Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1839-10-04
BANK OF MONTPELIER.

passed at the last session of the Legisla.
ture. the following Report, presented by a
committee to whom the subject was re-
fered, was adopted-the former part, up
TO the words "recbarlcring the Bank"
unanimously, and the remainder with three
dissenting votes:
To The Board of Stockholders no,o in session:
Your committee. to whom has been re.
ferred the subject relating to the re charter
of the Bank,
REPORT:
That the original charter was granted
by the Legislature in 1925. 1t conferred
privileges that were intended to be suffi
GENTLY liberal to invite real capitalists TO
become the owners and managers, without
offording a prospect Of profits so extrava-
giant as to allure he cupidty Of specnators
the opinion Of that day being, that bet.
ter currency and greater safety to the pub.
lie were ensured by securing the banking
institutions Of the country in tho hands of
men Of subsanslia property, than BY any
paper guarantees contained IN their octs Of
incorporation. How far this opinion has
been justified and the objects ot the Legs.
lature attained. in the establishment. of the
Bank of Montpelier It's history will testify.
Its stock, as designed, was taken a, the
commencement, by men Of Independent,
means, and has been held by such to the
present time, with but comparatively few
changes. for the profits it afforded them.
These have been moderate. bnt satisfaction
~. For the first nine years they amounted.
on an average, TO about eight per cent. per
annum, and for the past FIVE, to fraction
over six. after paying taxes and the conrl
button TO the SAFE Treasury; and the cur.
rencv the institution has afforded he people
has been equal TO specie al over New
Eng land. In saying this, it is hardly ne.
cessary to add that lis management has al
ways been safe and satisfactory lis ope
ralons vii! terminate on the first of jam
airy next, unless continued by the acceptance
Of the act Of re chatter, passed at the last
session Of the Legislature.
This Act, your committee find, makes
various alterations in the original charter.
some Of which, in their opinion, would en-.
danger he usefulness and safety Of the in.
srltn,ion; and Others, by the additional
bur'hens they impose, must reduce very
materially the profits Of the stock holders
or he first class named, is the section re
curing the President and Cashier to pub
| .lsh in some public newspaper, semi-annu
ally, a statement made by them under oath,
specifying the average amount Of specie
the Bank has in possession each month,
during the SIX months preceding. This
would enable every evil disposed person to
measure with precision the amount o. bills
of The institution that would be necessary
for him TO possess IN order TO spunge or dis
grace it. Besides, such a publication
would produce unnecessary suspicious and
! arm in the minds Of those who are unac-
qua,nted with banking operations, without
effactlng any possible good. To a country
| bank, which redeems It's bills at the prime,
| pa mart Of trade of the section IN which II
! is located as well as at its own counter,
and thus gives general currency tn H.
| bills, but small amount Of specie is r"qulr-
ed 80 b. kept IN It's own vaults, FOR ihe
p5omp, redemption of lis paper, IN propor-
ton to the amount Of avapab.s fluds re
CURED elsewhere. This VIII be apDarenl
from the following statement:
The Bank Of Monrpelle during he year
ending / he first Of September INST, redeem
eded at H. agency IN Boston Nhe Globe
Bank) four hundred and t,centy fee Mous.
and and serenity one dollars OF lis own bills
while the amount presented for redemp, ion
at its own counter, IN the same time. DID
not probably exceed tco thousand: Thus
showing, that il is necessary, for a Bank
thus conducted TO keep exceeding two
hundred fold more of lis ready funds else
where than in its own vaults.
OF the additional burthens which the act
of recharter imposes. your committee would
name the increase ofthe contribution to the
States treasury required, being raised from
SIX per cent. to ten of a II the gains of the
institution and also the requirement sub
iecllng the Bank TO the operation of the
Safety Fund Law, by which it is compelled
to contribute largely to the payment OF the
bills of other banks becoming lnsolvent. IT.
as appears from the statement made IN the
former part of this report, the stockholders
have been unable, for several years past, tt
rea Ilzc bur fraction over SIX per cent
upon their stock in the original charter
which was free from the eXactions here
named, II l. most evident, That lncumbereC
with these additional burihens, there woult
be 40 probability that the institution coult
with safe management, divide profits equa
to what the law allows for interest or
money otherwise invested. Consequently
there Is no inducement for the ockholders
TO prGlong the existence Of the corporation
under the conditions imposed.
For the reasons above stated, your com
mittee recommend to the meeting OF stock
holders, that they do not accept the Act
passed at the last session of the Lcgisla
turc, rechauering this Bank
And there is another reason, and one
your committee will not forbear to mention
) which of itself would influence them lC
make the same recommendation, even wer,
the act of recharler ever so liberal in III
provisions.