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THE 
 
 SUFFOLK BANK 
 
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 D. R. WHITNEY, 
 
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 PRESIDENT OF THE SUFFOLK NATIONAL BANK. 
 
 ^■^Othello^s occupation's ffonc." 
 
 Moor of Venice, Act HI., Scene 3. 
 
 CAMBRIDGE: 
 
 FOR PRIVATE DISTIUBUTION. 
 1878. 
 

 c:r:ERAL' 
 
 Crijc BiiicrstlJE IBrcss, CTambtibrif : 
 Priuted by II. 0. Iloughton and Compiiny, 
 
To 
 
 JOHN AMORY LOWELL, LL.D., 
 
 ONE OF THE OKIGINATORS OF 
 
 THE SUFFOLK BANK SYSTEM, 
 
 WHO SERVED ON THE FOREIGN MONEY COMMITTEE 
 DURING THE WHOLE OF ITS EXISTENCE, 
 
 SCIjis Slutclj of ti)e IgistovH of tlje Suffolk 33anft 
 
 13 
 
 RESPECTFULLY INSCRIBED. 
 
PREFACE. 
 
 The following sketch was written with no intention 
 of entering into a vindication of the Suffolk Bank 
 System. The benefits conferred upon the currency y 
 of New England by the Suffolk Bank are now uni- 
 versally acknowledged ; the ill feelings against it, 
 arising sometimes from personal but oftener from 
 pecuniary considerations, have long since passed 
 away ; and the incorporation of its system of re- 
 demption into the present National Bank Act shows 
 that its fundamental principle, that a bank currency to 
 be sound must be redeemable on demand, still survives.j 
 
 Its object is to place on record a concise history of 
 the bank, and to give the credit of inaugurating and 
 sustaining its foreign money system of redemption to 
 those to whom it justly belongs : the reputation of 
 which has sometimes been claimed for those in no 
 way entitled to it. 
 
vi PREFACE. 
 
 The materials for this sketch have been collected 
 almost entirely from the records of the bank, to 
 which, as one of the officers of the Suffolk National 
 Bank, I have had free access : and it is printed in ac- 
 cordance with a request made by the present Board of 
 Directors of that bank. D. R. W. 
 
 Boston, January 1, 1878. 
 
CONTENTS 
 
 CHAPTEK I. 
 
 1818. 
 
 PAGE 
 
 State of tlie Currency in 1818. — First Meeting of the Cor- 
 porators of the Suffolk Bank. — Charter. — ■ List of Original 
 Stockholders. — First Board of Directors. — First Place of 
 Business. — Foreign Exchange Business 1 
 
 CHAPTER II. 
 
 1819-1820. 
 
 Country Bank Notes purchased in Competition with the New 
 England Bank. — Animosity of the Country Banks. — Jrin- 
 ciple upon which the Suffolk Bank System was founded. — 
 I?atio of Country to Boston Bank Notes in Circulation. — 
 Letter of Messrs. John Amory Lowell and William Law- 
 rence to the Boston Banks. — Meeting of the Boston Banks. 
 — Association formed. — Suffolk Bank appointed Agent. — 
 Beginning of the Suffolk Bank System. — Indignation of 
 the Country Banks 7 
 
 CHAPTER in. 
 
 1825-1837. 
 
 Resignation of Mr. Ebenezer Francis. — Election of Mr. Sam- 
 uel Hubbard. — Appointment of the Foreign Money Com- 
 mittee. — Election of Mr. Henry B. Stone. — Increase of 
 
viu CONTENTS. 
 
 Redemptions. — Penalty for Non-Payment of Bills ou De- 
 mand. — Increase of Capital. — Agreement with Mr. Wil- 
 liam Grubb. — Foreign Money System. — Agreement with 
 the Merchants' Bank of Providence. — First Robbery of the 
 Bank. — Feeling of the New England Banks. — Reasons 
 for requiring a Permanent Deposit. — Purchase of Bank- 
 ing House. — Great Increase of Banks in New England. — 
 Pressure in the Money Market. — Circular to Banks whose 
 Accounts were Overdrawn. — Increase of Redemption. — Ef- 
 forts to reduce its Volume. — Further Increase in the Num- 
 ber of Banks. — Ratio of Specie to Circulation and Deposits 
 in 1836. — Demand for Specie to start New Banks. — In- 
 dications of Coming Trouble. — Modification of Agreement 
 with Mr. Grubb. — Resignation of the Cashier 16 
 
 CHAPTER IV. 
 
 1837-1842. 
 
 Panic of 1837. — Suspension of Specie Payments. — Efforts 
 to save the Foreign Money System. — Losses by the Banks 
 in Maine. — Preparations for Resumption. — Correspond- 
 ence with the Merchants' Bank of Providence. — Balance 
 drawn from the United States Bank. — Increase of Capital. 
 
 — Extra Dividend. — Officers held to Strict Accountability. 
 
 — Subscribes for United States Loan. — Scarcity of Money 
 in 1841. — Letter to the Bangor Bank. — Notice to Over- 
 drawn Banks. — Price of Massachusetts Bonds in 1841. — 
 Resignation of the Hou. Samuel Hubbard. — Correspond- 
 
 CIIAPTER V. 
 
 1842-1853. 
 
 Governing Principles. — Agreement with Country Banks as 
 to Collections. — Loan of the Bank in 1844. — Power of 
 the Suffolk Bank by Reason of the Oveidrafts of Country 
 Banks. — Increased Appropriation for the Foreign Money 
 
 28 
 
CONTENTS. ix 
 
 Department. — Discrepancy in the Accounts of the Receiv- 
 ing Teller. — Death of Mr. Henry B. Stone. — Election of 
 Mr. Jeffrey Kichardsoii. — Increased Accommodations for the 
 Foreign Money Department required. — Bills for Redemp- 
 tion to be assorted. — Second Robbery of the Bank. — Daily 
 Redemptions in 1850. — Prosperity of the Bank. — The 
 Great Defalcation. — Trouble with tlic South Royalston 
 Bank. — Increased Appropi'iation for the Redemption De- 
 partment 35 
 
 CHAPTER VI. 
 
 1853-1857. 
 
 Circular of 1853. — Action of the Exchange Bank. — The 
 Veazie Bank. — Resignation of the Cashier. — Hour of Re- 
 ceiving Foreign Money limited. — Resignation of Mr. Jeffrey 
 Richardson. — Presentation of Plate. — Increase in the Ex- 
 penses of the Foreign Money Department. — Losses in the 
 same. — Examination of this Department by the Directors. 
 — Propriety of Giving up the Redemption Business consid- 
 ered. — Banking House enlarged. — Etibrts to secure Accu- 
 racy in the Foreign Money Department. — Comparison of 
 the Expense of Redemption by the Suffolk Bank vpith that 
 under the National Bank System. — Increase in the Number 
 of New England Banks. — Suspension of 1857 46 
 
 CHAPTER VII. 
 
 1855-1866. 
 
 Establishment of the Bank of Mutual Redemption. — Reasons 
 for giving up the Redemption Business. — Patriotism of the 
 Bank and its Officers. — Death of Mr. Grubb. — Closing of 
 
 the Foreign Money Department in IbGG 57 
 
 6 
 
X CONTENTS. 
 
 CHAPTER VIII. 
 
 1865-1878. 
 The Suflfolk National Bank . G3 
 
 APPENDIX. 
 
 Presidents. — Cashiers. — Foreign Money Committee. — Di- 
 rectors. — Dividends. — Present Officers ... ... 65 
 
^^s^*^" 
 
 THE SUFFOLK BANK. 
 
 CHAPTER I. 
 
 The business man of to-day knows little by expert- / 
 
 ence of the inconvenience and loss suffered by the 
 merchant of sixty years ago, arising from the cur- 
 rency in which debts were then paid. The national 
 bank-notes which he now receives are current for their 
 face value, whether issued by the National Bank of 
 Commerce of New York, with a capital of five milHon 
 dollars, or by the National Bank of Yankton, Dakota, 
 with a capital of fifty thousand. Each is alike se- 
 cured by the pledge of the faith of the whole people 
 of the United States. He cares not by what national 
 banks the notes are issued, where they may be situ- 
 ated, whether they are sound or whether they are 
 insolvent. He receives them to-day in payment at 
 their face, knowing that to-morrow he can use them 
 in any State of the Union, CaUfornia alone excepted, 
 without possibility of loss either from depreciation 
 or lack of currency. Not so with the merchant of 
 1818. Receiving payment in bank-notes, he assorted 
 them into two parcels, current and uncurrent. In 
 the first he placed the notes issued by the solvent 
 banks of his own city ; in the other the bills of all 
 1 
 
/ 
 
 2 THE SUFFOLK BANK. 
 
 Other banks. Upon these latter there was a discount, 
 varying in amount according to the location and the 
 credit of the bank issuing them. How great the dis- 
 count was he could learn only by consulting his 
 " Bank Note Reporter," or by inquii'ing at the nearest 
 exchange office ; and he could avail himself of them 
 only by selling them to a dealer in uncurrent money. 
 He could neitlier deposit them, nor use them in pay- 
 ment of his notes at a bank. The discount on them 
 varied from one per cent, upwards, according to the 
 distance the bills had to be sent for redemption and 
 the financial standing of the bank by which they were 
 issued. ^Many banks were established in remote places, 
 mainly for the purpose of making a profit on circula- 
 tion. The more distant they were from the business 
 centres the more expensive it was to send their bills 
 home for redemption, and the more difficult it was for 
 the general public to know their true financial condi- 
 tion. 
 
