The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1855-11-14
Tho Banks of Vermont.

The report of the Bank Commission.
er Dan'l. Kobetts, Esq forms volume
Of SO pages. We extract from it tho
following facts The Banks of this
State are AZ in number, of which, three
tho Bank of Castleton, the Bank of
Woodstock and the South Royalton
Bauk-were organized under the gem
cral banking act. The increase of bank
capital since last year is S327.s04. De-
crease of ofcirculation. S2s5 .3GS Increase
of capital in two years, $3.50, ,420. De.
crease Of circulation in two years, g.
090,47G Decrease OF discounts in two
years, S30S002 within the last year,
twelve banks have declared no dividends,
aud five others have passed one of their
usual scmianuual dividends. The aver
age of dividends is 81 per cent upon the
capital Sixteen Of the Banks, incldd
ing all of the Burlington Banks, it is
stated, have violated the spirit of the
statute limiting the Indebtedness of Off
GERS of the Bank aud other individuals,
and four others have violated other pro-
visions. Two Banks only, the Bank Of
Royaton aud West River Bank, have at
present. any known Western loans. upon
the arrangement that the borrower shall
protect the circulation of the Bank.
Several Banks have tried this plan here.
tofore and discovered its impolicy ana
danger, Upon these points the Com
missioner remarks
II the object Of granting an Bank
Charter be public one, such as the ac
commodaton Of the people of the State
with needed banking facilities, rather
than to afford to capitalists means Of
turning their capital to bOtter account
it would seem that loans made abroad,
under arrangements for the protection
of the Bank circulation by the borrow,
er. were as far outside the legislative
purpose in the creation Of the Bank, as
they have proved hazardous to the
Banks making them, In a sister State
such transactions haze been recently
prohibited.
Il know Of no Bank in this State,
Which is suffering serious embarrassment,
or has sustained much loss, where the
same cannot be traced directly to the vi.
olation Of the spirit Of the law, limiting
luC llutOtNlHtso W lhAlNiueh-o' -4Oabs
have been made far exceeding ten per
cent. Of the capital but with caution
quite ludicrous, the evidence aud securi
~ for the loan has been, in form, a draft
and this they have calledhe purchase
Of JiHS ot fTchaHse | would again call
attention to the necessity Of some further
legislation upon the subject such as
will protect the boaa fde business paper
Of the community, and at the same. time
forecluse this juggling Interpretation Of
the law, to cover mere kltlng
Il have made the foregoing sugges.
tions under 10 little Embarrassment for,
upon looking back through series of
years, do not find that any recommend
alton Of any Bauk Commissioner has
ever been followed by the Legislature.
From which it is fair to inIer that the
State has been singularly unfortunate in
its selection Of Commissioners, or else
the control of Vermont legislation upon
this subject. has fallen into hands which
would accord to the Banks the largest
liberty
There are fifteen Saving Banks in the
State two Of which, Black River aud
Mildlcbury, are iu the hands of Rcceiy
crs ln the remaining thirteen, the a
mount now in deposit is S9O4,ee2,29.
The Increase of deposits in these Banks
from the report Of 1854 is $50 023 II.
The commissioner again urges the neces-
sty for Il revision of the laws regulating
these institution, with better securities
far Glithful administration
ABSTRACT FOR 1855