Weekly Indiana State sentinel. [volume] (Indianapolis [Ind.]) 1853-1861, 1856-12-18
The sew State Bank

This institution goes into practical opera
ton on the ii Of Januar Most Of the
Branches have been orr nized and viii then
be prepared Tor business. Although the
Bank has had the power for year past to
receive deposits, discount deal in exchange,
specie, &c, but not hsyi had the greater
privilege Of issuing circulating notes, it has
not taken advantage Of its fist named privi-
leges. It thus appears it has t money to
loan until ID first has hal the opportunity Of
borrowing from the public by the issue of its
promises to pay. To great extent, then,
Banks Of issue are borrowers of money, aud
loan to the extent that the public give them
capital by giving circulation to their notes
aud the loan, by deposit, of their surplus
means.
A machine which has such vast end deli
cate powers conferred upon it, should be
managed with wisdom, liberality. and FOR
the public good. It can be made of great use
fulness and convenience, if its affairs are ad-
ministered in the spirit we have suggested; but
If otherwise, it will become grinding monop
oily, enriching the few at the cost of the ma
ny. The intended purpose in comforting these
great privileges upon a small portion of The
citizens of the sta,e is to develop capital
aud place it in position where it can be
conveniently obtained by those who wish to
employ it for temporary uses, at rate Of in
terest fixed upon by statutory regulation. 1t
gives the capitalist not only tho use of the
money which he invests, but, to compensate
him for the expenses Of sustaining the
Bank, the power to issue a circulating medi-
UNI, without security, Of two dollars and a
half for every dollar of capital paid in. This
extraordinary privilege, with the exemption
of individual liability, ought to be consider
ed ample to confne those who take advan-
tage Of to fair and legitimate business,
without indirectly attempting to obtain usur-
ious interest. The compensation it will give
to capital. without moral violation OF the
usury laws, should restrain the managers of
the Bank within the limit of both their legal
and moral observance. The violation of the
laws of usury is equally criminal with that
of any other. A money lender who takes
usurious interest is not a whit better than his
neighbor, who violates a liquor law, or does
any other act against the peace aud dignity
of the State.
We regard the shaving shops of the
State as among its greatest evils. They not
only teach characterization to law, but they
are canker-worms which feed upon its indus
try. Money sharks are Of no advantage in
the moral OF political economy CT State.
They produce nothing. They live upon the
producer They are the veriest drones in the
hive of industry. And why should they be
any more exempt from punishment for in
. fraction of law than those who violate other
enactments of less positive evil? There should
be no gentility or respectability which should
shield any class from the punishment that is
imposed for the violation of law. If these
distinctions are allowed, it will bring into con-
tempt all laws intended to conserve the best
interests of society.
The benefit of the Bank to the people OF the
State will depend entirely upon the integrity
of its management. If it is administered by
men who will regard its privileges as a sufii-
cent compensation and inducement faithfully
to carry ost the spirit and intent of its charter
it will doubtless prove public accommoda-
ton But if, unfortunately, it should fall into
the hands Of those who cannot rise above the
mere money shark, the three per cent. PEI
month or ten, twelve and a half, or fifteen
cents a day upon the hundred dollars money
lender, men who have neither public spirit
nor a knowledge of finance above a mere
pawn broker, we should regard it as most dis
astrous to the interests of the whole State.
Its financial policy should not be controlled
by men of this character for if it is, it will be
as a mill stone upon its business.energy and
enterprise. We have heard the names OF
many gentlemen mentioned in connection
with the management of the Bank, who are
noted for their financial sagacity and public
spirit, and others who are Vics versa.
But this is fruitful theme, and the length
of this article will compel lis to defer its fur
ther consideration until another period.