The banking law was revised by the convention so that a bank might deposit with the state comptroller stocks of the Confederate States or of Alabama, receiving in return notes countersigned by the comptroller amounting to twice the market value of the bonds deposited. If a bank had in deposit with the comptroller under the old law any stocks of the United States, they could be withdrawn upon the deposit of an equal amount of Confederate stocks or bonds of the state. The same ordinance provided that none except citizens of Alabama and members of state corporations might engage in the banking business under this law. But no rights under the old law were to be affected. It was further provided that subsequent legislation might require any "free" bank to reduce its circulation to an amount not exceeding the market value of the bonds deposited with the comptroller. The notes thus retired were to be cancelled by the comptroller.[408] The suspension of specie payments was followed by an increase of banking business; note issues were enlarged; eleven new banks were chartered,[409] and none wound up affairs. They paid dividends regularly of from 6 to 10 per cent in coin, in Confederate notes, or in both. Speculation in government funds was quite profitable to the banks. Issues of Bonds and Notes The convention authorized the general assembly of the state to issue bonds to such amounts and in such sums as seemed best, thus giving the assembly practically unlimited discretion. But it was provided that money must not be borrowed except for purposes of military defence, unless by a two-thirds vote of the members elected to each house; and the faith and credit of the state was pledged for the punctual payment of the principal and interest.[410] The legislature hastened to avail itself of this permission. In 1861 a bond issue of $2,000,000 for defence, and not liable to taxation, was authorized at one time; at another, $385,000 for defence, besides an issue of $1,000,000 in treasury notes receivable for taxes. Of the first issue authorized, only $1,759,500 were ever issued. Opposition to taxation caused the state to take up the war tax of $2,000,000 (August 19, 1861), and for this purpose $1,700,000 in bonds was issued, the banks supplying the remainder. There was a relaxation in taxation during the war; paper money was easily printed, and the people were opposed to heavy taxes.[411]