Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1858-10-02
Tbe Otrmont 49enit.
BRNTTLEBORO, VT'
SATURDAY, OCT. 2, 1858.
The.SuHolk Bank.

VI UlOSt OlueI pdIls VI tilt NOullllNs tNtH
the bills of their banks are secured by public
stocks held blythe Treasurer of the State fortheir
ultimate redemption. This security has, in
good degree, been owing to what is commonly
known as the "Suifolk system, "a system which
required the continued deposit of specie at the
Suffolk Bank, in Boston, in return for which de-
post that bank redeemed the bills Of those coun-
try banks that had entered into such arrange
ments, upon presentation. So potent was the
power thus welded by the Suffolk Bank that
every country bank in New England that re-
fused to transact business on such terms, was
b discredited, and thus its bills were thrown out
Of circulation. Under the above condition Of
things the Suffolk Bank has grown enormously
rieh accommodating very large surplus fund be-
sides declaring five per cent semi-annual divid-
ends. The country banks have furnished the
chief means for this constant accumulation.
The system of redemption thus practiced is
undoubtedly the best that could be devised for
the protection of bill-holders and the prevention
of over-issues and illegitimate banking on the
part of banks. 1t is one with which the COM
munity is satisfied and which they would not
wish to see displaced by new and untried theo-
res. Two or three years since some of the eoun-
try banks believed that the system could be re-
tanned and the agent changed. They knew the
profits the Suffolk Bank had made at their ex-
pense were large, and they believed that they
could devise a way in which their bills could be
redeemed as readily and as safely, and at the
same time save a portion of these profits to in
crease their own dividends. To accomplish these
purposes the charter for the Bank of Mutual
Redcmton was obtained from the Massachusetts
Legislature. The country banks DESTROYS Ola
change subscribed literally to its stock and it
commenced operations in August last, under
very favorable auspices.
The Suffolk Bank has not seen this movement
progress without mantesting tokens of its dis
pleasure. 1t endeavored to prevent the admis-
sion of the new bank into the Clearing House
at Boston, Fooled in this it has turned its wrath
upon some of those country banks that have
transferred their business to the Bank of Mu-
tual Redemption in which they are interested.
1t has collected the bills of the Souhegan Bank,
at Milford, \. H., of the AGawam Bank, at
Springfield Mass and two of the Lowell Banks,
to amounts varying from $4,000 to $4,000
and presented them at the counters of these sew
eral banks, demanding their redemption in spe-
Gle. 1t has refused the tender of specie to the
amount of the bills held at its own counter in
Boston, by the Bank of Mutual Redemption,
preferring to make sudden descent upon the
banks for the purpose Of breaking them down.
In every case the specie has been counted out
and the messengers from the Suffolk allowed
the privilege of carting it to Boston. 1t has
even gone so far as to issue the ominous circu-
lar announcing that 1.-THE bills of the Soughgan
Rank are Hoeeiyed at the SntToll. n--.i-"
And all this for the purpose, not Of protecting
the currency of New England, but to make the
country banks continue the tribute they have so
lavshly paid, and which has greatly enriched its
own Golfers.
The unanimity with which the press of New
England has denounced this monstrous wrong
and usurpation is a cheering sign for such in
situations as have the independence to rebel
uSelHot liilo W lllOuI u SIilSlG On
ception, so far as we have observed, not a line
sustaining the censurable course of the Suffolk
Bank has appeared in any New England paper.
On the other hand its conduct has been unmeas-
uraby condemned, and that of the hanks who
have endeaHored to protect their own rights full
~ commended. The time was when the dicta
Of the Suffolk Directors could discredit every
country bank in New England, but that time
has passed never to return. Its present impe-
robustness is owing to the querulousness of old
age which sees the power it has so long wieid-
ed about to pass into fresher and more youthful
hands, without the ability to prevent its depart
ure. AL honor should be awarded to those in
stitutions who have dared to lead the way in this
enterprise. They should and will be sustained
by every individual in the community who pre-
fers the rights and interests of the people to the
cormorant cravings of a purse-proud corpora
ton.
The Providence Journal one of the abest and
most judiciously managed journals in New Eng
land, very justly Observes:
"The Suffolk Bank has an undoubted right to 20 to
tile expense Of sending the bills of the country banks
home Tor the specie, when il would be so nuch more
convenient and cheaper collect the same by lust
crossing the street; it has undoubted right TO re-
fuse specie check Boston, and to transport the
specie ~ bags the railroad but as the only object
OF this must be to veX the country bank and 10 drive
il into restoring its accounts to the Suffolk public
opinion will condemn the act AMI should the Suffolk
Bank ask us it has asked and as ttnay be compelled
to ask again. the orbeamnce of the public aud the gem
erel support Of the community these instances of the
extreme exercise Of right however undoubted will
lie brought up against it. II when the banks suspend
ed payment, some troublesome fellow had collected
their bills and demanded the SPECIE under the onna-
~ of.the law of forfeiture he would have manifested
the same temper that is exhibited by the Suffolk Bank
exercising plain right in needessly offensive man
ner and for no good purpose.
1t is important to the public that the banks Of New
England should redeem their circulation in Boston,
It is of no importance to the public whether they do
this at one bank or another If the Suffolk Bank
should drive back the country banks that have made
their arrangements with the Bank of Mutual ReIemp-
ton, thsater m ght commence II similar war to com
pei them to resume those arrQugemeiLs and the only
condition Ul peace would be to pay both for the ser
vice that could pfrlo m. If the profit which the
Suffolk Bank has derived from this business is 50 great
as to cause these extraordinary measures for returning
i, the other banks Of be blamed ior wishing 10
keep it to Themselves, they do in tho Bank of su-
tun Redemption. Aud although the Suffolk system
has worked well, and the cost is so Ii hit upon the