Marshall County Democrat. (Plymouth, Ind.) 1855-1859, 1859-01-13

that Constitution passed general banking
law, under which ninety one banks were
organized Before the meeting of the Le-
gisature in 1855, experience showed that
the law which authorized their establish
ment was insufficient.
Fortyone of them had failed to redeem
their circulation. The friends of the gen.
eral banking system seeing the deficiency
in the law, urged the passage of the act of
March 3, 1855. Since the passage of that
law there has been but one bank, organized
under it, that has failed to redeem its cir
culation. At the same session of the Leg
islature, an act was passed establishing the
Bank Of the State of Indiana. The full
amount of stock required by law was sub
scribed, and the bank commenced its bus
mess. Its circulation is now 1869. 346.
Its notes and bills discounted, SIS, 154, $40
OF. lis cash on hand in gold and silver,
81 ,685, 894 90. From the time that these
laws were passed, the currency authorized
by the Stale has been promptly redeemed,
although in the intermediate time, the f.
nancial crisis of 1857 has been passed.
When you consider that between the pass
age of these laws and the present time,
the State Bank has Withdrawn four mill
ions of dollars of her circulation and call
ed in six millions Of dollars Of indebted
ness, in which the State was deeply inter-
ested, and without which laws the State
Bank would have been unable in so short a
period of time to collect the debts due her
-one-half of which belonged in realty to
the State, you must regard the legislation
of that session as highly beneficial to the
financial interests of the people as any
could have been that provided for the es.
adjustment of banks and the circulation of
paper currency.
The Bank Of the State has quietly ac-
CURED the position occupied by the old
State Bank. Those who formerly directed
the one now contro. the other.
If the rule could BE- uniform throughout
the United States, it would perhaps be bet
ter that no paper currency was circulated
But, inasmuch as that uniformity is prac-
tically impossible, think Indiana has es-
tablished as safe systems of banking as any
other State in the Union, giving to her
people AS high security for the redemption
of the notes of the banks as any other
State.
The last Legislature levied no taxes for
the years 1857 and 1853 The officers of
State were therefore deprived of the ordi-
nary revenue which should have been pro-
vided to sustain the various departments
and institutions Of the State. Believing
that there was no reasonable prospect that
the members of that Legislature. if re-as-
sembled, would change their policy or ac-
ton, did not call them together, choosing
rather to wait till the people had elected
other representatives. Notwithstanding
the failure of the Legislature TO levy the
taxes, the officers Of State have endeavor
ed to carry on the government, and in so
doing they present to you. as tke result of
their action, that they have only been re-
quired to borrow $780, OO-Sl65, 900 in
June, and Sl65. 900 in December, 1855
which has been applied to the payment of
the interest upon the public debt They
have paid from the General Fund to the
Swamp Land Fund $4,000. They have
QrdVU bTOUl TIC OlucT Il QlQS dUOut RZOO,
900.
If the revenue for those years had been
collected, upon an assessment equal to that
of 1856, it would have amounted, in the
two years. to 100000, which would
have left in the treasury now, 100000 of
a surplus. Still, with all this failure TO
raise the revenue, there is yet in the treas
ury sufficient means to sustain the Govern
ment until the first of next March; and if
is given to negotiate temporary
loan for $4,000, the revenue which will
be derived from the taxes Of 1859 and $50
levied at your last session, will pay every
debt created, and sustain the government
until the end Of the year 1861.
The taxes of the State must necessarily
be collected by the county officers. Hith-
erto they have had no direction by law, as
to the kind of money they should receive;
the result Of which has been that the Treas
urer of State IN times of financial diffculty-
has been compelled to exercise his discretion
in receiving from the Treasures the money
they had collected. Between the time of
the receipt of such money by the County
Treasurers and the paying of the same to
The State, much of it has deprecated in
value. While the County Treasurers acted
in good faith, receiving for the State taxes
The ordinary currency of the country, it
would have been wrong for the State to
decline accepting the same from them. and
It would have been equally wrong to hold
he Treasurer of State responsible for any
depreciation in such currency while in his
possession. But in the receiving, holding
md paying out of the money thus collected
he State has sustained many losses.
The State has never yet provided safe
depository for her money. While the
Treasurer has been required to give bond
or the faithful return of all by him collected,
,e has been compelled to exercise his judg
nsnt in selecting the place where it should
,e deposited.
The result Of the exercise of this
Judgment has somtimes been unfortunate.
IS it not, therefore, better that the Legis-
ature should determine by law the kind
fmoney which shall be received by the
-arious County Treasurers for State taxes
nd provide suitable place of deposit in
which the Treasurer of State shall retain