The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1884-04-16

drawn out by depositors on that day, and the
bank was left without funds to do business
with Tuesday morning. The cause OF the
trouble was unfortunate speculation In stocks
by the Sowles brothers, both of whom have
lost heavily Of late. There seems no reason
why the depostors may not be paid in full in
case the institution remains closed. The de-
posits amount to some 1918, 000 the nominal
assets are not great way from $3.50, 200. The
liabilities are 800, 900 for circulation, and the
assets include 500, 600 in United States bonds
The great difficulty with the assets of the inst-
tuition Is that they cannot speedily be realized
on The list OF stockholders are as follows: K. A.
Sowles, the president, $4,000; Albert Sowles,
the cashier, $4,000; Mrs. e. A. Sowles, $40 900;
Merritt Sowles $4,000; o. A. Burton, George W.
Foster and b. G. Hall, 81, 900 each; the remain
der, a few thousand dollars is held by sisters OF
the Sowles brothers. Mr.. l.. A. Sowles has pub
lished an open letter to the public, in which he
says: An extraordinary demand for money by
depositors about the first of April, and the slow
response by debtors of the bank in payment,
has necesSitated a temporary suspension" The
bank, he says, has resources to pay all depos-
itors and save the stockholders from loss II per-
mitted to continue in business. He appeals to
the public to come to the assistance of the insi-
tuition and the business community. He offers
to sell S25 900 in stock to leading citizens of the
town or county at price to be fixed by the
bank examiner and to reorganize with a new
choice Of officers. This STEP Mr.. Sowles thinks,
will secure the continuance of an institution
that has withstood rebel raids, other attacks,
and has furnished a million dollars annually
for moving the crops OF that portion of the
state. The public do not seem to appreciate
MIR. Sowles offer, or lack confidence in his
scheme. There does not seem to be DISPOSE
ton to accept 1t, but u preference Is manifested
for the organization of a new bank, in no way
connected with the old organization or its man
agement. The trouble at this bank began about
two months ago, when run was made upon
1t, and the public confidence in the institution
has been declining ever since. Soon after that
run, Governor Hendee prevailed upon Z. A.
and Albert Sowles to put into the bank, for its
| benefit, collaterals Of the nominal value OF
about S110, 000-worth in cash, probably, from
$50, 900 to $4,000. The deposits have in the
! meantime decreased, and the assets been made
better. The cashier, Albert Sowles, seems conf
dent that depositors will suffer no loss. He Gays
that at the time the trouble first began the bank
had over $3.50, 900 deposits, and that since then
S278,000 of this had been paid over to de-
positors. f. A. Sowles and o. A Burton owe
the bank considerable. and if the latter will
come to time on $50, 0O0 worth of paper it will
help matters good deal. If this had been
done before, he says, the present disaster might
have been avoided. He says the bank has had
everything to contend against since the failure
of the Vermont National and the Trust Com.
pany. Public confidence in them has dimin-
ished gradually-a very natural result of the
previous failures; the new village bonds were
put on the market just in season to catch
number Of their depositors, and other things
have told against them. He thought there was
no question about the banks paying depostors,
and that If any loss occurred it would strike
the stockholders. He thought they might pos
sibly go into voluntary liquidation. The bust
ness community is reported to be but slightly
aft ected by the failure The former difficulties
and later warnings had produced feeling of
caution, and none of the merchants will be
embarrassed. though they may be incon-
venieDced, by reason OF deposits locked up
Mr.. Albert Sowles, cashier of the First Ma
tiona is also president of the Union National
Bank at Swanton. The difficulty at st. Albans
produced run at Swanton on Tuesday. By
eleven o'clock A. NJ. all the available cash on
hand was paid out to anxious depostors.
Those whom the bank could not pay were sat
sied to wait till the bank could obtain funds
from Boston. The amount due depositors was
about $50, 900 and the bank had S117 900 in
good paper to pay it with. This bank will
probably tide over the difficulty. The bank is
open as usual The amount of deposits has
been reduced about seventy thousand dollars
since the failure of the Trust Company and the
Vermont National. The Villas National Bank
of Pittsburgh has had intimate business rela-
tions with the First National of St. Adams,
Mr.. Merritt Sowles the president of the for
mer, being brother of the president of the
latter. II does not appear that the Pittsburgh
bank has been embarrassed by the connection,
whatever it may be, with the st. Adams inst-
tution