﻿ESAREY: STATE BANKING IN INDIANA 



237 



The cashier of the Bank, E. Boudinot, resigned in May.^^ He 

 was succeeded by Valentine Bradley, who served till October and 

 was succeeded by Samuel Jacobs, the cashier ot the Brookville 

 branch. Jacobs gave up the position at once and was followed by 

 Carter Beamon. The investigation went on from week to week, 

 and the impatient stockholders grew more impatient. May 31, 

 they were astonished by the announcement that the directors had 

 voted a ten per cent dividend^ ^ for the last six months on all paid 

 up stock; and this at a time when the bank was known to be in- 

 solvent. The sentiment of the people was well expressed by Richard 

 Daniel, at a banquet given in honor of General Harrison who was 

 then visiting the Old Post. He proposed this toast: "The State 

 Bank of Indiana, more corruption than money." 



At the June meeting^'' of the directors. President Brown in- 

 formed the stockholders that the Bank was insolvent. He further 

 reported that the chief cause of its failure was its close alliance 

 with the "Steam Mill" venture. The promoters of this concern, 

 one of the first of its kind in Indiana, were the officers of the Bank, 

 and were charged with embezzling funds of the Bank to the amount of 

 $91,000. A committee at once waited on the "Steam Mill" com- 

 pany to see if it could pay any part of its debt. Judge Parke prom- 

 ised to turn over all his property to the Bank. He owed, he said, 

 only a few other debts. Other members of the "Steam Mill" com- 

 pany, and nearly all were stockholders of the Bank, gave no assur- 

 ance. Mr. Parke assured the committee that if the debt was 

 nearly as much as represented, the "Steam Mill" company could 

 never pay it. It was then resolved to close up the affairs of the 

 Bank as rapidly as possible. Those owing the Bank were allowed 

 to surrender their stock, if they had any, and receive a correspond- 

 ing crecUt on their indebtedness; in other words the worthless stock 

 was cashed at par with other people's money. It was further 

 resolved not to jeopardize business by calling in loans too rapidly; 

 it was ordered that not more than twelve per cent be collected 

 annually. The former president, Nathaniel Ewing, and cashier, 

 Elias Boudinot, were censured for betraying the Bank by drawing 

 false bills of exchange on members of the "Steam Mill" company. 

 Lastly, it was agreed to compromise with creditors and thus save 

 the directors from loss. 



This report was first printed i-n the Louisville Public Advertiser, 



Sun, June 2, 1821; also Centinel, June 2. 1821. 

 65 Western Sun, June 16, 1821. 



" Western Sun, June 23, 1821. See also letter of Brown to Crawford. Am. Sla. Pa , Fin.. Ill, 737 



