Report of the debates and proceedings of the Convention for the revision of the constitution of the state of Indiana. 1850.

wolved here. t i jBost Lhe same as if It leave the safest, bank in tIe world, has onea provisioai*
-my umbrella in a meighborls shop, not wishing in its charter to prevent its issuing notes beyond
the trouble of carrying it, I taking the risk of its specie or othersecurities to redeem them; and
his returning it to me when called foro It is, I see no reason why a State Bank, established
as A have already said, a mere matter of con- iin Indianaa, should not be restricted in its issues,
tract. to the amount of specie or State Bonds which
Now, I do hope that gentlemen will come to it may have on hand to redeem them. I believe
this question in a spirit of compromi se-that that the security required by. those who advocate
thosetaking thIe extremes on this question will the free bank system would be better than that
be disposed to meet each other. half way. I offered by those who advocate the State ban]k
[think we ought to leave it with the Legislature system. Here you have a State bank, with a
to establish a State Bank, if they think proper, circulation of near four millions of dollars and
when the charter of the present bank expires, only one million of specie at the back of it; and
On the other hand, let me say that I trust gen- if that bank, like the Bank of England, were retiemen who are so much in favor of a State quired to give security for her issues, you would
Bank will make some concessions, and meet then pretty near approach to the free banking
the gentlemen who are favorable to a system of systemnl. This is all I have to say at present.,
fee banklnmg. If you adopt thlls amendment, It except that I shall endeavor,min good faith, to
~say unequivocally. and beyond the fear of con- assist each party to perfect theirs ystems, retradiction, that you will not be able to have serving to myself the right to vote against them
any bank with branches that shall be mutually all.
liable to the depositor. It do trust the amend- fMr[. STEVEN' SON'. The gentleman from
ment will not be adopted~ Allen asks me why a State Bank should not be
Mr. BORDEN'. I had designed, before the compelled to give the same kind of security for
~question was finally disposed of, to hae given its issues, as is proposed by the advocates of
ay views in regard to the subject of banking; free banking? I gave one reason this morning.,
but under the present feelings of she Conven- I stated that the branches of a State Bank were
lion, I am not willing to trespass upoo their made mutually liable for the issues of each
time,. I will merely say, that in voting for the other, while the free banks were released from
amendment of the gentleman from Posey, (Mrr this kind of liability. This is one reason. For
Owen,) in opposition to that of the gentleman the purpose of nmakihng State Banks safe, they
from Ripley, (Mr. Smith,) I did so for the pur- were required to deposit dollar for dollar, iui
pose of effecting a compromise~ I was disposed State or United States stocks; and to make up
in the first instance to the vote with each party for tis, they were released fromi the mutual hiato defeat the plan of the other, but fnding that bility principle. If you make all the branches
some banking system mmst be adopted. I am of a Sitate Bank mutually liable for the issues
now disposed to vote with each in good faita to of each other, and compel them to deposit seendeavor to make as good a system as pcosible. curities besides, you place it ina n unfair posiAlthough I voted in favor of the amendment of tion in comparison with other banks, thus makthe gentleman from Posey, I shall be compelled hmSg them give a double security.
to vote against it, when the ques3tion is taken Mrt. MAtCH. The gentleman from AllelA,on its filnal passage. (Mr. Hamilton) misunderstands the' force of this
I would observe here,'that both the advocates amendment. it is to apply to a State Bank with
of a State Bank and the free banking system branches, I have not, myself, any great dehave, in debatimg the respective namerits of their a;wee of confidence in any system of banking,
plans, occupied much of the time of this Con- established for the purpose of furnishing a cir~vention, while those who are opposed to all culating edium, on the principles by which
banks of issue have not been heard at all. Not banks are at present regulated; but the constita single speech on that side of the question has uency which I represent, are in favor of a wellbeen made on this floor-the gentlemen takilng regulated and well-guarded State Bank with
-other views of the question have been heard with branches, as the safest and best system, all
much patience and attention. I shall, however, things considered; and It expect, in good faith,
embrace the earliest opportunity of giving my to vote to carry out that measure. The old
views in opposition to all banks whatever, if the State Bank and its branches were made mntuoccasion be presented. ally responsible. Here is the section. [Mr. Dfi
One other remark, while I am up.o This read the section.]
morning I took occasion to ask the gentleman "That "a new branch could be established or
from Putnam, why State Banks, as well as firee located without the consent of every one of the
banks, should not be required to deposit securi- branches now in existentce-and not that the:
ties for the redemption of their paper. Sir,, I stockholders are not individually liable for all
see no reason why a State Bank should not be the debts of each branch.
under as n much obligation to deposit securities Mr. iARCH [Icontinuing]. The most dan"
for the redemption of its issues, as a free bank~ gerous of all nks awe d e a mothe bank
Sir, the Bank of England, which -is, perhaps, which was not responsible for the eagagementB