Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1841-01-04


give my answer an insertion in your paper.
am, Gentlemen, very respectfully
Your Obdt. Servant
}. s. PETTlBoNE.
H. GAY, latepfeslcnt OF lhelIank of Bennington:
Sr;-l have been favored with n Vermont
Nalchmnn & State Journal of Nov. lG contain
ing your article Of Oct "a, relative to nv Bank
Report | feel it my duty TO answer it not with
view TO vndcate myself so much as TO give
10 the public some of the facts connected
with the transactions OF the B. Bank which thcy
nave right to know. The extract which YOU
nave published from my report, contains the iol.
loving statements: LIST. Tint one OF the Direct
ors OF lhe Bank Of Bennington was connected
WIN a company OF Brokers III New York, under
me hrm OF Swift, Mills, & Co. 81. That II.
pay, Tie Director aud Broker, was authorized by
Vole OF the Directors to draw $4,000 from the
luhds OF the Bank deposited in Boston and Troy.
Oh II appears iroCl the hooks of the Bank there
were IN the hands Of II. Gay OH the 20ih Of March,
1888, $4,000. 9TH That there was at that time
large amount oil bills in circulation being 1885,
2.5O, and, IN 1889 there less than $50, 600 in
circulation "whether this reduction of the citcu-
ltion OF $l5O,OOO was made by the purchase of
the pIlls by Gay, or not, docs not appear These
statements, you say, "are every portion of them,
as Tar as your name is concerned untrue" You
90 not say you were not broker or bill drawer
at the time the funds were drawn, but TINT you
were not connected with the firm of Swift Mills,
20. 1T cannot he very material Wheeler Di-
rector OF n Bank is doing business alone as n bro
ker, or whether he be connected with others -
You were Director at the time the vote was pas.
sed. And had the information from one of the
officers OF the Bank, that you were at that time
doing business in New York as a broker or bill
drawer. You admit, sir, that you drew the SIS,
900 from Boston AMI Troy Banks But that the
$4,000 were not in your hands ut all except as
n1 ltp hnttly nc
wing from banks in which, for want of security in
the payment Of interest, we did not wish to leave
il, and placing it in another bank where boil the
objects were attained, and this agency was exc
cuted as quicklyas the public conyeyences would
carry me. without the loss of "A single day
Those funds were in the Suffolk and Market
Bank, Boston, and the Farmers Bank, TROY. and
you were directed TO draw from those banks 49,
700 and loan the same 10 the Morris Canal and
Banking Go. on ?, 3, and A months time Your
funds while on deposite in the Boston and Troy
Banks conld be applied to the redemption of your
bills then IN circulation: Ivy this act you vonnta-
ry deprived yourselves Of the means of fulfilling
your legal and moral obligations to the public
And this was done for the mere purpose of re-
ceiving more interest and obtaining place of
better security" You must know, sir that the
Morris Canal and Banking Company is not as Sc
cure place OF deposite the Farmers Bank
Troy. But was the agency executed us quickly
out the loss Of single day? The vote was pas
sed Feb. 20h, 1885, and what lime, sir, would be
necessary to transmit funds from Troy to New
York? From the statement made the whole
$4,000 were in your hands one month after the
vote was passed. You say the statement is untrue,
and that the books of the bank do not and never
did exhibit Il chUge against you for the $4,000.
did not use the word charge. | said " The books
of the bank showed in the hands of II. Cav,
March 2Oth 1888, $4,000" Your name is con
nccied with this statement, which you declare 10
be false. | will call your attention to the follow
ing extract Of the Statement of the Bank:
"March 20, lS36-Due from the
Suffolk Bank 81 ,057,i0
Market Bank 57l,35 Circulation Sls5, 235
" Farmers BanIl7,46S,06
Inhe hands of II. Gay $4,000"
This statement taken from The books of the
bank, and does it not appear that there acre in thu
hands Of II. Gay, March 20, 1888, $4,000? !
leave it 10 others to judge which exhibits the most
"bascnesS and proiigacy," my statement or your
positive denial of the truth Of it. The books of
the banks do not exhibit this statement only, but
the same charge is contained in the statement of
the bank both before aud after this date. You
say, " do hot seem TO understand that the books
of the bank show its transactions" That may be
true, yet | say that If the books of the bank do
show its transactions, you not only did not execute
the agency as quickly as the public conveyances
would carry you, but you did not execute the agen-
you did not loan that sum to the Morris Canal and
Banking Compnny-you retained large amount
OF that sum in your own hands, and never did de-
posite it with, or loan it ohat company. 1t stands
charged TO you, sir, on the books Of the bunk
And TO you not know that large sum which you
drew by the authority OF that vote by which you
were directed TO loan to the Morris Co. you de-
posted in another bank to your credit. and not TO
The credit Of the bank? You thus placed the
funds of the bank at your own disposal. do not
know that you did so from the books Of The bank
was informed by one of the officers OF the bank
that you did depOsite large amount OF the funds
OF the bank III another bank to the credit OF III.
Gay. will call your attention TO another vote
which was passed August 30, 1888. "Voied, thnt
an effort he made to extend the circulation Of the
bills Of this bank in the city of New York, by
change, and that Mr.. II. Gay be authorized to
make the trial, and to take such sums of money as
may be necessary, commencing with $4,000. -
Thus, in addition TO The large sum that then
in your hands, you had The right 10 take such sum
as you should deem necessary, commencing with
$4,000. Yon know your bank issued Il large
amount Of bills of the denomination of 81 andS4
which could not be received by the New York
Banks Those bills were II II great discount, and
YOU refused TO redeem them, either in specie or
with other bills of So. do not wish to say one
word in answer TO your remnrk respecting my
want of abilitNto examine your bank, or of your
commercial education. presume, sir, full credit
will he awarded to you for the distinguished abil-
lilies with which you have discharged your duties,
as President and Director and II Broka.aEsss
connected with the bank. When lha3spf, WINE
the hank shall be made puhlsreR4.ne concerns o.
shall find, as lLsx. NE sI9fEaEre
Than S2oOoo okttlicir capital has been wasted
,neni SIR ySSsmuy expect that Just estimate wi
be plsSSaEd upon your abilities You have made
p.uSsee other statement, which | will notice. You
say came to the bank on several occasions while
rnn ,unre cnnneciel with il for The nnrpose Of eX