 This imsatisfactory state of the currency, with its 
 annoyances and risks, continued till the estalilishment 
 of the Suffolk Bank system, so called, in 1824, — a sys- 
 tem of redemption identical with, and which served as 
 a model for, the present National Redemption Agency 
 at Washingtonj) 
 
 On the twenty-seventh of February, ]818, an insti- 
 tution was organized which was destined to exert 
 upon the cui'rency of New England an influence little 
 dreamed of by its projectors, but so wholesome that 
 it gave uniformity and stability to the circulation, re- 
 duced the discount on it to a minimum, and b^' hold- 
 ing it in check tended to keep it in a sound and 
 healthy condition^ On that day a company of raer- 
 
THE SUFFOLK BANK. 3 . 
 
 chants and others met at the Exchan2;e Coffee House 
 in Boston, a then noted tavern situated near State 
 Street, for the purpose of organizing under a charter, 
 just obtained from the Legislature of Massachusetts, 
 for a new bank, to be called the Suffolk. The charter 
 was granted on the tenth of February, 1818, to Samuel 
 R. Miller, Patrick T. Jackson, Eliphalet Williams, Wil- 
 liam Lawrence, Daniel P. Parker, George Bond, Ed- 
 mund Munroe, and their associates, and was to con- 
 tinue till the first of October, 1831. 
 
 The total number of banks then in operation in 
 Boston was six, namely, the Massachusetts, Union, Bos- 
 ton, State, New England, and Manufacturers and Me- 
 chanics', afterwards changed to the Tremont. 
 
 The State Bank had been chartered in 1811, seven 
 years previous, and the charter of the Suflblk Bank 
 was granted subject to the same restrictions and taxes 
 and entitled to the same privileges as the State Bank. 
 By it the usual powers of receiving monej^ on deposit, 
 loaning the same, buying and selling specie and bills 
 of exchange, and issuing its own notes, were granted 
 to the new bank. The capital was fixed at $500,000. 
 The liabilities, exclusive of sums due on account of 
 deposits, were limited in debts by bond, bill, note, or 
 other contract to twice the amount of its capital, and 
 the loans were subject to the same limitation, the 
 directors being liable for any excess. 
 
 For the privileges granted by this charter the State 
 was at liberty to subscribe for an increase of stock 
 equal to one half of the paid-up capital, to appoint a 
 pro rata proportion of directors, and to borrow at any 
 one time it might desire any sum not exceeding ten 
 per cent, of the capital of the bank, payable at any 
 
THE SUFFOLK BANK. 
 
 time short of five yeai's, at five per cent, interest ; and 
 its total liability to the bank was limited to twenty 
 per cent, of the capital. 
 
 The bank was also required to appropriate one 
 tenth of its whole funds to loan to citizens of the 
 Commonwealth, residing out of Boston, engaged in 
 agriculture or manufactures, in sums not less than one 
 hundred or over five hundred dollars, with interest 
 annually, these loans to be secured by mortgage. 
 
 The stockholders were liable in a sum equal to tlie 
 amount of stock held by them for losses arising from 
 the mismanagement of the directors ; and wei'e also 
 liable, proportionately, for the redemption of the bills 
 at the expiration of the charter. The tax was fixed 
 at one half of one .per cent, on tiie capital. 
 
 Among the subscribers to the stock were many of 
 the most influential men of the day. Tiie original 
 subscription list is as follows : — 
 
 NtJMBBR OF 
 
 Shabbs. 
 
 William Ajipletou . . 
 
 50 
 
 Nathan Appleton . . . 
 
 300 
 
 Timothy Bigelow . . 
 
 10 
 
 Charles Barnard . . . 
 
 16 
 
 Eben. and John Breed . 
 
 100 
 
 Thomas Brewer . . . 
 
 30 
 
 John W. Boott . . . 
 
 200 
 
 Josiali Bradlee . . . 
 
 120 
 
 John Brooks .... 
 
 10 
 
 Buftiugton & Thomas . 
 
 40 
 
 Nathan Bridge & Co. . 
 
 100 
 
 Bordman & Pope . . 
 
 100 
 
 Joseph Chapin . . . 
 
 5 
 
 John Cunningham . . 
 
 50 
 
 Pickering Dodge . . 
 
 50 
 
 Otis Everett .... 
 
 50 
 
 Ebcnezer Francis . . 
 
 300 
 
 Jeremiah Fitch & Co. . 
 
 20 
 
 Nc 
 
 MBER OP 
 
 Shares. 
 
 French & Tucker 
 
 . . 50 
 
 Thaddeus Fiske . 
 
 
 
 20 
 
 Gardiner Green . 
 
 
 
 230 
 
 Henry Hubbard . 
 
 
 
 50 
 
 Augustine Heard . 
 
 
 
 50 
 
 Samuel Hubbard . 
 
 
 
 100 
 
 Barnabas Hedge . 
 
 
 
 50 
 
 William Ilammatt 
 
 
 
 20 
 
 Robert & John Hooper 
 
 
 50 
 
 Patrick T. Jackson . 
 
 
 300 
 
 Charles Lowell . 
 
 
 
 15 
 
 Caleb Loring . . 
 
 
 
 100 
 
 A. & A. Lawrence 
 
 
 
 50 
 
 Luther Lawrence 
 
 
 
 25 
 
 William Lawrence 
 
 
 
 300 
 
 Lunt & Leech 
 
 
 
 40 
 
 Israel ]\Innsou 
 
 
 
 184 
 
 Thos. & Edw. Motle 
 
 Y 
 
 
 50 
 
Perriii May .... 
 Edniund Muuroe . . . 
 Marblelioad Marine Insur- 
 ance Co 
 
 William PratI .... 
 "U'illiam PicseoU . . . 
 William Payne . . . 
 Daniel P. Parker . . 
 Dudley L. Pickman . . 
 Jeffrey Riclianlson . . 
 Andrew Ritchie . . . 
 Nathaniel P. Russell 
 
 SnABES. 
 
 50 
 300 
 
 100 
 20 
 50 
 200 
 300 
 50 
 25 
 50 
 50 
 
 LK BANK. 
 
 5 
 
 Number of 
 
 Shakes. 
 
 Henry G. Rice . . . 
 
 30 
 
 .Jolm T. Reed .... 
 
 30 
 
 W. S. Rogers .... 
 
 50 
 
 Benjamin Seaver . . . 
 
 5 
 
 Henry H. Tuckermau . 
 
 25 
 
 Uphara & Faulkner . . 
 
 50 
 
 Alfred A7elles .... 
 
 50 
 
 S. G. Williams & Co. . 
 
 100 
 
 Eliplialet Williams . . 
 
 50 
 
 John Wood .... 
 
 50 
 
 Williams & Wood . . 
 
 100 
 
 Samuel K. Williams 
 
 30 
 
 A Board of Dii'ectors was at once chosen, and au- 
 thorized to draw up a code of by-laws for the govern- 
 ment of the new bank, engage suitable rooms for its 
 business, and do all such other things as were neces- 
 sary to put it in successful operation. 
 
 Tlie first directors were Ebenezer Breed, Andrew 
 Ritchie, Thomas Motley, Samuel Hubbard, John W. 
 Boott, George Bond, Daniel P. Parker, William Law- 
 rence, Eliphalet Williams, Edmund Munroe, Patrick T. 
 Jackson and Ebenezer Francis, who met' from time 
 to time at the Exchange Coffee House, till the nine- 
 teenth of March, when they adjourned to rooms hired 
 temporarily, on the second floor of the building on 
 State Street owned by Mr. Barney Smith, and here the 
 bank opened for business on the first of April, 1818, 
 — Ebenezer Francis having been in the mean time 
 elected President, and Matthew S. Parker Cashier. 
 These premises were occupied thirteen months. On 
 the seventeenth of April, 1819, the bank was moved 
 to rooms on the second floor of the building on the 
 corner of State and Kilby streets, then and now occu- 
 pied in part by the New England Bank. 
 
6 THE SUFFOLK BANK. 
 
 The directors at once, in addition to the regular 
 business of discounting commercial paper, turned their 
 attention to foreign exchange ; and on the fifteenth of 
 August, 1818, appointed a committee to obtain a loan 
 by the issue of post-notes, and to purchase exchange 
 on London with the proceeds. This exchange was re- 
 mitted to Messrs. J. & S. Nicholson, Jansen & Co., of 
 London, and the bank sold its own bills drawn against 
 the same. On the twelfth of September a vote was 
 passed, holding the capital of the bank responsible to 
 its London agents for any overdraft. To the busi- 
 ness of buying and selling exchange was added that of 
 buying in London United States stock and dollars. 
 The foreign exchange business was continued till April, 
 1826, when a final settlement was made with Messrs. 
 Brown, Jansen & Co., the London agents, and the bank 
 turned its attention almost exclusively to receiving and 
 redeeming the bills issued by the New England banks. 
 During this period the bank paid its stockholders an 
 average dividend of five and one half per cent, per 
 annum ; its largest dividend was seven per cent, and 
 its smallest five per cent, per annum. 
 
THE SUFFOLK BANK. 
 
 CHAPTER II. 
 
