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INDIAls^A UNIVEESITT STUDIES 



and for that reason the failure was known in the eastern part of 

 the state before it was known in Vincennes.«i 



The Corydon branch at once took measures to protect itself. 

 A meeting of its officers was called April 27, 1821. D. C. Lane, 

 State Treasurer, was president. Joseph Merrill, Davis Floyd, John 

 Tipton, R. C. Boon, and Dennis Pennington were some of its di- 

 rectors. They protested against the parent Bank issuing any more 

 notes on them. ^2 



Realizing that the state was involved. Governor Jennings called 

 an extraordinary session of the legislature, to meet early in No- 

 vember. The state had borrowed S20,000 from the Bank, for 

 which the Bank held state bonds." Expecting to pay this debt 

 from current revenues, the state had accepted Bank notes in pay- 

 ment of taxes. The Governor was now unable to pay principal 

 or interest, or any other expenses of the state, with the money in 

 the treasury. The Aladison Bank refused the Governor a loan on 

 the basis of the three per cent fund; in fact that bank was now 

 about to go out of business. 



In obedience to a joint resolution of the legislature, passed 

 December 1821, D. C. Lane, State Treasurer, reported that he had 

 tendered the branch bank at Vevay $7,081, on December 20; on 

 the 22d, he had tendered the branch at Brookville $12,216; on 

 the 27th, he had tendered $448 to the Corydon branch, and two days 

 later he had offered the latter $1,455 more. In all he had tendered 

 $21,200, and the Bank had refused it. This was offered in the 

 Bank's own paper. A short time afterward. Treasurer Lane went 

 to Vincennes and counted down to the cashier of the Bank $10,000 

 in its own currenc\^, and asked for state bonds in equal amounts. 

 The cashier answered that the state owed the Bank nothing, and 

 that the Bank had none of the state's bonds. He had already 

 turned these over to the Secretary of the Treasury ofj^the United 

 States, W. H. Crawford, as collateral security. 



Before the legislature adjourned, in 1821, it ordered the Circuit 

 Court of Knox county to issue a quo warranto writ against the bank. 



«i Western Sun, July 28, 1821. 



Western Sun, June 20, 1821. 

 "Sen. Jour., 1821, pp. 11 and 147. 

 «* Sen. Jour., 1821, November 28. 

 " Western Sun, December 29, 1821. 

 «« Sen. Jour., 1821. 



«' 5en. Jour., 1821, p. 147. Western Sun, Jaifuary 19, 1822. In Am. Sta. Pa., Fin., IV, 244, is 

 found all the correspondence between Crawford and the Bank. Crawford says the deposits were put 

 there at the request of Go verno/ Jennings. The Governor charges Crawford with depositing after 

 he knew the Bank was insolvent. There is no doubt that Governor Jennings vouched for the Bank 

 both in 1818 and in 1819. It seems also that Crawford feared to ofTend the Indiana men by 

 refusing. 



