gislature, and to have restrained its exercise; for it has the press proviso, that "nothing herein contained shall give the i company banking privileges." In further determining this point, the inquiry necessarily arises, what are banking privileges? or rather, what are the barking pri vileges prohibited to this corporation? The term "bank is ap plied to institutions of three different kinds, viz: banks of deposite, of discount, and of circulation. From a careful resig tion of the charter, it is evident that it is the privileges appertaining to the two latter which were intended to be prohibited to t institution. The special right of receiving money on deposite, and of loaning it again, are clearly conferred upon it by the char ter. Hence, the prohibitory proviso of the second sertion does not apply to this kind of business; and so far as respecte asu privileges of banks of discount, your committee that the institution has transgressed. The privileges of 1 bank of circulation are defined to be "the issuing of bills or rates of its own, intended to be the circulating currency, or mediam of ex changes, instead of gold and silver." The committce now sub mit whether this function of a bank of circulation has not been exercised by this institution? Another inquiry arose in the mind of the committee, the sola tion of which also stengthens the same conclusion. In what manner do these issues obtain circulation? It is evident that if a man possessed one thousand dollars in gold and silver, or of grød specie paying paper, he would derive no benefit from deping it in the vaults of this institution, and taking out these evidences of debt, which must of necessity be of doubtful value, except in the vicinity of the institution or some of its agencies, from the fict that they are issued by an unauthorized banking institution, the security for whose issues have never been protected by law. But the statement of the secretary shows in what manner these issues may be put in circulation to the benefit of the institution. B reference to his statement of the liabilities and resources of the institution, it will be perceived that a large amount of money, $145,500, is placed, without any security, in the hands of its agents, at different places. From the statement made under the oath of the secretary, that the issues are not made on the deposite of funds owned or cour trolled by the company, your committee cannot believe such be the fact within the knowledge of the secretary. But they can readily perceive that this might be done without his knowledge. If one of the agents of the company had $50,000 of its money placed in his hands, he might deposite the identical bills or pieces of silver or gold, with the company, without the secretary's being able to identify it, or even to suspect that the agents of the company would practice so great an impropriety upon the institution; and hence, under such circumstances, he might justify himself in making the statement he has made. But perhaps a more rational conclusion is, that a considerable proportion of the $145,000 in the hands of agents, is made up of these "evidences of debt," instead of cash, furnished to them for the very purpose of being put into circulation. One or the other of these conclusions is irresistable. This opinion is rendered more forcible by the answer of the secretary to the 4th interrogation; for he there expressly acknowledges that "the business done in this way is almost exclusively confined to George Smith & Co. of Chicago." One would hardly suppose that so large an amount of issues would be effected in the ordinary business manner, by the deposites of a single individual or company. Deposites are more usually made in small amounts for safe-keeping, bearing a small rate of interest, and more frequently by the poorer classes of the community, instead of the wealthy, who are engaged in more active and profitable investments. This conclusion is also further corroborated by the fact before stated, that the $52,000 item is not included in the "deposite accounts." If it had been, the latter would have been $53,333 94, instead of $872 94. The The 5th requisition of the resolution, as to the "general nature of the business adopted by the company," is already partially answered. The name of the institution, it will be perceived, is not an index to its business, as disclosed by the examination. answer to the 5th interrogatory, states the business to be, marine and fire insurance, receiving deposites, loaning money, and in purchasing and selling domestic bills of exchange; the last of which, it seems, has more than quadrupled since June, 1811, and most of the others doubled. But although the business of insurance meets us most prominently in the statement of its operations, yet by reference to the seventh answer, it will be perceived that this is almost the only business which the company is not extively engaged in. The report of the secretary shows that the financial concem of the institution, at the time of the examination, were in a favorite condition; and your committee have no doubt of the fact. Th men who now have charge of its interests, are men of character and shrewdness; and were they the sole owners of its stock, a might long continue in prosperity. But the majority of the stockholders are citizens of a foreign government, neither subject nor amenable to our laws; and who, of course, cannot feel, to the same extent, the