 The first Board of Directors were active, energetic 
 men, and strove to keep the bank a1)reast of the times. 
 In addition to the foreign exchange bnsiness they saw 
 that they might add to the profits of the bank by buy- 
 ing country bank-notes at a discount and sending them 
 home for redemption. The only bank then doing this 
 business was the New England. Accordingly, on the 
 seventeenth of February' 1810, a committee was ap- 
 pointed to take into consideration the subject of for- 
 eign money, and report at the next meeting. By the 
 term " foreign money " was meant, not the money of 
 foreign countries, but the notes issued by banks out- 
 side of Boston., It will be necessary for a clear un- 
 derstanding of what follows to keep this distinction in 
 mind. The committee consisted of the President and 
 iMessrs. Appleton and Breed ; and on the twenty-fourth 
 of February it reported, '• That it is expedient to re- 
 ceive at the Suffolk Bank the several kinds of foreign 
 money which are now received at the New England 
 Bank, and at the same rates. That if any bank will 
 deposit with the Suffiilk Bank five thousand dollars as 
 a permanent deposit, with such further sums as shall be 
 sufficient from time to time to redeem its bills taken 
 by this bank, such bank shall have the privilege of 
 receivina: its own bills at the same discount at which 
 they are purchased." They further recommend " That 
 
8 THE SUFFOLK BANK. 
 
 J the banks located in Providence and Newport," and 
 twenty- three other banks then keeping an account 
 with the Sufiblk, " shall have the privilege of receiving 
 such of their bills as may be received by the Suffolk 
 Bank at the same discount as taken, without the per- 
 manent deposit of five thousand dollars, provided said 
 banks will make all their deposits at the Suffolk Bank, 
 and at all times have money sufficient to redeem the 
 bills taken." Also, " That should any bank refuse to 
 make the deposit required, the bills of such banks shall 
 be sent home for payment at such times and in such 
 manner as the directors may hereafter order and di- 
 rect.",) 
 / C This vote and the action proceeding from it, coupled 
 with the energy of the PresicJent, resulted in an exten- 
 sive business. Buying and selling exchange had here- 
 tofore been conducted by a committee, consisting of 
 the President and Messrs. Breed and Belknap. To 
 this committee authority was given to purchase at a 
 discount the bills of banks outside of Boston and send 
 them home for specie^ A.t the same time a vote was 
 passed, authorizing the President to compound with 
 any bank not to purchase its bills. ,With the New 
 
 / England Bank the Suffolk at once entered into a lively 
 competition ; and, as a natural consequence, the dis- 
 count on country bank-notes was materially lessened. 
 Previous to this time the discount on Massachusetts 
 bills had been one per cent., and on the bills of other 
 States much greater. Competition at once reduced 
 the rate on the former to one half of one per cent., and 
 even lower.j In 1822, the profits on the business had 
 become so small that the directors felt obliged to re- 
 duce the expenses of the bank ; which they did by 
 
THE SUFFOLK BANK. 9 
 
 abolishing the office of discount clerk, and appointing 
 the President " a committee to inquire if any further 
 saving in the expenses of the bank can be made." 
 
 (The animosity of the country banks which were un- y 
 willing to keep a deposit in Boston for the redemption 
 of their bills was naturally very much aroused when 
 the Suflblk Bank, collecting their bills, sent them home 
 for specie ; and much ill-feeling was engendered--' 
 
 On one occasion, early in 1824, the Suffolk Bank sent 
 a messenger to a bank in Springfield, with ^22,600 of 
 its bills, with orders to present them for payment in 
 specie. The bank could not respond ; and after much 
 delay the messenger agreed to take in part payment a 
 draft on Boston for $5,000, — at a discount of three 
 eighths of one per cent. This draft was duly pre- 
 sented and payment received. On the same day one of 
 the members of the firm iipon whom the draft was 
 drawn, and who were the Boston agents of the country 
 bank, called upon the cashier of the Suffolk, and asked 
 him how much discount had been taken npon the 
 draft that day paid. The cashier replied, three eighths 
 of one per cent. Whereupon the gentleman, in the 
 excitement of the moment, applied some very abusive 
 remarks to the President. These remarks were re- 
 ported to the Board of Directors by the cashier ; and 
 by the board referred to a committee, who at once 
 entered into a correspondence with the gentleman 
 upon the subject. He apologized for the use of the 
 abusive language, saying he had no recollection of 
 the words themselves, and, in so fiir as they were abu- 
 sive, he wholly disapproved and condemned them ; 
 but would make no other apology satisfactory to 
 the board, or change his opinion of the action of 
 
10 THE SUFFOLK BANK. 
 
 the bank in its transaction with the country bank for 
 which his firm acted as agents. 
 
 The directors, in vindication of themselves, sent a 
 copy of tlie whole correspondence to each of the Bos- 
 / ton banks. (^A single quotation will show the position 
 they took ; what they believed to be their rights ; and 
 the princijales by which they were guided. They 
 write : — 
 
 " Tlie directors think it ininecessar}^ to make any remark npon the 
 right which one corporation has to demand of another the jiayment 
 of its just debts ; and in their banking operations they not only pro- 
 fess, but intend, to be governed by tliose wholesome rules and reg- 
 ulations which are for the mutual good of all banking institutions." 
 
 This right, thus early enunciated, was that upon 
 which the whole Sufiblk Bank system was founded ; 
 upon it the bnnk rested during the whole existence of 
 the system ; and in giving it up forty years later the 
 directors placed upon record this, among other reasons, 
 " because the right to demand specie of a bank for its 
 promise to pay cannot be given up without destroying 
 the efficacy of the system. 'jj 
 
 An effort was made seven years afterwards to have 
 the account of the transaction expunged from the 
 records of the bank, but without success. It remains 
 there to this day, in evidence of the deep feeling ex- 
 isting against the Suffolk Bank for exercising a right, 
 ■ the justice of which no one can question. 
 J \ At this time the city was flooded with country 
 
 money. The circulation consisted almost entirely of 
 the notes of banks outside of Boston. With more 
 than one half of the banking capital of New England, 
 the Boston banks supplied only one twenty-fifth of 
 the bills in use.A Two of the directors of the Suffolk 
 
THE SUFFOLK BANK. H 
 
 Bank, Messrs. John A. Lowell and William Lawrence, 
 both actively engaged in tlio distribution of textile 
 fabrics throughout New England, had become deeply 
 impressed with the evils attending this undue issue of 
 country money. They had experienced these evils 
 not only in their own business, but, as directors in the 
 bank, they had seen how small a proportion of the cir- 
 culation was enjoyed by the city banks. They had 
 given so much consideration to the subject, and were 
 so deeply interested in it, that they were appointed by 
 the Suffolk Bank a committee, for the purpose of con- 
 ferring with the other banking institutions of the city 
 concerning the measures which it might be expedient 
 for them in common to adopt, with a view of checking 
 the enormous issues of country, and especially Eastern, 
 paper, and of securing to the bills of the Boston banks 
 a just proportion of the circulation. 
 
 In accordance with the power thus conferred upon 
 them, on the tenth of April, 1824, they addressed the 
 following letter to each of the Boston banks : — 
 
 " The subscribers, having been chosen by the directors of the Suf- 
 folk Bank a committee for the purpose of conferring with the other 
 banking institutions in the city concerning the measures whicli it 
 might be expedient for tliera in common to adopt, witli the view of 
 checlving the enormous issues of country, and especially Eastern, paper, 
 and of securing to the bills of the Boston banks a just proportion of 
 the circulation, beg leave to call the attention of your board to the 
 following statement of facts : — 
 
 " That of the whole incorporated banking capital of New England, 
 amounting to less than twenty million dollars, the eleven banks in 
 this city possess ten million one hundred and fifty thousand. That 
 estimating the circulation of the country banks at only seventy-five 
 per cent, of their capital, which they believe to be a moderate com- 
 putation, these banks furnish seven million five hundred thousand 
 dollars of the circulating medium, while the banks in the citv. with 
 
12 THE SUFFOLK BANK. 
 
 a capital equal to all the rest, keep in what may he fairly termed 
 permanent circulation only three huiulred thousand dollars. That 
 this prodigious credit thus enjoyed by the country banks is not owing 
 to any superior confidence in the stability of these institutions, or in 
 their ability to redeem their promises in gold and silver, but may be 
 attributed to a discount founded on the very difficulty and uncer- 
 tainty of means of enforcing this payment. Such would not be the 
 natural operation of these causes were these institutions what they 
 profess to be, — establishments for the discount of country notes and 
 the convenience of country traders. Their bills would then circulate 
 only in their own immediate vicinitj'. The farmers, who come to this 
 city to dispose of their produce, would take back Boston bills, which 
 the traders would in their turn bring down to pay for foreign or 
 domestic merchandise. The superior stability and security of our 
 banks would insure this result. But under the existing circum- 
 stances we presume that a very great proportion of the discounts of 
 the country banks are made in Boston. Loans to an immense 
 amount are made bj' their agents here at reduced rates of interest, 
 payable in three or five days after demand, so that they can bo in 
 funds at very short notice, and in this manner necessarily deprive us 
 of much valuable business. And this great circulation is enjoyed by 
 the banks out of the State, who do not pay the tax to the Common- 
 wealth which we are compelled to pay. The injury to the country 
 trade which has by some persons been apprehended from any meas- 
 ures which tend to curtail the issues of country jsaper we believe to 
 be, in the long run, merely imaginary. No reasonable man can 
 doubt that the banks in the interior are numerous enough for the 
 supply of all the wants of their own traders, and the probability is, 
 that when the time and attention of those companies shall be no 
 longer distracted by so many negotiations foreign to their legitimate 
 design, they will be even more liberally supplied than at present. 
 
 " The banks in New York have tried the experiment with the dis- 
 advantage of deducting no discount to reimburse them for the ex- 
 pense ; and yet we are assured from unquestionable authority that 
 they find themselves amply indemnified by the increased circidation 
 of their own city alone. We think, however, that a discount of one 
 fourth of one per cent, would as effectually answer the end proposed, 
 and at the same time, if judiciously managed, be nearly sufficient to 
 pay all the attendant expense of sending home the bills even of the 
 most distant banks. 
 
