Indiana State Bank - Indianapolis, IN

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: January 1, 1837*
Location: Indianapolis, Indiana (39.768, -86.158)

Metadata

Model: gpt-5-mini
Short Digest: d7d892d1

Response Measures

None

Description

Article is a historical account noting the Indiana State Bank (chartered 1832) temporarily suspended payments in 1837 during the depression but later lived out its charter and paid substantial dividends; this indicates a suspension with subsequent resumption rather than a depositor run or permanent closure.

Events (1)

1. January 1, 1837* Suspension

Cause: Macro News
Cause Details: Suspension occurred during the depression of the time (general economic downturn in 1837).
Newspaper Excerpt: The bank temporarily suspended payments in 1837, but with returning prosperity fears diminished and it lived out its charter.
Source: newspapers

Newspaper Articles (1)

1. February 20, 1935 The Indianapolis Times Indianapolis, IN

Article from The Indianapolis Times, February 20, 1935

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Article Text

Indiana State Bank, Back in 1832, Showed Profit as Institutions in Other States Were Collapsing shareholders, and each was locally BY VINCENT S. LYONS stock and all subscriptions, whether Times Financial Editor made by the state or individuals, managed subject to the rules laid were paid for in specie-an unusual Once upon a time Indiana had a down by the Indianapolis directors provision. state bank which, at the conclusion who had exclusive power to declare The state floated bonds to raise of its 25 years of chartered existdividends." its share of the initial capital and, ence, showed a net profit of $3,500,Notes of every branch were rein addition, advanced to individuals 000 after meeting both principal and deemed in specie on demand, each 6½ per/cent of their subscriptions, interest on the capital extended to was compelled to receive the notes taking a lien on their shares and launch the enterprise. This record of all other branches, but all notes real estate security as collateral. was unique for the period as similar were issued only with the permis"If fraudulent insolvency OCenterprises in sister states were sion of the central board. Each local curred," Professor Pearson writes," touched by the finger of suspicion institution was liable for the debts the president and directors would be and either collapsed of their own of all the others. subject to unlimited liability, and weight or ended with the addition In the depression of that time the if that were insufficient, the stockof more financial opprobrium on the bank temporarily suspended payholders would be individually liable shoulders of the taxpayers. ments in 1837, but with returning for amounts equal to the amount of This little episode in the financial prosperity fears diminished and it shares they held. history of Indiana is depicted in lived out its charter. "The bank had ten branches scat"Government Experimentation in The bank had paid regular divitered throughout the state, each Business," by Warren M. Persons, dends, ranging from 11 to 22½ per capitalized at $160,000. The central Ph. D., which is now available at cent, and at liquidation in 1857 the board at Indianapolis could inspect the business branch of the Indianstockholders received $153.70 net these branches, and whenever it saw apolis Public Library. per share. The state's dividends had fit could close any branch under a The Indiana State Bank had its paid the interest on the bank bonds, receivership. The assets of each inception in 1832. Under the charplus $1,955,461 to the sinking fund. local bank belonged to the local ter the state owned one-half of the