﻿ESAKEY: STATE BANKING IN INDIANA 



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On January 30, the legislature chose Samuel Merrill, pension 

 agent for the state, president of the Bank for a term of five years, 

 over John Sering and Gamaliel Taylor, the opposing candidates. 

 Calvin Fletcher and S. W. Norris of Marion county, L. H. Scott 

 of Vigo, and Robert Morrison of Wayne, v^ere chosen directors for 

 four-year terms, one retiring annually. On March 1, notice was 

 given by James M. Ray, cashier of the State Bank, that books 

 would be opened immediately in all counties for subscription — the 

 books to be opened by three commissioners and kept open from 

 9 to 12 a. m. for thirty days. If too much stock was subscribed 

 the over-subscription was to be removed, first by refusing the entire 

 subscriptions of nonresidents, next by refusing that of corporations, 

 and, finally, by cutting down all subscriptions to $500 each, after 

 which the remainder were to be reduced in proportion. Subscribers 

 must pay in at least $30,000 in specie for each branch; but they 

 could borrow the balance from the state on nineteen years time. 

 This notice was printed in all the newspapers of the state. 



By May 10, all stock in the Indianapolis and Lawrenceburgh 

 branches was taken, and a meeting of directors was called for May 

 20, at which time all the branches had made returns showing full 

 subscriptions. The Commissioners of the Canal Fund, whose duty 

 it was to borrow money for the construction of internal improvements, 

 had failed up to this time to get a loan for the state. Nevertheless, 

 the Bank Board ordered the stockholders of each branch to meet 

 and elect eight directors. In stockholders' meetings proxies of 

 nonresidents were allowed up to one-hundred by a single person. 

 There were 3,200 shares in each bank. Each branch elected one 

 director on the state board. 



At a previous meeting of the Bank Board, February 13, the 

 branches had been located. The First was to be at Indianapolis, 

 for Marion, Johnson, Shelby, Hancock, Madison, Hamilton, Boone, 

 and Hendricks counties; and as directors for this branch the state 

 Bank Board chose J. P. Drake, Samuel Herriott, and Alexander 

 Worth. Hervey Bates and B. F. Morris were elected by the branch 

 directors for president and cashier respectively. The Second 

 Branch, for Dearborn, FrankHn, Ripley, Switzerland, and Decatur 

 counties was situated at Lawrenceburg ; the state directors were 

 Om.er Tousey, Jesse Hunt and Pinckney James. Omer Tousey 

 became president, Enoch D. John, cashier, and W. Thomas Camp- 



" Indiana Journal, February 1, 1834. 



" Indiana Journal, February 22, 1834. Also Journal of the Indiana State Senate, 1834, p. 59, 

 referred to hereafter as Sen. Jour. Also Bank Rejmti;, I, p. 1. These annual reports were made by 

 I the cashier of the State Bank, to the legislature, and were due in November. J. M. Ray was 

 cashier during the entire life of, the bank. 

 [6—29048] 



