Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1862-11-14

Sth inst Although in your recent editorial arti-
Gle on The Bank Question: you state with
great cearness and ability the principles on which
Banks should be established, aud what may be the
duty OF the Legislature when applications are made
for re-charters, yet something more on matters so
important may not be out OF place at this time
We are told in the minority report that the Banks
in this State, in violation OF law, refuse to pay
specie for their bills that their circulation has
greatly increased since July, 1861 that this in
crease is based ON deposits IN the city banks and
that should any calamity beiall the city banks,
whereby these deposits would be wholly or par
tally lost, it would seriously affect the Banks of
this State that an irredccmable paper currency is
productive of great evils, such as unusual high
prices, speculation and extravaganza, to be- fol-
lowed by great depression OF prices, distress and
ruin that the prices of produce and merchandise
are rapidly advancing, the high prices encourag-
/ ing the importation OF foreign goods, which must
| be paid for in specio that the amount of revenue
| collected in the port OF New \ ork since this year
came in exceeds that of last year 10y about twenty
six millions Of dollars.
And what remedy does the report recommend
| loi this state OF thingsf Is il by legislative ac-
ton to reduce our too redundant Bank capital, or
! to refuse TO renew any Bank charter by no
means; but the proposition is 20 refuse &C tins
sion to charter any new Bank, or rc-charter any
existing Bank having more than two, or more than
three, years of uneNpred charter, thus making no
to time, between the worst aud the best managed
] Banks IN the State. How far this remedy will 90
towards relieving the condition of the country, or
TO induce resumption of specie payments, it
needs no great wisdom TO determine.
IL is true that our Banks do not pay specie for
their bills, and they never can continue TO pay It
when the city Banks refuse it, and should they at
tempt it, before a week had expired the city brok-
crs would sweep every dollar Of coin from their
/ vaults. For under our long established system,
which the laws of this state favor, the circulation
of our Banks, from which their profits mainly come,
flows as naturally to the commercial cities 10 be
there redeemed, as water runs down hill Il is
needless to say, what all know, that this system
makes the bills of our Banks as current over the
/ whole country as the bills of the Boston BankS
IL is true that the circulation of our Banks fas
largely increased since July ls5l Tor owing to
/ the prustration of business occasioucd by sol Bern
secession, it was then lower than it had ever been
before ON the same amount OF capital. Nor
should il be forgotten that in 1861, nearly all the
banking circulation of the great state OF Illinois,
and q considerable part of that of Wisconsin, was
struck out Of existence by the depreciation OF
the state stocks that secured IL. A currency was
indispensable TO move the immense surplus Oh these
two States and the East was called on to supply
IL, OF which Vermont has contributed her share
Thousands OF dollars have been furnished for this
purpose on sight exchange ON New \ ork aud al
so To pay for the wool aud other products of the
west 10 DC Drought mere ana the Oliis SO pala OUT
arc 'o'aineu tleio io' Viicualon' anu 10 ol come
home for redemption has formerly been the
case.
That the ruin of the city banks would be a great
calamity is evident; but Is such ana event proba-
u'' nay is l PoSsio'e IL is not at an prooaoe'
nor i' IL posNpe' uhth Our government ls hrs'
uloNen uo"n' anu universal bankruptcy ana rum
'"Ae pace, LIN tneh inc Guy uanAs are 'Ae de-
pOsit0ues for our Banks. 1t IS true that we have
fallen ON evil times. Our country Is passing
e"ous" He'! ulAlS anu uaP'sn' Oh oioou'-
a Icuviion, 'he most "l'keu ana cause'ess ~
inc sisn1 Oh "ou ana man thAI ever happened Is
'"SNlis an 'le Nlsuon ana ehef6! Oh inc govern
uc"', anu an lne 'o!"! oi te people lot us sup
"Os''on' nu' ie' vs. "o' ue as 'nose VINO nave hu
nope Tor oehlhd inc daiN Houd the onghl sun
ever SHINES
4" uic .onE EHuleAu wars l'li'NlhE lhe utath
=" i'ou's n - ''e Dana V' Ai5'A''" va" NOT pa!
SPe'iv ZOE many years p"t ITS notes nevertheless
continued 10 ue 'he currency OF preat Britain. In
our war OF 1917 hneh OF currency OF tins coun-
u! was furnished 10y non specie paying banks,
a"a now ny act OF Congress all debts whether
uNe 10 lhu''iuu''S or corporations may De paid in
tnu paper oi inc government ANA VIII the Leg
is'"'nrc or any oil IT'S committees reproach The
'SN' VI 'n'9 o''le i"' NOT paying specie Tor their
o'''' "uen y! "Ener IA" Ihey eau collect
Ho'""s oi Wet' "eotoIs uul paper lhs would
"U'3 "' Ie'laiiiNs VI tNeh 10 maze nIloAs WITH
ou' sue"i lho sieauy increased dntes on Tor
c'sn eooIs accounts "a part Tor ue increase OF
o'J.'uo ''',s car o,gt lA'' year ana me feNNing
VI ','' 'oI I.'t accounts LOT II IN part
M 'le , a,,,,''s anu ''sG,,es o, tht
~, ~ - ''' '''N 'N'''f N""tii5 ii A0"''
- .. ~ .'"' vi means mean resoh'l! await
DroyilrJ for fr,,a ;ll. r MA ~ 49, ~
IN 1862 the means presently available IN meet
Liabilities are 49, $40 per cent. thus leaving but
80 l-l0 per cent TO be obtained from notes aud bills
receivable From TINS it appears that the Banks
"Iy mo-" iea'I! Stronger m means presently avail
'',',i az an! .'le ",e1 "a, Peilou named
than i. needed f.. M, Ii;.f " NAM, a., ''' s,'
So last wear when two new Bank, we're chartered
and eight old charters extended, some OF them nav
ing three years and others four years then TO run.
WIN the Legislature tins year 20 to the opposite
eAlrSme x without regard to character or conduct
''nS S,,rL may na'G TWO OF tnIee years TO
to sound policy and the b,s Interests of the S,,t,
if it be indeed the duty of the law making mower
to secure to the people good Banks and safe
currency And in time OF peril like the present.
Is 1t wise Tor the Legislature TO withdraw it, conf
,on Iro, our saie ana aoy managed banks and