Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1862-03-03
what Constitute. Specie Payments.

what Constitutes Specie Payments!
The stockholders of the Bank of the State
have a valuable charter or special privileges
The consideration or compensation therefore,
they claim to be the furnishing to the people of
Indiana a sound circulating medium convertible
at the will of the holder into gold or silver
This is all the benefit, if benefit it be, that the
people of the State receive, or are promised, for
the extraordinary privileges it has conferred upon
this corporation The charter states that "the
said bank shall not at any time suspend or refuse
payment, in gold or siluer, of any of its notes,
bills or obligations due or payable. nor of any
moneys received upon deposit" and it provides
that if any branch fails thus to meet its engage
ments, it may be closed, as in case of insolvency.
short time ago, in anticipation of the
present extraordinary condition of our pub
lie and monetary affairs the officers of the
Bank published an Official pronunciamento
that it would not suspend specie payments
under any conceivable circumstances" Not
outstanding these restrictions in the charter
of the Bank and the declaration of its Off
GERS that it would, at all hazards, redeem
its promises to pay in gold and silver,
we understand that the Branch in this
city, and likewise Branches elsewhere, have
refused to paw coin for their issues and will only
redeem their circulation in United States Trea-
sury notes. The contract of the bank is with
the State, and not the Federal GOeernment, so
that it cannot be effected by OF take advantage
of the legislation Of the latter In ala cases
where there is an express agreement obligation
to pay Indebtedness in gold or silver,s Treasury
notes. even if made legal tender by act of Con-
gress, cannot be substituted for or made equiva-
lent TO coin. The contract with the State is that
''the said bank shall not at amy time suspend or
refuse payment, in gold or silver, of any of its
notes, bills or obligations due or payable" There
can be no doubt room for equivocation as to
the meaning and intent of this clause in the char
ter. The Constitution also provides that all
bank notes shall be redeemabe in specie. 1t
says:
"All bills or notes issued as money shall be-
at all times re1eemable in gold or silver; and no
law shall be passed sanctionng, directly or indi-
rectiy. the suspension, by any bank or banking
company, Of specie payments"
Such is the bond And we do not conceive
that any one will claim that Treasury notes, or
paper promises to pay of any description are
"gOld or silver"
The statements published by the bank repre-
sent il 10 be in a sound condition and abundantly
able meet its liabilities in the manner provided
by the charter. And it has not only boasted of
its ability TO maintain the redemption of its issues
in gold or silver. but it has officially announced
it "won't suspend specie payments under any
conceivable circumstances" But it appears that
some of the branches are either weak at the
knees, or else they regard profit more than hon
OF. and for one reason or the other are seeking
suberfuge 70 avoid both their charter obligations
and voluntary pledges to the public This ac-
ton Of some Of the branches is not to be wonder
ed at when the history ofthe institution is remem-
bered- a distinguished fnancier and moralist of
our city said that the people Of Indiana could not
expect much good from institution that was
born in corruption. And although that gentle
man has since become large stakeholder in one
of the branches, we are inclined to believe that
his judgment was not at fault in the opinion
which he first expressed and that even the salt
which he brought into the institution will not
save il from its original faint
We think now, as we have expressed ourselves
heretofore. from the double motive OF interest
and State pride. the bank should be sustained in
the determination il expressed 70 maintain specie