THE SUFFOLK BANK. 13 
 
 " Since llie last of .TaiuiaiT the Suffolk Bank lias recpived nearly 
 one million flollars of coiintiy paper, the greater part of which has 
 heen sent home for collection, or redeemed by the agents here at par. 
 Notwithstanding the unfavorable season and bad state of the roads 
 they do not find themselves losers by the operation. But the 
 measures liilherto pursued have been only partially effectual. Part 
 of the bills thus removed from circulation are replaced by a worse 
 description of paper. The sending homo of the latter must be at- 
 tended with some risk, and as the benefits proposed in our increased 
 circulation and discounts will be common to all the banks in this city, 
 we deem it but just to call upon them to contribute their proportion 
 towards the risk. 
 
 " With the-:e views we make the following proposals. That a fund 
 
 of hundred thousand dollars, to be assessed in proportion to 
 
 their respective capitals, be raised by the several banking institutions, 
 who may agree to the arrangement, to be placed at the disposal of 
 one or more banks for the purpose of sending home the bills of the 
 hanks in the State of Maine, in such way as may be deemed expedi- 
 ent. That this capital shall be paid in the bills of the several banks, 
 which shall be indiscriminately paid out for the purchase of Eastern 
 money. Tiiat the profit or loss shall be in common, after charging a 
 reasonable compensation for any extra service rendered by the oHl- 
 cers of the bank receiving them. That this fund shall be withdrawn 
 at any time by a vote of a majority of the banks concerned, and that 
 the president and directors of the receiving bank shall be at liberty to 
 decline continuing the agency when they shall see fit, expecting no 
 remuneration for the services which they may render in this business 
 for the common good. 
 
 " The committee have no doubt that, if these measures are adopted 
 and vigorously pursued, the banks in this place will obtain a ciicula- 
 tion of three million dollars, and a proportionable increase in their 
 discounts. John A. Lowell. 
 
 AViLLiAM Lawkence." 
 
 The consideration of this letter by the banks to which 
 it was addressed resulted in a meeting, at which a sub- 
 committee of one from each of the banks was appointed 
 to take the matter into consideration. On the twenty 
 fourth of April the sub-committee met ; present, — 
 
14 THE SUFFOLK BANK. 
 
 Mr. Head, of the Massachusetts Bank, 
 
 Mr. Freeman, of the Union Bank, 
 
 Mr. Bourne, of the State Bank, 
 
 Mr. Stevens, of the Manuflicturers and Mechanics' 
 
 Bank, 
 Mr. WiUiams, of the Eagle Bank, 
 Mr. Francis, of the Suffolk Bank ; 
 (and it was voted, — 
 
 " That it is expedient to send home all the bauk bills in circulation 
 issued from banks out of the State, and the bills of such other banks 
 as the committee of arrangements may thiuk proper. 
 
 " That the sum of three hundred thousand dollars is necessary to 
 carry the same into effect. 
 
 " That this sum should be furnished by the banks in the following 
 proportions : — 
 
 State Bank $50,000 
 
 Massachusetts Bank 50,000 
 
 Union Bauk 40,000 
 
 Manufacturers and Mechanics' Bank . . 40,000 
 
 Columbian Bauk 30,000 
 
 Eagle Bank 30,000 
 
 Suffolk Bank 60,000 
 
 $300,000 
 
 in bills of the several banks, and paid out in equal proportions. All 
 profits and all losses to be in proportion to the sums assessed. 
 
 " That a committee of one person be appointed from each bank 
 concerned in the association, to be appointed by the several boards of 
 directors of the said banks, with full powers to carry into effect the 
 object of this meeting." 
 
 These votes were at once ratified by the banks in- 
 terested ; and the Suffolk Bank was chosen to act as 
 the agent of the associated banks?) 
 
 (^To carry out the scheme it was agreed that the 
 Suffolk Bank, as the agent of the associated banks, 
 should receive from them all their foreign money at 
 
THE SUFFOLK BANK. 15 
 
 (the same or less discount than the New England Bank, "^ 
 or other banks in Boston, received it, and should send 
 it home for redemption ; that the associated banks 
 should, at all times, be ready to give advice and assist- 
 ance to the Suffolk Bank in case of need ; that they 
 should acknowledge their interest in and support of 
 the measure, so long as they approved of the same ; 
 that if the business should be conducted in a manner 
 not satisfactory to any bank it might withdraw by 
 giving thirty days' notice ; and tlint the Suffolk Bank 
 might give up the business at any time by giving the 
 same notice/) 
 
 On the fifteenth of May the Suffolk Bank accepted 
 the agency of the association, and at once chose, as 
 foreign money clerks, Wm. Grubb, Jr., as principal, 
 with a salary of sixty dollars per month, and P. H. 
 White, as assistant, at fifty dollars per month. It began 
 the business of receiving foreign money from the as- 
 sociated banks under the agreement on the twenty- 
 fourth of May, 1824. 
 
 (The country banks naturally were very much ex- / 
 cited, and loud in their opposition. They felt that the 
 result must be the curtailment of their circulation, and 
 the necessity of keeping a larger specie reserve. In 
 derision they called the associated banks the " Holy Al- 
 liance ;" and some dignified the Suffolk Bank with the 
 title of the " Six Tailed Bashaw." But they soon be- 
 came convinced that a promise to pay, printed on the 
 face of a bank-note, meant a promise to pay specie on 
 demand ; that such a demand was likely to be made 
 upon them at any time ; and that the associated banks, 
 with the Suflblk as the agent, were not to be frightened 
 or turned out of their course by sarcastic words.") 
 
16 THE SUFFOLK BANK. 
 
 CHAPTER III. 
 
 On the twenty-fifth of April, 1825, Mr. Ebenezer 
 Francis, the President, resigned, and Mr. Samuel Hub- 
 bard was elected in his place. Mr. Hubbard took the 
 office with great reluctance, only temporarily, and upon 
 condition that a committee should be appointed to take 
 charge of the foreign money concerns. The directors 
 accordingly appointed, as the Foreign Money Commit- 
 tee, Messrs. Ebenezer Breed, William Lawrence, John 
 
 A. Lowell, and Jeffrey Richardson ; and the affairs of this 
 department ivere conducted thenceforth hy this committee and 
 its successors. Two of its original members, Messrs. 
 John A. Lowell and Jeffrey Richardson, served during 
 its whole existence, forty-two years ; and Mr. William 
 Lawrence served during his connection with the bank, 
 which was dissolved by his death in 1848, twenty-three 
 yeai's. 
 
 Mr. Hubbard held the office of President till the fol- 
 lowing November, when he resigned ; and Mr. Henry 
 
 B. Stone was elected in his place. Mr. Stone was the 
 first teller of the Suffolk Bank when it opened for busi- 
 ness in 1818. Subsequently, and at the time of his 
 election, he was cashier of the Eao;le Bank. 
 
 On the sixteenth of May, 1825, the associated 
 banks further agreed that the Suffolk Bank should re- 
 ceive from them at ixu- all the country money they 
 might receive from their depositors, and immediately 
 
THE SUFFOLK BANK. 17 
 
 place it to the credit of the bank depositing the same. 
 This agreement was to be binding for sixty days ; after 
 which any of the associated banks were at liberty to 
 withdraw by giving sixty days' notice. The Suflblk 
 Bank, however, agreed to make the agreement binding 
 for six, nine, or twelve months, pi-ovided the further 
 sum of two hundred thousand dollars should be con- 
 tributed by the associated banks. 
 
 By the first of November of this year the business 
 had increased so much that the directors voted a gra- 
 tuity of seventeen hundred dollars to the clerks of the 
 bank for extra services. Of this amount they charged 
 six hundred dollars to the associated banks. 
 
 The foreign money now poured in so fast upon the 
 Suffolk Bank that early in December it was obliged to 
 make an arrano-ement with the associated banks to 
 delay drawing for their foreign money deposits as long 
 a time as possible ; and at the same time instructions 
 were given to the New York agent not to purchase 
 any more bills of any kind in that market. 
 
 About this time the Phoenix and Pacific banks of 
 Nantucket failed to redeem their bills; and a special 
 messenger was sent to Nantucket to secure the debts 
 due from them. After a delay of two months a set- 
 tlement was made on the following terms : The Phoenix 
 and Pacific banks to pay interest on their bills from the 
 time they were redeemed by the Suffolk Bank till de- 
 mand was made, and damages at the rate of two per 
 cent, a month from demand till final payment. This 
 was the legal penalty to which banks were liable nnder 
 their charters for non-payment of their bills after due 
 demand made during business hours. 
 
 Early in 182G the foreign money committee re- 
 
18 THE SUFFOLK BANK. 
 
 jjorted that one teller, three assistant tellers, and one 
 messenger would be necessary to transact the business 
 of that department. The force was accordingly in- 
 creased, and the following salaries voted, namely : first 
 teller, one thousand dollars per annum ; first assistant, 
 six hundred dollars per annum ; and the second and 
 third assistants and messenger, five hundred dollars 
 each. 
 
 This year the capital of the bank was increased to. 
 seven hundred and fifty thousand dollars. The direct- 
 ors applied to the Legislature for liberty to increase the 
 capital to one million ; but the General Court deemed 
 it inexpedient to grant more than one half of the 
 amount asked. 
 
