Full text of Records of the Federal Deposit Insurance Corporation, Record Group 34 : Failed Banks - Filed as to Code # of Bank with Last Call Report and Liquidating Information, Box 12, Folder 1

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

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.ABANK CAP BEAGTON

Laws of Vermont, 1840, .oage 40
capital not to be withdrawn. Directors' Liability aot over 5 percent of capital paid in. Aggregate amount of 3 percent of such capital stuck
for each director.
Annual Report of the Auditor of Accounts, .1845. page 86

Th. INSOULAT BAAK 610 JBEIAGTON

The undersigned has felt it his duty to exJ-imine a report of the receivers of the insolvent Bank of Bennington, made and filed with the Clerk of
the Court of Chancery for the County of Bennington, and has founded thereupon
an apqication to the chancellor, for a sale of the remaining effects of the
bank at public vendue to the highest bidder, which sale has upon such application, been ordered by the chancellor to be made on or before the first day of
December next. Such sale seemed indispensable to apy final settlement of the
concerns of the bank.
It appears from the report of the receivers that they have collected
and settled of the debts due the bank the sum of 0.26,88.57; that the assets
of the bank which remain in the hands of the receivers, consist almost wholly
of debts due the bunk, amounting to the sum of *3103,800.01; that the claims
presented against the bank within the time allowed by the chancellor, and admitted by the receivers as valid, amount to 49,282.83; and that in consequence
of the receipts for debts due the bank, having been nearly all in bills of the
bank, sufficient available funds have not been obtained by the receivers to
pay their charges for their services and expenditures. Most of the clebts still
due the bank are believed to be worthless, tho' some of the debtors are aupposed
to be able to make payment.
The embarrassments under Nhich the receivers have labored in administering the concerns of this bank, have suggested to the undersigned that
some additional provisions of law are necessary to produce a speedy settlement of the affairs of insolvent banks, as well as to insure a just distribution of their effects among their creditors.
By the charter of the bank of Bennington, its debtors had a right
to pay their debts in its bills. The failure of the bank necessarily caused
an immediate depreciation of its bills; and the debtors of the banks who did
not happen to have them on hand, could reap the benefit of such depreciation
to the amount of their liabilities, by buying them up at a discount. This was

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Federal Reserve Bank of St. Louis

- 2-

of course done to a considerable extent. But as the depreciation of the
bills continued to increase, it soon became a matter of calculation to what
extent it would go, and many of the debtors were in no haste to avail themselves of an advantage which appeared to be constantly improving. The costs
which might be made against the debtors being also by the charter payable in
the bills of the banks, and being likely to be thus paid, the receivers for
the want of funds, were unable to bring suits, and they necessarily allowed
the clatorstn take their own time to make payment. The consequence has been,
that many of the debts which. might probably have been otherwise collected,
remain unpaid. A portion of the bill holders also, seeing little prospect
of obtaining any thin, by delivering up their bills to the receivers and
claiming a dividend of the effects of the bank, have neglected to present
their claims, prefering to such presentment, their chance of selling their
bills at a discount to the remaining debtors to the bank. This has left a
large amount of bills yet outstanding; and from the supposed continued right
of the debtors to make payment in such bills, the debts which still remain
unpaid, and against responsible persons, are rendered almost malueless. The
probable result will be that the debts due the bank will sell for a mere
trifle, and forever remain unpaid; and thus the funds of the bank will continue
in the hands of its debtors, and its creditors will get nothing.
V;hile a bank remains solvent there is great propriety in allowing
its debtors to discharge their debts in its bills. But the reasons do not
appear so strong for continuing such a privilege after the bank has stopped
payment, and its bills are at a discount. The principal effect of such a
privilege then is, to enable the debtors to make a profit to themselves
out of the bill nolders; and there is some difficulty in finding a good
reason why the debtors of a bank should be gainers by its failure, while all
others are losers. The continuance of this privilege at least for a time
after the insolvency of a bank, may insure a more speedy and general payment
of the debts due it, and on that ground, and possibly on others may be
deemed expedient. Upon the supposition tnat the legislature may not think
it advisable wholly to deprive the debtors of an insolvent bank of the privilege of paying their debts in its ails, the undersigned would respectfully
recommend that some provision be made by law, to guard, in future cases,
against the difficulties that have arisen in the administration of the effects of the bank of Bennington. This, the undersitned thinks may be done
by providing that all costs, which shall accrue upon the debts due a bank
after its effects shall have gone into the hands of receivers, shall be payable in specie; and that after the time fixed by the chancellor for the presentation to the receivers of the claims of the creditors of the bank shall
have expired, all debts remaining due the bank, shall also be payable in
specie. The first provision in regard to costs will enable the receivers
to proceed, at once, in the collection of its debts, and the provision cann,.1
be deemed unjust to the debtors. The latter provision appears indispensible
to a just and equal distribution of the effects of an insolvent bank among
its creditors. It will give the debtors ample time to make their payments in
the bills of the banks, if they desire to do so; hasten the collection of solvent debts due the bank, insure the presentation of all the claims of the
creditors, and enable the receivers to bring its concerns to a speedy close.

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BANK OF BENNINGTON

1841, Journal of Senate.

App. 7

Charter extended for two years. Notified that they must comply with
general laws ap)licable. Ge.aeral assembly, Committee reported. Make appli—
cations and court of chancery, elgreeable to Section 18, Chapter 79, Revised
Statutes.

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

FARLERS BANIc.„ OnELL

Annual Riiport of the Auditor of Accounts, Uctober 10, 1651.

This bank was chartered in 1652, and expired in 1848, with a capital of ;460,000. The charter was extended by the Legislature, with
1,40,000 additional capital; and the Bank commenced business under its
new charter in 1848.
The real estate, composing the last item of the resources in the
foregoing statement, consists of 107 acres of land at the Lower }ails,
in Ticonderoga in the State of New York, with water powe-, houses and
mills thereon, estimated at i;21,520.96. The Bank became the purchaser
of this estate under a mortgage sale, in pursuance of the laws of New
York. The debt, interest and cost, of the claim on which the Bank bid
in the estate, amounted to the last mentioned sum, 1st January, 1850.
Previous to receiving subscriptions for the additional new stock,
the sum of ,,22,000 was withdrawn, and divided among the old Stockholders,
as surplus, supposed to have accumulated under the old charter; thereby
intending to reduce the stock to its par value, and placing the old and
new owners on equal terms.
At that time, the debt on which the Bank has been forced to take
the real estate at Ticonderoga, was appraised and inventoried at par;
and also another debt of about the same amount against individuals at
Ticonderoga; both of which, had remained in the Bank for ten years as
suspended debts, without the power of enforcing their collection. These
two claims, now, comprise about one half of the capital of the Bank.
The last mentioned, however, is supposed to be ultimately safe. But
there are tut slight hopes that the real estate at Ticonderoga, which has
cost the Bank 421,520.96, can never be sold for that sum; and a considerloss will probably be sustained. The sooner these long protracted concerns are brought to a close, and the real condition of the Bank ascertained, the better for all concerned; and the Directors have given their
assurance, that this property shall be disposed of, and converted into
cash or good paper, before another acinual examination. And it is earnestly to be hoped, that the Directors, who are active and efficient men
in their own concerns, will earnestly take this matter in hand, end have
it fully closed before the lapse of another year.
Serious complaints have been made by some of the new Stockholders,
that the old Stock was shaved too close, ano reduced below par, on taking
in new partners for the forty thousand additional stock created by the
last charter; and that the withdrawal of 422,000 in cash, and substitut-

