Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1857-05-21

y ATE WAS pOWeIitSS Al the DoaIu oi SoA-
troll. and in the Branch Boards. In the
former, its representatives stood FIVE to
thirteen, IN the latter, three to seven. The
success of the State Bank is unquestiona
bic owing to tie facts-that the State Board
had full control of the business of the
Branches-that the Branches though inde-
pendent in their profits, were mutually re-
of each other, and that the men who man.
aged them, had both character and money
to loose by NAL administration Of their af-
fairs. - .ra. ssui-
By the charter of the rev Bank the
same conservative power is vested in the
State Board, the same responsibility rests
upon the Branches-(the same. or equally
safe men. are managing their affairs, while
the stockholders of each Branch "a provis-
ion not contained in the charter Of the oil
Bank are liable for an amount equal to
their stock, in addition to it, not only for
the debts of their own Branch, but those Of
any other Branch. So, that with every
other provision for his protection, afforded
by the charter Of the double liability Of its
stockholders.
In this connection 1T may be proper to
say. because the contrary has been affirmed,
that the management of every Branch of
the new Bank is in the hands of citizens of
the State. of we'll established reputation
OF its five hundred stockholders, not one
in ten is nonresident There is scarcely
one of the twenty branches whose stock
hntdarc a1ilartrr,aiy ~ xrn~fh fr0v,,
three times to ten times the amount of its
present capital Whether they are men
likely to put in peril their good names and
fortunes, by dishonest practices, or sell
their stock to those who would discredit
the State and swindle the people, is sub
mtted to the candid judgment of those who
know them.
There is proTision in the charter of the
Bank of the State, that is not contained in
the charter Of the State Bank, about which
good deal has been said, and which has
been violently denounced as containing un-
usual and dangerous privileges. refer to
the power Of the State Board to authorize
the branches to discount on, or loan their
deposites.
10 )idtlirs-l ~ lulCiIlStlS
business men, an objection to the Bank
predicated upon the existence of such a
provision in It's charter is simply ridiculous
The obnoxious section merely authorizes
the Bank to do, what it would do, without
any such provision. This power to dis
count on deposites, will not, it is probable,
increase the discounts Of the Branches a
single dollar. In point Of fact all banks
discount on their deposites. The loans of
banks in all commercial cities are largely
while those Of private bankers, everywhere,
are almost exclusivel y--based upon what
they owe to depositors. Ii no provision
similar to the one objected to, can be found
in The charters of other banks, it is because
none was deemed to be necessary. 1t is
neither valuable nor dangerous provision.
Prudent bankers will use their deposites,
as they do their circulation, in such a man
ner as to be, at all times, prepared to meet
the calls Of their creditors, whether depos-
itors, or bill holders, and no intelligent man
perceives any more danger in the use Of the
one than the other
But the great objection to the Bank
seems to be found in the manner in which
the stock was said to be subscribed in some
of the Branches.
Upon this point discussion would seem
TO be unnecessary, because it did not in
volve the solvency of the Bank, or its
claims to public confidence. The provis-
ion of the Charter under which the Sub
Commissioners were authorized to close
the books as soon as the required amount
of stock was subscribed, was severely crit
icised in both branches of the Legislature,
and by the Governor in his veto message;
but it nevertheless received the sanction of
both Houses, and became part of the laws
of the State. That certain persons OBJ
tanned the control OF the stock in many of
the Branches and sold it at premium is
generally known, and by none better than
the present stockholders; but it seems to be
hardly fair administration of justice, that
the only persons who were really victim
lied by the operation. should now be the
ones whose interests are the most violently
assailed. While the provision under con-
sideration is generally regarded as object
ionable. / cannot learn that any one has
been injured by it except the purchasers of
the stock. The Sub Commissioners had
no power to prevent the subscriptions of
stock by any person who applied for it at
the proper time and place. Ifthey did so,
they transcribed their authority, and the
party injured could have secured his rights
by application to the courts The fact is
admitted. that certain persons did obtain a
large portion Of the stock at many Of the
Branches, and make others pay for it; but
as the premium was not taken directly or
indirectly from the pockets ofthe people, /
do not learn that the people themselves are
particularly grieved about it.
1t is understood that some of the pur-
chasers of stock took from those Of whom
they purchased bonds to indemnify them
against injurious legislation and unfavora-
bic decisions of the courts in suits then
pending. They were induced to take this
course by the fact that the then Governor
of the State had boldly charged that the
Bank Bill had not become law over its
veto by constitutional maiority-that
certain members ofthc House, whose names
had been reco led as voting for the bill,
were absent from indianapolis when the
vote was taken. Is it strange that capital
lists proverbial1v timid NOT knowing what