tion prohibited the circulation of all bank notes issued within this state, and there are none except the bills of the Milwaukee Insurance Company; while the proposition of his colleague did not prohibit their circulation, it was silent on the subject. The original proposition prohibited all corporations, whether now in existence or hereafter to be created, including of course the Wisconsin Marine and Fire Insurance Company, at Milwaukee, which he supposed it was particularly aimed at, from doing banking business, such as receiving deposits of money, making discounts on loans, buying or selling bills of exchange, etc., etc.; while the proposition of his colleague did not prohibit any corporation from doing that kind of banking business, it was entirely silent on the subject. The original proposition placed penalties in the constitution for the making, signing, or issuing any paper money or other thing intended to circulate as money, by any person, corporation, or institution; for circulating any paper money, or other thing intended to circulate as money issued in this state; upon any officer or agent of any corporation which should receive deposits of money, make discounts or loans, or buy or sell bills of exchange; while the proposition of his colleague did not provide any penalties whatever in the constitution, but proposed to leave the whole subject to the future legislature of the state.

Now he supposed the effect would be just this: If the legislature should provide no penalties, individuals or corporations might do any kind of banking business or circulate any kind of paper money, and although for doing certain kinds of banking business they would nominally violate the constitution yet they would incur no penalty for such violation; and if the penalties should be slight, a corporation doing an extensive banking business could well afford to pay them as often as they were inflicted. But again, although a "hard" legislature (which it is probable our first one will be) might impose severe penalties, yet in the fluctuations of party a "soft" one might come in power and soften down the penalties or abolish them altogether. He was in favor of having the constitution itself secure the people effectually against all the dangers and evils of banking and paper money in all its shapes and phases; his colleague on the

other hand was willing to trust it to the uncertain and fluctuating action of future legislatures, whether "hard" or "soft." This was the difference between us-this the issue-let our common constituents decide it.-Argus, Oct. 20, 1846.

On motion of Moses M. Strong the convention resolved itself into a committee of the whole, Mr. Baker in the chair, on banks and banking.

Mr. Harkin said it appeared to him passing strange that gentlemen of this convention who appear to be hostile to all banking institutions are also for striking out the penalties. If the two or three first articles of this report are sufficient to put down banking, then the penalty will become a dead letter. It is well known there is an institution in this territory doing all the business of banking in defiance of all legislation. Now the question is, Will the penal part of this report put it down?—if it does, why not adopt it? This bank may be some like the fox, harmless close by its own door, but at some distance it is like the dog in the manger-will not give us a good currency itself and keeps other good currency out.

Mr. Ryan wished to state one word to the committee before they proceeded to take under consideration the majority of his report. He wished it understood that the gentleman in the minority of the committee had not expressed any unwillingness at the time that the report of the majority should be submitted, but merely remarked that he should submit a minority report more in accordance with his views upon the subject. In regard to his not having called the committee together to deliberate upon the report before its presentation he would say that he had done as the chairman of many other of the committees had done; he had drawn up a report and submitted it to the gentlemen of the committee as he could catch them. In regard to the report itself, he had heard considerable criticism upon it. He would remark that there might be errors in it, but he had prepared more difficult documents than this and was not thinskinned in regard to the criticism which might be passed upon the report. Mr. Ryan was opposed to the delegation of any power whatever to the legislature to interfere with the subject of

banking and went over his old ground of argument in favor of the penal clauses of his report as the only effectual mode of so restricting their power. The novelty of the thing was no reason why it should not be adopted; that we had a great precedent in such adoptions of novelties. The Constitution of the United States, the great fundamental principle upon which all subsequent constitutions have been framed, was a novelty. There was no constitution existing for their guidance or precedent. England nor any other European power had a constitution except in the minds of their statesmen. He went on to show the effects of banking in Pennsylvania, by averring that the United States Bank controlled the executive, Congress, and the state— that its periodical expansion and contraction of circulation controlled the money market of the whole country, thereby creating a panic whenever it suited their pecuniary interests to do so. He also reiterated the probability of future legislatures being influenced by lobby beggars. Mr. Ryan occupied the floor until the usual hour of adjourning to dinner, and upon his resigning it the committee rose and reported, leave being granted them to sit again.