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— 2 —

ing as capital, old suspended debts of ten years standing, at par, was
taking an improper advantage of the new subscribers. And the Commis—
sioner is constrained to say, that present aDpearances would seem to
justify the complaint. Short turns are indispensible to a brisk cir—
culation, on which depend the profits of our Banks; and old suspended
debts, even if ultimately secure, can never be equal to cash, for Bank—
ing operations.
The undersigned, has discovered no reason to believe, that any
intentional fraud was designed by the Lirectors, in ap)raising the re—
sources of this Bank, and reducing the stock to its par value. but,
the present state of these Nev York claims clearly shows, that the ap—
praiser, considerably over estimated their value, and that the new
Stockholders are sustaining a portion of that loss, which should have
fallen wholly on the old ones.
Although the new Stockholders may have reasonable grounds of com—
plaint, the Commissioner does not find that he has any oower to correct
the evil. Should the value of this tock become reduced, in consequence
of losses on the Ticonderoga property, justice would require that this
loss should fall wholly on the old stockholders, who so liberally shared
the twenty—two thousand withdrawn. But to enforce such an act of justice
requires a higher power.

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BANK OF WINDSOR

The Bank of Windsor (10) has not done any business for the past
year, except in the collection of the debts due the bank, and the redemption
of its bills presented for payment. A scire facias is now pending in Windsor court against the bank and a final judgment tlereon may be expected at
the next term of the Supreme Court in that county.

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Federal Reserve Bank of St. Louis

APPENDIX.

zivi
•

Capital paid in
Circulation
Due depositors
Dividends unpaid

92,470 00
139,292 00
25,950 56
790 00

•

September 20, 1838.
In consequence of the severe pressure upon the business of the
country, occasioning universal embarrassment, the foregoing banks
were compelled to suspend paying specie for their bills and other liabilities in May, 1837. This suspension was permitted to continue no
longer than the cause Which occasioned it existed. In May, 1838, resumption generally commenced, and it is grctifying to believe, with
means available and sufficient, promptly to discharge all their obligations to the public.
Domestic bills or drafts, form nearly one half the amount of the
item, "bill:, receivable." The greatest proportion of these in amount
will reach maturity at Boston,'New York, Albany or Troy, where they
are payable within sixty days. This paper, being generally founded on
business transactions and paid in full vi hen due,gives to the banks an
easy remittance to those cities for the redemption of their notes-one
which,in ordinary times, can be relied upon for this purpose. These
domestic bills, with the immediate means in possession of the banks,
show their ability to pay their liabilities to the public, while the balance of notes discounted, and other effects, seems to be quite sufficient
to secure to stockholders a return of the capital, with a reasonable profit.
The preser.t arrangement existing between moat of the country banks
in New England and those at Boston, gives to these domestic bills or
drafts an additional value:-compelled as they are to redeem almost the
entire of their circulation at par, in that city, where cash funds artweek to week absolutely-necessary, these drafts answer the full purpose of specie, saving to the institutions themselves the risk of a money
remittance, or the expense, trouble, uncertainty and risk of keeping
the necessary specie funds for a redemption at their counter. The
banks on the west side of the mountain are generally adopting the
policy of keeping a considerable proportion of their debt in these domestic bills or drafts. It is one, which in the present state of the busi- ness of the country may be safely commended, and out of which no
serious evils can be anticipated.
The capitals of the banks in this state are generally small, conse- •
quently they cannot accommodate individuals with permanent
and at the same time give the necessary facilities to the daily operations
of the business community. The latter seems to be the legitimate object of their incorporation, and no course, it is believed, can more surely effect it, than by giving to these domestic bills or drafts a favorable
consideration, the money arising from which, being almost exclusively
devoted in aid of the industry and sale of the products of the state.
My attention was called to the Windsor bank on the 31st March
last, and upon an investigation I found its condition to be as follows:

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Federal Reserve Bank of St. Louis

Bills discounted
Bills in hands of agents
Balance due on book
Fonds in agent's hands, 13•ston
Bills of other banks
Specie
Banking house

L4y YS geA-4, ra r,
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80,000 00
112,518 00
12,985 BO
859 25
11,626 12

$217,988 37
There has been no alteration in the condition of the Windsor bank
bills
since my examination in April last, except the reduction of the
receivable by payment in Windsor bills to the amount of $18,199 00.of
Front the best information I could obtain, I believe that $80,000 of
the item "bills receivable" will not be realized, as also the item a
$70,695 76 funds in agent's hands, Boston'-making together
believed,
pl,bable loss of $150,695 76. The failure of this bank, it is
perdirectors,
of
board
the
by
adopted
practice
the
to
be
charged
may
its
become
and
operations
its
control
to
number
of
their
mitting one
in
funds
its
placing
in
also,
-and
exter,t
a
ruinous
to
principal debtor
agent,
le
irresponsib
proves,
it
as
and
individual,
an
of
the
in
hands
Boston
instead of confiding them to the care of a banking institution of known
requested the
and undoubted solvency. Believing it my duty to do so, I
WindState's Attorney for Windsor county, to present the ease of'the under
sor batik to the consideration of the Supreme court of this State,
the statute in such case made and provided.
of inIn all cases where the practice of placing funds in the hands have
viduals, for the redemption of bills, has been adopted by banks, Isome
of
recommended a withdrawal of the funds and the appointmentbetter sestrong bank in their stead. The latter mode, it is believed,
probability of
curesthe public, as also the hanks themselves, against the be fatal to its
!mi.-, which, as in the case of the Windsor batik, would its credit.
continuance, or so diminish its funds as seriously to injure
All of which is respectfully submitted.
HARRY BRADLEY,Bank Inspector.
ilontpelier, Oct. 11, 1838.

$185,254

139,595 37
2,450 00
904 51
70,695 76
1,814 00
528 73
2,00000
-- 8217,988 37

LIABILITIES.

Capital paid in
Circulation
Due pension agent
Due depositars
Profit and loss

$552,180
366,926

ych
vi -

$185,254
RESOURCES.

$258,502 56

Total amount of bills issued
Amount cancelled and destroyed

72,736
112,518

Bills on hand in the bank
Bills in circulation

LIABILITIES.

it •

APPENDIX.
LIABILITIES.

Capital stock
Circulation
.
.
Due on Pension accounts
Due Depositors
Profit and loss
•
September 28, 1839.

