amount double the sum of specie in bank; and the directors of the several branches were directed to press an indiscriminate collection of debts due. Feb. 28 1812, the committee ordered the removal of the Westminster branch to Woodstock; and at the October session made a detailed report, indicating a probable failure of the Middlebury branch to redeem its bills and checks, but the probability that the profits of the other branches would more than make up the deficiency and leave a balance in favor of the State. The committee also reported that Daniel Chipman, John Willard, and Horatio Seymour, directors of the Middlebury branch, had forfeited their bonds, and also that these directors and the committee had agreed to refer that matter to the decision of a board to be appointed by the Legislature. This report resulted in the following act to close the business of the bank.

AN ACT in addition to an Act establishing a State Bank.

SEC. 1. It is hereby enacted by the General Assembly of the State of Vermont, That instead of the thirteen Directors of the Vermont State Bank heretofore directed to be chosen by the act to which this is in addition, there shall be chosen by ballot, by both branches of the Legislature, in joint committee, at their present session, from [four] suitable persons to be directors of said bank, who shall have all the powers which the directors of said Rank now have by law, and may choose a President out of their own number.-Provided, That no bills shall be issued from said bank by way of loan, until further order of the legislature.3

SEC. 2. And it is hereby further enacted, That the committee [Samuel C. Crafts, Elihu Luce, and Robert Temple,] appointed by the Act of the last session of this legislature, entitled an Act in addition to the several Acts establishing and regulating the State Bank, are further empowered and hereby directed to remove the two branches of said Bank at Burlington and Middlebury, to the Bank at Woodstock, in the same manner and with the same power as the said committee were empowered and directed to remove the branch of said Bank at Westminster, to the Bank at Woodstock, by the act last mentioned.-And it shall be the duty of said committee, together with some one or more of the directors of said Bank to burn all the bills of the Vermont State Bank, in the several branches of said Bank, except what may be necessary to pay the checks due from said Bank.

SEC. 3. And it is hereby further enacted, That the President and Directors of the Vermont State Bank be and hereby are directed, with all due diligence, to collect in the most safe and speedy manner, all debts due to said Bank, and to sell the property belonging to said Bank, and to use all proper endeavors to close the concerns of said Bank, as soon as in their opinion the same can be done with advantage to this State.

SEC. 4. And it is hereby further enacted. That if any person holding any bills of said Bank, shall present the same to the Treasurer of this State, and shall efect so to exchange the same, the said Treasurer shall issue to such person, in lieu thereof, State notes, to be signed by the said Treasurer, for the amount of such bills, payable to such person or

Printed Laws of 1811, p. 114.

'Printed Assembly Journal of 1812, pp. 62-96. No order was ever given.

bearer, the one half in one year, and the other half in two years, with interest at the rate of six per cent. per annum. And if any person or persons, having any demand upon the Treasurer of this [State.] shall elect to receive such notes for the same, it shall be the duty of the Treasurer to issue to such person or persons, State notes, of the description aforesaid, to the amount of the sum due to such person or persons. SEC..5. And it is hereby further enacted, That the Bills of said Bank shall be received in payment of all demands due to any branch of said Bank.

Passed November 9th, 1812.

A true copy,

Attest, THOMAS LEVERETT, Secretary.'

The committee discharged the duties imposed by the second section of the foregoing act, and at the next session reported that they had removed the Burlington branch Deccember 14 1812, and the Middlebury branch June 4 1813; and further, that having prosecuted the directors and other officers of the Middlebury branch, before the judges of the supreme court, who had been appointed commissioners for that purpose by act of Nov. 4 1812, they had obtained judgment in favor of the State and taken out an execution for the sum of $22,826.13. They further reported as to the bills of the bank as follows:

Of the bills not destroyed, $3,606 were in bank, leaving $66,552.25 as the amount unredeemed, of which $38,141 were in the control of the State Treasurer and deposited by him in the bank.

The annual reports of the condition of the bank, printed in the journals of the Assembly, were made in forms so different as not to admit of tabulation, but the amount of bills in circulation indicates the business of the bank, to wit:

1808,
1809,

$548,305.75
404,599.50

1810,
1811,

$211,835.00
94,932.50

In 1812, the whole amount unredeemed, embracing bills in bank, state treasury, and in circulation, was $74,301.75; 1813, $66,522.25, of which $38,141 were in the state treasury; 1814, $58,680, of which $42,555.25 were in the state treasury; and from year to year the redemptions proceeded until all the bills presented for payment were redeemed.

'Printed Laws of 1812, p. 211.

The execution was against the three directors, Chipman, Seymour, and Willard; who, by an act of Nov. 17 1813, were relieved from all but the sum of $1238.84.

Printed Assembly Journal of 1813, pp. 56-59.

Zadock Thompson stated that "the loss to individuals in consequence of the failure of the institution was trifling, but the loss to the state was very considerable." The editor of this volume is not apprised of any statement of the actual loss to the State, and from all that does appear in the reports, is of the opinion that the loss, whatever it may have been, was more than compensated in furnishing to the people a currency which was altogether superior to that which they would otherwise have had. They at least suffered very little in the depreciation of the bills of the State bank, and but for the intervention of speculators, would not have suffered at all, whereas, by the failures of private banks and bankers in the adjoining States, their losses were considerable.

