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: 43b1b0d4

Response Measures

None

Description

The articles discuss the Indiana State Bank (referred to as the State Bank in Indianapolis) suspending specie payments during the Panic of 1837 and later resuming specie payments in 1842. No specific depositor run is described in the provided excerpts; the suspension is attributed to the broader panic/specie drain.

Events (2)

1. January 1, 1837* Suspension

Cause: Macro News
Cause Details: Compelled to suspend specie payments as a consequence of the Panic of 1837 and large specie outflows/drain on banks
Newspaper Excerpt: the State bank being compelled to suspend specie payment
Source: newspapers

2. January 1, 1842* Reopening

Newspaper Excerpt: The State bank resumed specie payment in 1842.
Source: newspapers

Newspaper Articles (4)

1. October 12, 1841 Indiana State Sentinel Indianapolis, IN

Article from Indiana State Sentinel, October 12, 1841

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$1,097,340 There goes over a million of dollars in one week : This sum was drawn from the banks by their agents, and shipped to foreign countries, for what ! Because the people suffer the banks to refuse to pay their debts on demand, which taxes them, the people, at least. one per cent.; and by making specie an article of merchandize, the bankers can make about one per cent more. This is a very low calculation. Thus, these bankers, having the people's money, while the people themselves hold but their faithless promises, are enabled to live, to grow rich and fat on the fruits of their labor. And while the mass of the working people, the farmer, who raises or creates the real wealth of the nation finds it almost impossible to obtain money enough to pay his taxes, these swindling institutions are collecting it and sending it out of the country for their own gain. Will the people, then, longer sanction the suspension of our banks! Will they sit still and see themselves robbed with impunity, while the bank nabobs set public opinion and law at defiance for their political and pecuniary purposes, and not make an effort to prevent it Will they not instruct their servants to ascertain if our Bank is dishonest or bankrupt? If the federalists have their own way, and go on shipping off specie at the rate of upwards of a million of dollars a week, how long will it be before those banks which have any specie will blow up by its being drained from their vaults? And who then will be the losers ? Now, it is almost impossible to find specie enough for common market purposes, while the laboring part of the community is swindled more or less nearly every day in the year by the blow up of some irresponsible rag factory and swindling speculators are flooding the country with their worthless and spurious trash. We charge it upon the Legislature that immediate and unconditional resumption of specie payments must be enforced on our Bank. No excuse whatever. for a contrary course, will be received by the people. They have tried, experimentally, the arguments used by the last Legislature, and have found them false. They were told by those wise statesmen, that the issue of small notes by the State Bank would drive out the small notes of other States, and shinplasters. Yet they proved. by their acts, that they did not believe it would drive shinplasters out for they passed a law making it penal to issue or pass them. How far their predictions have been fulfilled. every one knows. The time never was, when our State was cursed with such a currency as she now has. As we, in common with a large portion of the Democracy. foretold, it has been the means of banishing almost every dollar of specie from circulation, and of filling the vacuum with rags of the most worthless description. Hence we contend now, that nothing but resumption by the State Bank will have the least tendency to correct the currency. It is folly for the Bank to say it will resume when the Ohio Banks do. As well might John Wood make the same excuse. Next year the charters of many banks in Ohio, now forfeited, will expire. Two years hence, if the people of Ohio carry out their measures of reform in the banking system. she will be clear of the curse of it. It is a fully to say it will resume when the State Bank of Illinois resumes. The State Bank of Illinois never will resume! Michigan has nothing to resume. Why then should not the State Bank of Indiana resume at once ! What is there to hinder Is it because its favorites must be saved ! Because they cannot pay their debts to the Bank! Why did the Bank trust them to such an extent, and refuse the farmer the smallest pittance craved! Aye. there's the rub ! Either the bank or its favorites must come up to the scratch, or both will sink together. If the bank would save itself, it must sacrifice this better class-few, indeed, thank Heaven. Otherwise, it sacrifices itself and the interest of the people. It is better to lose a limb than that the whole body should perish." Let, then, this be our watchwordRESUMPTION BY THE BANK.

