REPORT OF COMMITTEE

ON

BANKING INSTITUTIONS.

The Convention, in its wisdom, having deemed it proper to constitute a committee to take into consideration what action, if any, should be had in framing. a constitution for the State of Virginia, in reference to banking, insurance and kindred subjects, after due consideration, your committee beg leave to submit the following:

So far as relates to banks of circulation, your committee might refer to the past history of such institutions in Virginia, and point with just pride to their good management and the high credit the old institutions of our State had attained; and how barely, if ever, our people had been deluded by the worthless circulation of a broken bank amongst us!

But the disasters of the past seven years have not only broken down, but swept away almost every vestige of these time-honored institutions; and as under the new order of things the Congress of the United States has inaugurated a system of national banks of circulation, discount and deposit, based upon Federal securities, the circulation of which has a uniform value in every part of the Union, and which system allows, by its very terms, no rival institutions of State formation, and no interference with the present system of State authority, therefore your committee deem any recommendation of action, in reference to this branch of the subject referred to them, unnecessary, unless, indeed, so far as the subject of taxation is concerned, as to which, no doubt, the proper committee, in charge of that subject, will give the desired attention.

With regard to the numerous institutions of recent origin, existing in our State, known either as banks of discount and deposit, savings banks or trust companies, it is argued by some that many of these so-called banks are merely broker-shops in disguise; that they absorb the loose funds of the country, at legal rates, to be loaned out on usurious terms, which funds, in the old-fashioned way, would have been loaned out to the merchant or farmer, direct by the owners, at the lower rate at which it is taken up by these institutions; and it is also thought by some that the business of brokerage is frequently carried on under the eve of such companies, by which means the usual high taxation on such business is evaded. Yet whilst these, as well as most other human institutions, are liable to be used improperly to advance the interests of selfish and designing parties, yet it is believed that the wants and circumstances of our age demand the use of well-regulated and properly-managed savings banks,

whereby the small earnings of the frugal and industrious may be saved and augmented, and at the same time these small sums be aggregated and made to exercise a happy influence on the trade and business of the country, which could soon be effected by each individual folding his talent (or mite) in a napkin and burying it in the earth.

It is believed that the first savings bank established in the United States was the "Philadelphia Savings Fund Society," organized in 1816 by a number of philanthropic citizens of that community, with a view to promote habits of foresight and saving among the laboring poor of their vicinity. This Society had a long and prosperous career, and after the year 1838, had received deposits amounting to largely upwards of six inillions of dollars. This association has not only been the means of doing much good, but has been the model after which the better class of similar institutions has been formed in the various cities of the United States. It seems also to your committee peculiarly desirable that these habits of foresight and economy should be fostered amongst those who have so recently been endowed, not only with the blessing of liberty, but also with the responsibility of providing for the material welfare of themselves and their posterity. Whether any action will be necessary, on the part of the committee, to foster future legislation in this direction, it will be for your body to decide.

Your committee, in considering the subject of insurance, think it desirable that such legislation should be encouraged as will be best calculated to promote in our State well-organized insurance companies, and at the same time not impose such heavy burthens on the best institutions of other States as will prevent our people from having the benefit of their services, should our State corporations be unable to do all the business desired of them. It is believed from all the lights before your committee, that these institutions would be more successful and useful if each company devoted itself to one particular branch of the business of insurance; that life insurance should constitute one business and the sole occupation of one company, and so likewise with fire and marine insurance. From the experience of past years, so far as your committee can learn, it is shown that very few, if any, insurance companies of this State have failed and caused loss to their policy holders. Your committee are of the opinion, therefore, that this subject may safely be left to be regulated by the future legislation of the State.

In conclusion, your committee, at this time, beg leave to submit the foregoing views on these several subjects, reserving to themselves the privilege of recommending to the Convention any action that a further investigation and a fuller reflection on these very important matters may cause them to think proper and desirable.

C. L. THOMPSON, Chairman.

ARTICLES XX. AND XXI. OF THE BILL OF RIGHTS, OF FERED BY MR. PORTER.

ARTICLE XX.

(To be inserted between Articles 19 and 20.)

That all persons residing in this State, and born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States, and of this State.

ARTICLE XXI.

(To be inserted between Articles 20 and 21.)

That the right to vote, to hold office, and act as a juror, shall never be denied to any of the male inhabitants of this State, being twenty-one years of age, and citizens of the United States, or in any way abridged, except for participation in rebellion, or other crime, or for mental unsoundness; and that any other civil or political right which was enjoyed by any class of the people of this State previous to the year 1861, shall never be denied to any of the people, or in any way abridged, except for the causes above stated.

SUBSTITUTE OF MR. HAWXHURST, OFFERED FOR THE ONE PROPOSED BY MR. PORTER.

The right of suffrage shall not be denied to any male citizen of the State over twenty-one years of age, except for crime, complicity with rebellion, or mental unsoundness, or disqualified for holding office or acting as a juror on account of his race or previous condition, nor shall any company or person, acting as common carrier, make any distinction on that account.