Hoosier Banker 11 action, do hereby agree to be governed by the following Constitution and By-Laws …” The success of the IBA under Fletcher’s leadership was immediate. By 1898 the IBA had 152 member organizations, roughly 50% of the banks in Indiana. The membership has changed dramatically during the last 100 years, but the IBA maintains its focus as an agency of Indiana bankers, helping Indiana bankers. History of Indiana Banking Commercial banking commenced in Indiana in 1814. The industry has changed phenomenally during the past 183 years. Changing economic conditions and banking rules and regulations have affected banking in Indiana, both positively and adversely. The state of Indiana, the Indiana Bankers Association and Indiana bankers form a microcosm of our economic development during the past 200 years. Indiana was settled from the Ohio River northward. The first territorial capital was in Corydon, just north of the Ohio River. Commercial banking started in Indiana two years before Indiana was admitted to the Union. In the summer of 1814, the Indiana Territorial Legislature ordered the formation of Vincennes Bank. Three days later, the Legislature awarded a second charter to Farmers and Mechanics Bank, Madison. These charters were enacted into state law in 1816 when Indiana joined the United States of America and formed a state government. Unfortunately both of these banks were short-lived. Farmers and Mechanics Bank operated from 1814 until it closed its doors in 1824, driven out of business by the Second Bank of the United States. Headquartered in Philadelphia, the Second Bank of the United States refused to exchange the notes of Farmers and Mechanics Bank at its offices in Cincinnati and Louisville, Kentucky. This
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