Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1889-12-23
About Barton Bank.


! Editor Of the Monitor Permit me
through your paper To say few
words in regard to the ACCESSIBILITY Of
winding up the affairs of the Barton Ma
tional Bank and establishing in it's stead
State Bank or Savings Bank and Trust
Co., or reducing the capital of the present
Bank to $4,000. / am "A stakeholder
and hope TO reach all the other stock
holders of the bank hy this letter. IL
seems to me that 1t is the best thing to
be done to go into liquidation, and then
to erect a State Bank, which can be
done without waiting for charter (see
chapter 100 Revised Laws) and if desired
to change it to u Savings Bank and
Trust company, apply for charter at
the next Legislature. In the first place
there is SO much competition at Barton
and vicinity, it is hard to make use of
large amount of capital. A capital of
$50, 900 will pay better dividend than
on larger amount of capital. 1t is hard
work to place, when then there is so
much competition, in safe undOuJted
loans, SO large capital rs the present
bank has. Our stock cost $llJ share
and it does not net 6 per cent. on the
cost But if it should now be liquidated,
and its bank deposites sold at once, IL
will pay back what IL cost but unless
the bonds are sold nOio they will not
bring so good price. They will depre-
ciate in value as the time for their re-
demption shortens, and thus be loss to
the stakeholder. 1t is the high premium
which the bonds NOR bear, and the desire
of the government to get rid of its sur
plus by buying bonds which has helped
to keep up the price. This premium on
these bonds is the only hope the stock
holder can have to get their capital,
which they invest in the bank out again.
BY going into State Bank a saving of
tile one per cent. tax put upon the Ma
tional bank circulation, will be made.
There would be saving OF taxes TO this
state by changing the capital from its
present size, to Il State bank, or Savings
Bank and Trust Co., on $4,000 capital.
Taxes on 100000 will be saved to all
stockholders of the present bank. Those
National Banks in this state, which have
made 8 per cent. dividend To resident
stockholders, have been those whose cap
ital has been moderate in amount, and
have had large amount of deposits for
use. In some places, and Barton may
be, and probably is, one of them. Savings
Banks and Trust Co.'S have done well,
because the deposits have been numer-
Gus and large in amount, and, as | ender-
| stand it, State Banks and Savings Banks
and Trust companies can do a general
| banking business as well as a National
except to issue their own bills; and lots
of taxes and expense can be saved by
changing this bank into State Bank and
eventually, if thought best, the State
| Bank into Savings Bank and Trust Co.
In fact the only hope that the stockhold
ers can have of ever getting their invested
capital back is to at once go into liqui,
dation and sell the present bonds depos-
tied with the government before the
bonds depreciate any more. They are
falling in value day by day and the mar
ket quotations show this to be so, and
besides the natural sequences is, that as
the day of redemption diminishes and
approaches their value lessons. These
bonds can not be recalled from the gener-
al government, except by placing other
bonds in their stead; that would be an
expense, and they would soon be called
and redeemed aud their value also be
reduced daylby day until redeemed. So
my opinion is that liquidation and es-
tablishing a State, and in the end Saw
ings Bank, is better than a reduction of
the stock of the present bank.
STOCkuOI