2. February 22, 1842 Indiana State Sentinel Indianapolis, IN

Article from Indiana State Sentinel, February 22, 1842

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NO NO ARBITRARY VETO PERSEVERANCE TO THE END. HARMONY, TOLERATION AND UNITY. Now what does all this amount to .. Thememory of Harrison." Amen. One Presidential Term." It is useless for the whigs to go for two, because, when they get power, the scramble is 80 great for the spoils, that the unsuccessful ones always quit in disgust. The whig leaders seek power for nothing under God's heavens but the plunder to be obtained. If any doubt this, let him watch attentively, without prejudice. the course of that party. Let him read the beseeching part of the "whig address," praying those who shall not be lucky enough to get a share of the plunder while it is going, not to turn TRAITORS! No corrupt official patronage." And who is for corrupt official patronage Ask Henry Clay and John Quincy Adams. The Purity of Elections." This comes with a bad grace from a member of the whig party. Have Glentworth's exposures of the pipelayers brought them to their senses ! Have the eighteen thousand voters in this State been found yet, who, according to Gov. Wallace, the assessors neglec ed to return The purity of elections" to come from the month is of a federal whig, is really laughable : But this whiggery An' Lord. if ance they pit her till't, Her tarten petticoat she'll kilt, An'dilkan pistol in her belt, She'll tak the streets, An' rin her whittle to the hilt. I' the first he meets. -Burns. is more "A Discriminating Tariff." Here " humbuggery." We have now a "discriminating" tariff; and the whigs and abolitionists are moving heaven and earth to have it altered. It does not produce revenue enough for the leaders. These men would have a high tariff to fill their own pockets to protect the manufacturers at the expense of all other classes; to put the people in the state where William Pitt tried and succeeded in placing the laboring people of England-where they would be necessitated to labor all their lives, and to be half starved at that. Then could they keep them in subjection. In connexion with the abolitionists, they would dissolve the Union by forcing the south to give up their property to the manufacturers, or starve! This matter shall be treated of in its pro. per place and season. "A Sound Currency." Some books are lies free end to end, And some great lies were never penn'd, Ev'n ministers, they hae been kenn'd holy rapture, A rousing which at times, to vend, And nail't wi Scripture.- Burns, The poet might have been mistaken in relation to ministers;" but if he had inserted " whig editors," he would have " hit the nail on the head," to a dead certainty. ".1 Sound Currency 11, That is SHINPLASTERS. How do the people like such a sound currency ?" Do not the whigs, and the whigs almost to a man, uphold our suspended State Bank And are her notes a sound currency? Can you get silver dollars for them, except by paying a discount of 5 to 10 per cent.! Is not the whole democracy, from Andrew Jackson down, cursed by the federal whigs for exposing the rottenness of the late British United States Bank, and crippling her power to sustain an exclusive aristocracy on the labors of many-making the rich richer, and the poor poorer ! A sound currency, forsooth ! Out upon your gold and silver! That is unsound! Nothing but the soft and silk-like" rags will suit the delicate fingers of whig nabobs Gold and silver cannot be shared! When a farmer sleeps on his purse of these metals, he is not afraid of waking up and find(ing them worthless. No meeting of bank directors in secret conclave on the Sabbath, or in the night, and passing resolves to go into liquidation, or to Texas. can rob the poor man of gold or silver. Hence the federal whigs have no sound currency : No way to get the people's money but by stealing it directly. which the brawny arm of the laborer keeps / in check. or to go to work and earn it honestly. The sound currency wanted by the federal whigs is another great mammoth bank to rule the country for their party, which, having no principles, requires | adventitious a.d to keep it in power. They must have a great shaving shop to swindle the hard carnings of the people indirectly, to support them in magnificence : : This is the sound currency they want. ".I Sound Currency! Blessed Paper Credit, last and best supply, That lends corruption lighter wings to llv : Gold imp'd thee can compass hardest things, Can jocket tites.com fetch or carry kings. A single leaf shall draft an Army o'er, Or ship oil Senates 10 3 distant shore; A leaf like Sibyl's scatter to and fro. Our fates and fortunes as the winds shall blow. Pregnant with thou-ands flits the scrap unseen, And silent sells a King or buys : a Queen.-Pope No Sub Treasury." This, it could not be expeeted the whig leaders would go for. Nothing | which would prevent them from phundering can for a moment be entertained. Pipelaying funds could not be raised, were the money under lock and key. Not a dollar was ever lost under the operation of that measure, and every cent was paid over when called for ! When was ever the people's money paid all over by the banks? Really, would not the people like to see their money placed in the banks at the present time! How do the federal whigs pro: pose to keep it! Why, as they have commenced a National Debt. they must have an EXCHEQUER, like England : As like cause produces like effect. it is easy to foretell the condition the country will come to under that measure. God Mess your Honors, can ve see't The kind, auld, cantie carlin greet, An' no get warmly to your feet, And gar them hear it, An' tell them wi patriot heat, Ye winna bear it Burns. No Arbitrary Veto Power." Why not say at once, No Constitution at all! The object of the bee been to reduce our

