, Henderson, and Trumbull on the Republican side to prevent
the establishment of any more banks under this law than were in
existence in May, 1864, unless they redeemed their notes in coin.
The banks then organized, possessed an aggregate capital of about
$36,000,000, with bonds deposited to secure circulation to the
extent of a little more than $33,000,000. The argument was that
this addition to the legal-tender notes already in circulation
supplied an ample currency for the business of the country. The
issue of the whole $300,000,000 of National bank notes authorized
by the bill, these senators claimed, would be such an expansion of
the currency as would sink its value to almost nothing. They
proposed also to compel the State banks to retire their circulation,
but permitted them to organize on the specie basis as National
banks. Mr. John P. Hale of New Hampshire thought that "it would
be much simpler to incorporate in the bill a provision abolishing
all such instruments as had previously been known as State
constitutions." Senator Collamer proposed to require the banks to
retain in their vaults one-fourth of all the gold they received as
interest on their bonds deposited to secure circulation until the
resumption of specie payments.

These amendments were voted down, and the bill finally passed the
Senate on the 10th of May by a vote of 30 to 9, ten senators being
absent or not voting. A conference committee of the two Houses
agreed upon the points of difference. The report was adopted and
the bill was approved by the President on the 3d of June, 1864.
By the end of November 584 National banks had been organized, with
an aggregate capital of $108,964,597.28, holding $81,961,450 of
the bonds of the United States to secure a circulation of $65,864,650.
These banks at once became agencies for the sale of the government's
securities, and their officers being usually the men of most
experience in financial affairs in their respective communities,
gave encouragement and confidence to their neighbors who had money
to invest. The sale of government bonds was in this way largely
increased. The National banks thus became at once an effective
aid to the government. By the close of the fiscal year 1864
$367,602,529 of bonds were disposed of by the banks. During the
fiscal year 1865 bonds to the amount of $335,266,617 were sold over
their counters. On the 1st of October, 1865, there were in existence
1,513 National b