The State Bank was succeeded by private banks from 1818 until the advent of the national banks, and with rare exceptions these were acceptable to the people and profitable to the stockholders-results due not only to the prudence and integrity of their managers, but for many years, by reason of a requisition of the State that their bills should be redeemed in Boston, thus giving to them a credit equal to that of the best banks in New England.

1 Thompson's Vermont, Part II, p. 137.

APPENDIX E.

NORTHERN BOUNDARY LINE OF VERMONT.

In the executive speech of 1804, Gov. Tichenor invited the attention of the legislature to the boundary line between Vermont and Canada, stating that some of the inhabitants residing on the line were apprehensive that the boundary was not clearly defined, and that it was not distinctly known where the line ran. These apprehensions were due, in part at least, to the statement of William Coit of Burlington, in 1796, on the authority of deputy surveyor Collins of the province of Canada, that the line verged south of the true forty-fifth degree of north latitude, and thus embraced within the jurisdiction of Canada a considerable tract of land which rightfully belonged to Vermont. In consequence of the representations made to him, Gov. Tichenor addressed Gen. Philip Schuyler, who had been one of the commissioners of New York in 1766 for the purpose of ascertaining where the parallel of forty-five degrees of north latitude intersected Lake Champlain; and in reply the General wrote the following:

General Philip Schuyler to Gov. Tichenor.

ALBANY, October 5, 1804. Sir. The letter which your Excellency did me the honor to write, was delivered me yesterday. The boundary line between Canada and the late colony of New York, and the then eastern colonies, was established by the present King of Great Britain [George the third,] in Council, I think, in October 1763, and communicated to the then Governors of Canada and New York respectively. These gentlemen agreed to meet at Isle-la-Motte, on Lake Champlain, on a fixed day in the month of September 1766, accompanied with proper persons to ascertain where the parallel of forty-five degrees of north latitude would intersect that Lake. Accordingly Governor Sir Henry Moore, attended by Mr. Harper, then Professor of Mathematics in the college at New-York, and myself; on the part of Canada, Lieutenant Governor Ervin, then commanding the civil department of that province, attended by Mr. Collins, the Surveyor-General thereof, and the Marquis de Laboneer, a French or Canadian Engineer, met at the designated time and place. After having made several solar and stellar observations, the point of

1Ante, p. 387.

'See Vol. IV, p. 115, note 2.

intersection on Lake-Champlain was unanimously determined, and a monument erected.

The very swampy ground from the intersection of the parallel on the west bank of the Lake not permitting an extension of the boundary line to the river St. Lawrence, the parallel was only extended eastward to Missisque-Bay, and the line marked. But the two Governors agreed to appoint each a proper person, and that the persons so to be appointed should continue the parallel westward to the river St. Lawrence, and eastward to Connecticut river. On the part of New York a Mr. Valentine was the surveyor; I am not informed who was authorized on the part of Canada.' The parallel was however carried to the river St. Lawrence; but Mr. Valentine dying soon after, I believe the eastern direction was not even attempted during his lifetime; whether it was subsequently run by agents authorized by the two governments, I know not; I am rather inclined to think it was not; as Sir Henry Moore, whilst on Lake-Champlain, had requested me to recommend a proper person for the survey, and Mr. Valentine was appointed in consequence of my recommendation, and it is probable I would have been consulted if a second appointment had been made.

I believe all the papers relative to the transaction in question are filed in the Secretary's office of this State, or with the papers of the Council of the late colony; if so, those relative to the extension of the boundary line to Connecticut river, if ever accomplished, will be found with them. It is probable that I have preserved the minutes I made of the transactions on Lake-Champlain; but being confined to my bed from an inflammation in my feet, I cannot now have recourse to my paperswhen I can, if I find any documents, worthy of communication, they shall be transmitted. I am, Sir, with great respect and esteem, your Excellency's most obedient servant. PH. SCHUYLER.

His excellency the Governor of the State of Vermont.

The foregoing letter was referred to James Fisk, William C. Harrington, Samuel Shaw, Pascal P. Enos, and Elias Buel, to whom Nathaniel Niles was joined from Council, who on the 8th of November reported the following, which was adopted by the Assembly:

Resolved, That his Excellency the Governor be requested to transmit to the executive of the United States all the information of which he is

'It has been stated that Collins and Valentine surveyed the line in 1771, '2 '3 and '4.-See Vol. IV, p. 116.

2

In Documents relating to the Colonial History of the State of New York, vols. VII and VIII, the papers on this subject will be found. Letters of Gov. Moore of New York show that Gen. Carleton, then recently appointed Lieutenant Governor of Canada and afterward made Lord Dorchester, was present when the line was "fixed in the River Sorell about two miles and a half below [north of] Windmill Point, so that no part of Lake Champlain is included in the Province of Quebec, except a small portion of the Missiscoui Bay."-Gov. Moore to the Earl of Shelburne, Nov. 8 1766. The boundary then ascertained and agreed upon, by Gov. Moore of New York and Lieut. Gov. Carleton of Canada, was approved by an order of the King in Council Aug. 12 1768.