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The Indiana State Flag was designed by Paul Hadley of Mooresville, Indiana. In 1914, the Indiana Daughters of the American Revolution offered a prize of $100 to the person who could design a state banner. Paul Hadley's design was accepted and submitted to the General Assembly of 1917 for official adoption. The addition of the word INDIANA was the only change made by the General Assembly.
The torch stands for liberty and enlightenment and the rays show their far-reaching influence. The thirteen original states are represented by the outer circle of thirteen stars. The inner five stars represent the next five states to enter the union. The larger star above the torch signifies the nineteenth state - Indiana.
The banner is a good contrast to the stars and stripes and it is said that military people admire a blue banner.