Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1862-11-14
REPORTS
OF the Majority and Minority Of Committee
on Banks, on Senate Bill, No 8.
IT, The Hotse of Represeut1tiyes


OF the Majority and Minority Of Committee
on Banks, on Senate Bill, No. 8.
To the House of Representatives
The Committee on Banks, to whom was re-
forred Senate Bill No. 8, entitled "An act ex-
tending the charter Of the Ascutney Bank"
beg leave respectfully to report that they have
considered the same and recommend its pas
sage.
A. CUSHMAN, for Majority Of Commute.
To the House of Representatives no,O in Session
The undersigned, two Of your Committee
on Banks, to whom have been referred sever
/ al bill for re- chariering Banks, not agreeing
with the majority Of the Committee, beg leave
to make a minority report
Entertaining great respect for the intelli-
genoe and opinions OF other gentlemen Of the
Committee, it is with great reluctance we
differ from them, but viewing the matter as
Of grave importance we are constrained to do
so.
1t is well known that all the Banks Of this
State, las well as other Statos) long since sus-
pended and refuse payment Of their bills, in
specie, in violation Of the law OF the State +,
aud that the present premium on specie is
about 80 per cent, or In other words, dol
lar bill will command but 20 cents in specie.
We further lind that on the fret day of July,
80 49, 'ue W " '"0
''''U 10Y aoeto o,o on
On the ls day Of July 1862 it wa, say 433s 100 900
Being an Increase over the previous year Of 72SoOlOo
WINE ,he banking caP''a' o' tue 0'e'e nau III
cieaseu ou'y @o'oVV' FROM Neioal lnio'-
nation and inquiry, we have reason to believe
'ua' tue oahk cFCu'a'ion mas greatly lheIeas-
co since the ISL day otJuly last
me whole bank eapiial oil the states - VO0O9
We estimate the present circulation az 66I0 OOjOO
This estimate is made by information from
the officers OF several banks. from different
parts Of the State, and, II correct, shows an
increase Of circulation over July l. 1861, Of
81 1000 10000. This increase of circulation
is based upon increased deposits in the city
banks. Should any calamity befall the city
banks, whereby these deposits should be
wholly or partially lost, il would seriously
affect the banks Of the State.
In addition to the increased paper circula-
ton of the banks Of this State and other States
the United States is increasing also the pa
per circulation of the country by the issue of
Three Hundred Millions Of Treasury Notes.
All past history proves that an irredeema-
bic paper currency is productive of great evils
Its accompanied with unusual high prices of
property, speculation aud extravaganza, and
followed by great depression, fall of prices
distress and ruin. Already we see the a bu nd
ance Of paper money, while gold and silver
have disappeared from circulation Prices Of
produce and merchandise are rapidly advancing
The high prices Of goods encourage the i'm
portation from foreign countries, which the
real wants Of the country do not require, and
with which, at this time, we could well do
without, and take 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 Commits sioners Of this State inlS60,
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 required, -aud in this opinion we con-
eur.
1t seems TO be the opinion Of all intelligent
and sound financial men, that the present con.
dition of the currency cannot always continue,
that a reverse will come, and that it will be
of greater severity than any ever before ex-
perienced in this country. What the condi.
ton OF the Banks. or the country. may be one
year hence, we cannot determine, but it may
be greatly changed from the present.
In view of ali these facts. and many Others
that might be named what is the hest and
wisest course to be pur,ued, Shall the Leg
i.latpre charter anv now hanks or recharter
old ones. having two years or more Of their
charters pnexnired, In the oninion If the
undersipned thew sh, mid not II il uryed ON
the one hand that ali charters being under
the control OF the Legislature. to "alter.
amend or repeal." they can. at any time. take
OH naoossarg oo,;on H., I, ,o., 80 49,
-" NN"' ~ "pfN"i' w 10
TO be the better way TO Withhold doubtful
grant rather than To recall IL after IL is made .
no, IN" I'm" ~, VI
~ o''''' III 1Pe!'o' a''u az ~
i've IN open Nlolatlou Of Nhe Ia" OF the otate,