Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1843-08-04
From HE Rochester Dali, .gd,.,li,.r Of Jgn. 10

FROM We HOChesNr DnuJ HdteriteG OF June ~.
While our legislature shows every disposition
TO keep the circulating medium good, aud taxes
the sound banks hundreds of thousands of dol
lars, 10 pay the debls ut those that ure iGsovcni
that OF Vermont shows u disposition that amounls
to Reputation.
Two Of her Safety Fund Banks have failed.
The ESSEX" aud " Bennington - aud their assets
are in the hnids Of the other banks, who neglect
TO divide them amongst the suffering blhoIders;
aud to add 10 the inlany Of the transaction, the
legislature refuses to pass The necessary law for
compelling the redemption Of the bills out of the
"Salety Fund which fluid the other banks are
using. The hnnks OF Vermont may therefore lie
considered r0ltcu and swindIing concerns aud
the tale ilseIt in fact repudidting It's solemn OBJ
legations. We advise our reahers to avoid YER
mont safety fond bank bills, us they would Michi-
gun wild cat"
The law Of this state is explicit that the Safely
Fund shall he ultimately holden for the redemp-
ton Of the bills Of iusulvent Safety Fund Banks ;
yet it is supposed that the Fund cannot he drawn
for tie purpose Of redeeming bills, without par
tlculur ACT by tie legislature authorizing it, Hence
arises lhe queslion-why has has not such Jaw
been passed in the case of the Essex bank ? We
answer in the years 1888 and 1899, the Essex
bunk was purchased Ivy set of uIen in aud about
Rochester and we have The authority Of the Re.
port Of a Committee TO The last legislature for say.
ing, that nnquesdonably The purchase was made
with the design OF swndng n large SCALE
Credit was gwen to the bank 10y temporarily re-
ldeeming It's bills in New York-lurge issues were
then nnde--und III the fall OF 1889 this ostensibly
Essex County Vermont, but realty Rochester N.
V Bahk failed. Il has been alItdgcd also, that
one part in the design Of these Rochester swim
dlerS was, to buy mp the bills Of The bank ut dis
count uer its future, aud then bring them here
10 nj serb the Vermont Safety Fund. Acting up
on this state of iacis--or ut least supposed to be
the facts, 'he legislature has hesnted about Civ
ing up the Safety Fund, until it can he ascertain
ed whether it is 10 go to honest bill-holders, or
still farther to swell the pickngs and slealings'
of snindlcs. Still The bilI-hollers have not been
without a remedy: hey have all along had, and
now have, the right TO collect their dues by suits
upon the bonds. given to the state Ivy the Drec =
tors Of the Bank. The Safely Fund is small mot
enough to redeem even the Essex bs aud when
absorbed, the other banks can only he called upon
to make annual contribution Of three fourls
of one per cent. of their ca al stock They ARE
not liable to make up the losses OF insolyen banks
to any grenter extent than by this contribution
The assertion, that the assets OF The Essex aud
Bennington banks are in tie hands of the Other
safety iuud banks, we suspect is all moon.sne-
pretty much us was much of the assets them
selves. 1t is our impression that all the available
assets Of the Essex bank have been already col.
Iecled and paid ont in The redemption OF bills OF
the Bank. The Bennington Bunk-anolher con
Germ which was very unfortunate IN its N. York
connexions is now IN the bands of the receiver
and we suppose is not yet fully ascerained how
far its assets will 90 towards redeuming It's bills
BE The deficiency much or lIule, It must be lo"l
before any thing can be drawn from the Satet,
Fund for t,nI hank, as the Essex will more thai
absorb H. Vermont has not yer adopted The doc
Urine ofrepndiaUn, aud she never vii do il. The
worst which any Vernonler has ever proposed tc
do is, to require That the bonds of the directors
nsoI,ent banks shall he enforced and applied {,
the redemption OF its bills, before the Safety Fund
shall be taken. There strong reasons for hi,
course.