Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1886-04-09

prosecution Of the war. On the lOth of
May, 100, that body made preparations
to issue continental paper, and ON the %2I
OF the following month, put S2OOO,OOOo Of
| 1t into circulation. These issues ulti-
matey reached the sum of S3OO,OOOO 600.
and the paper gradually deprecated until
it became wholly worthless. On the lth
of May, 1881, Robert Morris OF Pennsyl-
vania, submitted to Congress a plan for
| establishing n national bank. On the
Goth of May the plan was approved by
/ Congress, and the bank was Incorporated
under the name of "rhp President, Drec-
tors and Company of the Bank OF Notth
America" 1t went into practical opera
ton in January, 1852
On the Sth of February, 1871, in ,conse-
quence of the efforts of Alexander Hamil-
! ton, the first bank of the United States
was Incorporated, after vigorous OPPOSE
ton. In 1871, without CONFUSING the
| finances of the country, it wound up its
affairs The necessities produced by the
war of iSl2-'l5 led to the establishment of
the second bank of the United States.
! ON the 10Th of January, 1873. IA bill was
! passed for Incorporating national bank,
/ but was defeated by the veto of President
Madison. On the ID of April 1916 how
ever, "the president directors and com
pany Of the bank of the United States
was chartered, and went in operation on
| the following January. The other banks
! throughout the country. excepting those
in New England had been forced to sus-
pend specie payment, but through the
| bcneiicent agency of the new national
bank, they were enabled to resume bust
ness ON more stable basis. On the 10th
| of July, 1882, n bill re-chartering this bank
was vetoed by President jackson, and ~
it could not be passed over the veto, failed
to become law. After several suspen-
sions and assumptions of specie payments,
the bank finally wound up its affairs in
the early part OF 1910, leaving nothing to
the stockholders.
Prior to 1864, the charters of all banks
of issue and deposit were granted by the
several states In lS56-1, no fewer than
HOO of these State banks were in eXis-
tence. In New England there were 50i
banks and branches, with an aggregate
capital of Sll4 81 ,112. The civil war led
to the passage of the law approved on the
81 of June, 1864, entitled, IAN act TO pro
vide Il national currency, secured by Il
pledge of the United States bonds, and to
provide for the circulation and redemption
thereof" BY its provisions any state
could become national bank, and II was
not long before most OF the banks through
oul the United States had availed them
selves of the opportunity thus aifOred
The State of Vermont was considerably
behind the neighboring States in estah
fishing bank, because Il majority of the
Inhabitants were opposed to the issue OF
paper money. But as bills became the
circulating medium III other States, it was
impossible to exclude them from Vermont
and the people were frequently imposed
upon by counterfeit bills and the failure
OF banks, without sharing the profits flow
ing from banking operations. The only
remedy, il was acknowledged, was the
establishment of Il state bank which
would tend to prevent the circulation OF
spurious bills, and those of lnsolvent for
eign banks. In April, ISL, the Legisla
ture resOrted to the emission of bills OIL
credit for the purpose of carrying on the
war, paying the State debts, and enlarg
ing the quantity of circulating medium
Matthew Lyon, Edward Harris and Err;
. styles were appointed committee t,
make "a form and device for said bills anc
supcrintend the printing" In October
1856, the Legislature passed an act sub
= hitting to the people the question of The
establishment OF bank. They decided
in the negative, in the following January
by IL large majority. In 1903, the Legsla
ture was petitiOned to establish bank II
Windsor and another at Burlington. ii
/ spite of strenuous opposition the House o
| Representatives passed bill i'll favor O
"a the former; which by reason Of the non
concurrence OF the governor and council
failed to become Il law. The clamOr tu
} banks continued, however, and in $50
! two bills passed the House of Represents,
tives, establishing banks respectively a
Windsor and Burlington. The gOvernO
and council again refused to concur. II
! 1906, plans Tor the establishment of
State bank We're matured, and on the lOtl
o. of November OF that year the Vernon
State Bank was established by the legis
lature, under the legal tide of "Ih
President and Directors Of the Vernon
| State Bank" The bank consisted at tirs
: of two branches, one at Woodstock AM
the other at Middlebury. All the stocl
and profits were declared to be the prop
, erty of the State, and under the direction
-, of the legislature forever. There were T.
/ be - directors, from whom the president
! should be shosen. The directors were t
: reside, "SlX III the two eastern and SIX il
the two western districts of this State, an,
N the Their where prudence may dictate.
+ Deposits were not TO exceed 100000. il
. 1907 two additional branches We're estat
, lishcd, one at Burlington and the other a
I / Westminster
On the llth of November, 1SOS, the sa
f aries of the officers of the bank We're tiXe'
4 AS follows: Each director was to receiV
-, Sl.5O day for all the time actually spen
f in performing his duties as director; tn
y president was to receive p cents for ever
r 100 sheets of bills signed by him, an
a when necessarily attendant on business a
# some branch away from his residence, h
N was to receive -, 80 for every 40 mile
II travelled, in lieu of other emOlUmen
A. The cashiers were to receive not nor
r. than 800 year On the same day tn
10 treasurer VI llt NItle WAS ulltCleu
# make the following payments for service
l. during the previous year; To TitJ
y Hutchinson, as president and drecto
"a $3.50 James TarboY, director, $S4 Mar
~ Richards, $3.50; Alexander Campbell
n $3.50; Oliver Chaplin, 500; William
+ Harrington, $3.50; Noah ChittendeI
# Sill; John Curtis, $25.50, Elias Lyman
n So Daniel Chapman, $500; John Wi
# lard, SO, Horatio Seymour, 800.
r The anticipatiOns of the friends of tn
n institution were not to he realized. No
D withstandng the efforts of the legislatul
m to maintain it by repeated legislation, i
~ affairs were soon found to be greatly Ell
r. barrassed, and the institution insolven
"A On the 18th of November, 1909, an act w;
/, passed, making its bills legal tender
IL payment of land taxes Within five yea
~ from its establishment measures WEI
in adopted with view to the winding up
80 its concerns. The Westminster branC
NJ was removed to Woodstock in 1911, al
W the Burlington and Mddlebury branch
" followed in 1872. Among the directors
81 the Burlington branch were Noah Chi
." ~ tenden, John Curtis and William c. Ha