3. February 22, 1842 Indiana State Sentinel Indianapolis, IN

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men acquainted with the particulars of such dishon- est transactions as the one alluded to, could only pluck up courage enough boldly to expose them, they would soon become less frequent, and knaves would soon be deprived of the opportunities for pro- fitting by corruption. But while honest men are afraid to speak out, knavery must profit through their cowardice. THE REPORT. We have at length procured the Report of the Senate Investigating Committee; have glanced over it hastily, and shall publish a part or the whole in our next paper. It will be found. that one object of a majority of the committee was to black-ball every democrat concerned, and whitewash every whag as much as possible. Nevertheless its exposures will be sufficient to convince the people that there are as great rogues out of the Penitenti- ary as in it, if they need any evidence of the fact. The whole thing is shameful! shocking! abomina- ble! It sickens us to write about it. MEETING OF THE STATE BANK DIRECTORY. The Directors of the State Bank held a meeting in this city last week. The most important transac- tion of which we are aware, (for the meetings are kept secret from the people,) is an order adopted, further to oppress the people, by a general curtail- ment of discounts, in addition to that ordered at the last previous meeting. Notwithstanding the Le- gislature paid them some $700,000, (when in reality the State is not justly indebted to the bank one cent.) in Treasury notes, which the bank can use without being called on for specie for them, and postponing resumption till the 15th of June, to give them time to prepare, four years not being enough, this out- rageous order must be adopted to grind the people a little more. That there was to necessity for this grinding was made apparent, (in our opinion) by the remarks as we understand, of some of the mem- bers of the Board. But we will tell the People the true reason why the bank intends further to grind them. It is done to punish them for sending men to the Legislature in favor of Resumption, and to drive them to support men next August, who will justify a perpetual suspension by the bank, and every thing else it desires. Thus it appears the bank is determined to remain in the political field, and to rule the People or ruin them! THE RAIL ROAD MEETING. The meeting at the Court House on Saturday, was a large one-the House being crowded. Hon. N. West was called to preside, and R. B. Duncan chosen Secretary. Many speeches were made, reports read. &c. &c. all of which will be published. It appears that the people of this vicinity are determined to take hold of this work in earnest. If the same enthusiasm prevails in other sections in relation to the public works, they may be finished without any more rob- bery on the part of the pubic servants. It was an error in holding the meeting so late in day. It should have been held earlier, that the people from the country could have attended, and taken part, if occasion required it. Delegates were appointed to attend a convention to be held at Columbus in relation to the subject. We hope the farmers will attend, and not be afraid to look out for their own interest. In relation to township meetings, see proceedings. RESUMPTION IN ORTO! By the Ohio Statesinan of the 14th, we learn that the House of Represent- atives had agreed to the verbal amendments of the Senate to the bill enforcing resumption of payment by the Banks from and after the 4th of March next. and in default thereof, providing for the winding up of all delinquent institutions. The bill also makes it a penitentiary offence for any Bank officer to steal embezzle, or conceal, any property of any bank. This provision will no doubt keep many officers at home, who otherwise would have found it conveni- ent to depart hastily for Texas between this times and the day for resumption. Every Democrat voted for Resumption, and nearly every Whig against it. THE WHIG CABINET. The new Whig paper at Washington, the "Independent," cuts and thrusts the members of the Whig Cabinet, with the excep- tion of Mr. Legare, in fine style. Mr. Webster fa- vors, we are told, always the strongest powers of the Federal Government. Mr. Forward is "tho- rough-going Bank and Tarifi." Mr. Spencer is as- sailed for coming into the Cabinet after his Syra- cuse address. Mr. Upshur has "boxed the entire compass" of politics from eld Federalism to new Disunionism, &c. &c. White spirits and black, Blue spirits and gray, Mingle, mingle, mingle, You that mingle may!

4. December 27, 1901 The Jasper Weekly Courier Jasper, IN

Article from The Jasper Weekly Courier, December 27, 1901

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Panic of 1837. The disastrous panic of 1837 greatly hampered the development of enterprises in Indianapolis, the State bank being compelled to suspend specie payment and the legislature adopting various measures intended to relieve debtors as much as possible. One provision made at that time was that property sold on execution could not be sold for less than two-thirds its appraised value and another that a certain amount of household property should be exempt from execution These measures, together with a disposition on the part of the creditors 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 state for many years. The State bank resumed specie payment in 1842. but It was a year or more after that before there was any general revival of business. The banking facilities 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, and is now stronger, better equipped. better conducted and in every way a grater instrumentality of commerce than ever before.