The Bank of the State of Indiana organized in 1855 with twenty branches to take the place of the Indiana State Bank, maintained the same high standard as its predecessor, going through the panic of 1857 without suspension, although every private bank in the state, except two at Indianapolis and one at Fort Wayne, went down. Like its predecessor, the Bank of the State of Indiana fell on evil times soon after its organization. The panic of 1837 came two years after the organization of the State Bank; and in 1857, before the Bank of the State had been in operation quite two years, a great financial panic swept over the country, precipitated by the failure of the Ohio Life Insurance & Trust Co. Every bank in the east, except the Chemical Bank of New York, suspended specie payment, and all in the west, except the Bank of the State of Indiana and the Bank of Kentucky. The Indiana Bank weathered the storm, and redeemed all its obligations in gold, as fast as they were presented. Many of the branches of the Bank of Kentucky were at remote points from the railroads, and could not be easily reached by the brokers and other bill holders, but those of the Bank of the State of Indiana were within easy reach and holders rushed for the specie. In 1860 the capital was $3,323,000, specie $1,917,000, circulation $5,753,000, deposits $1,186,000. MR. MANUFACTURER: I can tell you all about the Kentucky banks myself--and I want to tell you there were no better then and there are no better anywhere today. The Legislature of Kentucky in the session of 1833-4 granted a charter to the Bank of Kentucky with $5,000,000 of capital and the privilege of six branches. Charters were also granted to the Northern Bank of Kentucky, with a capital of $3,000,000, and the Bank of Louisville, with a capital of $5,000,000, each institution having the power or right to issue credit notes to double the amount of their capital. While the Northern Bank of Kentucky liquidated in 1898 and the Bank of Louisville was merged into the Southern Bank in 1899, the Bank of Kentucky had in the latter year a capital of $1,645,000 and a surplus of $1,103,000, giving indubitable proof that no one had ever suffered because of its power of note issue. And there the Bank of Kentucky stands today, occupying the building it purchased from the United States Bank, a monument to the sound principles upon which it was founded. It may be most fittingly observed before passing, that when in May, 1837, the blighting wave of suspension swept from New York across the country, these three banks of Kentucky held $1,900,000 in specie against $3,300,000 of notes in circulation--an object lesson for those who may possibly fear that the banks cannot obtain sufficient gold today to protect the notes they are permitted to issue.