The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-02-16
Bank Legislation.
Communicated.

see there is bill now pending in both
branches of the Legislature entitled IAN
act to regulate the business of banking un-
der the laws of this State" The bill as it
now stands is certainly sailing under a mis-
homer. From the reading of its provisions
enc is moved to the conclusion that it
shoHld be named IAN act in favor OF Ma
tional Banks and to enrich certain parties"
Its provisions show plainly that il is so
drawn as to discriminate against private
banks and bankers. In the first place. there
is no urgent necessity for any action of the
Legislature against the private banking in
situations of this State. AS class, they are
to- day sounder and under better manage
ment than the National Banks are. taking
them as q class. The close reading of
bank history in Indiana will prove this
assertion to be true. 1t is true in the city of
Indianapolis two private banks suspended
recently, but that Is not 8 criterion for the
whole State. While this failure of private
institutions was going on IL is we'll known,
at least In banking circles, that the knees OF
certain National Bank managers were quak-
ing, and had the private banks and bankers
called them for their deposits at that time
great would have been the calamity.
Mismanagementc reeps into ali branches Of
business. National Banks are afflicted with
this disease alike with private banks Then
why exempt them from the provisions of
this sct2 Why compel the private bankers
to psy q special tax to detray the expense of
the State for ferreting, and exempt the Ma
tional Banks from the raYages oi.the ferrets.
Speaking of the management of banks, 1t
might be well for the Legislature to inform
| itself SIS to the standing and management of
| the several National Banks and comps re-
| them With ike number OF private banks.
| A peep behind the screens of one of the
| National Banks in this State might disclose
/ the startling intelligence that within the
| last year she has been compelled, through
| bad management. or so ne kindred cause to
| certify from her capital stock the enormous
| sum OF $500 600, either 10 cover losses from
bad debts or something else. In two years
more, if business keeps good, she may be
| able to certify of the balance.
| Now can any private bank in Indiana be
| found with as good q record a3 this7 The
| city of Richmond has had its lesson in
| National Banks failing SIS well IS private
| hanks
| Anderson has tasted Of the dregs of q fail.
| uie OF National Bank. Out OF seven baaks
j in Madison County, all are privats institu
/ tons. There never was but one National
| Bsnk in the county that prospered. The
| only failure that ever occurred in the his.
tory of banks in this county wss National
/ Bank. Many poor orphans and widows are
now suffering from the effects OF that fail
IRE. State and county are large sufferers by
/ il. and only two years since the Legislature
was called upon by the citizens of this
| county to relieve them OF part of thi:
burden.
The National Banks have always been "a
| voTed class. They have received favors from
| the National Congress that were denied al
| Others. Now that change has taken place