moral force of all those obligations which econect a citizen with his own laws and government. It will be perceived that $130,625 of the stock are owned in England and Scotland, $90,925 in the different states, and but $1.925 by c zens of this territory. How soon it may serve the purposes ci these foreign stockholders to employ new agents to do their busi ness, depends upon themselves. Your committee only allude to this subject to show the great danger to be apprehended from the institution, from the facts disclosed, and to show the grater necessity of early checking any unwarrantable assumption of power. If this company have transcended their powers in one particu lar, how soon may they in another? And when and where are their transgressions to stop? It apparently only proffers protection to our vessels and houses against the ravages of the storm and the devouring clement, and it is amply endowed for that purpose; but its business operations, in reality, are of a different nature. So far as these respect mere matters of contract between the compa ny and individuals, whether they pertain to " loaning money," shaving notes, or dealing in exchanges, provided they only come within its chartered provisions, your committee have nothing to com plain. But when it assumes the power of dictating to us a cur rency-of flooding our territory with baseless, and, as your con mitte believe, unsafe paper, unsafe because it is unauthorized and unprovided for-they believe the duties of the legislature cal loudly for restriction. They have no doubt that some of the privileges of the institution may be favorable to the interests of a small class of our citizens; yet they cannot for a moment admit that any of these advan tages, except that of insurance, (of which but little is done.) depend upon the existence of such an institution; but on the cor trary, that they would all be attained to the same extent by private brokers, and probably by the same individuals. But at any nte, were this charter annulled, the great evils feared by the community, would be removed, and the people saved from what might shortly become a worthless circulation. The past experience with banking in this territory, both authorized and unauthorized, admonishes the legislature to guard with scrutiny the interests of her citizens, and to save them from another deluge of worthless paper. Your committee believe that the interests and prosperity of the people, in these particulars, are in the hands of the legislature. With the exception of the paper alluded to, the circulation of the territory is now sound and healthy; and in those parts of the territory where this paper is discountenanced, gold and silver is almost the only circulation. And if the legislature does not prove recreant to their best interests, the people have it in their power to maintain it. Without a paper currency of our own, the farmer and the mechanic can refuse any money for their produce and their labor, but the most approved bank notes or specie. With such a currency, the specie is locked up in the vaults of the bank, and shadows only are in the hands of the people. There are other facts disclosed by the examination, to which the committee would have called the attention of the legislature; but having already extended the report to greater lengths than was intended, they submit them without comment. From a careful consideration of the whole subject, your committee feel constrained to recommend a repeal of this charter, or such a modification of it as shall effectually restrict the company to such business operations as were originally designed by the legislature. But without reference to the ultimate action of the assembly upon the subject, they ask leave to submit the accompa nying resolution. All which is respectfully submitted, By order of the cominittee, M. C. DARLING. DOCUMENTS. RESOLUTION IN RELATION TO THE WISCONSIN MARINE AND FIRE INSURANCE COMPANY "Resolved, by the council, (the house concurring here that the committee appointed to agree upon the terms of settement with the Milwaukee and Rock River Canal Company, be also sathorized to examine into the condition of the Wisconsin Marie and Fire Insurance Company; and that they report to the lege lative assembly at its next session, the amount of capital stock paid in, the liabilities and resources of said institution, and the nature thereof, the number of policies of insurance effected, and what modifications should be effected in their charter, stick will more effectually protect the creditors of said institution, and ge nerally the nature and method of business adopted by said co pany." Passed the council of Wisconsin territory, April 17, 1943. Passed the House of Representatives of Wisconsin terriery, April 17, 1813. JOHN CATLIN, Chief Clerk DOCUMENT "A.” COMMUNICATION TO THE INSURANCE COMPANY (Cory.) MILWAUKEE, June, 18, 1813. Te the President and Officers of the Wisconsin Marine and Fr Insurance Company: GENTLEMEN:-On the 17th day of April last, hon. E. V. W ton and myself were appointed by a joint resolution of the le lative assembly, a committee to examine into the condition of the Wisconsin Marine and Fire Insurance Company; and by a sub sequent agreement of the committee, the present week was pointed to make said examination. Since arriving here for th purpose, I have been apprized by a note from Mr. Whiton, that his health will not admit of his being present to assist in the ex |