By referring to my report of 1838, and the aggregate accompanying said report, as 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 this State, owing to the fact that most of our banks redeem their bills in the cities, to which most of their circulation flows. The aggregate table will show that the banks in this state, both under the Safety Fund, and those that are not, have in domestic bills or drafts falling due in the cities, together with their deposites, bills of other banks and specie, an amount that will nearly take up their circulation without taking much of their home debt. This state of things is gratifying at this particular period, as other states are embarrassed, while we are comparatively easy. In my examination in 1838, as also in 1889, where any of the banks have had any proportion of their debt in an inactive shape, I have advised that the whole should be put in the shape of an active debt, and as much invested in domestic bills or drafts as possible, as those banks which keep the greatest amount in this description of paper are able at all times to accommodate the public to a larger amount than the banks which undertake te furnish permanent loans; this description of pape being generally founded on positive business transactions, is consequently all paid at maturity, and at those points where it is most convenient for the banks to take up their circulation. Vermont, being a producing state, naturally furnishes a large amount of this description of paper, sufficient, it is believed, at all times, to take up the circulation of our banks; drafts or domestic bills, being drawn and endorsed by at least two sureties in this state, and additional security obtained by their acceptance in the cities, are altogether the strongest and safest paper for them to discount, and falling due in the cities, throw the burden of payment on other Staces, and at points where the funds are most war.ted to meet their circulation. In my report of 1838, I stated the condition of the Windsor Bank, and that I had requested the State's attorney 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 alledged by the State's attorney, but will be in January next. The condition of that bank has materially changed since my report in 1838. At that time the circulation amounted to about $112,000; of this amount $32,000 was held by one of the Boston banks, which bank has since parted with it, and it has been applied to the payment of debts then due the bank which were con 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 $66,000, 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 suspended debt, at some future period, some portion of their original stock. This, however, remains doubtful, as the suspended debt is 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., 1889. f Bank of Brattleboro' 135,550 23 2,442 98 48,671 51 4,200 00 8,406 27 9.869 50 209,140 49 67,891 31 3,000 00 44,274 48 4,327 00 489 50 2,056 00 77,274 81 36 Middlebury 136,454 13 2,700 00 46.297 26 Farmers Bank 154.472 79 2,373 75 33.489 91 15 70 10,157 00 Farmers and Mechanic's Bank 168.377 66 8,498 75 13,898 46 10 492 10 11,239 04 181,749 54 6,193 31 207,460 28 Bank of Woodstock 117,598 76 3,000 00 11,785 17 367 16 4,918 64 137,669 73 146,862 61 3,464 59 34,255 00 20,304 41 2,728 32 10,084 33 53.696 25 221 03 11,309 50 5,192 71 8,204 29 242,960 04 3,740 00 9,825 29 148,878 90 2,169 00 8.587 44 223,929 01 80,873 20 960 00 1,117 00 8,521 73 175,952 65 59,732 35 |