﻿ESAKET: STATE BANKING IN INDIANA 



247 



IV 



THE SECOND STATE BANK OF INDIANA, 1834-1859 



Chartering the Bank, 1834 



Soon after the October election in 1832, a movement was started 

 to reorganize the old Farmers and Mechanics' Bank of Madison, 

 Indiana. This bank had always borne a good reputation, and the 

 character of its officers ^ assured it a good standing among business 

 men. John Sering was a member of its board of directors and 

 J. F. D. Lanier was its cashier. A new set of bank note plates 

 was struck, and every arrangement made to take the tide of oppor- 

 tunity at its flood. There was in Indiana no branch of the Second 

 Bank of the United States; nevertheless its currency and power 

 reached and controlled the state through the branches at Cincinnati 

 and Louisville. 



Early in the session of 1832, a bill for a state bank charter was 

 introduced in the Indiana legislature. The report on this bill by 

 the Senate committee, of which John Ewing ^ was chairman, is 

 the best exposition of the various views of the legislature on the 

 subject of banking. In this report, which was dated January 1, 

 1833, Mr. Ewing suggested five plans by which a circulating medium 

 might be secured: 



1. The legislature might memorialize the Congress of the United 

 States to recharter a national bank. 



2. Congress might be induced to issue a national currency and 

 apportion it among the states according to population. 



3. The legislature might issue a state currency predicated upon 

 the proceeds of canals, school lands, the Michigan Road, and salt 

 springs, and managed by a board of commissioners. 



4. The legislature might order an issue of treasury notes bearing 

 five per cent interest. 



5. The legislature might organize a partnership bank — state 

 and people. 



^ Mr. Ewing then discussed these plans in detail. Concerning 

 the first, he spoke of the widespread need of more money in the 

 state. The population was rapidly growing. Commerce was car- 



' These were Victor King, president; John Vawter, John Sering, John Woodburn, and Milton 

 Stapp, directors; J. F. D. Lanier, cashier. Democrat, October 13. 1832. 



2 John Ewing was born in Ireland; came to Vincennes 9.nd engaged in mercantile pursuits; rep- 

 resented his countyjn the House in 1819 and in the Senate from 1825 toTl835, and from 1842 to 1844. 

 He also served in^the twenty-third and twenty-fifth Congresses. 



[6—29048] 