 On the fii'st of November, the losses in the foreign 
 money department had amounted to f 1,183, namely : 
 one package of Thomaston Bank bills containing $600, 
 and $583 in various small deficiencies, uncurrent and 
 counterfeit bills. The directors, in order to reduce 
 the risks to a minimum, and obtain the sti'ictest ac- 
 countability, entered into an agreement with Mr. Grubb, 
 that in consideration of $1,050 per annum, in addition 
 to his regular salary, he should give bonds to indem- 
 nify the bank for all deficiencies, counterfeits, mutilated 
 or uncurrent bills in his department. He was to have 
 the use of three foreign money clerks, and the help of 
 the other clerks as heretofore ; all other help he might 
 require was to be at his own expense ; and the bank 
 was to have the right to employ the foreign money 
 clerks in carrying home the bills of country banks for 
 payment, whenever it might be necessary, without 
 further allowance to Mr. Grubb. 
 
 This arrangement continued eight months; when 
 
THE SUFFOLK BANK. 19 
 
 Mr. Grubb sent the directors a communication inform- 
 ing them that the foreign money business had in- 
 creased so much, that his compensation was not suffi- 
 cient. In view of the fact that tlie business was in a 
 fair way of further increase, a new arrangement was 
 made with him, whereby, in consideration of $4,250 
 per annum, he assumed the whole expense of the for- 
 eign money department, hiring his own clerks, and 
 taking all risks of loss ; and either party had the right 
 to discontinue the arrangement by giving thirty days' 
 notice. 
 
 (Jhe foreign money business was now fairly estab- 
 lished, and growing in magnitude every day. The 
 general arrangement made with the New England 
 banks, which opened an account with the Suffolk Bank 
 for the redemption of their bills, was as follows : - 
 Each bank placed a permanent deposit with the Suf- 
 folk Bank of $2,000 and upwards, free of interest, the 
 amount depending upon the capital and business of 
 the bank. This sum was the minimum for banks with 
 a capital of $100,000 and under. In consideration of 
 such deposit the Suffolk Bank redeemed all the bills 
 of that bank which might come to it from any source, 
 char<i'in<>: the redeemed bills to the issuing: bank once 
 a week, or whenever they amounted to a certain fixed 
 sum ; provided, the bank kept a sufficient amount of 
 funds to its credit, independent of the permanent de- 
 posit, to redeem all of its bills which might come into 
 the possession of the Suffolk Bank ; tlie latter bank 
 charging it interest whenever the amount redeemed 
 should exceed the funds to its credit ; and if at any 
 time the excess should be greater than the permanent 
 deposit, the Suffolk Bank reserved the right of sending 
 
 ,/ 
 
20 THE SUFFOLK BANK. 
 
 ^ (home the bills for specie redemption. As soon as the 
 bills of any bank were charged to it, they were packed 
 up as a special deposit, and held at the risk and sub- 
 ject to the order of the bank issuing them. In pay- 
 ment the Suffolk Bank received from any of the New 
 England banks, with which it had opened an account, 
 the bills of any New England bank in good standing 
 at par, placing them to the credit of the bank sending 
 them on the day following their receipt. 
 
 In 1831 redemption had increased so rapidly that 
 the Suffolk Bank notified all its correspondents that 
 thereafter it should charge them daili/ all their re- 
 deemed bills, keeping the same in special deposit, and 
 subject to the order of the issuing bank. In the case, 
 however, of the Rhode Island banks, whose bills were 
 redeemed through the Merchants' Bank of Providence, 
 the agreement was so far modified that the Suffolk 
 Bank delivered all bills of that State in Providence at 
 its own risk ; and the Merchants' Bank reciprocated, 
 and delivered all the New England bills it sent to Bos- 
 ton for redemption to the Suffolk Bank, taking the 
 same responsibility./ And now occurred the first rob- 
 bery of the Suffolk Bank. 
 
 It had been the custom of the cashier, upon leaving 
 the bank at the close of business, to enclose the bills 
 of the Rhode Island banks, which were daily redeemed, 
 . in a leathern bag, which he deposited between the 
 outer and the inner doors of the vault. The outer 
 door of the vault was opened in the morning by Rand 
 Lord, the porter, the bag taken out, and by him deliv- 
 ered to the driver of the Citizens' Coach Company, who 
 carried it to Providence and delivered it to, the Mer- 
 chants' Bank of tliat city. On the morning of the 
 
THE SUFFOLK BANK. 21 
 
 twelfth of September, 1829, a man called at the bank 
 quite early for the Providence bag, and the porter de- 
 livered it to him, although he was not one of the 
 drivers of the Coach Company ; still, as he had often 
 seen him on the box with the driver, he suspected 
 nothing wrong. Shortly after, the regular driver 
 called for the bag ; when it was discovered that the 
 first man was a thief. This was the first loss of the 
 kind the bank had sustained, and naturally there was 
 great excitement. Messengers were sent in every di- 
 rection, and a reward of one thousand dollars was of- 
 fered for the recovery of the money, and one hundred 
 dollars for the arrest of the robber. Within a month 
 he was arrested, and all the money recovered except 
 one hundred and fifteen dollars. This amount was 
 charged to Kand Lord, to be taken out of his salary at 
 the rate of ten dollars a month ; the object being to 
 make him more careful in the future, and for a warn- 
 ing to the other ofiicers; as the transactions of the 
 bank were of such a nature that the greatest care and 
 vigilance were necessary at all times. In 1833 the 
 amount was refunded to Lord. The expense of recov- 
 ering the money, including the rewards paid, was 
 $1,706.20, which was charged to profit and loss. The 
 robber's name was John Wade. 
 
 Although the hostility to the Suffolk Bank had 
 somewhat abated, as the system became more widely 
 extended, and more and more country banks opened 
 an account with it, still many of the weak ones felt 
 that it was arbitrary and oppressive. The following 
 letter written in 1832, by the cashier of the Suffolk 
 Bank to the Bank of Rutland, Vermont, gives a good 
 idea of the feeling then prevailing, and of the true 
 
22 THE SUFFOLK BANK. 
 
 position of the Suffolk Bank with regard to the New 
 England banks ; as well as one of the principal reasons 
 for requiring them to keep a permanent deposit. He 
 writes : — 
 
 " We have never required you to redeem your bills at this bank 
 instead of your own ; nor have we ever demanded of you ' an exor- 
 bitant price for counting your bills.' Th«y will be received and 
 counted at this bank whether you have a permanent deposit with us 
 or not. We ask of yon a permanent deposit as a consideration for 
 receiving from you bills of all the other banks in the New England 
 States iu exchange for your own at par ; some of which are con- 
 verted into specie by us at a discount of one and a half per cent. 
 In addition, we take the whole risk of those bills .after they have been 
 placed in our hands. AVe have now on hand $18,005, in bills of the 
 Burrillville Bank, which has recently failed; whether we shall get 
 pay for them or not is very doubtful. If you still think the price we 
 ask for transacting your business is exorbitant, and should prefer 
 paying your bills at your own counter, we have no objections to send- 
 ing them there ; but we hope you will not expect us to take the bills 
 of all the other banks in the New England States in payment for 
 them at par. We have no intimation from other sources of a grow- 
 ing disaffection among the country banks ; and if we had, we should 
 not feel ourselves obliged to transact their business without a reason- 
 able compensation. On the contrary, gentlemen who were very 
 much opposed to the system we have pursued, at its commencement, 
 now express approbation of it, and their willingness to contribute to 
 its support rather than it should be abandoned." 
 
 In July, 1831, the real estate, No. 60 State Street, 
 now owned by the Suflblk National Bank, was pur- 
 chased from the Massachusetts Mutual Fire Insurance 
 Company for the sum of $57,000. The estate had a 
 frontage of forty-three and three fourths feet on State 
 Street, and an average depth of about one hundred 
 and thirty-five feet. The buildings were old ; and in 
 April of the folloAving year the bank voted to improve 
 the property, and appointed the President, with Messrs. 
 
THE SUFFOLK BANK. 23 
 
 John Belknap and Jeffi-ey Eichardson, a committee for 
 that purpose. The front building was torn down, and 
 the present granite and brick building erected in its 
 place. The rear building was remodelled, and occupied 
 by the foreign money department. The improvements 
 were made at an expense of $51,895.11, to which 
 was added a grant of one thousand dollars to Mr. 
 Henry B. Stone, the President, for his extra services 
 in attending to the same. 
 
 Between the years 1831 and 1833, a great increase 
 took place in the number of banks in New England. 
 During this period ninety new banks were chartered, 
 of which forty-five were located in Massachusetts. The 
 Sufibllc Bank became overloaded with redeemed bills ; 
 the banks were slow in making remittances ; and the 
 accounts of many of them were overdrawn. Accord- 
 ingly the Suffolk Bank sent a circular to such of its 
 correspondents as it allowed to overdraw, informing 
 them that on account of the scarcity of money, and in 
 order to have some control over its own funds, over- 
 drafts must be limited to ten thousand dollars. It also 
 adopted the rule that foreign money deposits must be 
 made before one o'clock, otherwise they would not be 
 credited till the following business day. At the same 
 time it reduced the permanent deposits required from 
 the Boston banks to $15,000 as a minimum. 
 
 In September, 1833, the pressure in the money 
 market became so great that it was found necessary to 
 notify a large number of correspondents to make their 
 accounts good ; and that overdrafts would not be al- 
 lowed. The following is a specimen of many letters 
 written about this time : — 
 
24 THE SUFFOLK BANK. 
 
 " Dear Sir, — Your account is overdrawn about $16,000 ; and we 
 shall send home your bills for specie on Monday next, if it is not 
 made good on or before Saturday. We cannot permit any overdrafts 
 on this bank in future, and shall hereafter send your bills home for 
 payment unless you have funds here to redeem them as fast as re- 
 ceived. We can allow no overdrafts, because banks are so numerous 
 and money so scarce, that it has become necessary for each bank to 
 rely entirely on its own resources, and to limit its business accord- 
 ingly. 
 