•
By referring to my report of 1838, and the aggregate accompanying
said report, 83 compared with the same this year, it will
be seen that
the circulation is smaller than in 1838, and that the quantity
of specie
has also diminished ; the diminution of specie, is however,
no
cause of
alarm, as there is but little call for it from the banks
in ibis State,
owing to the fact that most of our banks redeem their
bills in the cities,
to which most of their circulatioa flows.
The aggregate table will show that the banks in
der the Safety Fund, and those that are not, have this state, both unin domestic bills or
drafts falling due in the cities, together with their deposites,
bills ofother
banks and specie, an amount that will nearly take
up their circulation
without taking much of their home debt. This
ing at this particular period, as other states are stateof things is gratifyembarrassed, while we
are comparatively easy.
In my examination in 1838, as also in 1839,
any of the banks
have had any proportion of their debt in an where
inactive shape, I have
advised that the whole shou'd he put in the shape
ofan active debt, and
as much invested in domestic bills or di ails as possible,
as those batiks
which keep the greatest amount in this descriptio
n of paper are able at
all times to accommodate the public to a lareer amount
than the banks
which undertake tc furnish permanent loans;
description of paper
being generally founded on positive busineiathis
quently all paid at maturity, and at those pointstransactions, is consevenient for the banks to take up their circulatio where it is most conn.
producing state, naturally furnishes a large amaunt Vermont, beings
of this description
of paper, sufficient, it is believed, at all times,
ofour banks; drafts or domestic bills, being to take up the circulation
drawn and endorsed by at
least two sureties in,this state, and additional
security obtained by their
acceptance in the cities, are altogether the
and enlist paper
for them to discount, and falling due in the strongest
cities, throw the burden of
payment on other States, and at points where the funds
are most warted to meet their circulation.
In my report of 1838, I 3tate..(1 the condition
and that I had requested the State's attorney of the Windsor Bank,
for that county to present
the case to the Supreme Court, at their next
annual session. The case
has not been presented for want of time, as
attorney, but will he in January next. 'flie alledged by the State's
materially changed since my repot t in 1838. cendition of that hank has
At that tune the circulation amounted to about $112,000; of this amount
$32,000 was held by
one of the Boston banks, which back has
since
been applied to the payment ofdebts then clue parted with it, and it has
the bank which were con-

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Federal Reserve Bank of St. Louis

-40-4

APPENDIX.

100,000 00
21,832 00
13,673 84
9,757 75
24,446 36
171,709 95

ILI

sidered the most doubtful. The application of the above $32,000, and
the further sum of $14400 in Windsor bills in payment of notes up to
April last, leaving the circulation at that time about iiti6,000,stimulated
the stockholders to come forward and pay a large assessment to take
up the balance of the circulation, in hopes of recovering from the rAlsstock.
pended debt, at some future period,some portion of their original
This, however, remains doubtful, as the suspended debt id still very
large, and little or no positive security has been obtained. This bank
will not attempt to do any business until the question has been presented to the Supreme Court, and their decision in relation to its charter,
had.
All of which is respectfully submitted.
HARRY BRADLEY, Bank Inspector,
Montpelier, 11th Oct., 1839.

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Federal Reserve Bank of St. Louis

bOuTn

hUIALTuN 6ANK

Annual heport of the Auditor of Accounts

1852, pages 72-75

The Association was founded, December 6, 1851, and the Bank was
organized under articles of agreement of that date, to continue in force
until the 1st of January, 1872, -*ith an authorized capital of 4250,000. All
monies received of indiciduals composing the Association have been expended
in the purchase of Virginia Bonds, at a premium of about 6 per cent. This
stock is no worth about 12 per cent. in the market. -- By a vote of the Association, March 22, 425,000 was added to the capital, and ;4
. .25,000 more by a
vote of the 3d of July; of these two additions, only 011,400 appears to have
been paid in at the time of examination, and that in Bonds and mortgages.
By the Articles of Association, the stock is pledged by the owner
for all debts due from him to the Bank, and loans are made on this security
reckoning the Stock at par. Ao restrictions have been imposed on Directors,
Stockholders, or others, limiting the amount of their indebtedness, as in
the case of chartered Banks. The law of 1840, prohibiting loans on pledge
of Stock, and confining the indebtedness of Directors to 5 per cent, and all
others to 10 per cent. oa the capital, has hot been treated as applicable to
Banks organized under the act of 1851.
This is the first experiment within the State, under the General
Banking Law; and it must be regretted that the Association have attempted
to set up a Bank, without so much as one dollar of working capital. It
would, at least, have been more prudent, to have retained a portion of their
cash in the vault of the Bank. No Bank can do a regular and permanent business on circulation alone; unless their facilites are much greater for circulation than most Banks enjoy. But there is nothing in the law, nor in
the articles of Association, to preclude the Stockholders from devoting a
portion of their futures assessments to a permanent cash capital, to remain
in the Bank, as a basis for the transaction of business. This should be done
Working capital will be found as necessary for this Bank, as for the Chartered Banks; and may be dispensed with in one case, as well as the other.
The Virginia Bonds, on which 450,000 in bills have been issued,
will bring 456,000 under the hammer; and the Mortgages are on improved
farms, at three fifths their value, exclusive of buildings. These securities, backed by the Directors' bonds, must insure the redemption of the bills
beyond all reasonable doubt.
Annual Report of the Auditor of Accounts, 1853, pages 76-81
This bank *as organized under articles of agreement dated December
1851, with an authorized capital of 4
. 250,000. All monies received of individuals composing the association, have been expended in the purchase of

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Federal Reserve Bank of St. Louis

- 2Virginia Stocks, at a premium of about 6. per cent., and this Stock is now
North about the same in the market.
The law of 1640, prohibiting chartered Banks, from making loans on
pledge of their stock, and limiting the indebtedness of Lirectors to 5 per
cent, and all others to 10 per cent. on the capital, has not been treated as
applicable to Banks organized under the General Banking Law. By the articles
of this association, the stock of each owner is pledged for all debts due
from him to the Bank, and most of the loans have been made on that security,
reckoning the stock at par. This kind of security cannot always be safely relied on, for the value of the stock depends on the soundness of the debts; and
if the debts are worLiless, the stock cannot be much better, and is therefore
inadequate security.
We have to regret that this first experiment under the Free Banking
Law, has so signally failed to furnish the public with such accomodations as
we are accustomed to expect from similar institutions. but few loans are made
expepting to stockholders, and the public in general are more annoyed than
benefitted by the Bank. As near as can be ascertained, more than three-fourths
of the applications of bill-holders for the redemption of their bills, have
not been met on the day of presentation. There is less excuse for this neglect, .hen we consider that most of the calls on the Bank have been for current bills, and not for specie. The bill-holders have exercised as much forbearance as could be expected, and a protest has seldom been resorted to,
even when the demand has been refused; but the bills have been left at the
Bank, or in the neighborhood, to be redeemed at the convenience of the Bank.
Twenty-five packages have been sent to the Treasurer under protest, to be redeemed there; of which twenty were under 0_,000, and one as low as 4100. The
law requires, in case of protest, that the bills shall be sent to the State
Treasurer, and redeemed there by the Bank; thus imposing on the holder the
three-fold task of presenting and protesting his bills, then sending them to
the Treasury, and at last, after the lapse of ten days, sending there for his
money. But all this would be well enough, if not of too frequent occurrence.
If, however, the public must be put to this expense to get their bills redeemed, common courtesy requires that the Bank should impose this burden on
the holders as sparingly as possible, and at all times hold themselves in
readiness to meet any ordinary call that might reasonably be expected.
As this is a new Bank, and the first under a new law, with its
reputation for probity and its claims to confidence to acquire, we must lament that it has failed to fulfil the expectations of its friends. But when
the situation of its affairs and the management of its business are taken
into account, their inability to redeem promptly, is no matter of surprise.
Imagine a Bank, destitute of working capital, with nearly a hundred thousand in circulation, and no active means to redeem its bills; its
loans in the hands of stockholders and Directors, With but faint expectations of present payment; with raw hands aboard, and an adventurous pilot
to direct its course; and we have a tolerable picture of this institution.
Under such circumstances, we are more surprised that they have redeemed tneir
bills in any manner, than at their delays. A° man but a giant could carry

