The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-11-06
THE STATE BANK OF OHIO.

1t was stated few days since that the
State Bank of Ohio was much stronger
than it was month ago, and was be-
lieved to be able to continue specie pay
ments.
There are some facts connected with
this concern and its course which the
public should know. Claiming to be a
highly respectable bank, its right to such
o pretension should be understood
When the Ohio Life & Trust Compa-
nv failed the State Bank Of Ohio was
thereby very severely crippled, as many
of the branches kept considerable sums
in the exploded Company, which were
thus "locked up" if not lost entirely.
In view Of their weakness from this
cause, the brokers at Cincinnati were
afraid to assert and run home their
notes, knowing that to do so would sus-
pend most of them, and thus close the
door to future profits to be made from
them when better able to bear their
. runs.
At this point the State Bank arranged
privately with Kinney, Espy & Co., bro
kers of Cincinnati, to become the agents
of that bank, Cor prosecuting regular
return Of the notes of the banks OF Ken
lucky and Indiana for gold-the coin so
drawn to be furnished to the branches Of
the Ohio State Bank for g Of one per
cent, being rather small charge for do
ing the dirty work-the branches fur
nishing these agents with the funds to be
used in the business.
This arrangement SO disgraceful to an
Institution Of the pretensions oil that un-
der consideration has been working ever
since, and is still in operation: and it
is chiefly from this quarter, that the
heavy calls on the Indiana and Ken
lucky banks have been made.
The propriety of this course having
been questioned in some of the papers.
Mr.. ANDREWS, the President Of the
Bank comes boldly forward, acknowl-
edges the agency and claims that it is
right and legitimate, thereby asserting a
claim for the State Bank of Ohio to be-
come great piratical brokers office in
stead Of fulfilling its true mission OF a
bank of discount and deposit for which
its charter was granted.
Such an avowal shows that the Bank
has chosen its President we'll. tits GER
tainly proper that bank which pursues
practices so scandalous should have q
chief officer Of brazen effrontery and des.
titute o! all sense of shame. Having
pursued this course for two months past,
it is perhaps small wonder that their
vaults are better provided with gold, and
they are stronger than at the start.
And yet Notwithstanding this increased
strength they still persevere in this nefa-
riOus course of running upon the banks Of
neighboring States through secret agents,
while they have barricaded their own
doors and surrounded them by armed
mobs to prevent a retaliation. Nc
where, it is said in Ohio, can one Of these
banks be drawn on for coin. Ii the In.
diana and Kentucky banks had thought
proper to adopt a similar dishonOrablt
course, the Ohio banks would have beer
closed in twenty days. The Cincinnati
Gazette, which very properly character
Uses this proceeding as discreditable t.
the State and the bank, says "the RICH
way would have been, to have establish
ed a clearing house and invited the In
diana and Kentucky banks to join II
such an arrangement, that would hav
been fair and legitimate ;" but no, tina
would not secure to the managers tn
advantages they sought to obtain. The.
preferred, therefore, to organize them
selves into an association OF brokers, 10
the purpose Of gathering up all the fol-
eign bank notes IN the State and sendin
them home for gold, through the opera
tons of system which is properly re
garded as injurious to the interests
business classes. 1t is right and prope
that banks be required to redeem thei
notes but this should be brought abou
not by guerrilla warfare, such as is cal
ried on by brokers, but by means of
general arrangement on the part of tn
banks"
SUB-TREASURY CURRENCY.
1t has been suggested by the Journs