The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1859-02-22

In compliance with the requirements of
the charter, herewith submit a statement
of the condition of the Bank of the State of
Indiana, on the 20th of Nov- 1858.
By this statement 1t appears that the
branches had
In Notes and Bills under dis
count SIS, ,30O,983 II
In Coin......... ...-....-...... 1895 93
In Currency. y.......,.....-. $50, loS w
On Deposit in East II Banks. 6l6, 346 81
On Deposit in Westn Banks. 316,385 55
And their liabilities to the public were as
follows: la,I
Notes in circulation n.........~S4, 81, GIG 90
Due to other Banks............. l46,750 81
Due to DepositorS ............... 986, ,463 10
Due to Treasurer of State. 6,373 SO
While this exhibit shows that the cash
means of the Bank are large in proportion
to its liabilities to the public, it may be
proper to remark, that its greatest strength
consists in the character of its discounts,
which are believed to be as safe and reli-
able as those of any other Bank in the coun-
try. In most of the branches they are
chiefly based upon the surplus produce and
manufactures of the State, and experience
has proved that such loans not only advance
to the banker the surest and most prompt
returns.
Since our first report to the Legislature
important changes have taken place in the
financial condition of the country.
Although large amount of capital had
been invested in Gnprofitable not to say dis
astrous, enterprises, and speculation had in
some quarters taken the place of product
i've industry, there was nothing in the cir
cumstances Of the country generally, at the
meeting of our State Board, in July, 1857,
calculated to excite on the part of the most
prudent and far seeing any apprehensions of
the crisis that was SO soon to follow. The
domestic exchanges were regular and easy;
the prospect of crops was satisfactory; the
foreign demand for onr leading staples was
encouraging; while the mines of this and
other countries were rapidly adding to the
supply and the circulation of the precious
metals.
Anticipating, therefore, prosperous sea-
son, our branches literally increased their
discount line and their circulation, for the
purpose of occupying the field from which;
by the expiration of its charter, the State
Bank was Withdrawing.
These favorable indications were, how
ever, of short duration. The unexpected
failure, in August of an institution of large
capital, which had possessed for many years
to an unlimited degree, the confidence of the
public, carrying down in its fall banking
houses of established credit, created panic
throughout the Union, under the influence
of which confidence ceased and enterprise
was paral yzed suspension of specie pay
ments by all the Banks OF the country, ex-
cept those of Ohio, Indiana, Kentucky, and
Louisiana, Soon followed. A distrust of
everything but gold and silver everywhere
prevailed, and the notes of specie paying
Banks were rapidly returned for redemp-
ton.
That our branches under such circum-
stances, with a liberal discount line and a
full circulation, when coin commanded from
eight to ten per cent. premium over well Sc
cured Bank notes, were able to maintain
specie payments, proved satisfactorily the
excellence of the system, and the solvent
condition of the business of the State.
venture to say that no Banking Institution
was ever subjected to so severe trial as
this Bank was exposed to from September,
1857, to January, 1858
While the Banks of one neighboring
State were to n great extent protected
by the inaccessibility of the points from
which their notes were issu. d and a spirit
of forbearance was generally exercised to-
ward the Banks of another neighbor-
ing State, on account of their ernbar
rassment resulting from the failure of
their eastern repositories, the branches of
this Bank, exposed at all points, met and
| withstood the full force of the storm. 1t is
| perhaps, not an exaggeration to say, that
during the months of September, October
and November, the Bank of the State of In
diana furnished more coin and exchange of
its notes and the payment of its deposits,
than was ever furnished, in an equal period
of time, by any other Bank, in proportion
to its capital and circulation.
That it was able to do so was not only
| honorable to the Bank, but discreditable to
the State, with whose financial interests it
has become so largely identified.
am gratifed to be able to state, that the
branches generally are in excellent condi-
ton. Nearly all of them are under the
management of men who have large inter-
ests to protect, who have much experience
in Banking, and an accurate knowledge OF
the wants and resources of the State. Our
notes are in good credit throughout the
West and it will be the constant aim OF
those who manage, and those who supervise
the affairs of the branches, to make good the
pledge given to the people of Indiana when
we commerce business-to furnish them
with currency of undoubted solvency al
ways convertible into coin at the pleasure Of
the holder.
BY order of the Board of Directors.
II. McCULLOCH, President
| STATEMENT OF THE BANK OF THE STATF
OF INDIANA, NOVEMBER 20, 1858