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Federal Reserve Bank of St. Louis

- 3-

.a.ch a load, under so many adverse circumstances, and not break dowa under the
ourden.
The Free Banking act reauires the Commissioner to report the disputed
claims pertaining to this class of Banks. There are two items under this head
a description of which I shall give by transcribing the written statement of
the Oasnier and Directors. The first is as follows:
"On the 4th of January, 1855, William Godfrey deposited '41,882.50
in this Bank for safe keeping; being the avails of an execution collected by
him, in favor of Bradley & Canfield, againat Daniel Tarbell, Jr., and on the
5th of the same month, Lorenzo Richmond deposited 3,l75.67 in the Bank for
safe keeping, collected on an execution between the same parties. Said Tarbell commenced a suit against Bradley & Canfield, and trusteed this Bank as
the holder of said sums; and the Bank still retains the money and intends to
hold the same, uitil the termination of the suit; and hold themselves ready
to pay the money whenever the court shall decide to whom it belongs."
The fact that the same individaal is President of the Bank, debtor
in the execution, and the plaintiff in the trustee process, casts au unpleasant shade over the transaction; and while 60 many are ready to indulge in derision of this Bank, it is rather unfortunate that any circumstances should
exist, favoring the suspicion that the trustee action was commenced to obtain
the use of th6 money during the aendency of the suit.
The statement of the other controversy is as follows:
"We have a suit pending against the Suffolk Bank, commenced in October last, on an alledged charge against the Bank, for a malicious attempt
to injure and break us, by taking and receiving our bills of the neighboring
Banks and sending them home for specie. In October last the Suffolk Bank,
by their agent William Wyman, presented at the counter of this Bank 07,000
for redemption. This Bank brought a suit against the Suffolk Bank, and attached the said 07,000 in the hands of the agent. The money was receipted
by 0. P. Chandler, and afterwards redeemed by the Bank. A judgment was rendered at the last term of the County Court in favor of the Suffolk Bank, and
reviewed by this Bank, and the suit is still penaing."
Some have been so uncharitable as to surmise that the attachment
was made for the purpose of delay, and for obtaining possession of the bills
to exchange for other funds, and thus furnish the means for their own redemption. But I know of no evidence warranting a conclusion so dishonorable to
the Directors, ano would be slow to impute to them so base a motive.
This transaction resents a novel feature in the history of our
Banking institutions, and perhaps a new question in the science of jurisprudence for our courts to decide. It is presumed, however, that their legal
acumen will be equal to the task.
The Suffolk Banx is out of my precincts, and i have no supervision
over its duties, nor control over its fate; and must leave it to struggle
through the conflict as best it can. But another question arises, which may

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Federal Reserve Bank of St. Louis

involve our own Banks in the same predicament. If it is unlawful for the
Suffolk Bank to receive the South Royalton bills, "and send them home for
specie," what shall be done with the "neighboring Banks," who receive them
of their customers and daringly Present them for redemption? One is as much
an offence as the other, and the "neighboring Banks" may also be prosecuted
for a "malicious Attempt" to ruin this Bank.
It is difficult to preserve our gravity wnen contemplating the affairs of this institution. The history of its doings appear more like a
ludicrous farce, than the business transactions of a substantial Bank.
In last year's report, mu confidence in the safet of these bills
was fully expressed; and notwithstanding the dark clouds which seem to overshadow this Bank, I must renew my assurance, that the final redemption of
its bills is substantially secured; and that there can be no reasonable eLprehensions of a failure on that score.

Annual Report of -fte A-Iditor

154

96-101

By the LrtiL:iec., oi
L.tanu
-uv -une
Bank for the payment of the indebtedness of the stoukholders. Lay 20, 165,
the 482 shares of stock, above named, were sold by. a creditor of Daniel
Tarbell, Jr., upon execution, for 25 cents a share; said Tarbell being then
indebted to the Bank, in an amount larger than the par value of said shares.
Upon the 5th June, 1854, said Tarbell assigned the shares to the Bank in
part discharge of his indebtedness to the Bank, for the sum of 02,271. Estimated as follows:
402 shares, par
5 per cent. premium
Earnings at 4 per cent, from last dividend

$48,k00.00
2,410.00

Whole number of shares distributed is,
Owned by the Bank, as above
Represented by mortgage of 052,

482
7 52-100

Whole number of shares

918 52-100

There is due to the Cochituate Bank 4i;6,000, upon twelve certificates of deposite of Daniel Tarbell, Jr., of 000 each, payable in from 60
to 115 days, which were passed to that bank for the indebtedness of this
Bank, and were severally protested for non-payment. There is also due, as
represented in the report of the Bank Commissioner of 1853, for

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Federal Reserve Bank of St. Louis

Deposite of Henry Godfrey
Lorenzo Richmond

4,1,882/59
3 175.67
0,058.26

-5 -

These sums, with the sum due Cochitu,Ac Bank, making 411,057. .
are to be added to the above reported list of the liabilities of this Bair_
The Bank however holds said Tarbell's guaranty to pay these debts, secured
by his general mortgage, and has paid him for so doing by their discharge
of his indebtedness to that amount, embraced in the sum of 452,271, before
stated.
Interest upon the Virginia stocks has been paid up to and including July 1, 1854; was then paid to the State's Treasurer. Upon the capital
mortgages, interest has been paid only to January 1, 1854; was then paid to
the Bank by adjusting with the mortgagors, (who are stockholders to the amount
of their mortgages), the interest due upon the mortgages on the one hand, wit1-.
thc. dividend then declared on the other.
The dividend declared January 1, 1654, was ,3,/22.4o, peing 4 per
cent. upon the capital of 495,060.
No losses have been charged, either against capital or profits.
The profit and expense account, since January

, mL.o,

lows:
Profits
Interest and discount received on loans
41,701.'21
on stocks received by Treasurer
1,770.00
due and unpaid on mortgages, from Jan. 1 to July 1, 1654 1,035.74
Total profits

44,504.05
Expenses

Interest paid on deposites and loans,
41,008.04
and protests paid Treasurer
224.95
Paid commissions for circulation, &c.
067.56
Lirectors' and Cashier's services
500.46
other expenses
21.83
1 per cent, on capital to Treasurer, (Sec. 49)
958.56
Total expenses
Balance

1;.3,682.12
822.83

This Bank has not redeemed its bills in Boston. About two thirds
of its circulation is in the State of New York. Under an arrangement with a
broker in the City of New York, he receives the bills of the Bank, and circulates them at a certLin charge per cent. The Bank officers were unable to
find the written contract with this broker. By inspecting one of his accounts

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Federal Reserve Bank of St. Louis

