13. Minority report of the committee on banks and incorporations, relative to the Erie and Kalamazoo and Michigan Southern 14. Report of select committee on the claim of Jonathan Kearsley 15. Report of minority of committee on claims, relative to the claim 16. Report of the committee on federal relations, relative to slavery 17. Report of the committee on education, on the report of the Su- 19. Report of the committee on the State Library. 20. Report of the committee on banks and incorporations, relative to the St. Josephs Rail Road Company. 21. Report of a minority of the committee on federal relations. 22. Report of a minority of the committee on federal relations. 23. Report of a minority of the select committee to whom was re- ferred the bill to protect our citizens from the claims of slave- holders or their agents, on the capture or arrest of fugitive 24. Report of the select committee appointed to inquire concering the character of a certain report alledged to have been made by the Faculty of the University to the Board of Regents. 25. Report of a minority of the committee on the judiciary, on the resolution of inquiry into the expediedcy of abolishing all laws for the collection of debts. 26. Report of the judiciary committee upon a resolution referred to 1850. No. 1. [No. 1.] COMMUNICATION from the State Treasurer relative to Banks. STATE TREASURER'S OFFICE,) To the Senate and House of Representatives of the State of Michigan In discharge of the duty imposed by the Acts incorporating the Michigan Insurance Company" and the "Peninsular Bank," I would respectfully report: That the Michigan Insurance Company accepted the amended charter "approved March 28th, 1849," and on the first day of Octo ber last deposited with me, as State Treasurer, $50,000 of stocks of the United States and of this State, the estimated value of which was $50,600, on which they have received $49,500 of notes for cir culation, countersigned and registered; a table accompanying this report gives a description of stock and its estimated value. I have also delivered to this Company $114,800 of circulating notes, coun tersigned and registered, "secured by individual liability." The Peninsular Bank having organized under the charter granted at the last session of the legislature, deposited in the Treasury $50,025 66 stock of the United States and of the State of Michigan, October 1st, last; they have since deposited $7,750, the whole of which is estimated at $54,529 86, on which they have received $52,500 of circulating notes, duly countersigned and registered; the table appended shows a description of the stock and its estimated value. The Act incorporating the Michigan Insurance Company gives the bank note plates belonging to that institution to the custody of the State Treasurer, and they are now in my possession; no such pro vision exists in the charter of the Peninsular Bank, as a preventive, at least, against accident. Not only the bank note plates, but the control of the printing and charge of the printed sheets, should be in the keeping of this office, aed I would recommend an amendment of the Act to this effect. I would also suggest the propriety of permitting the Slate Tresurer to change at discretion the stocks deposited by the banks, and receiving others allowed by the law in exchange. A large portion ($30,000) of stock pledged by the Michigan Insurance Company is redeemable in 1853. The stock pledged by the banks is estimated, in accordance with the law, at their market value at the stock exchange in the city of New York, and whenever, for four consecutive weeks, they sell at a price less than the estimate, the law makes it the duty of the State Treasurer to notify the banks to retnrn forthwith notes to the amount of the depreciation, or retain the interest due on the stock until the pledge is made good. While the stock pledged by the banks is ample at present to redeem all of the notes thus secured to which they are entitled, in my opinion no stock should be received at a rate above its par value, and at an estimation at least 5 per cent below their current market value, to more effectually guard against loss, as the price of stocks vary from day to day. Experience has shown that State or United States stocks are the only reliable security for the issue of bank notes-they have always a cash value, well known, and are convertible at pleasure into money. In permitting banks to issue notes to circulate as money, the most ample security should be required of them to protect the public from loss. The holder of a bank note is in a great measure an involuntary creditor, made such by the laws of trade. If the notes pass currently, he receives them in exchange for property, with little or no knowledge of their real value. The "individual liability of stockholders" no doubt exerts a salutary and restraining influence over bankers, and as additional security is well euough, but would be of small value to the note holder in case of failure. Collection by the "tedious process of law" would drive the public to part with the notes at the highest price offered for them in the market. On the 20th of December last I made a personal examination into the affairs and condition of the Michigan Insurance Company. A statement of their condition at that time, and the reports of the Peninsular Bank, and the Farmers' and Mechanics' Bank, accompany this report. All of which is respectfully submitted. GEO. B. COOPER, State Treasurer. The following is a List of United States and State Stock deposited with the State Treasurer by the "Michigan Insurance Company," and the "Peninsular Bank," their estimated value, and the amout of circulating notes delirered, countersigned and registered: STOCKS DEPOSITED BY MICHIGAN INSURANCE COMPANY BANK. 1868 11,000 00 @ 1 10 is 12,100 00 Mich. St. stock, Int. Due in 20 years, or at the 90 is 6,300 00 To circulating notes countersigned and registered, $48,950 00 justed bonds, Mich. St. stock, Int. Imp. War. bonds, To circulating notes, countersigned and registered, $52,500 00 |