The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1859-07-18
The Bank OF the state.


The State Sentinel says that the State
Board Of the State Bank have ordered a
semi-annual dividend of FIVE per cent. for
all the branches but those at Laporte and
Plymouth, which are said to be in a crippled
condition. The Bank is said TO be in an
unprecedented sound condition, and pre-
pared for the movement Of the new crop
and the large trade that will necessarily
grow out OF it. The present circulation of
the Bank is about three and a half million
OF dollars. With the movement Of the crops
to market, the circulation of the bank will
largely increase. At the present time, ac-
cording TO the showing of the Bank, the
people of Indiana loan that institution about
two millions Of dollars for the privilege of
being furnished by ii with paper circnla-
ton. This amount it loans at IL per cent
Per annum, and draws a revenue of Sl24,-
900 per annun from the credit given to it
by the people of the State. This is the bo-
nas which the Legislature granted to the
Pank in bestowing this special charter, and
We presume, is the consideration which en-
dows it with the sanctity of vested right,
superior even to the sovereignty of the
State.
The Bank having made an arrangement
to redeem in Eastern exchange at a small
per cent, say one-eighth of one per cent,
but little coin has been demanded Wher-
ever the bills OF the Bank accumulate, say
in Chicago, st. Louis, Cincinnati, and Lou
isville, redemption system prevails. The
bills Of the different branches are assorted
OF the bankers and RENTED to them by
express, and the branches by the same con-
veyance return the Eastern exchange there.
for. While this system allows to the bank
ers and brokers but small percentage OF
profit on each transaction, yet the rapidity
with which it is done, and the large amount
which is returned in the course Of the year
makes the aggregate profit large.
The proposition made for the establish
Inent Of n Clearing House has not yet beer
settled upon. We presume, however, it viii
he, eventually, and probably Indianapoli
will he selected as the point for it, When i
is done, it will increase the power of tn,
State Bank, overshadowing entirely its riva
Free Bank system-which just now car
hardly claim that dignity, and which 10y
rapid degrees is becoming less so. We hav,
thus detailed what we know or can learn o
one of the leading powers of the Stats
sort of a Know Nothing money lodge, who's,
influences are gradually extending over thu
entire State. All its councils being in Sc
cret, the public only know what its officer.
think il for their interest 10 communicate
or what its developments make known ,C
Them.
IN another place will be found the resolu
lions Of the Bank regulating the currency
Of the Illinois, Wisconsin and non-speci
paying banks of Missouri IL carried on
ia good faith, il Is well enough TO shut on
this currency from par circulation. But il
- has been the case, the Branches take in
over their counters, this currency at two pc
cent. discount and then discount paper n
the usual shave, if the borrower will con
aent To receive this deprecated currency u
its face, II looks very much like small shay
Incorporation beneath the dignity of apower
tai and wealthy corporation, who have priv
lleges enough conferred upon them to max
money in high toned way, without resort
ing to such little advantages. And if thi
currency, which il put under par by the aC
ZION of the Bank, ia thus discounted out b
its Branches, how long will it he before TN
tabooed currency is driven out of the State
We expect it will not be untii the operatin
ceases to he profitable.