NOTES PAYABLE IN BANK.
Mr. Hefron's bill [S. 83--see page 182 of these Reports] in relation to notes payable in bank in this State, repealing all laws in conflict therewith, and declaring an emergency, was read the third time.
Mr. CHAPMAN said this bill would strike a serious blow at the commercial interest of Indiana. The Judiciary Committee made a recommendation that it be indefinitely postponed. It proposes to let in all defenses aganst a note payable in bank--such a propositfion as we can not afford to make part of the statute law of the State.
Mr. VIEIHE--In this State the law is not as in some others on this subject. In 1818 the law was passed which is substantially the present statute. He did not think the bill would answer the purpose intended, because it can be so easily evaded and opposed its passage for other reasons.
Mr. HEFRON could see no branch of business this bill could injure, were it to become a law. If such fact can be pointed out he was willing to ask leave to withdraw the bill. Its only purpose is to place notes payable in bank on the same footing with ordinary promissory notes. It can only affect the class of persons who go over the country for the purpose of swindling.
Mr. MENZIE--Bank notes perform the office of money only so far as they are kept in vaults or other reserve places till due. This class of paper has been made the cloak for frauds innumerable in this State; and the theory that they perform the office of money has been exploded long ago. If this bill will have but a little tendency to stop the mischief so loudly complained of all over the State following the making and negotiation of bankable notes, let it be passed.
Mr. SPANN opposed the bill, not on the ground of protecting a few verdant greenhorns, for there is plenty of law to punish those who go around forging the names of farmers on such class of paper. He believed every man has the right to make a contract and sign a bankable note, if he wants to do so. We ought not to strike down this class of commercial paper unless some better reason can be shown than to protect persons frequently as dishonest as the sharpers who get the notes.
The bill failed to pass--yeas 22; nays, 17.
