sources of wealth. In this view, banks 

 would tend to divert the attention of the 

 speculator, the inexperienced youth, the 

 indolent and incautious, from those hon- 

 est, honorable and sure sources of medi- 

 ocrity and independence, and to fix it upon 

 imaginary and unjustifiable methods of 

 , suddenly accumulating an overgrown 

 property; in pursuit of which, a large 

 proportion of the adventurers would prob- 

 ably at tlie same time sacrifice the prop- 

 erty with which they began their specu- 

 lations, and imbibe an ungovernable dis- 

 gust for wholesome industry and econo- 

 my, now become more necessary than 

 ever. 



3. Because banks by facilitating enter- 

 prizes both hazardous and unjustifiable, 

 are natural sources of all that class of 

 vices, wliich arise from tlie gambling sys- 

 tem, and which cannot fail to act, as sure 

 and fatal, though slow poisons to the re- 

 public in which the}' exist. 



4. Because banks tc*id strongly to draw 

 off the dependence of debtors from their 

 own exertions, as means of pa)'ment,and to 

 place it on the facility of increasing new 

 debts to discharge the old, which cannot 

 but be detrimental, both to the debtor, and 

 throusfh his example to society at large. 



5. Because banks have a violent ten- 

 dency, in their natural operation, to draw 

 into the hands of tlie few a large propor- 

 tion of the property at present fortunately 

 diffused among the many; and, in this 

 wa}', straiten the circumstances of the 

 many, and thus to render them still more 

 dependent on the few ; and, of course, to 

 make them, through necessity, yet more 

 subservient to their aspiring views; and 

 by these means, the tendency of banks 

 seems to be, to weaken the great pillars 

 of a republican government, and at the 

 same time to increase the forces employed 

 for its overthrow. 



6. Because, as banks will credit none 

 but persons of affluence, those who are in 

 the greatest need of help cannot expect to 

 be directly accommodated by them ; and 

 as the banks would enable those who have 

 credit witii them to loan money at an ex- 

 orbitant interest to the necessitous, there 

 is reason to fear lest the}' should operate 

 as means of an increased usury and op- 

 pression. 



7. Because, should the bill pass into a 

 lavv', we apprehend it would be found ne- 

 cessary at least, to render the bank grant- 

 ed thereby perj)etual ; a measure which 

 appears to us too important to be adopted 

 without a more thorough investigation 

 than the novelty of the question and the 

 shortness of the time will allow. 



8. Because by the establishment of 



banks government would, in our opinion 

 go farther tlian could have been contem- 

 plated in its original institution. Gov- 

 ernment, we apprehend, was not designed 

 to open fields of speculation, nor to direct 

 the efforts of individuals, but merely to 

 protect them in respect of property, and 

 such of their pursuits as are not inconsis- 

 tent with the general good of the citizens 

 at large ; much less was it designed as a 

 means of drawing property out of the 

 hands of the less wealthy, to place it in 

 the hands of the more wealthy."* 



Notwithstanding the arguments here 

 set forth, thcj clamor for banks still con- 

 tinued, and in 18()5 two bills passed the 

 house of representatives, one establisliing 

 a bank at Windsor, and the other at Bur- 

 lington. These being non-concurred in 

 by the council, a grand scheme was 

 l)rought forward, which, many seem to 

 have supposed, was to replenish abun- 

 dantly the treasury of the state and the 

 pockets of tlie people. This scheme was 

 the establishment of a state bank, but the 

 friends of the measure did not succeed in 

 maturing their plans and carrying them 

 into effect till the next year. In 1806 

 the business was entered upon in earnest, 

 and on tlie 10th of November an act was 

 passed establishing the Vermont State 

 Banlc. This bank at first consisted of two 

 branches, one at Woodstock and the oth- 

 er at Middlebury. The next year two 

 additional branches were established, one 

 at Burlington and the other at Westmin- 

 ster. All tlie stock of this bank, and all 

 the profits arising therefrom, were to be 

 tlie property of the state, and all the con- 

 cerns of the bank were to be under the 

 control and direction of the legislature 

 forever. The immediate management of 

 tlie bank was to be committed to thirteen 

 directors, to be chosen annually by the 

 legislature, and who were to elect one of 

 their number president of the bank. 



The bank at length went into opera- 

 tion, but the anticipations of the people 

 were not to be realized. What had ap- 

 peared so fair and plausible in theory, was 

 found to work very badly in practice, and, 

 although a history of the Vermont state 

 bank would afford an instructive lesson to 

 the present and future generations, we 

 have neither materials nor room for it 

 here. Suffice to say, its affairs were soon 

 found to be in inexplicable confusion, and 

 the institution insolvent. Various acts of 

 leorislation were resorted to for sustaining 

 it, notwithstanding which its condition 

 grew worse and worse, and within five 

 3'ears from its establishment, affairs were 



* Journal of General Assembly for 1803) p. 235. 



