Lamoille newsdealer. [volume] (Hyde Park, Vt.) 1860-1877, 1862-11-14
Majority and Minority Reports of the Com.
mittee on Banks, on Senate Bill, No. 3.

]
! mittee on Banks, on Senate Bill, No. 3.
In House of Representatives, Nov. 6, 1862.
! Read and, on motion of Mr.. Burrows, order
ed to lie, and the Clerk directed to procure the
printing of 800 copies of the Majority and Mi
nority Reports of the Committee on Banks on
Senate Bill 8, for the use of the members of the
House.
DANIEL B. DUDLEY, Assistant Clerk.
To the House of Representatives
The committee ON Banks, to whom was
referred Senate Bill No. 3, entitled "An
act extending the charter of the Ascutney
Bank" beg leave respectfully to report
that they have considered the same and
recommend its passage.
A. CusnMAN for Majority of Committee.
To the House of Representatives
The undersigned two of your Commit
tee on Banks, to whom have been referred
several bills for re-chartering Banks, not
agreeing with the majority of the Commit
tee beg leave to make minority report;
Entertaining great respect for the intel
ligence and opinions of the other gentlemen
of the Committee, it is with great reluc-
lance we differ from them, but viewing
the matter as of grave Importance we are
constrained to do so.
1t is we'll known that all the Banks of
this State Gas we'll as other States) long
since suspended, and refuse payment of
their bills, in specie in violation of the
law of the State; and that the present pre-
MUM on specie is about 30 per cent or,
in other words, dollar bill will com
mand but 70 cents in specie. We further
find that on first day of July, 1861, the
circulation of tho
Banks of this State was,
say $2,6lO,000,00
On the lst day of July
1862, it was say 4,339,000,00
Being an increase over
the previous year of l,72S,000,00
while the banking capital of the State
had increased Only $5,00000 From
verbal information and inquiry, we have
reason to believe that the bank circulation
has greatly increased since the lst day of
July last.
The whole Bank capital
of the State is $3,9ll,000,00
Authorized circulation 7,022,000,00|
We estimate the present
circulation at 6,610,000,0OI
This estimate is made by information
from the officers of several banks, from
different parts of the State, and, if cor
rect shows an increase of circulation over
July l, 1861, of $4,000,000,O0. This
increase of circulation is based upon in
creased deposits in the city banks. Should
any calamity bcfall the city banks, where
by these deposits should be wholly or
partially lost, it would seriously affect
the banks of the State
In addition to the increased paper cir
culation of the banks of this State and
other States, the United States is increas-
ing also the paper circulation of the coun-
try by the issue of Three Hundred Mil
lions of Treasury Notes.
All past history proves that an ire
deemable paper currency is productive of
great evils. 1t is accompanied with I'M
usual high prices of property, speculation
and extravaganza, and followed by great
depression, fall of prices distress and
ruin. Already we see the abundance of
paper money, while gold and silver have
disappeared from circulation. Prices of
produce and merchandise are advancing
rapidly. The high prices of goods en-
courage the importation from foreign coun-
tries, which the real wants of the country
do not require, and with which, at this
time, We could we'll do without, and takes
away our specie to pay for them. The
amount of revenue collected at the port
Of New York alone, since January |, 1862,
exceeds the amount of the previous year
by about twenty six millions of dollars.
The Bank Commissioners of this State
in 1860 aud 1861 expressed the opinion
in their reports that the Banking Capital
of the State was too large--more than
the legitimate wants of the people requir-