Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1857-10-30

TO individuals without the State to enable
them to carry on their business But ho
claimed that it was the business OF the
banks to limit their business to the citl1 rs
Of the State. Tho Banks have gone or
leading immense sums to companies and
corporations without the State, AMI In
some instances have established branch
banks, to the great injury Of our own bust
ness. Who could doubt but what had this
act been in operation during the past year,
that the result would have been most bcne-
fetal 1t has got so that it is impossible
almost for citizen Of the State to obtain =
discount at any one of the banks oi the
State. 1t would be well to knox Whether
our banks are carrying on legitimate bu-
sincss or not.
Mr.. Chittenden said he knew from po.l-
tive knowledge that had it not been 'r the
large loans made by tho Vermont banks to
individuals out of the State, every bank IN
the State ct the present time would have
been insolvcnt. Money had been loaned to
companies out Of the State and this came /
money had come back to our own farmers
in exchange for wool and produce Of all !
kinds
Mr. Royce SAID that in no report Of any !
Bank Commissioner could be found any in |
formation whatever relative to the loans Vi
the different banks lie would admit neT- |
ertheless, that wc could find the aggregate !
amount of loans by all the banks by the !
present law.
Mr.. Gleed was not satisfied with the arGu
ment urged against the bill.
In the afternoon, after some amcnfmcn;
of the bill, the question being On its "a
reading, Mr. Chittcndcn said lis principal
objection to the bill was, that 1t would
seem that the people Of this state would
wish to stigmatze the system Of making
loans without the State. He protested
against the idea of its being the general
practice Of the banks in the State to carry On
un illegtimate business II Is impossible to
coniine the bus ness OF the banking insItu-
tions within the borders OF the State; as i'm
possible as to keep within her lines the
bills issued by the banks. Banks are c.
tablished for the purpose of carrying On the
! business of the State. The ilel that our
banks arc not to furnish mongy to small
producers in other States to send to u our
-four and the thousand other things which
we daily consume, is Il marrow, contracted
view of things. lie would reprObate AS se-
verely as any one the practice Of our b.nks
investing money in building western rail-
roads, or Specializing in western Lands. Il
New York bank would furnish mon
ey to be expended in the purchase OF YER
mont cheese and butter, the friends OF this
bill would call the legitimate banking
But if Boston broker would wish to Gor-
row from our banks, the money to be use
in shaving notls in the Territory of Mime
sofa, that would be called iiegitimate.
You cannot by any report discriminate be-
tween legitimate and ii.e5itlmate loans
without knowing when and for what pur-
pose this money has been invested. Much
Of the money invested in western srecula-
, ton, has been through loans made to th'
citizens of the State, aud OF course thc''
, leans would not come within the report u
the Bank Commissioners.
Mr. Gleed said the reason why the bank
would not discount notes to cur citizen
was not through any impartial motive, hu
| through mere ina bihtY 10 DO 50 and th-i
r inability arose from the iIlesItlmdto loan
made out of the State.
+ Mr.. Butler thought that the iir-t thin
/, to be looked after was the security OF til
. bilI-holders. lie thought that the bill Wan
O lie.
;. Mr.. Pierpoint said that he did not under
stand that 1t was the object OF the bill t
q stigmatise those banks mOking loans out {
v the State, but its object to bring to high
: those banks sending money West for thci
a own gain and to the inconvenience Of tt
4 citizens Of the State If such has cen tn
Q duty of the Bank Commissioner, lie has u.
performed the duties Of his Office and som
. measures ought to be adopted to emf 'rct
!. performance of his duties. Let it b. A1pN
% to what particular States these lulr, n.N
d been made. Banks would not fear to Ii -
it known that their loans have been mldc i
NJ 49,,
70 fear to have 1t known that loans have bee
u made in Michigan-and the effect would
~ beneficial TO both parties, both u the hanl
Q and to the public.
T. Mr.. Chittcnden slid that the Senate
10 from Addison this morning argued again
&c the bill, because some tOrri IN loans Wou,
" be legitimate, while others would b, i.!ls
- innate, and that no proper Discriminate
Is would be made in the report. Now All,
= this amendment he supports the bill. Il
70 proposes to plrticulari1e the dlu1rar
u states to which the loans are made. III
t. would be tantamOunt to lrJuounc!ng
e legitimate to loan in one State, and lmpr.
y per and illegitmIte in another. State.
10 Mr.. Chittcnden moved to amend by ma
D. ing the information discretionary with Il
ie Bank Commissioner.
j. On this question the yeas and nays wei
le as tollows:-yeas /, nays Is.
~ On the third reaIing OF the bill, Il
y yeas and nays were as iOilOws:-l cas-
~ Messrs. Barber. Bates, Cahorn, payi
~ Dwight, Gieed, Gregory, HutcainsJl
81 Jones, Marsh, Perry, Plcrpoint, Raymon
~ Reynolds, Royce, Sanford, Walker, We.
Ie Milscn-l9. Nays-Mcs-rs Butler, CA
~ tenGen, Field liunton-4.
IL House. - Reports. - BY Committee 4
III \ =. O.,
~ stead Of S2S3,14) Mr., Stewart moved
amend So as to fix the sum at 500. IA
10 bill was for expenses in securing Fayct
s. Thompson, burglar, who stole ! Zoo
Il. furs from Allen. Allen expended 10
~ and paid reward of 500 btsl les ior i
~ tecting the thie!, by advice Of the State
. attorney. Inc committee rejected the +
ward, and allowed only the expenses Of
~ lection, thinking that the thlui would ha
Il been detected without the reward-but
~ his point, there was a difference OF OPT
ion. The proposition of MIR, Stewart ther
fore, was to include the reward IN tn (
81 penses Mr. Allen secured the thief, al
Of did not recover his property
r, Mr., Edmunds of Burlington who "
i Thompson council, stated tu4t.pgrv VI T.
exp, nses rejected by the committee Was /
~ getting testimony winch curcluslycly HA
IN the crime ON Thompson, at the time wA'
n it was known Tat Alien could not l
ne cover his property; and, moreover, that Il
II reward materially aided in the arrcs.
Thompson. The motion uI Mr.. stewa
10 was agreed to, and the bal. Mas ordered
II a third reading.
Special Order.-The bill rep.aling the IA
h on the reference OF actions Was cJnslicre
? The bill was Siscussed at length both
n the forenoon ami afternoon. y motion
e dismiss WAS lost. Ayes u. Nays Lao -
IA The bill WAS then passed
l. vermont Banking system.
d We hope the legislature will be char
= of medllins with the banking system
% the St4te-at least, that the 90 hara tim
with banks will not lead to making Il
IS obligations the banks any less suiugen