 " Yours, very truly, etc., etc." 
 
 The directors at the same time passed a vote that 
 " when notice is sent to any bank that its bills will be 
 sent home for specie, unless its account is made good 
 by a certain day, it shall be the duty of the President 
 to carry it strictly into effect." 
 
 In 1834 the redemption business had increased five- 
 fold, from $80,000 to |400,000 daily. The officers 
 were employed till nearly midnight, and then often 
 obliged to lay aside a large number of bills to be 
 counted the next morning. To reduce the business, 
 and keep it within bounds, it became necessary to 
 modify the arrangement made with the Boston banks. 
 Heretofore they had been allowed to send in all their 
 foreign money at par, — now they could send in on 
 any one day an amount equal to one half of their per- 
 manent deposit. If they exceeded that amount they 
 were charged one tenth of one per cent, on the excess. 
 They were also restricted to the foreign money re- 
 ceived by them in the regular course of their business, 
 excluding deposits from banks and brokers. By these 
 means it was hoped the business could be brought 
 within reasonable limits. At the same time the per- 
 manent deposit of the Boston banks was reduced to 
 
THE SUFFOLK BANK. 25 
 
 $10,000; and in May, 1835, a further reduction was 
 made to $5,000. 
 
 During the winter of 1835-36 thirty-two new banks 
 were chartered in Massachusetts, making a total in- 
 crease of seventy-eiglit new banks in this State during 
 a period of six years, or more than double the num- 
 ber of banks in operation in 1830. And nearly the 
 same ratio of increase took place in the number of 
 banks in the New England States. In 1830 they num- 
 bered one hundred and sixty-nine ; in 1837, three hun- 
 dred and twenty-one. Many of these banks were 
 started with little or no real capital ; specie was bor- 
 rowed for one day to be counted by the Bank Com- 
 missioner, and on the next it was replaced by the notes 
 of the stockholders ; the bills of these banks, loaned in 
 violation of the usury laws at high rates of interest, 
 were used in the wildest speculations. The country 
 was flooded with them, and specie was becoming scarce. 
 The ratio of specie to deposits and circulation had 
 fallen to one to thirteen and a half, or less than seven 
 and a half per cent., the smallest then ever known. 
 These bills poured into the Suffolk Bank for redemp- 
 tion ; and in April, 1836, it sent tlie following circular 
 letter to forty-four banks, whose accounts were over- 
 drawn in the aggregate sum of $664,000 : — 
 
 " Sir, — In consequence of the great increase of banks in the New 
 England States during the past winter, and the scarcity of specie, it 
 has become impracticable to allow any further overdrafts on this 
 bank, or to hold your bills beyond the amount of funds to your 
 
 credit. Your account is now overdrawn dollars, which we must 
 
 rel)' upon your making good with as little delay as possible; and we 
 shall be compelled to send your bills home for specie in future, unless 
 you have funds here to redeem them. We regret the necessity of 
 4 
 
26 THE SUFFOLK BANK. 
 
 these measures, !mt the deranged state of money matters throughout 
 our whole country renders them unavoidahle. 
 
 " Yours, etc., JM. S. Parker, Qashier." 
 
 Specie became scarcer every d;iy, and the bank was 
 constantly losing. On the twenty-fourth of Jinie it 
 paid Southern drafts in specie to the amount of $140,- 
 000 ; besides which it furnished $50,000 to the Nepon- 
 set Bank, which was to commence operations in a few 
 days, and was under obligations to furnish $50,000 
 more to a new bank to be organized in Haverhill on 
 the following Tuesday. 
 
 The pressure was so great that by November the 
 Suflblk Bank had reduced its loan from $1,411,000 to 
 $500,000, and was still suffering. So low had its specie 
 reserve become, by reason of the overdrafts of the 
 New England banks, that it was deemed advisable to 
 put out no more of its own circulation ; discounts were 
 at twenty-four per cent, per annum, and exchange was 
 so high that the least advance would induce large ship- 
 ments of specie to Europe. These were some of the 
 indications of the coming storm which was to break 
 upon the country the following year ; warnings of 
 trouble which the managers of the bank were prompt 
 to heed, and which they put the bank into a condition 
 to meet. 
 
 The foreign money business was now so large, not- 
 withstanding all the efforts to keep it within bounds, 
 that it became necessary to increase Mr. Grubb's sal- 
 ary to $8,500 per annum, he assuming all loss by 
 counterfeits and uncurrent or mutilated bills as hereto- 
 fore. It was further agreed that he should turn over 
 to the directors for destruction all bills of these de- 
 scriptions which he had been obliged to make good, 
 
THE SUFFOLK BANK. 27 
 
 since he first took charge of the department. The 
 amount was $1,475 only, an average of less than $150 
 a year, such groat care and watchfulness had he exer- 
 cised. 
 
 On the ninth of Fe])ruary, 1837, Mr. Matthew S. 
 Parker resigned the office of cashier, having occupied 
 the position nineteen years, and Mr. Isaac C. Brewer 
 was elected in his place. 
 
28 THE SUFFOLK BANK. 
 
 CHAPTER IV. 
 
 The threatening storm now broke. On the twelfth 
 of May, 1837, the Suffolk Bank, in corainon with the 
 other banks, suspended specie pa3'raents. The New 
 York and Providence banks had suspended the day 
 before, and the Boston banks must at once suspend, or 
 lose all their specie. In such good condition had the 
 bank been placed by its managers, that on the twenty- 
 ninth of Ma}' the President wrote to Mr. Reuel Wil- 
 liams, of Augusta ; — 
 
 " In regard to resuming specie payments, I can only say tliat we 
 are reatly to commence again to-day, and intend to remain in this 
 condition till others are also ready. It will, however, be impossible 
 for the banks generally to resume until we have a National Bank, or 
 at least till exchange on England comes down to par." 
 
 The suspension of specie payments put an end at 
 once to all coercive measures on the part of the Suf- 
 folk Bank, and consequently each bank was left to its 
 own volition. Many of the banks continued to re- 
 deem their bills at the Suffolk as heretofore. The 
 bills of these banks passed current all over the Union, 
 and in some places even commanded a premium. 
 Others withdrew their accounts, and the bills of these 
 banks had a local circultition merelj^, and were current 
 only in the immediate neighborhood of the bank issu- 
 ing them. At first many of the weak banks, partic- 
 ularly the Maine banks, which liad alwaj^s been op- 
 
THE SUFFOLK BANK. 29 
 
 posed to the SufTolk system, were inclined to break 
 off, and even some of the strong ones were in favor of 
 abandoning the system altogether. Bnt sober second 
 thonght led them to see the importance of sustaining 
 it, and they became convinced tliat it was for the 
 general good, as well as for their own interest ; and 
 that, if the system were abandoned during the suspen- 
 sion of specie payments, the bank-note currency would 
 drift back into its old condition, wlien there were al- 
 most as many rates of discount as there were banks. 
 
 During this period a constant correspondence was 
 carried on, particularly with the Maine banks, many 
 of whose bills the Suffolk continued to i-eceive, urging 
 them to continue in the sj-stem. In a communication 
 to the President of tlie Mercantile Bank, of Bangor, 
 occnrs the following: — 
 
 " Tlie Vermont banks have resolved to sustain the system, and the 
 Massachusetts, Connecticut, and New Hampshire banks, notwith- 
 standing the inflammatory communications you have seen in the 
 papers, will do the same. We have been requested by several mer- 
 chants, who are largely interested in the trade of Maine, to continue 
 to receive your hills, till they have had time to visit or communicate 
 with you on the subject." 
 
 Notwithstanding the efforts of the Suffolk Bank to 
 I'educe the overdrafts of its correspondents, many of 
 them were unable to comply. This was more par- 
 ticularly the case with the Maine banks, many of 
 which were largely in its debt ; and it was finally 
 obliffed to decline to receive the bills of a large num- 
 ber of them. With these it made the best settlement 
 it could, in some instances taking a bond of indemnity 
 from the directors and prominent stockholders ; in 
 others, real estate in Oldtown, Bangor, and other 
 
30 THE SUFFOLK BANK. 
 
 places, most of which it was obliged to carry till 1842. 
 Its total losses by Eastern banks were very great, and 
 the confidence of the directors in the banks of this 
 section of the New England States was very much im- 
 paired. 
 
 In April, 1838, the bank began to make prepara- 
 tions for resumption, and notified all its correspond- 
 ents that they must make their accounts good on or 
 before the first of July. Specie began to How into 
 the country from England, and resumption on bills of 
 five dollars and under was at once commenced. Con- 
 fidence was restored, — so much so that during the 
 first week of resumption no bank in Boston was called 
 upon for over five hundred dollar's in specie on any 
 one day, and in many banks more specie was deposited 
 than was paid out. 
 
