﻿250 



INDIANA UNIVERSITY STUDIES 



Every senator spoke at length. The speeches were largely sum- 

 maries of those made in Congress on the Recharter Bill of 1832. 

 There was great excitement throughout the state, and there was an 

 overwhelming sentiment, it seems, in favor of chartering a bank. 

 Calvin Fletcher sat for the Indianapolis district. His constituents 

 were almost a unit in demanding a bank, but he was opposed and 

 resigned rather than vote.^ A motion to postpone action till the 

 following session prevailed by a vote of 14 to 13. The Jackson 

 men, seemingly, were as much dejected by the defeat as the Clay 

 men. The Indiana Democrat supported the measure and criticised 

 Senator Fletcher for leaving his post of duty and not supporting 

 the charter when he knew his constituents favored it.^ 



These three bills are worthy of attention as a reflection of the 

 popular views on banking. The Committee Bill provided for the 

 Bank of the State of Indiana, to be located at Indianapolis, with 

 power vested in the first directors to estabhsh five branches in 

 whatever counties they thought best. The $1,600,000 capital 

 was to be divided into shares of $50 each, and one-half was to be 

 furnished by the state, the other half by individuals. Seven directors 

 for the parent bank were to be elected annually by the legislature, 

 who were to choose six directors for each branch. The individual 

 stockholders were to elect six directors for the parent bank and seven 

 each for the branches. Non-residents were not to vote in stock- 

 holders' meetings. Each director must own at least ten shares, 

 and no one could sit as director in two branches. The stock was 

 non-taxable; six per cent was made the legal rate of interest; the 

 charter was to run twenty-seven years, and the state auditor and 

 treasurer were to visit and inspect both bank and branches. 



The House Bill resembled the Senate Bill very much. The 

 capital stock was the same, and the location and number of branches 

 were to be the same; unpaid stock, however, was to be secured by 

 a mortgage, and stock could not be given as security on a loan. 

 Each branch was a separate corporation; specie payment was neces- 

 sary, but the branches were not mutually responsible. No municipal 

 corporation could borrow over $5^000 and no state, or county, offi- 

 cer could be a director in the bank. The profits were to go to 

 education. As passed by the House, this bill provided for thirteen 

 directors, five chosen by the state legislature, and eight by the 

 stockholders; and the minimum capital for each branch was to be 

 $50,000, instead of $80,000. v 



T Indiana Journal, February 2, 1833. 

 * Democrat, June 15, 1833 (editorial). 



« The Farrington Bill is printed in the Indiana Journal, February 16, 1838; the House Bill in the 

 issue of February 23; and the Ewing or Committee Bill in the issue of March 9. 



