Page:A History of Banking in the United States.djvu/63

 creditor of the bank for about $80,000, and the latter had cash assets, $187,000. In 1809, the banking crisis having taken place in the adjacent States, the Governor declared that although he had not favored the State Bank originally, he thought that the people, but for it, would now have been in possession of the worthless paper of the broken banks. The House replied that they valued the institution as a source of revenue; considered "the final redemption of the bills already guaranteed by the honor and wealth of the State," and that they were ready to do anything to remove real or imaginary obstacles to the prosperity of the institution. The accounts of the bank now showed a net gain to the State of $22,412. A committee of the House thought that all the loans were good, each note having two or more endorsers; but they are obliged to add: "Although causes unforeseen to the president and directors have produced a temporary suspension of punctual payment at the bank, yet it does not appear that this state of things will long continue." It is also very significant that two or three laws were passed at the same session to enforce the collection of debts due the bank. A summary process of execution, like the Rhode Island "bank process," was provided. The next year it is enacted that the directors shall give a list of all who are in arrears to the bank, annually to the Legislature; and a similar list of delinquents is to be published in the newspapers. In 1811 the legislative committee hoped that if the bills were called in, as they had been during the last year, very few of them would, in another year, remain in circulation. They recommended the appointment of a committee with power to make a full examination of the bank during the recess. No notes were to be put in circulation until the specie equalled half the debts; and the loans were to be called in as rapidly as possible. A year later the report showed the bank in possession of lands taken on execution to the amount of $11,062; the loans outstanding were $95,418, of which half were in suit. The Bank held notes of broken banks, $3,052; the notes in circulation were $78,431; a balance unaccounted for was $13,680.

In 1812, laws were passed to wind up the institution. The State Treasurer was to give to noteholders treasury notes payable, half in one year, and half in two years, with interest at six per cent. In 1822, the State Bank owned lands taken on execution to the value of $21,685. The State redeemed all the outstanding obligations by receiving them for taxes, and in 1825, distributed the avails of the property which it had received from the bank amongst the towns for schools. The affairs of the bank were settled up in 1845. The loss by it never could be exactly ascertained. A tax of one cent per acre was levied in 1812 in order to retire the notes. It brought in $100,000 of them. There were in the State Treasury $130,000 received otherwise. The assets of the bank produced about $30,000, leaving the loss about $200,000. One Durkee of Boston, who demanded specie of