-6 -

rendered, it appears that he has charged one per cent. discount upon fun
remitted to him, and from one-half to three-fourths of one per cent. for
bills of the Bank circulated by him. These bills are then bought in by hi_
at certain rates of discount, published as being three-fourths of one per
cent., and are then recirculated at a new charge to the Bank for such r.,E
circulation of from one-half to three-fourths of one per cent., and so on fa
a circle. It is claimed by the bank, that this broker has charged a higher
per centage, for circulating the bills, than the contract with him authorize
that the charge for circulation and recirculation by the contract is but oneeighth of one per cent.; but there appears credited to him, upon the books
of the Bank, for such circulation, one-fourth of one per cent. It is furtaca
claimed, that by the contract, he Nas to redeem the bills at a discount off
one-fourth of one per cent., but that he was to publish the rates at threefourths of one per cent. discount. It is more than probable, that a settlement of accounts with him may vary the foregoing amount of 0,465.11, reported
among the resources of the Bank; and that the surplus reported is not reliable.
The President and Cashier say, that in their "opinion, the entire
credits of the Bank are good and collectible."
Since the last report ninety-nine packages of the bills have been
sent to the State's Treasurer, under protest, and redeemed at his office.
None between June 27, 1854, and the date of my examination.
Annual Report of the Auditor of Accounts, 185 2 pages 126-128
There is a further claim against the Bank, not acknowledged as a
debt, of 4196.00; being claims of George howes and John A. Page, late Treasurer, for services.
Of the value of the "Notes and Bills discounted," especially of
those represented as secured by mortgage, I am unable to express an opinion
from personal examination; as I have relied upon receiving a report, not yet
come to hand, from a committee who are investigating this subject. In the
opinion of such of the officers of the Bunk as were examined, "all the above
reported Resources are vood and available," with the exception of 4650 above
deducted.
The debt due Gochituate Bank, (46,000,) and the deposites of henry
Godfrey and Lorenzo Richmond, 45,058.26) in all 411,057.26, stand aE stated
in my Report of 1854.
Of the 482 shares of stock owned by the Bank, and set down among
its Resources in the Report of 1854, only 211 96-100 shares are now owned by
the Bank; the balance having been sold. Further reflection has satisfied .
that stock owned by the Bank should hot be estimated among its resources. it
is rather an absorption, or annihilation, of so much of its capital.

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Federal Reserve Bank of St. Louis

- 7I am informed by the Cashier, ader date of August 20, that the
Bank "has increased the amount of stocks in the Trea.;urer's hands, so that
he now has, of securities, in all 4104,656. Upon this the Bank has issued
certificates of stock to the amount of 4104,600, and received therefor cash
or approved notes. Of the above 4104,600 of stock, y25,000 is taken contingently; thus leaving 470,600."
No dividends have been declared since Jr.nuary 1, 1654. No losses
have been charged against either capital or profits. Reported balance of
profits above expenses, for the past year, is ;,4,467.59.

Report.

There has been but one package of bills protested since py last
This was for 41,45.00, December 15, 1854.

This Bank has not redeemed its bills at par in Boston or New York.
About two-thirds of its circulation is in the State of ilew York, and is kept
out by an arrangement iwith a Broker, who charges one-fourth of one per cent.
for re-circulating, and not returning the bills to the Bank, and buys them
in at one per :ent. discount.
Considered as an institution for doing the ordinary banking business of its neighborhood, such as furnishing an accredited currency, facilitating exchanges, discounting business paper, ttc. this Bank may be regarded
as a failure. I cannot think this a fault in administration, rather than a
necessity of the system. Considered as a scheme for the advancement of individual interests, without any particular public advantage, yet with reasonable security to the public against loss, it seems well enough.
Annual Report of the auditor of Accounts, 1656, page 116
Dividend - august 11, 1655, 44,500 of the surplus earnings of the
then past year, as of igiay 1, 1655, were divided among the stockholders.
This Bank, considered as an institution for doing the ordinary
Banking business of its heiz!hborhood, suAl as furnishing the usual facilities of a Bank of Discount, nas not improved, and with its large suspended
and uncontrolable debt, cannot be expected to do much in furnishing an accredited currency, or discounting ordinary and regular business paper. MI6,
the Directors, at the present time, do not profess to be their first object,
but to look after, and to take care of what has already been done. The Directors are now at work in securing and improving the condition of tneir suspended debts, and have already done much in improving their condition within
the last year. There has been no bills protested within the last year, and
though they do not redeem their paper in Boston, they readily furnish current
funds to redeem at their own counter. The larLest portion of their circulation is in the State of New York, under the agency of a broker in the City
of New York, to whom they pay one-fourth of one per cent. for recirculation
he buying them in at one per cent. discount.

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Federal Reserve Bank of St. Louis

Annual Report of the Auditor of Accounts, 1857, .page 118
This Association has gone into liquidation, on an application to
the Chancellor of the second Judicial circuit, by some of the signers of the
bonds to the State Treasurer, under the fiftieth section of an act to authorize the business of banking, and an additional provision of an act relating
thereto passed at the last session of the Legislature. The Chancellor has
made the necessary orders and decrees for closing its affairs, and the assets
have been placed in the hands of a heceiver, who will prepare as soon as may
be, that distribution may be made.
It is supposed that the securities in possession of the Treasurer
will nearly or quite redeem the bills in circulation, but that the shareholders will saffer an entire loss of the stock.

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

BliAK

Laws of Vermont, 1838, gage 77
No holder of original stock eligible for purchase. No loan or
discount shall be made by virtue of this act until 6114 of additional .stock
shall be actually paid in. Loans restricted to directors maximum 0,000.
All above, all directors liable. Not more than seven nor less than five.

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

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ORANGE COUNTY BANK

1843 Journal of House, App. 74.
10-13-1843.

Orange County Bank:

By Bank Commissioner

Incorporated 1843 -- The charter of Bank of Orange County expired
Bank officers continue to issue bills.
1842.
with
I made application for appointment of receiver for bank.
ceeding so far have taken place.

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Federal Reserve Bank of St. Louis

No pro-

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

BEINii 01

annual ,eport

Qi the auditor Q1: Acco

T. A16AAS

to., 1854., _'.)ages 103-101

This Bank having been chartered previous to 1840, and not having
brought itself within the provisioas of the Bank Act of that year, agreeably
to Sec. 50 Ch. 64 Comp. St., is not subject to that act.
Among the advantages of this exemption is the privilege under the
charter of issuing bills to the amount of three times its capital; a privilege of which it has at times availed itself, its circulation having been,
on the 11th October, 1853, $1260000.
By the bd Sec. of the Aot of 1636, extending the charter, it is
stipulated that the Bank "shall semiannually, at the time at which the
Directors shall declare the dividends of the profits of said Bank, pay
into the Treasury of this State, for the use and benefit of this State,
ten per centum of the profits of said Bank, whether divided or not, on all
stock owned by persons resiuing within this State, and twelve per centum
of said profits, on all stock owned by persons residing without this State."
The last payment to the State under this provision was April 24, 1649.
Since Sept. 1, 1849, this Bank has at all times redeemed its bills
at par in Boston, and has been a contributor to the Safety Fund since December, 1640. For these reasons, it claims, that it is, or ought to be, excused from payment of this percentage upon its profits. It has seemed to the
Commissioner, that, as the matter stands, this is a debt due the State, being
the ?rice which the Bank agreed to pay for the privileges granted by the recharter, and that any relief therefrom lies in suLd1 equitable considerations
as may be urged upon the Legislature.

