Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1857-08-07

THE NEW STATE BANK
One Of tho most remarkable facts presen-
ted IN tho seni-annual statement otthe Pres
idont of the new state Bank. published n
day or two since, IA thatth The Bank had made
about n por cont upon the capital stock
paid in for the frat six months OF It's hnsi-
ness - Smffncf
Not Mt all remarkable Their charter
was purposoly 40 framed ~ to allow them
70 make from 90 TO 40 per cent per annum,
while poor men can get but six upon their
earnings II was lhisspccial privilege which
enabled It's purchasers to pay such lonus
10 rs makers, and which made Willard,
bright, Kent, Drew 4 Co shut The doorson
poor people who wanted 70 make aa much
per cent ON their money a. the rich Az
said by the New Albany Tribune IL must be
borne in mind that tho first six months Of
The Banks existence was attended with
moro than double the expense that any sub
.eancnt six months win likely be Each
Branch had to supply itself with blank
books and stationery notes for cirou'
lp,lon we're 10 be engraved printed and
paid for Then they bad 70 behilcdup aud
signed before being putincirculation, which
required ro.nc months 10 perform. Added
20 MI this the extreme opposition which the
now Bank has had 10 encounter, must have
cut down Ia ability 70 discount, aud curtail-
ed Ia profits below what they would other.
wise have been, II IL indeed extra
ordinary that they should have made any
profits NJ all for The Iirat six months,
hut IL we look ut the character Of the
Banks discounts We shal not wonder 10
much at tho extraordinary amount OF hpr
profits, in the face of NIL the drawbacks 10
I which We have referred Insscud OF doing
legitimate banking business, by discount
ing good notes at O per cent, ascontcmplated
10y the charter teentgJoV oul OIL every
hcentx. fee dollars OF her loans appear to be
ON bills Of exchange And this, too, in the
face of the fact that there Is no surplus pro
ducc IN the country b. ship and draw
against
We agree with the Evansville Joana
that IL the Bank Is 10 adopt this IN hel
general policy il must operate disastrousl'
20 the beat interests Of tho country although
Il may prove yasily profitable to the stock
holders
"Thc banks, by combining their business
tooxehangc, force every borrower 10 boeom'
a drawer OF bills, and afterwards an invol
untary shipper, and disturbor OF regula
trade. The Banks are made mere exchang
dealers by usury laws While they are no
allowed to take more than six per cent on
note payable at home they will-as mat
ter of coursc--buy none but biA Of OK
! change, on which they are allowed TO dictat
their own terms and ean make y pc
cent month.
''fhc usury laws must be repealed, ant
Ia men sell their notes ~ they do thcir bill
of exchange, on the best terms they cal
make or IL uSury laws BIO just and wise
they are as applicable to loans on bills O
exchange ~ they are to loans on notes o
the same parties II they are juslifable a
all, the banks and buyers Of exchang
should be confined to the same rates ofdi'
count on Que ~ the other A loan upon
note payable ut home isnow scarcely attain
able from banks Local business has nov
no aocommodationsfrom thems yctour HON
business j. ten times more important to u
than our exports Our mechanics and man
uiaeturcrs--our merchants who deal i
home products, and sell nc home, can get N
facilities from the banks, unless they wi
consent to become bill drawers and draw
ing bills Coz such men Is certain ruin The
| had better pay u neighbor 20 or % per al
! mum for loan than 10 incur the hazard {
shipping and III, shaycs Of the banks
Men now sell billsof exchange to the bank'
, on New Orleans On four months, use the pr,
! eeeds two or three months In their bushes
p athome, aud then make shipment 10 me,
the first bill, and draw second 10 keep u
the loan The rate ofintercst and cxchang
paid the bank il ruinous, but the sacrifice
: on shipments are often worse banks for,
ed into this system by The unnatural restri'
, tions Of tho usury laws-instead Of bein
| the regulators Of trade, derange and dcstro
IL rhcy entail more evils upon the eountr
, by this system than would bc occasioncd b
the explosion Of one-iourih Of them ever
, year. IL the Legislature has any powc
over the new Bank il ought TO exert it I
bring il back to the old legitimate bushes
! Of discounted notes for people around j
: payable nj lis own counters The most G
fectual way TO do il is to repeal the usur
laws"
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