Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-05-23
ADDRESS.

ADDKESS.
Tie subscribers, having been appointed
by convention of delegates from the seT'-
eral Banks Of this State, holden al MOntpe-
lier, on the 10Th day of May, A. ID. 1887,
to prepare an address to the public, setting
forth the causes which have led to the sus-
pension of specie payments by those insti-
buttons, and giving such explanations OF the
views and purposes Of the Banks as might
be deemed necessary, think it proper, in
the outset, TO state, that there is nothing in
the condition of the Banks themselves,
whether we regard the amount of specie in
their vaults, the extent of their circulation,
their credit in the Atlantic cities, or the
soundness of their discounted paper, to
render the suspension of specie payments
necessary; but that the measure has been
forced upon them, as the only means Of
safety to themselves, and of relief 10 the
public, by the extraordinary and unexpec-
ted condition Of money affairs in the Allan
tic cities, and by the course which the
Banks of those cities have found it expedi-
ent, in sefdefence, to pursue.
1t is notorious TO all persons ut all con-
versant with the principles of banking,
that ii is neither necessary nor eXpedent
for those institutions to keep at all times on
hand sufficient amount ofspecie to re-
deem all their bills in circulation. II is I'M
necessary, because, their circulation being
widely diffused, their notes can never be
collected in sufficient sums to exhaust
very large amount of gold and silver, the
more especially as the redemption of their
| bills by agents in the Atlantic cities keeps
them at par there, and thereby increases
| 10 I,U,,nlt,r onI Ii,,,in;choc tho ,nI,
ment to collect them for the purpose OF
| Withdrawing the specie from the country
banks.
1t is inerpedient, because the capital IN
vested in gold and silver, while lying in the
vaults, is unproductive, and, which is a
greater evil. is Withdrawn frnm general cir
culation. Experience has taught the pro-
portion which the specie should bear to the
circulation, and for the reasons above given,
the retaining of an excess above that pro-
portion by the banks is injurious both TO
those institutions and TO the public. II has
been found more beneficial and convenient
in practice to keep on hand a reasonable
amount OF specie TO meet the notes likely to
be presented at the counter, and to make ar
rangements with banks in good credit in the
commercial cities to redeem such ofthe bills
of the country banks as are presented there.
Such arrangements all the Vermont Banks
have made, and have thus, in fact, redeem
ed not only at their own counters, but in
one, and in most instances, in two remote
places. These arrangements are still in OPP
Grafton, and will be continued, and we have
the most perfect confidence, that every bank
in Vermont would have continued to re-
deem, both al home and at their usual places
of redemption in Boston and elsewhere
were it not for the extraordinary condition
Of the money market rifhom the state.
The difficulty lies not in the dimin
ished means Of the country Banks, bu: il
the sudden increase ofthe demand for thost
means, fl ON abroad.
The obvious consequence ofthe stoppag
| ofthe city banks, including those which hav
been accustomed to redeem the notes of tn
country banks TO which they are still large
ly indebted) is an immediate rise in the pric
ofspecie, as compared even with the bes
paper. For many purposes, especially o
: the seaboard, specie is absolutely requisite
= and those who are obliged to use it mus
have it at any price. The effect ofthis wi
be, that the Vermont Banks, unless the
refuse to redeem in gold and silver will b
exposed to an immediate drain Of their spe
Gle, by the city brokers, who will colleC
their bills for the purpose of speculation,
:. by this means, whatever coin remains
r Vermont will at once be Withdrawn g. cal
ried TO the seaboard for sale. 1.-THE Bank
d suffer themselves to be thus drained, Gan
it is believed that very few days woul
suffice for this purp0se,) it must be a yer
!. long time before they can accumulate
sufficient supply of coin for the redemptio
: of their bills.
;. But, admitting the ability of the Vel
mont Banks TO meet the demand for speci
there is another view of the subject Of y,
deeper interest and importance TO the pc,
pile of this State. 1t is very obvious, th;
g if they continue TO pay specie, they can OIL
d ly sustain themselves, in the present dstu
bed state of the currency, by calling in 9
their available means, enforcing collection
J. and utterly ceasing TO discount, or even
J. renew discounted paper. Specie then b
ing withdrawn, and the Bank notes Gale
l. in, we shall be WITHOUT A CIRCJ
:, LATlNG MEDIUM. The disastrous c
'e iects of such state of things in the sacr
a. flee of property by forced collections, Il
general depreciation of all articles of sal
ST and especially Of lands and produce, Il
If destruction of all credit, and the cons
10 quent interruption ofbusiness, will be rea
D. lily perceived, and we cannot doubt tn
lie our fellow citizens will do us the justice
10 believe us sincere in declaring, as we Il
ne that we are actuated rather by a regard
what we conceive the best good of Il
canmunitu In ranuira than hu norrI,