 Notice was sent to the Merchants' Bank of Provi- 
 dence, through which the bills of the Rhode Island 
 banks were redeemed, that it must reduce its overdraft 
 to $100,000. The Suffolk Bank, soon after suspension, 
 had impressed upon the Rhode Island banks the im- 
 portance of continuing the redemption system, and 
 had offered them temporary aid to enable them to do 
 so. This oft'er had been availed of by the Merchants' 
 Bank, and its indebtedness now amounted to over 
 $350,000, much to the inconvenience of the customers 
 of the Suffolk Bank. In calling upon the Merchants' 
 Bank to reduce this amount to $100,000, Mr. Stone, 
 the President, writes : " I hope you will take measures 
 to induce the banks of your State to reduce their cir- 
 culation to their means of redeeming as early as pos- 
 sible." This the Rhode Island banks were slow to do ; 
 and in July, and again in September, Mr. Stone in- 
 
THE SUFFOLK BANK. * 31 
 
 formed the Merchants' Bank that the Suffolk was suf- 
 fering great inconvenience by the overdrafts of the 
 Rhode Island banks, and unless the amount was speed- 
 ily reduced he should send home their bills for specie, 
 of which he was much in need, as the Suffolk was then 
 redeeming for over three hundred banks; money was 
 very scai'ce, and he liad been unable for some weeks 
 to make any discounts. In December a new arrange- 
 ment was made with the Merchants' Bank, and the 
 amount of overdraft Avas fixed at ^50,000, with the 
 understanding that, if the banks of that State could 
 not keep themselves in a condition to meet this limit, 
 the Suffolk would decline to receive their bills. 
 
 Early this year the Suffolk drew its balance from the 
 United States Bank, and received in payment United 
 States Bank notes, guaranteed to be paid in specie 
 upon resumption. These notes the directors of the 
 Suffolk authorized their cashier to indorse to the 
 amount of $200,000. It also authorized him to issue 
 them ; to receive them on deposit ; and to pay them 
 in specie upon resumption. 
 
 The Suffolk Bank had now a monopoly of the foreign 
 money business ; it had paid to its stockholders an 
 annual average dividend of eight and eight-tenths per 
 cent, during the past five years ; and in September, 
 1839, it was voted to increase the capital to one mil- 
 lion dollars. At the same time an extra dividend of 
 thirty-three and one third per cent, was declared out 
 of its surplus profits; which enabled the stockholders 
 to take one new share for each three old shares held 
 by them, and pay for the same with the extra dividend. 
 In addition, a dividend of three per cent, was paid 
 the following month on the increased capital. Not- 
 
32 ■ THE SUFFOLK BANK. 
 
 withstanding the prosperity of the bank, the directors 
 at all times held its officers to the strictest accountabil- 
 ity. In October of this year an examination of the 
 bank showed a loss of 1 1,040, arising from Windsor 
 Bank notes, which the clerks in the foreign money 
 department had taken after they had been ordered to 
 throw them out. This amount Avas charged to Mr. 
 Grubb, in accordance with the terms of the agreement 
 made with him ; and the cashier was ordered to with- 
 hold two hundred dollars per mouth from his salary till 
 the amount wns paid. 
 
 In 1841 the United States issued a loan of twelve 
 million dollars, with interest at the rate of live and two 
 fifths per cent., payable quarterly. Of this amount the 
 Suffolk Bank took 1 500,000. During the year, how- 
 ever, money became very scarce, and the directors 
 adopted the policy of discounting only the shortest 
 paper, fixing their extreme limit to three montlis. In 
 a letter to the President of the Bangor Bank, who had 
 applied for a discount to enable him to make the 
 account of that bank good, the President of tlie Suf- 
 folk, under date of the twenty-fifth October, says : — 
 
 "Our discount sheet has been entirely closed for some time past; 
 and our board will not consent to discount for any one. If the water 
 ran in the Penobscot as freely as the specie has run from our vaults 
 since the first instant, you would have no difhculty in getting your 
 lumber to market. I am glad you are so situated as to hear the 
 thunder before the lightning reaches you." 
 
 By the first of December money had become so 
 scarce, and the pressure so great, that notice was sent 
 to one himdred and three banks, whose accounts were 
 overdrawn, that imless they at once made their ac- 
 counts good their bills would be sent home lor specie ; 
 
THE SUFFOLK BANK. 33 
 
 .and a vote was passed to honor the draft of no bank 
 beyond the funds to the credit of the drawer. On the 
 twenty-fifth of the month, Massachusetts bonds, payable 
 in 1858, sold at eighty-six, the lowest price then ever 
 known. 
 
 On the seventh of March, 1842, Mr. Samuel Hubbard 
 resigned the position of directoi', to take a seat upon 
 the Supreme Bench of Massachusetts. Mr. Hubbard 
 had served the bank from the beginning, twenty-four 
 years, and during that time had been its legal adviser. 
 The following correspondence shows the esteem in 
 which he was held by his brother directors : — 
 
 " To THE President and Directors of the Suffolk Bank. 
 
 "Gentlemen, — In consequence of having accepted the appoint- 
 ment to a seat on the bench of the Supreme Judicial Court of the 
 Commonwealth, it will be inconvenient for me to continue longer in 
 the direction of the Suffolk Bank. Having been a member of the 
 board from the institution of the bank to the present time, I cannot 
 retire from it without expressing my approbation of the manner in 
 which its important and complicated business is managed, and my 
 kind feelings towards all the members of the board. 
 
 " Wishing you all prosperity, I am, gentlemen, very respectfully, 
 " Your friend and servant, 
 
 " Samuel Hubbaed." 
 
 "Boston, March 28, 1842. 
 
 " Deau Sir, — Your letter of the 7th inst., addressed to the Pres- 
 ident and Directors of the Suffolk Bank, has been referred to us with 
 instructions to reciprocate on their behalf in the fullest manner the 
 feelings of personal regard which you are kind enough to express 
 towards them individually. 
 
 " For the wisdom of the counsels and the heartiness of cooperation 
 with which you have aided them during a long course of service as a 
 director ; and especially for the firmness and assiduity with which at 
 a critical period you managed the business of the institution as Presi- 
 dent, they beg leave to tender you their sincere acknowledgments. 
 
 " They still indulge the hope that you will not find it incompatible 
 
34 THE SUFFOLK BANK. 
 
 with the duties of the high office to which you have heen called to 
 allow your name to remain in the direction of the bank. As a stock- 
 holder you would not sit in any case where its interests were in- 
 volved ; and any advice you might give in important matters (and to 
 such we will limit our requisitions), could not prejudice your judicial 
 action. 
 
 " "We are with great respect, 
 
 " Very truly yours, 
 
 William Lawrencf 
 
 :ence,| ^^ 
 
 . Committee. 
 J. A. Lowell. 
 
 " Hon. Samuel Hubbard, 
 
 " Judge Supreme Court." 
 
TlIM SUFFOLK BANK. 35 
 
 CHAPTER V. 
 
 Circulation based upon specie, and loans upon 
 strictly mercantile paper, were two of the cardinal 
 principles in the directors' system of banking. This 
 is well illustrated in a letter written in 1842 to Job 
 Lyman, President of the Bank of Woodstock : — 
 
 " It appears evident from your letter of the 16th inst. that too large 
 a portion of your loan is in accommodation paper, which cannot be 
 relied upon at maturity to meet your liabilities ; and that your chief 
 reliance, or means for reducing your balance or debt at this bank, is 
 upon an expansion of your circulation, which you probably expect 
 will arise from the ' coming clip of wool in your State,' and from the 
 ' wisdom of our country assembled at Washington.' The former no 
 doubt may afford you some relief, and we hope you may be aided by 
 the latter r but the experience of the last twelve years strongly indi- 
 cates that it is not so safe a basis for circulation as gold or silver or 
 good mercantile paper. Since you are now placed at the head of the 
 institution we hope you will take measures to change the character of 
 your loan, and render it more available in case of need. 
 
 '• Your account is now overdrawn about $18,000, and if the other 
 New England banks were as much in arrears as you, it would require 
 a capital of five and a half millions to supply their wants. If the 
 United States loan should bo taken up by the capitalists of New Eng- 
 land, or exchange on England should advance one half of one per 
 cent., it would bring a severe pressure upon our money market and 
 oblige us to call for our balances. We hope, therefore, you will take 
 measures to reduce your balance immediately. Our discount sheet is 
 entirely closed, and we do not even look at the applications." 
 
 Strict justice and impartiality also governed the 
 directors in their action towards banks keeping an ac- 
 
36 THE SUFFOLK BANK. 
 
 count with them. It was always their aim to treat all 
 their correspondents alike, and to make no concessions 
 to one that they did not make to all others. Constant 
 applications were made for an allowance of interest on 
 the permanent deposits. These were invariably denied 
 on the ground that no preferences could be given. 
 
 In all the agreements made with country banks it 
 was inserted that they should make all collections in 
 their ft)wns for the Suffolk Bank free of charge, which 
 should be charged to them seven days after maturity; 
 the Suffolk Bank on its part agreeing to make all 
 their collections in Boston at par, and those elsewhere 
 at the regular rates of exchange. The country banks, 
 forgetting their agreement, and laboring under the im- 
 pression that the Suffolk Bank was making too much 
 profit out of them, would often charge a half of one 
 per cent, for making collections. This invariably led 
 to a remonstrance on the part of the Sufiblk, and sharp 
 correspondence often ensued. 
 
 In June, 1842, the Bank of Montpelier made such a 
 charge, and justified itself on the ground that the 
 charge was made, not for collecting, but for remitting 
 the proceeds to Boston. The President of the Suffolk 
 Bank says in reply : " And what is the character of 
 these proceeds ? Not specie or its equivalent, but 
 chiefly the bills of upwards of three hundred banks, 
 some of which we are obliged to send as far as from 
 here to Montpelier to collect, and at an expense of 
 more than one per cent." ; — and then in reply to cer- 
 tain remarks indicating that the old feeling against the 
 Suffolk system had not died out : — 
 
 " Your remjirks in velatiuii to the Associated Banks indicate that 
 you are under a misapprehension, as no such association has been in 
 
THE SUFFOLK BANK. 37 
 
 existence for carrying ou the foreign money business for more tli;in 
 eighteen years. The SufFollc Bank stamls upon its own responsibil- 
 ity, independent and free as tlie Baidv of jMontpelier ; and we feel 
 competent to judge of what is just and proper in our arrangements 
 with other banks. If we have been successful in our business it has 
 not been owing to the banks in your State. The loss we sustained 
 by the Windsor Bank alone was nearly equal to the amount of per- 
 manent deposits we ever received from all the other banks." 
 