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Federal Reserve Bank of St. Louis

Decision of the Supreme Court of Vermont.

September term, 1851.

Volume 23, Vermont

?age 701.

Isaac R. Elwood and Others v. Treasurer of Vermont.

Bank.

Safety fund. Liability of banks to contribution.

Under the general banking law of 1831 the entire safety fund was made
liable for the ,ayment of all the debts of any insolvent bank, exclusive of capital stock, and this without reference to the time,
when the debts accrued, or when the insolvency accrued, or at what
time any particular bank began to contribute.
Hence that part of the fund contributed by any particular bank could
not be withheld from being appropriated for the payment of the debts
of an insolvent bank, upon the ground that the bank, for the payment
of whose debts it was required, became insolvent previous to the
time, when the bank, contributing such part of the fund, came into
existence under its charter.
Petition for a writ of mandamus. It was alleged, that an order had
been made by the chancellor, that the treasurer of the state pay from
the bank safety fund the sum of 434,617.25 for the purpose of paying the
debts of the Essex Bank, and that he refused to do so. The treasurer
filed his answer, alleging that he had paid the entire fund, subject to
his control, except that part of it which had been contributed by the
Bank of St. Albans since its re-charter, -- that bank having come into
existence, under its re-charter, since the Essex Bank became insolvent.
C. W. Prentiss for petitioners.
for Bank of St. Albans.
The opinion of the court was delivered by
Redfield, J. This is a motion for a preemptory mandamus against the
defendant, to require him to pay over a sum of money in his hands, belonging to the bank safety fund, and contributed by the Bank of St. Albans,
since its re-charter. This is claimed, to make up the deficiency in the
redemption of the bills of the Essex Bank; and the application is resisted
upon the ground, that the money is not liable for any such purposel The
Bank of St. Albans have appeared and been heard in the matter. The important facts are, that the Bank of St. Albans was chartered in 1825, and rechartered in 1836. It went into operation, under its re-charter, in January, 1840, soon after the expiration of its first charter. The Essex

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Federal Reserve Bank of St. Louis

•

- 2 -

Bank became insolvent, and was put under injunction and in a course of
being wound up, in October, 1859.
By the general banking law of 1831, (which is re-enacted in the Revised Statutes,) by which the safety fund was created, it was provided,
that all banks, chartered, or re-chartered, at that or any future session
of the legislature, should be "subject to the provisions of that act."
By section two it as provided, that each bank should pay to the treasurer
of the state three fourths of one per cent. on the capital stock paid in,
annually, on the third Thursday of October. By section four, that this
shoald continue, until each bank should have paid, in four and a half per
cent. on its capital stock, -- which should "remain inviolably appropriated to the payment of the debts exclusive of capital stock, of any of
the said corporations, which shall become insolvent". By section eight,
if the fund shall be reduced by pay ent of the debts of any insolvent
corporation, every "moneyed corporation then existing, which shall be subject to this act and every one thereafter chartered, shall be assessed
again by the treasurer, not exceeding the original rate, until the fond
shall be restored to four and a half per cent, on the capital stock of
said bank." Section eleven provides, that, if the funds in the treasurer's hands shall not be sufficient to pay the debts of any insolvent bank,
the several solvent banks shall be assessed according to section eight,
until the fund is sufficient to pay them, and then they shall be paid.
Thus the law stood, until after the Bank of St. Albans went into operation under its re-charter.
This statute is doubtless very imperfect and unequal in many respects. But there does not seem to be any provision, for making the debts
of an insolvent bank a charge u2on the bank fund upon any rule of equitable
obligation among the several banks coming under the general denomination
of safety fund banks. It is the fund, and the entire fund, which is made
liable for the payment of all the debts of any insolvent bank, exclusive
of capital stock, -- this without reference to the time, when the debts
accrued, or when the insolvency occurred, or at what time any particular
bank began to contribute.
If this bank fund were to be marshalled upon the debts of an insolvent bank according to the law of partnership, it is obvious, something
of that kind would have been provided for. It would certainly require a
ver, different account of the proceedings, before the chancellor, from a
mere statement of the amount of indebtedness and of assets, -- which is
all that the statute seems to require, preliminary to mqing an order
upon the chancellor.
The statutes of 1840, which was enacted after the re-charter of the
Bank of St. Albans, could have no effect upon its liability, and was not
intended to have. And the provision, that banks subsequently chartered
should not be liable to contribute to pay the debts of banks, which had

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Federal Reserve Bank of St. Louis

- 3become insolvent before L:e.ii banks were chartered, was altogether a new
provision, and enacted with reference to the Essex Bank, doubtless, and
because it was apprehended, that, without such a provision, even banks
subsequently chartered must contribute to pay the debts of that bank.
We think the writ must issue, and it is allowed.

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

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, ank Commissioner's :Report, Annual Report of the Auditor of Account
s, 1866,
page 33
Sometime in the month of October, 1665, h. G. hubbell, then cashier of this bank, left the bank, to be absent, as was supposed, but a short
time. Not returning as soon as was expected, serious fears of his
safety
were indulged in by the other officers of the bank. I immediately
applied
to the President for a statement of the affairs of the bank, who assured
me
that all was right. On the 16th of January, 1866, upon examination
by myself, the President and others, it was aiscovered that there was a
defalcation of 4770 777.00. The circulation at this time was 4120,777.00,
whereas
it appeared, by the bank books left by ii4r. Hubbell, to be only 443,000.
00.
The resources of the bank at tnis time were
Bills Payable
Due from City Banks
heal Estate
Cash
Bills on Collection

08,306.74
14,122.00
8,017.00
4,951.00
2,000.00
012713J6.74

To which will be added what can be Obtained from the property
of H. G. Hubbell, and collected on his bonds.
Some portion of the resources I called doubtful, but supposed
enough would be realized to redeem the circulation.
Upon my application for that purpose, Judge Pierpoint eranted
an injunction on the Bank on the 17th January, 1866, and appointe
d S. P.
Carpenter, Receiver, who immediately resigned, and D. D. Weed, of Sheldon
,
was appointed Receiver; since that time I have had no control of
the Bank.

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Federal Reserve Bank of St. Louis

3, 1-1• o

c.,

Annual Report of the Auditor of liccounts,
Page 10.

Gciiiissioners6 i-,eport, 1967,

.This Bank has been under the control of the Hon. D. D. Weed, Receiver, since January 1866, who reports that the Bills of the Bank, presented to
him up to July 17th, 1866, for which he gave his receipts, amounted to
$92,048.00.
On the 8th of August, 1866, he was ordered by the Chancellor to pay
a dividend of 50 cents on the dollar of the receipts which have generally
been presented and paid, but has not yet been able to realize from the assets
of the Bank, funds to pay the balance: however, is of the opinion that he will
be able to do do, and pay the balance.

