borrow money
for himself under the sanction of the law
Men without capital or with barely credit
sufficient to borrow Il few thousand dollars
of stocks, have been furnished facilities un-
d r the law, to become banker 10 the ex.
tent Of millions. With the currency procur.
ed upon the first deposit of stocks, other Sc.
curities have been purchased, and other notes
procured, and thus large circulation has
been created without do lar of actual ca D.
Iiial.
| Directors and Bank p. esidenis are now
issuing this deprecated currency over their
own COUNT rs without any effort, or it is be.
lieved. intention ever 20 redeem it. With
this currency they purchase bills payable
east, and the farmer, instead OF getting an
equivalent for his products, is paid in I, RI.
culation he cannot dispose of ithout sacri
hce, nor retain in his possession withu vi
danger. Instances are not wanting where
the proprietors Of banks, after suffering their
ins'ii utions TO suspend, have themselves EN-.
barked in the business Of buying up their
own paper at heavy discount, and thus
plundering the laborcr Of his hard earnings
You will be wanting in your duty 10 an out.
rage people il you fail to ad opt p ompt meas
ures TO suppress this practice which is no,
only unjust and disreputable, but suoversive
of public morals.
The indispensable duty of protecting the
people of the State from the evil of de.
preciated paper currency, requires that nc
special indulgence should, under any rrcum.
stances, be granted To any banking institu-
ton that neglects or refuses TO redeem its
issues IN coin. Any bank refusing to
redeem its circulation, with the consti u.
tional currency Of the country, should be i'm.
mediately wound up. Nosrate of facts should
be allowed to justify any delay in closing the
business OF such bank. Every hours de.
; lay affords to the broker and the speculation
harvest-yielding as The delay continues
richer and more abundant fruits; ani always
at the expense of the laborers and the bus
mess men of the country.
The law itself is not only garingly defec
. tive, but the construction given to il, and
consequently the practice under il. 1t was
evidently contemplated by its trainers tina
no Bank should be established with CAPT
! tai of less than fifty thousand dollars, that i
+ should have a convenient md accessible
place Of doing business, that it should re-
, deem its issues promptly on demand, and
that its proprietors should be at least men
of peculiarly ability, and that it should en-
} bark in no other then legitimate bona fids
banking business. And vet in how few in
stances have these require aenis been COM
4 piled with.
Under the 18th and 2Sh sections s6kth,
I law it was undoubtedly competent forth,
, Auditor to wind up any Bank not doing bus
/ n'ss al the place where its bills were pa>>
3 able. TogIve more efficiency to this provis
ion, and to make the duty imperative upol
/ tina. officer, called Il e attention OF tn,
\ Legislature to the subject in my last annua
e commission, but having failed to procure tn,
q required legislation. renew my recommen
4 dations on this point.
y The great error, in the law is, that the en-
y tire responsibility of the system is placed il
n the hands Of single individual, and he al
e officer Of the State already charged wit