The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1859-04-28
mn,ssicaed.
state Bank.

tons as to the operations of the Bank
Of the State, which, however plausible, are
hadrly consistent with facts. do not propose
to enter into any discussion in regard to the
Bank, its policy or position; but it is per-
haps due to it to state that your estimate of
herprofits is entirely unfounded andincorrec;;
and Also is it proper to mako few observa-
tons on other points embraced in yourarticle.
The Bank undoubtedly has good privileges,
and enjoys credit which enables her to use
these privileges to the best advantage-the
best advantage to herself and TO her custom
ers; for a we'll managed Bank always con-
siders her own interest identified with the
interest of her customers, and will naturally,
from this view, deal literally with them.
Ii is believed that the Bank of the State
conducts her business upon---t0 say the
least-as reasonable terms, as any other
Bank, and in manner that is satisfactory
to her dealers. That fair profits on her capt.
tai are realized is true, not IS TO 80 per cent
per annum rs you infer, but probably over
ten per cent, expenses paid no more, how
ever, than ether banks Of similar privileges
and credit (the Kentucky banks, for in
stance,) usually make---not because they
charge high rates for money, as the Ignorant
may suppose, but because they issns ond loan
tiso dollars for every one dollar Of capital
and loan mot issue) also at certain periods
an amount over this-the profits On the two
dollars being divided on the one dollar of
capital. Hence, if bank ,s,uss and loans
two dollars at Q per cent, and divides the
profit of this two dollars, on the one dollar
OF capital, which is tho basis OF the issue, it
l. plain enough that the profit is at the
rate OF 2 per cent on the dollar of capital
In other words, it is the issue Of two dollars
on one OF capital, and the credit TO maintain
a full, OF nearly full circulation and dis
count line, which enables the banks to show
n good per centage OF profts-not because
they charge enormous rates for their loans,
as the uniformed are led to believe.
word or two as to the basis of your es-
innate. You state that the bank has been
in operation only twenty lone months, and
you assume that the first siI months oil
these were not productive; that she has ir
that time divided among her stakeholder,
10 per cent; has paid the bonuses OF premi.
ums for the original stock; and after paying
the ordinary and extraordinary expenses O
Organization, has a surplus of 20 per cent
on her capital.
Now the facts are, that with the excep
ton of the Evansville Branch, the Bank ha
been in operation q months, and its first 81,
months after organization were not, as yo,
infer, idle months, but were months of &C
tive business and profit. Here there is on,
year to bo added TO the time in which yol
estimate tie results were made--2T months
instead of Is 'cOrking months as you hav,
/ stated it. This is one point
Then ms to dividends. The first year
eleven of the Branches divided three pc
cent. each-nine Branches nothing. Tn
second year, fourteen Branches divided tel
per cent. each, one Branch nine per cent.
three Branches five per cent - and tw,
Branches nothing.
Then as to the premiums. These you sup
pose TO have been paid out Of the profits o
the Bank, whereas, in fact, except in tw,
Branches, they were paid out Of the pocket
: OF the stockholders, without any loans from
the Branches to cover them, whether to b,
paid from the profits OF otherwise.
a due consideration of the foregoing cor
= rection OF your bases OF calculation wil
doubtless modify the conclusions at whitl
you arrived.
The establishment OF banks is with
three-fold object.
, LIST. To furnish the public with a SCUM,
conpsrfidls currency.
: "a. To furnish aid to the legitimate busi
ness and trade of the country, upon equits
q ble and just terms and
= 3D. To make it an object with capitalist
TO invest for the purposes named.
!. While, therefore, reasonable privilege
= must be granted toinduce capital into banks
Z proper guards aud checks should be throw
around them that the rights of tue public sha
be preserved. Such n bank is the Bank
the State; and having good privileges, an
controlled as she is, by men who have e,
perience and some judgment, it ia hardly
loo doubted that she will accomplish the trt
objects for which the charter was, or shou
- have been, given.
lat. To afford reliable circulating III
dium. convertible into gold at the pleasu
of the holder.
rs I'd To afford large and regular loans
h. tine business OF the State, upon reasonab
- terms.
:, 81. To pay ,he stockholders fair dividen
Oa their investment ia the stock.
That the bank has accomplished the III
of these objects q reference 10 the publ