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Federal Reserve Bank of St. Louis

'1(

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Federal Reserve Bank of St. Louis

LILA 0:e CASTLETOA

Annual Report of the Auditor of Accoints, 1855, pages 56-59
,iothing has been lost, and no bad or doubtful debts are knoAn
exist.
Indebtedness of Directors, 01,500.
A dividend of $2,725 has been voted
out of the above profits.

irtorr, to b

The bills obtained from the State Treasurer amount
which $397 are on hand, leaving $75,653 in circulation.

aid

The sum of $65,000 has been subscribed and paid in cash by the
stockholders, and also 3l,l30 in Bonds and Lhortgages; out of which $49,050
has been expended for Virginia Stocks, at a premium of $4,050, leaving
$15,950 in the Bank for working capital. In addition to the last mentioned
sum, the Savings Bank and citizens of the vicinity, have deposited in this
Bank .22,649, at an interest of
per cent, to aid the institution in the
commencement of its business. These two sums afford the Bank nearly $40,00c
in cash for their operations, in addition to their bills from theTreasurer;
with a reasonable prospect of an increased supply, should the business of
the Bank require it.
This is the second Bank under the Ueneral Banking Law of this
State, and was organized January 1, 1853, under articles of association
dated July 1, 1852, and to continue in force until A. D. 2000. Loans are
not permitted on pledge of its stock, and its affairs appear to be donducted with a proper regard to the safety of all concerned. Its stock and
general management are in the hands of discreet and prudent nen, who are
entitled to the confidence of the community.
Annual Report, 1854,pakes 67-69
In the amount "Due Depositors," is included the sum of $15,078.45
borrowed of Castleton Savings Bank at an interest of 5 per cent. per annum
payable semi-annually, this Bank performing the obligations of the Savings
Bank to its depositors under the By-Laws. There is also included the sum
of 06,619.19 paid in by Stockholders under a vote of ‘july 11, 1654, laying
an assessment of 40 per cent. upon tne snares.
The real estate is a banking-house only, valued at 0.,600; one
part of which is occupied by the Bank for the transaution of its business,
and the other part is on rent at the rate of $50.00 per annum.

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Federal Reserve Bank of St. Louis

Besides the Virginia Stocks, the bank holds 32 shares ($$,200,)

-2-

of the Rutland & Whitehall R. R. Co. as collateral security for a debt.
This road is leased to the Ahitehall & Saratoga R. it. Go. at a rent of 7
per cent, per annum, payable semi-annaully. The rent has been regularly
paid, and the DirefAors value the stock at 90 per cent.
The Virginia Stocks are set down as z,bove at 8 3-4 per cent. preper cent.
mium nearly. 'iheir market value is now something less -- say
premium, making a difference of 4;;2,470.00 to be added to the above deficit.
The interest has been paid upon said stocks and mortgages up to and including July 1, 1854, and was paid to the bank, except 0_,C00 retained by the
State's Treasurer, being 1 per cent. of the capital, for the Bank's failure
to redeem its bills in Boston, according to Sec. 49 of the Beneral Banking
Act.
The indebtedness of the present Directors is 42,773; of former
Directors, directly and indirectly, .39,713.88.
It debt of .06,014.94 is suspended to May 2, 1856. It is secured
by mortgages and otherwise, and is regarded by the Directors as safe.

The aggregate responsibility of the stockholders, who have given
bonds to the Treasurer for the redemption of the bills) is estimted at
4225,000. With the stocks and mortgages in addition, there seems to be a_
ground for questioning the perfect security of the bill-holders.
Annual Report, 1855, pages 60-81
The premium paid by the Bank, upon the stocks above, was
per cent. Interest
45,621.60. The stocks are not; quoted in market at
declared since
been
upon them is said to July 1, 1855. No dividends have
at par in Bosits
bills
January 1854. The Bank has at all times redeemed
ton since June 11, 1854.
Annual Report, 1856, pages 71-72
This Bank has made no dividends of late, and though they have a
large suspended debt, but as they have sundry collaterals for security,
officers of the Bank entertain a strong belief that these debts will be
and that their stock will be hood. Their bills for the last two years or
more have been redeemed at par, in boston, and at their own counter.
F-ort, 1857, pages 70-71
No dividends have been declared since 1854, and the Directors
do not intend to declare one until they can from clear profits above their
capital. Their bills are redeemed at par at the Suffolk Bank, Boston.
They have recently made a large sale of lumber, held as collateral on their
suspended debt, so that their prospects are improving. By an alteration in
their By-Laws, they may now have from three to five Directors, who have the
whole management of the Bank. At the present time they have only four Directors.

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Federal Reserve Bank of St. Louis

- 3-

** See Report on Uastleton Saving§ Bank attached.
Annual neport of the Aiditor of accounts, 1.i,Fs
The Cashier of this Bank does the
oi
Bank, and has the inspection of its books and papers.

L,a.;;-LeLoh

On the 6th day of July, A. D. 1859, this Bank, by a vote of its
Directors, ceased to be a Bank of discount; and on the 2oth day of July A. L.
1859, in the oresence of the Uashier of said iank, the otate's Treasurer and
Secretary of tate, I counted and burned of the Bills of said Bank -1,350
1,430
1,484
266
127

One Dollar Bills
Two
"
Five
It
Ten
Twenty"

0.1350
2080
7,420
2,330
2.540
0.6,500

it being all of the Bills of said Bank not in actual circulation.
And at the same time i counted and burned all the impressions or
sheets of the Bills of said Bank, which had not been issued viz:
125 Impres.dons of 1 Dollar Bills,
0.25
n
752
1-1
"
1,504
II
It
875
1-1-2-5
7,875
II
It
1,050
10
"
10,500
004
At the same time the Bank plates were destroyed.
Annual leport of the Auditor of ,
.ccounts, 1881, page 30
Organized under the General Banking Lw, comaenced business January 1, 1853, and closed its business as a Bank of discount on
the Oth d4y.
of July .1.659.
The outstanding circulation of this Bank is now 0.1543, for the
redemption of which a deposit is made with the Mutual Bank of Uastleton.
The stockholders have already drawn three fifths of the estimated value
of their stock, and are only awaiting the termination of a suit at law
in
which they are interested to receive the balance of their stock, when
the
offices of the Bank will be entirely closed.

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Federal Reserve Bank of St. Louis

An effort
pebn
certa_n ,aartur,
sini,ter
I apprehend, to connect this Bank with the Bank of Uastleton, thereby stfi,
jug to injure the credit of this Bank. They are in no way connected -- th
Bank of uastletoa having been organized ander the general Bankin, Law of L.
and the Mutual BL1UK ;,,orkin,
: ander a soecial charter pr_nted in 1o57. its
bill holders need have no fears of its safety.
il.nnual Report, 1862, ?age 24
Organized under the General Banking Law, commenced business Jan-tr.
1, 1853 and closed its business as a an of Liscount on the 6th day of July,
lo59.
The outstanding circulation of this Bank is now 41,543, for. the
redemption of which a deposit is made with the Mutual Bank of Uastleton.
The Stockholders have already drawn three-fifths of the estimated value of
their stock, and are only awaiting the termination of a suit at law in which
they are interested, to receive the balance of their btock, Nhen the busines
of the Bank will be entirely closed.
Annual Report, 1863, page 27
The outstanding circulation of this Bank is 41,266, for the redemption of which a deposit is made with the itiatual Bank at Uastleton. A dividend of 50 per cent. of the Stock has been made to the 6tockholders which
has been the estimated value of the Stock. There will, however, probably br
another small dividend made, when the business of the Bank will be entire].
closed.
Annual Heport, 1864, pate 26
The outstanding circulation of this Bank is 41,158, for Lae rt.
demption of which the Uashier of the kutual Bank, Uastleton, has given hi.,
bond.

