The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-11-28
1922 ,83G 2e8 .O62 70 96l ~ SO

1922 1886 2sS ,O62 70 96l ,177 50
These nine Banks have diminished their clrcula-
ton since 1886 to the amount of 1926 4S9; their
means for the REDEEM pon of their bills are likewise
reduced but not to the same amount consequent
w. their liabilities less in proportion to their
| bility to pay now, than in 1886.
1t appears from enquiring of the officers of the
banks, that they all, proiessedy suspended spe.
Gle payments on, or near the fifteenth day OF
May last; but at the time it appears, that they
have been in the habit OF paying small sums, Tor,
the purpose Of accommodation j and some banks
have redeemed more bills since the suspension,
than they had been requested to do, on an average,
in any equal length of time previous
The uniform given by officers Of tho banks,
for Impending, has been that it in consequence
Eof the suspension of specie payments by the city
banks. Most OF the banks in Vermont, having
deposites in the cities, could avail themselves
of their funds there, to redeem their bills at home
but the bills of all those Vermont banks having,
deposites in the cities, are convertible at any time
into the bills of the city banks, which keeps hent
ut par in the market.
The reason assigned COR the suspension. appears
TO the commissioners be well founded, 1t could
not be expected for n moment that our small banks,
averaging a capital Of only 100000 each, could
continue to redeem their bills with specie, while
The city banks with capital of millions, refused TO
The Commissioners are satisfied from the manner
in which the banks have been conducted by those
having the management of them, that they intend,
and eventually will, redeem all their bills in crcu-
auon. In most cases, it appears that the Directors
have offered, and in many cases have given security
tor line payment Of the liabilities of tho banks, in
their individual capacity and have thereby nssuIn
ed responsibility which the law does not require
The 18th section the Act passed the 9th day of
November, 1881, entitled can act regulating tho
chortering of banks, makes it imperative the
Banl: Commissioners, upon certain contingencies
therein named, to apply 10 a Chancellor for an in
junction; but by the ODD Section of the same act,
it is left discretionary with them, in of suspcn-
sion of specie payment for the space of sixty days,
10 do 1t or not, as they may deem cxpedient The
Commits sioners have not deemed it tbeii duty TN.
der existing circumstances to make any application
to aChanceor,-although all the banks under their
supervision, liable to be proceeded against for Il
violation of their charters, for refusing redeem
their bills in specie.
In coming to the above conclusion the Commits.
soners have been influenced not only by the hon
orahle conduct Of the officers Of the banks; but
they have also take nto consideration, the existing
requirements OF The laws to wit the Securitu of tLe
Safety Fund.- anu also the GORdS required 10 be tac-
cued TO The State IrcaSarer by each Director Of the
RanhS in the sum IF $4,000, achich lust inea'i0ur8
security amounts generally to The sum IF $4,000,
and IN no case to less .than $40 900 to each
Bank; which, it arW be perecircd, IS lDore Mam ouc
half, and in some abom cga0i to tic mhoie su,a
in achch the banks are HGIie 20 tie pubi c In addi-
ton TO MtS the pubic are seen ed I'm the caDitI yiock
pull In 0nd debts d1te the Banks.
The Commissioners are not aware that any oftho
Banks inspected by them, have been guilty of any
violation of their charters, in any other rcsDcct
than that OF suspending the redemption of tleir bills
in specie; and from the examination very INFINITELY
entered into, they are satisfied of the ability of alt
tlc DahhS 10 meet lnclr laDltieS, unless The
wealthy and business part of community should
bec"m" involved III general bankruptcy and ruin.
1t having been suggested to the Commissioners
that great share OF the loans made by the banks
had been made to the Dircctors-and in large sums
so that others, wishing for Bank Recommendations
IN small amounts, could not be accommodated; we
we have been induced to make particular exami-
nation relative to these charges; and are prepared
to bear testimony to the injustice of the allegations
AS at all the banks examined by us, except two,
the proportion of debts due from the DIRECTORS is
and tt, H.
the Directors have received greater facilities
than might iensorably be expected, were they not
members of the board; and large proportion of
notes due the banks, are given for sums varying
from fifty to three hundred dollars each
Another charge equally without foundation in
Tuth Is that the payment Of large amount duo
tho banks is secured in other manner than by
pledge OF Bank Stock; whe the facts are that
at five of the Banks embraced in this report having
due them more than $5O0,000, find only the
sum OF $0,2o7 30 thus secured; and the other
banks tho enquiry was forgotten to be entered in.o
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