Sir, I am unwilling to be misunderstood. I have no feeling except of kindness for the State banks, especially when they keep within the proper sphere of banks, and do not undertake to supply a currency for the country. But at this moment, when we are seeking to create a new currency, which shall be the foundation of national credit, and of national character too, I confess that I have little sympathy with anything that puts itself in the way. The State banks have performed their task as agents of currency, and the time has come for them to abdicate,--or, if they do not abdicate, at least to conform to the new system. I do not stop to inquire if any paper issued by State banks as currency can be constitutional,--to consider if the States, which cannot coin money, can yet put paper in circulation as money. I content myself with insisting, that, whatever the constitutional merits of this question, it is no longer expedient that States should be invested with the power. We must have another system. The best interests of the whole country require it, especially at this time of national peril. It is clear that the State banks are not competent to meet the crisis. They cannot do the business required. Besides, they are in the way. Putting their notes in circulation almost at will, the currency is inflated beyond control. Depreciation naturally ensues. Bankruptcy may follow. When I say that the State banks are in the way, I do not use too strong language. Authentic tables show the extent to which during the last year the currency has been affected by their interference. I hold in my hand a statement from the Bank Reports for 1862, page 208, and for 1863, page 210. At the risk of wearying the Senate, I will read it. _Statement of the Circulation of the Banks in certain States, on or about 1st January, 1862 and 1863._ 1862. 1863. Maine $4,047,780 $6,488,478 New Hampshire 2,994,408 4,192,034 Vermont 2,522,687 5,621,851 Massachusetts 19,517,306 28,957,630 Rhode Island 3,306,530 6,413,404 Connecticut 6,918,018 13,842,758 ---------- ---------- $39,306,729 65,516,155 39,306,729 ---------- Total increase in New England States $26,209,426 Being over sixty-six and two thirds per cent. Similarly in New York, Pennsylvania, and New Jersey, we find the circulation, on or about 1st January:-- 1862. 1863.