﻿ESAKEY: STATE BANKING IN INDIANA 



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again defeated by a vote of 26 to 15. An effort was made by Mr. 

 Dawson to reduce the required capital stock from $50,000 to 

 $25,000 and this failed. The bill was put on its passage April 30, 

 and failed by a vote of 25 for and 20 against — lacking one of a con- 

 stitutional majority. It was revived by a motion to reconsider, 

 and on May 18, was passed by a vote of 27 to 18.^ Party lines 

 were not strictly drawn in passing the bill, but in general the Demo- 

 crats favored and the Whigs opposed. Governor Wright approved 

 the bin, but was not enthusiastic in its support. In the House it 

 failed to get the support of the speaker, and in the Senate Judge 

 Niblack of Vincennes opposed it, while a Whig, Joseph Marshall, 

 voted for it in the Senate. The act was to take effect July 1, 1852. 



The general features of the law have been indicated. The 

 state auditor was to be comptroller, issue all bills, and keep all 

 plates. Notes were to run from one dollar up to five hundred 

 in the ordinary denominations. Not over one-fourth of the whole 

 amount were to be less than five dollar notes, and the banks were 

 not to handle notes less than five dollars issued outside the state. 

 Notes were to be registered, counted, and countersigned by the 

 auditor, who also stamped them "secured by the pledge of public 

 stocks." Circulation was guaranteed by a deposit of United States, 

 Indiana, or other state bonds equal to Indiana fives. The state 

 was in nowise pledged to redeem the currency. Specie, equal in 

 amount, to twelve per cent of the circulation had to be kept on 

 hands by the banks, and specie payment must never be refused on 

 penalty of having the bank closed at once. Reports were to be made 

 semi-annually to the state aucUtor.^ 



The plan looked plausible, and its authors were proud of the 

 law. There may have been some who were influenced by selfish 

 motives, but the method of its passage cannot be criticised. By 

 December 15, 1852, six months after the law went into force, the 

 following banks had been organized, and are examples of the seventy- 

 four that followed 



Bank of Connersville, Connersville Capital, $400,000 



State Stock Bank, Peru Capital, 200,000 



Indiana Stock Bank, Laporte Capital, 50,000 



The Plymouth Bank, Plymouth Capital, 50,000 



, Government Stock Bank, Lafayette. . . .Capital, 50,000 



Gramercy Bank, Lafayette Capital, 100,000 



Pubhc Stock Bank, Newport. Capital, 100,000 



' Sen. Jour., 1851, p. 1018. 

 ^ Laws of Indiana,. 1852. 

 s Doc. Jour., 1853, p. 98. 



