The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1861-05-23
Bans of the state of Tndfana--
suspension
BANK OF THE STATE OF INDIANA
INDIANAPOLIS, May 8, 1861.

A.
INDIANAPOLIS, May 8, 1861.
Editors Of the Tribune:
My attention has been directed to your
" Monetary Article" under the date of the
9Th inst, in which you say: alt is ex-
pected here that the Indiana and Ohio banks
will suspend specie payment within the
next ten days, and letters from New York
received to-day report it highly probable
that the banks of that city and State will be
obliged to suspend, if not within ten, Ger
tainly within twenty days. That would
bring our currency more nearly on a par
with that of other States, and business
would move along more smoothly. Our
best fnanciers are satisfied that our Hi
nois currency is much better than the stuff
that would at once have rushed in to take
its place, had not our banks and business
men mutually agreed to sustain it,
| should not notice statements and specu-
lations like these, did they not appear and
had they not been repeated in journal of
so much respectability and influence as the
Tribune.
Unless the balance of trade, instead of
bringing coin into the country, should be so
changed as to cause a heavy expectation of
it (which is not likely soon to be the case),
a suspension of SPECIE payments by the
w" VI II OAhho NClipBlSO luOuRu Iney
may be by the failure of so many of their
customers who have been engaged in the
Southern trade), would be a blunder not
likely to be committed by gentlemen so in
telligent as are those who manage the bank
ing institutions of that city
As far as the Bank Of the State Of m
diana " is concerned, I have only to say,
that the subject of a suspension of specie
payments has neUsr been eUe1l considered and
trustnever will be considered by our board.
Our Branches now hold about two millions
and a half of dollars ($2, $685. OO) in coin,
and have some twelve hundred thousand
dollars in New York while their actual
circulation does not greatly exceed four mil
lions. Many of them could pay, in coin
and New York exchange their liabilities to
the public, in less than thirty days, and the
rest of them, in a not much longer period.
Nor is the State Bank of Ohio more likely
to suspend than we are.
The managers of both these banks are de-
termined that the people of Ohio and In
diana shall continue to enjoy, as they have |
done Tor so many years, the benefit of a
sound, convertible bank note circulation
Whether our people will have as much of |
this kinfof circulation as is required by le-
gitimate trade, will depend somewhat upon
appear in such journals as yours.
A suspension Of specie payment by SOL |
vent banks, is not only a public calamity |
and a crime, but financial blunder In |
solvent banks should be wiped out" and |
the sooner the better.
Our friends cover in Illinois," if they
haze not already learned, will doubtless |
soon learn, that no combination of mer-
chants and bankers, assisted though they |
may be- by influential journalists, can give
to lnconvertible bank notes a value they do |
not possess, and that banks, without a good |
specie basis, are an imposition and fraud |
upon the public. | regard it as not little |
strange and unfortunate, that the writer of |
the " money articles" in the Tribune should |
suppose that your currency would be i'm |
proved by reduction ofthat Of other States |
to your own low standard.
Chicago has a circulating medium, the |
best of which is from ten TO fifteen per cent. |
below specie, and is only kept from going |
still lower by artificial means 1t would be |
interesting to know what sort of stuff"
can be worse than this, and from what kind
of note circulation your merchants and fnan-
ciers have protected your enterprising city,
W hose citizens could give no stronger evil
dence of their patience and energy, than the
fact that they have continued to live and to
prosper under the terrible infections of the
Illinois system of banking.
Veryrespectfully, H. MCCULLoCH.
We cheerfully give place to the above let
ter from the President of the Bank of the
State of Indiana, and take kindly his "home
thrust for the sake of the valuable infor-
nation it contains. Our citizens will be
glad to learn that Indiana has so sound a
and one so readily convertible. 1t
is but few years since that she was cursed
with an irresponsible Free Bank curren-
cy, and Chicago suffered severely from it.
Illinois has had an abundance of the same
and it is confidently believed that
our permanent deliverance from it is only a
few months in the future.
In regard to Indiana and Ohio it gives
US the greatest pleasure to assure the pub
lie from SO high a source, that the Banks of
that State occupy an impregnable position.
We hope and now believe they will know
40 such word as ".faI"
AS to the course of the TRIBUNE we are very
well aware that its present position is La
Ole to be misunderstood, We are now and
always have been in favor Of specie paying
banks, and our columns give ample evil
lence that we do not believe that any
others should be suffered permanently to
axist. A bank falling to pay, if suffered to
Exist at all, its life should be the shortest
ipan possible. It's existence is at best lie
md a cheat Chicago Tribune.