Mr. EDMUNDS. I move to amend the amendment of the committee by inserting at the end of it these words: Issued or by any act of such bank kept in circulation after July 1.1866. The object of this amendment, I am sure, will commend itself to the good sense of the committee; and that is, not to impose this additional tax, which is really in the nature of a penalty, to compel these banks to get in their old circulation where, without any fault of theirs, it is impossible for them to do it, and while your law allows the State banks to go on another year. To illustrate: there were 2 ways in which the national banking system was put in operation; one was by independent organizations, and the other was bya vote of the stockholders of some oldbank agreeing to turn over that corporation into the national system. It has been pursued in both of these ways in the State 0 Vermont. Some banks would, among themselves, get up an independent na |tional organization, while at the same time they i ke t their old State bank running. Under their. in epeudent organization they got circulation to the amount of 90%. of their new capital, and under their old organization they continued to issue double the amount of their State on ital ascirculation. Other banks, like many of these in the State of Vermont and with the business of some of which lam acquainted. voted under the act of Congress to turn their banks into national banks. Under the regulations, and the proper regulations, of the Treasury, such banks as those which turned over their corporations are only allowed to have 90%. of their capital in circulation, old and new, all together. A bank at Burling ton, Vermont, for instance, about whose affairs I have some knowledge, with a capital of $300,000, has now outstanding more than $40,000 of its old circulation although it has not issued a dollar for nearly a year, and it only gets the balance of the $270,000 or its 90%. in national currency. The Comptroller will not give it to them, and right fully. The consequence is that they only have 90%. in the whole. They cannot get in the old circulation. If, when it does come in, they were to issue it again, then they ought to pay the 10%. tax; but inas muchas it continues to be outstanding, without being issued by them, I think it just that this additional penalty should not be imposed while they still keep within the limit of 90%. That is the object of my amendment.