The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1839-10-08
From The Montpelier Wotchman.
BANK OF MONTPELIER,

question whether tney WOulu accept t1e fAct oI TO
charter passed otthe last session of The Legislature
the following Report, presented by committee to
whom The subject was referred, adopted the
former part up to the words " rechnrtcring the
Bank" unanimously, and the remainder with three
dissenting votes
IT, The Board of Stochh0ldsrs, noao In SeSsion
Your committees to whom has been referred tho
subject relating to the re.charer OF the Bank,
PORT:
That, the original charter granted by the
Legislature in 1925 1t conferred privileges TINT
were intcpted to he sufficiently liberal TO invite
real capitalists to become the owners aud managers
without ah"rding prospect of profits so oXuava-
CANT to allure the cnpidity of spectators the
opinion "C thar day being that better currency
aud greater safety To the public were ensured by
securing the banking institutions of the country III
the hands Of men Of substantial property, than bY
any paper guarantees contained IN their acts OF in
corporation. How far this opinion has been lIstI-
fed and the objects OF the Legislature attained, IN
the establishment o. The Bank of Montpelier, its
history will testify. It's stock, as designed, was Ia
ken at the commencement, by men OF independent
mems, and has been held by such to the present
time, with but comparatively few changes tor tue
profits it afforded them These have been modcr'
ate, hut satisfactory. For the htst nine years 'hey
amounted, on an average, TO about eight per cent
annum, and for the past five, TO Il fraction over sX
utter paying and tho contribution to the state
Treasury and the currency the institution has al
orded the people has been equal to spec ie all over
New England. In saying this, 1t Is hardly nGces-
sary to add that its mana cement has always been
safe aud satisfactory. Its operations Will terminate
on the first Of January next. unless continued by
the acceptance of the act OF charter, passed at
the last session Of the Legislature.
This Act, your committee find, makes variou
alterations in the original charter, some OF which.
in their opinion, would eudanger the usefulness
and safety of the institution ana others, by the
additional burthens they impose, must reduce very
materially the profits Of the stockholders. or the
first class named, is the section requiring the Pres
ident & Cashier to publish in some public newspa-
per, semi ,annually, statement made by them uil-
der OATH Of specie the Bank has IN possession each
month, during the six months preceding. This
would enable every evil disposed person TO meas
ure with precision the amount of bills OF the IN
siituton that would be necessary for him to possess
in order to spunge disgrace IT, Besides, such
publication would produce necessary suspicious
and alarm in the minds of those who are unac-
quanied with banking operations without ettecupg
any possible good. To country bank, which re
deems its bills at the princ pal mart of trade of the
section in which II is located, as we'll as at It's own
counter, and thus gives general currency to It's
bills but small amount OF specie Is required TO
be kept in It's vaults, for The prompt rodcmp-
lion of its paper, in proportion 10 the amount OF
available funds required elsewhere. This will be
apparent from the following statement
The Bank of Montpelier, during the year end
ing the first of September ult redeemed at lis agen
ey in Boston (the Globe Bank) four hundred amt
tscenty fue thousand and seventy one dOudrS oil lts
own bills while the amount presented for re-
dempton at its own counter, in the same time, ana
not probably exceed ttoO thousand Thus show.
TO keep exceeding two hundred fold more OF its
ready funds elsewhere than in its own vaults.
OF the additional burhens which the act OF re- |
charter imposes, your committee would name the
increase Of the contribution the State Treasury
required being raised from six per cent to ten OF
all the gains OF the institution and also the re
uuirement suhjectng to the Bank to the operation
of the Safety Fund Law, by which it is compelled
To contribute largely to the payment OF the b''s OF
other banks becoming in*olvant. If MS appears
from the Statement, made in the former part OF THIS
tba I,ol1 m been v
eral years past, realize hut fraction over SIX
per cent upon their stock in the original charter,
which was free from the exactions here named, II
is most evident that incumhered with these add |
tional rhens there would lie no probability that
the institution could, with safe management divide
profits equal to what the law allows tor interest on
money otherwise invested. Consequently, there
is no inducemont for the stockholders to prolong
the existence OF the corporation under the comb
lions imposed.
For the reasons above stated, your committee
recommend TO the meeting of stockholders, that
they do not accept the Act passed at INC last Sos
sion of the Legislature rcchar;erIng TINS Bank
And there is another reason, and one your com
mit;ee will not forhea to mention. which ot lisc!!
would influence them to make the same recon-
InendatIon even were the act oil recharler ever So
liberal in its provisions.
# is notorious that for several years past the
subject of banks has been made, by denagogues, a
topic foi political agitntnn And n their attempts
to excite the popular pre- udice against them, they
have ceased 10 apply every opprobrIous cpthct
the language affords, as we'll to the managers and
Stockholders. as to the institutions themselves
This might all have been endured with patience,
had the whole body OF respectable citizens who
know the injustice and faseh0od of their abuse,
rebu1ed the ca!umnalors and thus left their iniu-
to operate the public mind unaded But
it il to be lamented that such has been the fact
Many who have influence in society for their NOR.
al worth, and some who have an interest and
official connection with Banking institutions,
either account of their party attachments, or
their hopes of political advancement or some more
unworthy motive, have gwen countenance to these
Distractions when uttered in their pre- sence and
hearing either by significant APPRECIATION, or silent
acquiescence. And, by the support thus given to
the calumnators, the public mind has gradually
become embued with the poison oftheir aspersions
until It has become dsreputable to have any con
hecon with bank either as manager stock
holder, however useful the institution or honoraby
conducted.
Such being the case, your committe believe that
the Stockholders and Officers of the Bank of Mont
pelier, owe no such duty to community requires
them to prejudice the influence their individual