﻿268 



INDIANA UNIVERSITY STUDIES 



Bank, of Ft. Wayne, presented a report from the committee on 

 currency and banking. It was a minority report, and a short dis- 

 cussion at this point showed that a majority of the committee could 

 agree on nothing and that all its reports would be minority reports. ^ 



The struggle between the bank factions was renewed when the 

 provision for preventing the state from borrowing money was re- 

 ported. Without thinking that it would prevent the establishment 

 of a state bank many of the delegates came, pledged to a provision 

 making it unconstitutional thereafter for the state to contract a 

 debt. The vote on this question stood 111 to 6, thanks to the 

 experience of internal improvement days. In the article of the 

 Constitution relating to the legislature, Mr. Walpole introduced a 

 section providing that no president, director, or agent of a banking 

 or railroad company should be eligible to a seat in either branch 

 of the legislature. The debate on this section fills sixteen pages 

 of record. It was lost by a vote 79 to 47. On the same day that 

 this vote was taken, Mr. Kelso offered a provision that no president, 

 cashier, director, or other officer of any bank should be eligible to 

 sit in the legislature. This carried to a third reading by a majority 

 of 4, thus specifically showing the prejudice against bankers. 



January 1, 1851, w^hile the Convention was considering Eights 

 and Immunities, Mr. Reed of Monroe made a covert attack on 

 state banks by a very plausible provision that the legislature should 

 not grant to any citizen or class of citizens privileges and immunities 

 which upon the same terms should not belong to all citizens. 

 Mr. Smith observed that this w^ould prevent the recharter of the 

 Bank and for that reason opposed it. Other propositions from 

 time to time raised the bank question until the regular report of 

 the committee brought up that question definitely. This report — 

 Number 24 — provided that "The business of banking shall be free 

 to all, on such terms and restrictions as the legislature shall impose 

 in general laws for such purpose, which shall be obligatory to all.'' 

 Samuel Hall of Princeton, at once moved to amend this so that the 

 legislature might have power to charter a bank. The simple ques- 

 tion now confronted the convention. The experience with Internal 

 Improvements had been conclusive; but not so with the Bank. 

 It was successful; it was ably managed; it had cost the State 

 nothing, and had earned for it a neat sum. The Bank seemed to 

 b-e a good thing, although the principle was bad. 



9 Debates, p. 329. 

 "76ii., p. 681. 

 " Ibid., p. 1221. 

 12 Ibid., p. 1222. 

 i'/6i(i., p. 1393. 

 i*Ibid., p. 1414. 



