Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1840-02-03
fcOMMuNtcATfoN.1

MEssRs EplToRs: ! understand TINT but a
small proportion OF the shares in the new Bunk of
Montpelier have rs yet been subscribed for. SO,
II nppenIe my communication for your paper, pub
lised before the opening of the books by the
commissioners was not i'll tlncd, nor The enrs
therein expressed. groundIcss. But learn that
very commendnle eXerliOns ARE now making to
get the stock taken, aud that many wealthy faim-
ers have been induced TO take few shares each
TO help the thing forward. And what is very ell
c0nraging is the fact, MS am informed, that We
ry respectable share Of these belong to that class
who have heretofore regarded banks ns monopo.
lies and their influence detrimental TO The public
welfare. This change in their views cannot but
nave sauary effect upon others, and cause the
Stock to he all speedily taken.
Understand some oh ect TO subscribing because
the churier prohibits stockholders from becoming
borrowers beyond limited amount and that To
tlls, the general reply is, that the Legislature will
without doubt take off the prohibition rs soon as
II meets As anxious Ms | am to have the slockta-
ken, hope this unreasonable exl ectation will not
he encouraged. 1t is very desirable 10 have n
Bank here at the capitol, but in my view il is
better to have none than bad one The Legs.
lature acted Understandings and wisely, in incOr-
porntlng this provision into the charter, rs without
II all tile other guards for the public security
of no walt g. OF what Use would he the provis
ion requiring $50000 in specie TO be paid into the
Bank before il goes into operation, il the stock
to themselves MS paid in' The Intention
was to have sound permanent capital as well
Tor Tie security as The accommodation OF The pub
lic and to make it so the Legislature cnacted that
It should he pail in, and when in that it should
not he taken out again by the stockholders. Be
sides, 1t II were not for this guard, the very taking
mp OF The stock and first operations of tho Bank
might he in fraud of the public security. \ very
few men of questionable solyehcv, by the aid Ola
city Broker, could raise SIP Gle enough to take up
the whole stock of the Bank and on the very first
day OF It's operations, the whole might he iiscoul
ted out to themselves to pay the Broker, who
could return will it 10 his den in Stne or Will
Street; aud il partner in the operation. us he
would he likely To ne lie would carry with him
also u doodle Of the bills of the bubble, for cirru-
lnion. This was the way the Chelsea, Lafayette
and other swinrlng concerns IN and ~ ar Boston
were got up and managed Our Legislature took
lesson from their history. and also from the well
known fact that whenever Banks have failed, il has
always been owing to the directors and stockh0l-
ders borrowing II the money, aud wisely proib-
lied them IN cur chnri'r from receiving discounts
beyond very limited amount of the capital and
should regard il n very great misfortune TO the
l'ibllc To have The restriction taken off enlarg-
ed. 1t is universally understood At this day. that
money borrowers make very insecure owners or
managers Of Hnuts.
ave heard some Of those who most nc
tive IN proclrngthe St ok taken, reply To those
who object TO the provision in the charter reqnr-
ing bonds and mortgages of The stockholders for
the redemption of all the hills of the ban that this
security was merely nominal and mere matter Of
form. This impression think should not he en-
couragtd. For however unreasonable II might
have ber tn require such security, it is very GER
tain HAT the Bank Committee and the Legislature
bnh i tended that the security requ rel should be
: substantial aud ample TO redeem all the bills Of the
Institution. II nor it was sheer nockery in them
10 have exaced it, aln an imposition upon the
public 1t strikes that the true ground Ia take
with such oh crtors Is, to nnin'ain that it is the
duty of the owners ota hank to furnish II sound
currency, and ms the legislature have seen tit 10
require bonds aud mortgages, to guaranty the per
tornanre OF this ,lu,y. all who take stock should
furnish the security required, willingly, chccri,ly
3 and in good faith.
But Whatever unreasonable burlens the char
ter may I've thought To impose upon the stockhoi-
{ ders, II grants them one privilege which srpasscs
+ any ever conferred upon n bank in New England
before, and one which should think would Gu
| sure the stock taken at onre. | mean, The right
8 granted 10 the bank of siIsrcndiEg specie pay
/ -inenis Whenever il chooses What considerations
operated upon the minds of the Bank Committee
: Ia report III favor of such provision have nev.
i er a>certaind, nor is ii necessary now TO enquire
though have sometimes thought of doing so. j
e is enough for those who think of taking stock iC
Y know that is in the charter. ARAGo