Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1843-02-10

l., ~ INDEBTEDNESS OF the Dank, as reported
by the cashier, other than as above stated
was S3,S40 30, which accrued from money
borrowed by John Dewey, on the notes Of
John Dewey, Greenlief Webb, and William
Haywood, Jr., against which, the said Dew.
ey holds the indemnity of the said Webb and
Haywood to enable the bank to redeem is
bills after the sale to Mack g. Townsend
they having failed to furnish funds as thev
had agreed, said notes stiIl remain outstand.
ing and are unpaid.
The nominal assets Of the bank. which
passed lnto the hands of the receiver, were
Discounted notes and other eyi-
dences of debt, SOL ON "a
John Dewey's receipts for notes
held by him as collateral secu-
rhy' 0,4575 so
Amounting to sIna 365 90
Included in the above are the notes of Mack
g. Townsend.
u the debts other than those of Mack g.
Townsend, the receiver reports SO or $40 :
900 absolutely bad, S6,402 collected. and a
large proportion Of the balance extremely
doubtful.
The time limited by the Chancellor for
presenting claims against the bank to the re-
ce'ver, expired on the first of Sept. Is42. at
which time there had been collected of The
bills of Essex Bank, s5 q
Deposited by claimants, 314o6
amounting TO S40,O65
which deducted from $7O,6OI leaves $50
ooo sthl outstanding, and il is apparent that
the bank has run under more than 500. OOO.
AT the winding up Of the business con-
Germs of the bank, on the l4th and 18th DAYS
oi august. 1859, wrIts Of attachment were
issued agains, the bank, but no property Of
any value could be found, except Si9 al in
specie, an Iron Safe," some packages of
unsigned bills, a few blank books, a quantity
OF unsigned bills, and a few sticks of sealing
wax.
Your committee further report, that in
their opinion the legislature, in granting the
charters Of the several Safety Fund Banks.
and by The several laws they have enacted in
relation to them, have endeayored 10 protect
the rights OF all persons, who may have any
concern with, or interest in, them under
these laws a bank fund has accumulated 70
2 large amount, which the law has intended
ior Inc payment or redemption of the bills of
any Safety Fund Bank, which may become
lnsolvent through misfortune and without the
laults OF Its officers. 1t has also made am
pie provision for the protection of the bill
holders against the frauds of such officers
BY requiring large bonds for the faithful dis.
;harge of their official duties, to be LODGED
with the Treasurer of the State. and when
he insolvency has been accustomed nv The
fraudulent conduct or neglect Of such Off
,ers, adequate remedy may be obtained by
he bill holder, by a prosecution of such az
icers' IN the manner prescribed by law.
The b~ill-holders being the persons inme-
injured by the failure of the bank to
'edeem its bills, and the inability so to do
'eing produced by the fraudulent acts of lis
'hcers, no doubt can exist but that suits
lpon their bonds may be resorted to by the
'Ill-holders for their indemnifcation.
In all cases where the officers have per-
ormed their duty faithfully, and have been
unity ofno breach Of the conditions of their
'onds, then no source can remain from
Vhsch remuneration can be obtained by such
lll-holder, but the bank fund.
And as it was manifestly the intention of
he Legislature, that the interest of all per-
concerned should be equally guarded
nd protected, we think that this constrnc-
ION OF the law would evidently effect that
beet, but if bili-holders are permitted 10 f,
esort to the bank fund for the redemption
| the bills of insolvent banks, without re-
ard TO the manner in which that insolvency. ,
'as produced, it is manifest that no person |
'ould seek redress by a suit on the bonds. {
a single dollar of the bank fund shall !
smain in the Treasury. /
Your committee are clearly of opinion, '
lat the bill-holders of insolvent safety fund y
anks, made so by the misconduct of their i
Ulcers, should never be permitted to have h
ldemnity from the bank fund, while they
.ay obtain redress by a suit on the bonds of I,
le officers. To permit such bill-holders I,
resort to the bank fund for redress, would v
the height OF inlustice,-it would be Ia s.
ing the money of those banks that have b
'nestly and ludiciously conducted their bu- e
ness, to pay the damages occasioned by
e fraud OF others, at the same time depri- n
ng the State of the use and income of the c
INK fund, and destroying the security of a
li-nolders, while those who have been gull n
OF the most barefaced frauds would 90 o
punished; in short, it would be Furnishing 81
e innocent and rewarding the guilty. al
Your committee, for reasons that must be O.
nnliest to all, leave this subject without II
commanding any measures to be pursued in
the Legislature, trusting that in their wis gj
m, they will adopt such as the exieencies IN
the case may require, while your commit W
, will give such advisory instructions to fl
receiver, as they are advised are prudent re
d proper. Ia
All which is respectfully submitted. "
DAVID HIBBARD, JR.l =
DANIEL COBB. (om m