The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1840-11-24
TIE NEW BAKING ACT.


Under tho head Of laws Of Vermont, we publish
ed in the Caledonan last week, the new Bank
ing act and VIC presume it was read with interest
The bill was reported to the Legislature by COM
mittee Of both political parties, each member OF
which, sanctioned the bill, have been in
formed Yet some of tho rabid locoiocos, those
who would harrass still further the business of the
country, opposed it in the House.
The Vermont Patriot, referring to the charter OF
two banks, Montpelier and Pon'iney, says there is
no 'adequate security to the public tor inc 'e"emP'
Hon IF thtir Luis! In answering this charge the
Waterman says 1--WE point 10 the three oihc'ai
columns in another page, which, II strikes us, give
the lie direct to this broad assertion The act re-
lating to banks, TO the provisions OF which all the
new banks are subject gives the very best secu:'-
ry to the pubic,- first by excluding the directors
and officers of banks and corporations from becom-
ing largely indebted to the Enthusiastically, by
reducing the circulation from $3 to 81 of the CAPT
tai to So for one and thirdly, by requiring heavy
bonds, secured by mortgage, if need bo, Of the di-
rectors which bonds are to be holden for the bene
fit both Of the stockholders and billholders. TO H.
tuslrate the matter, we will take the new bank of
Montpelier, with capital of 1897 800 paidi n, and
suppose that be in operation TO day to the full ex
tent of it's charter. The account would stand
thus
Liabilities.
Bills in circulation. 1915, 900
Resources.
Capital stock paid in, 1897 800
Bonds Of directors, 81 800
Notes due, 75,000-l50O00
This shows resources precisely double the
mount ofliabities. five estimate that the bank
may have in deposit equal to one third OF IT'S CAPT
tai paid in, ($l2 5000 and issue additional bills to
twice that amount, we should then have liabilities
to the amount of 100000, and resources to the a
mount of $1G2, 800. This would probably be
fair statement Of the ordinory condition OF the
bank, If conducted according TO the charter; and it
il is not conducted the collection of the bonds
and confn ement in the state prison would afford
the remedy and the punishment. Now what rea-
sonable man asks other security We can tell the
Patriot that no such man asks it. The people do
not and will not ask it, for they already have much
more security from the banks than private cit,
izcn asks from another; and they know, too, that
to ask is in fact 20 deny themselves of all the
Lenefts of bank. We speak confidently for we
have watched the indications of public feeling in
tiiS w q nave seen lne moderate, Inc can
did, the intelligent and the honest representatives
Of the people, Of both parties, act this subject.
We have seen the mass OF them. of both parties
unite in the support of the new banking act; and
we are not willing to insult them, by even IA sup.
position that they have mistaken the wishes and
interests OF their constituents. 1t is fact of which
the Patriot is we'll apprzed, that but few of both
parties opposed this measure: part opposed it,
probably because they.hought 1t required tao much,
and the other part because they wished to
other race on the bank hobby. This is the
pie truth. Messrs. Smile, Butler, and Villas, may
cry aloud, and the Patriot may play the echo TO
those three worthy locoiocos; but they will learn
that it is in vain: The people have been bamloo-
zled long enough with bank humbugs, and we be-
!ieve they will heartily rejoice at the opportunity
which they now have, 10 have banks on conditions
which render both bllhoders and stockholders Sc.