Jasper County Democrat, Rensselaer, Jasper County, 2 January 1902 — Stanchest financial City Of Its Class in Country [ARTICLE]

Stanchest financial City Of Its Class in Country

The bank ia the inception, th* Inspiration and th* developing Influence of modern commerce. It la a vital factor in th* prosperity of any commercial city. Nearly all the transactions in all branches of th# trade of the United States are. In their financial features, carried On through banks. To such a degree la this true that the bank clearances of the commercial cltlee of the country are reorganised aa the most accurate barometers of their success and stability. The banking Interests of Indiana have developed with the material progress of the state. In various communities the early history of banking In Indiana was not unlike that of other western states, where crude and unscientific banking methods resulted In disaster. But so far as the state Itself Is concerned. It has deserved and bear* an excellent reputation for general soundness. Th# banking business of the state is largely carried on under national charters. There are, however, numerous state banks that rank among the beet and strongest Institutions of th* state and transact a large business, aa Is shown by the fact that the resources of the ninety-seven banks of discount Incorporated under the stat* law were, In 1*99. 121,485,753.37; In IJOO, 322,927.467.66, and of the 104 banks in 1901, 326,898,518.39. At th* end of 1901 there were thirtythree trust companies operating under the laws of Indiana. The resources of these companies (only twenty-seven previous to th* present year) were, in 1899, 37.188,120.40; In 1900, 310,648.044.32, and in 1901, 315.244.916. The third clane of banking Institutions under th# eupervlslon of the state Is th# savings banks of which there are five located, respectively, at Evansville. Lafayette, Laporte, South Bend and Terre Haute. Their prosperous condition is Indicated by their resources, which were. In 1899, 36,274.528.80; In 1900, 3L01G.606.55; In 1901, *7.728.787.86. Throughout the state the financial story Is of the same tenor, that money Is plentiful and In good demand at low rates; and. while the profits In Individual transactions are not so great as formerly, the Increased volume and growing activity of business more than compensate for the reduced rates of Interest. (Besides the figures given in regard to the resources of etate banks are still larger figures for the national banks.) Altogether the state Is to be congratulated on the completeness and solidity of its banking advantages at the beginning of the twentieth century. Bome History. The history of banking In Indianapolis dates back to the earliest day* of th# city when a small private bank was started, but the first chartered bank was the State bank of Indiana, which was chartered In 1834 with a capital of 81.800,000. The charter waa to run twenty-five years and half of the capital stock was to be taken by the state, which raised the money by th# sale of bonds The state’s share of the dividends, after paying the bonds was to go to the establishment of s general school fund, and this waa the foundation of th* present splendid endowment of Indiana’s public school*. The Investment ultimately yielded to the state 33.700,000 after payment of the bank bonds. The main bank and on# of Its branches w r ere located In Indianapolis, beginning business Nov 26. 1835. In a building on the Governor's Circle, which had been Intended as a residence for the governor, but waa afterward removed to Waahlngton-at. The first president of the bank waa Samuel Merrill, with whom were associated Calvin Fletcher. Seaton W. Norris,' Robert Morrison and Thomas R. Scott as directors In 1840 the bank removed to a new building at Kentucky-ave. and Illlnole-at. The Indianapolis branch was organized with Hervey Bate* president and B. F. Morris cashier. After the charter expired the Bank of the State of Indiana waa chartered, the Interest of the state being

withdrawn and Hugh McCuloch, who waa later aecretary of the treasury of th* United States became president of the bank, which remained In business. With seventeen branches until the Inauguration of th* national bonking system, when the various branches were merged Into different national banka In their respective localities. The Institution known aa Fletcher* a bank datee back to the thirties, and oontlued In auoceasful business as a private bank until Its reorganization as one of the strongest national banks of the country. Panic of 1837. The disastrous panto of 1837 ’greatly hampered the development of enterprise# In Indianapolis, the State bank being compelled to suspend specie payment and th* legislature adopting various measure# Intended to relieve debtor# a# much as possible. One provision made at that time was that property sold on execution could not bo sold for less than two-thlrdi Its appraised value and another that a certain amount of household property should be exempt from execution. These measures, together with a disposition on th# part of th# creditor# to be liberal In the extension of time of payment of debts tended to relieve the distress to a great extent and averted a calamity that would otherwise have left a blight upon the activities of the stat# for many years. The Stat# bank resumed specie payment In 1842, but It was a year or more after that before thero was any general revival of business The banking faclutlee of the state have grown rapidly since that time. Some of the most recent panics since seriously affected, for a time, the banking system of Indiana, but It was not permanently crippled, ana 1* now stronger, better equipped, better conducted and in every way a grater Instrumentality of commerce than ever before. , _ , Condition of Local Banka. The banking facilities of Indianapolis are afforded by alx national banks—th# Columbia national, organized in 1901, having succeeded the State bank of Indiana, which went out of business; and six trust companies—the Security, also, having been organized in 1901, 4n addition to private banks, most of which are devoted more especially to Investment banking and the loaning of money on mortgages for clients. The subjoined figure* show the bank clearings In Indianapolis for each year from 1890 „ 1901 (estimate) 346,000.000 00 Condition of Bank*. The following figures show the condition and business of the city banks for the last ten years, those for the year Just closed being based on the most authoritative estimates as to deposits and loans: Capital. Surplus. Deposits. Loans. ism . it.soo.wo ti.seo.sa? ns.m,i&3 oc n.noj.sso w ISS3 .. i.fWO.OOO 1.1«7.9ft> 7.1P4.453 00 S. 173.974 00 1894 ..3.000.000 9*0.000 11.119.909 00 7.19V45S 00 ]B9S t *OO 000 907.481 9.740,542 00 4,951,003 00 1590 \ 2.300.000 *53.600 8.047.973 00 6.319.487 00 1897 .. 2.300.000 9*2.500 8.231.33! 00 6.527.854 00 1598 » 800.900 914,000 9.140.907 00 T. 417,510 00 1899 XJOOOOO 1.ia.000 11.2*3.393 00 9.511.654 00 ,900 ! 900 ono 1,152,000 22,554,857 00 9.481.103 00 1901 7 3!450,000 953,000 18.503.319 29 1.7,566.452 IT The six trust companies have a combined capital of 23.300.000. The five which were In existence In 1900 bad an aggregate capital of 22,700,000; surplus and undivided profits, 2244,134.12; total assets, $7,068.110.90.