Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1876-04-05
Letter from Bethel.

UEfHIis W. MhiNh 90 iot'
Nesss EHt1is Recent publications In the
lrhHc Rrer Standard, published at Woodstock
and also in the Boston Doly Journal, in relation
to losses sustained by the National White River
Bank" Of Bethel, by recent heavy failures have
led your correspondent to collect q few facts re-
latitfg thereto. and ask leave 90 present TO the
readers OF yourvaluablc paper few items ofinfor-
nation which may be interesting to the public
generally aud especially so to the stockholders
in said bank, during this season Of rumors, the
truth Of which has hitherto been hard to learn
Iwill here quote an article In the Hhit, R'rer
/ Standard Of November 10Th 1875, as follows. In
the Boston Journal Of November 18th, find the
following among other telegraph items from Yer
mont. It is rumored that the National White
River Bank, OF Bethel, w., loses some twenty
thousand dollars by the failure Of shepard, Davis
/ & Co.. and sixteen thousand dollars b., the failure
Of Chase & Co.
To which correspondent Of the Standard
| Cprobably at Bethel replies as follows. " We
| have the authority to state that the loss of the
above named bank, by the recent failures, will be
| less than fifteen thousand dollars. by referring
to their published statement, October ist 1879,
We find they have in undivided profits aud sur
| plus thiuy-tvo thousand two hundred and sixteen
dollars and twelve cents Parties who will fur
nish such items with intent to injure the good
credit and standing Of such an institution rs the
| National White River Bank should be called To- an
account"
About the oath Of February, 1876 Mossrs Marsh
| & Burnett, Of Bethel lumber dealers, failed, and
Of this failure, and its relations with the aforesaid
bank, I will quote from letter dated Bethel,
VI, February both, 1876 signed Morton, and
published in the Boston Daily Jou1i0, March LIST,
1876 as follows 4" In connection with the failure
Of Mcssrs Marsh Il Burnett, rumor gained con
siderable circulation that the National White
River Bank held their paper, which the bank
had discounted to the amount Of fifteen thou
sand dollars Your representative, to-day, as
cortains from the cashier Of the bank that
such is the case The bank has due them from
Nessrs Marsh 4 Burnett, fifteen thousand dol
lars From the books and statements Of the bank
shown me to-day, the hank has a reserve surplus
abundant to meet the losses-tho reserve surplus
to-day being thirty-one thousand dollars. And
Marsh & Burnett will pay fifty cents on the dollar
thereby leaving only about seven thousand dollar
loss to the bank
One more quotation from the aforesaid letter o
Morton, which is Of coptoriHg mature, will
satisfy your readers that II his object were t.
produce a rose-coored picture Of affairs at Bethel
his efforts were crowned with perfect success, t
wit. "Ihe National White River Bank will no
be crippled by these failures lts capital stool
and other securities are ample to meet all de
nands while they have a large reserve cash sur
plus to meet any and all demands or losses whicl
may occur
From the writings Of the WIN, Rrcr Siandr
correspondent, and Morton, Of the Bosto
JoUrHoi, one would he led to the conclusion tina
= there was mot going 10 be much Of q sioirer.'
And in my opinion, it would not be unreasonabl
for the stockholders Of an institution in such al
fluent circumstances, TO expect that it wou
continue it, accustomed semi-annual dividend.
rather than pass the usual dividend Of Ianuar
first, as did this bank
The facts In the case are briefly as follows B.
the certified report of this bank to the Comrtrolle
y Of the Currency, October l,t 1873, it appears tina
g it had in surplus and undivided profits, thirty
+ two thousand two hundred and sixteen dollars an
. twelve cents, and held suspended and overdue pa
~ per to the amount Of six thousand throehundre
and eghty-four dollars and one cent have IN
best authority for stating that in thevery late pal
It Of January 1876, the aforesaid baul had in SUI
= plus and undivided profits, thrty-oue thousan
3, seven hundred and sixty-eght dollars and iiy
! cents only, it being four hundred forty-eight do
Z lars and seven cents less than 1t had on the fin
e Of October, 1879 besides showing nothing as
% can discover for the earnings of the bank for tn
2. intervening tune, nearly four months. also ha,
perfectly reliable authority for stating that at III
y same time this bank held suspended aud oyer-dr
Is paper amounting to thirty-two THOUSAND thr,
l. hundred and sixty-eight dollars, in which was il
e cluded the paper referred to in the item publshe
lie in the Boston Journal, November 18th, 1870 an
d on which the standard correspondent claims Al
thority for stating the loss will be less than fl
lie teen thousand dollars, which is seriously doubtc
sr by your correspondent and Others.
d Now, il at the time Of Marsh & Burnotts ial
(, ure, about February 2ith last the bank still he
y thiity-two thousand three hundred and sixt
J. eight dollars, suspended and overdue paper q
e hand late in January, to which add the fftee
Il thousand dollars due the bank from Marsh
20 Burnett which, as Morton says, was admitte
N TO him by the cashier would seemingly mai
e forty-seyen thousand three hundred and sixt
10 eight dollars suspended and overdue paper hcl
If by the said bank, after the failure OF Marsh
~ BURNETT NhNhlN. an amount equal 10 nearly lMi
II ffths Of the capital stock Of said bank one hui
p drcd and twenty-five thousand dollars, and a d
'e tie more than threetenths Of the amount Of bot
n capital stock and surplus and undivided prof
= combined
T. do not attempt an estimate Of what will be- II
t. ultimate loss u the bank on this amount Of su
p pended and overdue paper. lam informed, HOY
ever, that the expectation is, that Shepard Dly
* Co., and Chase & Co., will pay thirty to thirt
j. three per cent OF their liabilities Should Mar,
p & Burnett pay about the same per cent wou
y like to have explained the system Of mathemat
d 10y which the dsiuie chronicler, Morton, arriy'
It at the conclusion that the aforesaid bank has
e large reserre cash surplus to meet am dad oN n
d moi,ds anil losses uhich mag occur.
r The foregoing are facts which think no OF
n will gainsay, and are presented only as q seemiu
l. duty to the stockholders of the said bank or son
It Of them at least, who do not know what to bele'
Is OF the rumors in relation to IT, All Of them,
h doubt not, will rejoice at the announcement
d Norton in his letter heretofore quoted, thi
II It's capital stock aad other securities are ample
ID meet all demands.
lie lnasmuch as the Boston journal aud Viii
is River Standard have heretofore published stat
ments and letters relating to the said bank, IL
,r writer would respectfully invite them to copy thi
to JusTtCF