Moses M. Strong then moved that the convention adjourn to two o'clock, which motion prevailed.-Express, Oct. 20, 1846.

TWO O'CLOCK, P. M.

On motion of Moses M. Strong, the convention again resolved itself into committee of the whole for the further consideration of No. 1, "Article relative to banks and banking" and the minority report relative thereto, Mr. Baker in the chair. And after some time spent therein the committee rose and reported progress on the said article and asked leave to sit again thereon. Leave was granted.

Moses M. Strong moved the convention go into committee on banks and banking, which motion prevailed, and Mr. Baker was again called to the chair.

Mr. Kellogg offered an amendment, which he said had struck him as expedient; he withdrew his amendment to allow Mr. Ryan to offer the following, which had suggested itself to him since his report was submitted as amendment to the original report:

"Amend by inserting between the sixth and seventh sections as follows, and alter number of the seventh section to 8:

"[Section] 7. No branch or agency of any bank or banking corporation or institution of the United States, or of any state or territory within the United States, or of any person or persons doing banking business without this state shall be established or maintained within this state, or shall issue any paper money, bank note, or other evidence of debt whatever, intended to circulate as money, or receive deposits of money, make discounts, or buy or sell exchange, or exercise any other banking power or privilege whatever, in any manner or form whatever, within this state; and any officer of any such branch or other agent of any such bank, corporation, or institution, person or persons, so doing shall upon conviction thereof be fined in a sum not less than $5,000 and imprisoned in the penitentiary not less than two years.

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Mr. Kellogg then offered the following amendment:

"Section No person shall pass, or pay, or give, or receive in payment any paper money or bank note of a less denomination than ten dollars: Add to the amendment the words: 'And any person or persons so doing shall upon conviction thereof be fined in a sum not less than____dollars or imprisonment not less than____months, or both.'"

Mr. Wm. R. Smith then offered the following as a substitute for the whole report of the committee:

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"Section 1. There shall be no bank of issue within this state. 'Section 2. No bank of any state, or of the United States, or of any foreign country, shall establish any branch, office, or agency whatsoever within this state.

"Section 3. The legislature shall not have power to create, incorporate, or authorize in any manner or form whatsoever, within this state, any bank, institution, association, company, or individual whatsoever, possessing any banking powers or privileges whatsoever.

"Section 4. The legislature shall at its first session after the adoption of this constitution provide by law for the infliction of penalties on all individuals, corporations, associations, and companies whatsoever who shall in any manner or form make,

sign, or issue within this state any bank note, promissory note, bill, order, check, certificate of deposit, or other evidence of debt whatsoever, intended to circulate as money."

Marshall M. Strong spoke some time in favor of the adoption of the report.

Mr. Whiteside was also in favor of the adoption of the report and knew that his free, frank, and magnanimous constituency would uphold him in the course he should take by voting for it. He went on to show the operation of paper circulation in the mining district where he came from and its many evils were anathematized of course.

Mr. Chase rose to make some remarks, though not to detain the convention with a speech. He alluded to some remarks made by Moses M. Strong that he thought applied to him. Mr. Strong explained that such application was not meant. In the course of his remarks Mr. Chase also made allusion to members making speeches for buncombe, which brought out Marshall M. Strong, who rose to inform the gentleman that the allusion to members making speeches for the people could not apply to him, as he had already requested the reporters not to report anything he should say.

Mr. Hicks had heard no report, amendment, or substitute yet that suited him. He was in favor of the original report so far as it went, but it did not go far enough; it was not "hard" enough. He had drawn up an amendment to suit himself, which would make hard harder. His amendment was as follows:

"Strike out all after the first section and insert:

"Section. The legislature shall have no power to confer in any manner or form, upon any person or persons, corporation, or institution of any kind any banking power or privilege; nor any power or authority in any manner or form to make, sign, or issue within this state any paper money, bank note, bill, order, check, certificate of deposit, or any other evidence of debt intended to circulate as money.

"Section. No person or persons, corporation, or institution, or any officer or agent of any corporation or institution of any kind shall ever make, sign, issue, pay, give, or re