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Federal Reserve Bank of St. Louis

Gas1,1Ion oavings Bank

caartered 11/11/1652

i:xpired 1/1/1660.

hnnual heport of the Auditor of

iirst report -- July 17, 1654.

ccounts, 1654, page 126

The entire amount is loaned to the Bank of Sastleton, at an interest of 4 per cent, per annum, payable semi-annually, said Bank performing
the oblia ations of the Savings Bank to the depositors, under the charter and
by-laws vithout charge to the Savings Bank. The loan is secured by a bone
of several of the Stockholders of the bank of sastleton. upon examination,
I am satisfied of the sufficiency of the bond.
Luring the last year, two dividends of interest of 22 per cent.
each, making 4760.27, have been declared and paid ,
lan. 1 and July 1.
Annual heport, 1855, page 163
The entire amount of deposites is loaned to the Bank of Gastleton
at an interest of 5 per cent. per annum, payable semi-annually, said Bank,
performing the obligations of the Savings Bank to the depositors, under the
charter and by-laws, without charge to the oavings Bank. The loan is well
secured, by the bond of several of the stockholders of the Bank of Gastleton.
The Treasurer has given no bond to the

r.obate Court, as by law

required
Anaual heport, 1866, page 147
The Deposits are all loaned to the tank of Sastleton, at an interest of five per cent, per annum, payable semi-annually, and the loan
well secured by a bond signed by several of the stockholders of the Bank
of Sastleton.
Annual heport, 1857, page 150
The Deposits are all loaned to the Bank of kaastleton, at an interest rate of five per cent. per annum payable semiannually, and this
loan well secured by a bond signed by several of the stockholders of the
Bank of Gastleton.
Annual heport, 1858, page 184
The deposits are all loaned to the Bank of sastleton, at an interest rate of five per cent., payable semi-annually. The loan is well
secured.

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Federal Reserve Bank of St. Louis

- 2Annual heport, 1859, page 210
The deposits are all loaned to the Bank of Castle-ton, at fivc
per cent. interest, payable semi-annually. The loan is well secured, and
the interest has been paid promptly.
C. M..;iillurd, the Cashier of the Bank of Gastleton and Ilutual
Bank, does the business of this Bank, and has inspection of the books, papers:.
and business of the three Banks -- See "an act relating to bavings Banks,"
approved Nov. 10, 1857, also Sec. 3 of "an act relating to Banks," approved
November 25, 1858.
Annual_ heport, 1860, page 192
This Bank aas ceased to receive deposites, and, as fast as possible, is closing its business. All the deposites have been paid to the
depositors e_cept thrty-eight dollars and eighty-two cents; arid that sum
has been deposited in the luiutual Bank, to be paid to the depositors whenever they can be found.

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

_____......1

rif7Y. OF

OO'TSTOCK

Annual Report of the Auditor of accounts, uctober 13, 1854.

The stockholders are all - tocknolders in Woodstock Bank and the
list embraces all the stockholders of that Bank, with few exceptions.
The officers are the same with the officers of 600ustock Bank.
The capital (60,000) is all paid in -- 01,800 was expended in
the purchase of 00,000 Virginia Stocks at 6 per ct. premium. The Stocks
were deposited with the State's Treasurer and 00,000 of circulating notes
received therefor. ;a1000 is deposited with Suffolk Bank for redemption
of bills. Ihe . balance of cash ($.260200), with the 00,000 in circulating
notes, making 06,000, is loaned to aoodstock Bank, at an interest of 6
per cent. payable semi-annually.
The above reported Surplus of 41,..58.34, is the amount of interest acrued upon said stocks, and loan to V.docistock Bank, and is subject to an abatement of expenses, not yet fully ascertained, but estimated at
480.00
Loss pf premium on Stocks, say 3 percent 900.00

.Balance of profits,

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Federal Reserve Bank of St. Louis

080.00
278.54
0.,258.34

thu

Oi hjjLoTJ6K

knnual Report of the Auditor of Accounts, 1655, pages 146-147
This Bank went into operation April 1, 1854. The stockholders are
all stockholders in the Woodstock Bank, and the list embraces all the stockholders of that Bank with few exceptions. The officers are the same with th..
officers of that Bank. The Woodstock Bank ?vs to tnis an interest of 6 per
cent, upon the circulating notes and the cash resources, less the deposites
in Suffolk Bank, and pays all expenses. t.,s the price of the stocks ran down,
the Bank, on the 26th of iiecember, 1854; returned to the Treasurer 5,000 of
the . 30,000 of circulating notes then on hand.
It is intended that no division of profits be declared, until the
same shall exceed the amount paid as premium.
Annual Report, 1856, page 135
The birectors of this Bank have by a vote of the stockholders, returned to the Treasurer 428,000 of the Bank Notes, leaving only -,2,000, not
yet returned to the Treasurer, for which they have given the Treasurer a
Dep. Uertificate for that amount in the :,00dstock Bank.
The Directors have lisposed of the Virginia six per cent, bonds,
and the whole matter is to be closed July 1 1857.

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Federal Reserve Bank of St. Louis

olATM

..AUAT2:LuiLit

Annual heoort of the Auditor of accounts, 1656, pages 145-146
The Vermont six per cent. notes deposited with the State Treasurer
and upon which Bills have been issued, are substantially in the form following:
oTATM uF VhiliviONT
Treasurer's Office
jorthfield, January 1, 1657
1 have this day borrowed and received of A. B.
dollars
payable on demand to the bearer, ;i.t11 interest at the rate of six per cent
per annum, payable semi-annaully at the Bank of
H. M. Bates,
Treasurer of btate of ver.hont

Annual heport, 1660, oage 156
The 1,irectors of this Bank, on the first day of January, A. L. 1660
in addition to the fore.ding dividend, divided to the stockholders 050,000,
it being the entire capital of the Bank, and the same was paid by passing it
to their credits, and it appears in the statement, in the item, "Due bepositors." The Bank now appears as having no capital.

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Federal Reserve Bank of St. Louis

STATE BANK, MONTFLLIER

Annual Report of the Auditor of Accounts, 1861

the undersigned, hereby certify that in accordance with an
act of the Legislature we have burned, in the oresene of each other,
bills of the State Bank as follows, viz:
1,211 Impression plate, 1,125
1
5
8,482 Bills of one dollar
4,246
"
two dollars
4,253 "
five dollars

0_0,899
5
8,482
8,492
21,265
4;A9,143

Fifty thousand aolla s only of the bills of this Bank have been
issued. lhere is no7. eight hundred and fifty-seven dollars in circulation, for the security of the redemption of which there remains deposited with the State Treasurer one thousand dollars of Vermont State
Bonds. The other securities have been returned to the Bank.

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Federal Reserve Bank of St. Louis

/ 4

•

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„

Full text of Records of the Federal Deposit Insurance Corporation, Record Group 34 : Failed Banks - Filed as to Code # of Bank with Last Call Report and Liquidating Information, Box 12, Folder 1

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