 Undoubted security was likewise a paramount prin- 
 ciple controlling the directors; and so United States 
 treasury notes and Massachusetts bonds were favorite 
 investments. On the first day of April, 1844, the loan 
 of the bank amounted to $3,026,714 ; of which amount 
 $948,800 was in these securities; and a large part of 
 the balance was in demand loans to the New England 
 banks, being overdrafts bearing interest, for which the 
 bank held their circulating notes, payable on demand 
 in specie, as collateral. And herein lay the great power 
 of the Suffolk Bank. A pressure upon it from any 
 cause induced it at once to notify the debtor banks to 
 pay their overdrafts, on penalty of having their bills 
 sent home for specie. The country banks kept their 
 circulation as extended as possible for their own profit. 
 Their overdrafts on the Suffolk enabled them to do so; 
 but at the same time it put them completely into its 
 power. The weaker and the more extended they were 
 by reason of their ignorance of the principles of sound 
 banking, or their desire for large profits, the more dif- 
 ficult they found it to respond, till the time came when 
 the Suflblk discredited their bills. Then they found 
 themselves in a very uncomfortable position ; and 
 realized the truth of Poor Richard's maxim, "The 
 borrower is slave of the lender." 
 
 It must not be inferred that the Suffolk Bank en- 
 
38 THE SUFFOLK BANK. 
 
 couraged any such expansion of their circulation ; on 
 the contrary, the Suffolk Bank system was established 
 for contracting it, and all its efforts were exerted in that 
 direction. And although the overdrafts were a source 
 of profit, still its constant effort was to keep them 
 within reasonable and safe limits, and so keep their 
 circulation in the same bounds. In a letter to the 
 Eastern Bank of Bangor, the President of the Suffolk 
 says : — 
 
 " Your proposal has beeu laid before our board again to-day ; 
 but our directors decline discounting any more paper for you at 
 present. They were in hopes that the discount of $1 8,000 a few 
 days since would enable your bank to keep its account good ; but it 
 has been behind-hand again about $23,000, which they wish you to 
 cover in ; at any rate they will not consent to its being increased. 
 With the new tariff and sub-treasury staring in our ftxees we ihink 
 it unwise for the banks to expand. I can only say if all the banks in 
 New England were moving on at the same rate you are, it would 
 require more than all the capital of the banks iu this city to supply 
 their wants." 
 
 Constant warnings like the above run through all 
 the correspondence of the bank. Neither was the bank 
 willing to enter into correspondence Avith any new banks 
 for the redemption of their bills, thus giving them credit, 
 unless it was satisfied the public would be safe in taking 
 them, although itself might be reasonably secure, as in 
 all cases it required a permanent deposit for the re- 
 demption of bills, and kept the matter of overdrafts 
 entirely in its own hands. Overtures for the opening 
 of such accounts were sometimes received, but invari- 
 ably rejected. 
 
 About this time an arrangement was made with 
 bankers and others in New York State to receive from 
 them New England bills at one tenth of one per cent, 
 discount. 
 
THE SUFFOLK BANK. 39 
 
 In 1846, Mr. Grubb's salary was raised to $10,800, on 
 tlio 8;uiie terms as heretofore ; and he handed over to 
 the foreign money committee, for destruction, all the 
 counterfeit, mutilated and failed bills, etc., which had 
 been charged to his account since 1836 ; the total 
 amount was |2,442, as per the following schedule : — 
 
 Counterfeits $1107 00 
 
 Broken banks 766 00 
 
 Alterations 221 00 
 
 Specimens 89 00 
 
 Counterfeit signatures ..... 72 00 
 
 Globe Bank, Bangor 120 00 
 
 Fulton Bank, Boston 67 00 
 
 In 1847 redemptions had increased to such an extent 
 that it became almost impossible to count the foreign 
 money received daily; and large amounts had to be 
 laid aside for the next day ; thus increasing the next 
 day's labor, which frequently had to be thrown on to the 
 third day. The directors felt i^ exceedingly important 
 that each day should accomplish its own work. Accord- 
 ingly they increased Mr. Grubb's salary to $14,000 per 
 annum ; and two years later they raised it to |20,000 ; 
 at which time he handed over to them for destruction 
 the counterfeit and uncurrent bills redeemed by him 
 since 1846, amounting to $2,020. 
 
 About this time a discrepancy was discovered in the 
 accounts of the receiving teller. His book-keeping was 
 very careless ; and an examination of his books showed 
 many omissions, and frequent double credits ; besides 
 which his balances were forced. The total deficiency 
 amounted to $2,932.92. He was dismissed, and his 
 bondsmen notified to make the loss good. A settle- 
 ment was effected with them for $1,000, and the differ- 
 ence was charged to profit and loss. Early the next 
 
40 THE SUFFOLK BANK. 
 
 year a letter was received enclosing thirty-eight dollars, 
 " overpayment to a country bank some twenty years 
 ago," signed •' Conscience." This money was given lo 
 Mr. Grul)b, as it evidently belonged to the foreign 
 money department. How much the late receiving 
 teller's conscience troubled him the directors never 
 knew ; nor could they ever fidly decide whether he was 
 a knave, or whether his losses were the result of care- 
 lessness. He would have had the credit of the latter 
 opinion, had he not finally forced his balances. This 
 gave a dark look to his transactions. 
 
 On the fifteenth of June, 1849, Mr. Henry B. Stone 
 died, having served as President twenty-three years, 
 and to him, under the careful guidance and tvise counsel of 
 the foreign money committee, was due the great measure 
 of success which the bank had attained. His labors 
 were constant and persevering, and the system had 
 now so gained the support of all the sound and con- 
 servative banks of New England, that, had the Suflblk 
 given up the redemption of foreign money, a new 
 agency for candying on the work would have been 
 established. On the twenty-ninth of the same month 
 Mr. Jeffrey Richardson was elected President. He 
 had been a director since 1823, and had served on the 
 foreign money committee constantly since its estab- 
 lishment in 1825. The business of the bank continued 
 to increase so fast, that in October more space was re- 
 quired in which to conduct its operations. Accord- 
 ingly application was made to the Atlas Bank, occupy- 
 ing rooms on the second floor of the bank building, to 
 dispose of its lease, for which a bonus of one thousand 
 dollars was demanded and paid. At the same time 
 notice was given that no bills for redemption would be 
 
THE SUFFOLK BANK. 41 
 
 received unless they were assorted into two packages, 
 one containing Boston bills only, and the other the 
 issvies of other banks. At first some of the banks 
 resisted, but the firm determination of the Suftblk to 
 receive them in no other way resulted in an acqui- 
 escence on their part, without which it would have 
 been almost impossible to accomplish the daily work. 
 Notice was also given that no more redemptions would 
 be made for individuals, private bankers, or brokers. 
 
 On the fifth of Octoljer, 1850, occurred the second 
 robbery of the bank. Ou this occasion a bag of gold 
 containinor five thousand dollars had Ijeen brought in 
 from a neifrhborino; bank in settlement of a balance, 
 and placed by the messenger on the counter of the 
 teller ; his attention was called off for a moment, when 
 a man, who had probably followed the messenger for 
 the purpose, seized the bag and ran. He was at once 
 followed, but evaded the pursuit. The money was 
 never recovered, and the amount was charged to profit 
 and loss. 
 
 The average daily redemptions were now about 
 seven hundred and fifty thousand dollars, and the busi- 
 ness was very remunerative. Since the extra dividend 
 of thirty-three and a third per cent, in 1839, the bank 
 had paid dividends to its stockholders of eight per 
 cent, annually to 1847, and from 1847 to 1852 ten per 
 cent, annually, besides which it had accumulated a sur- 
 plus of $.330,000. 
 
 But this surplus was not to be divided among the 
 stockholders, as in 1839. On the twenty-third of 
 March, 1852, the book-keeper of the bank informed 
 the officers that he had received a telegram from New 
 York, advising him that his Ijrother was sick in that 
 
42 THE SUFFOLK BANK. 
 
 city, and requesting him to come on at once. Permis- 
 sion was given, and he left his post. On the morning 
 of the twenty-fourth the receiving teller did not make 
 his appearance, and during the day a message was re- 
 ceived from the New York police, informing the bank 
 that they had arrested the latter on board a steamer 
 about sailing for Europe, that the book-keeper was 
 supposed to be on board the same steamer, and asking 
 what should be done with them. This was the first 
 intimation the bank had that anything was wrong. 
 Instructions were at once sent to hold them ; and an 
 investigation of the affairs of the bank was begun, 
 when it was discovered that there was a deficiency of 
 $214,518.13. Upon the person of the teller was found 
 $5,100 in gold, which was restored to the bank. He 
 was brought to Boston for trial, and, pleading guilty, 
 received for sentence one day solitary confinement and 
 thi'ee years hard labor in the State's prison. This sen- 
 tence was not fully served out. At the expiration of 
 a year and a half he obtained a pardon, through the 
 influence of his friends. He gave up $2,661.09 belong- 
 ing to the bank, and one Rutland Eailroad bond of the 
 value of $1,014.12, besides which a check for $913.02 
 was returned to the bank which was said to belong to 
 him. The book-keeper escaped to Callao, where he 
 died, troubled in conscience for his wrong-doing. 
 
 The net loss to the bank by the rascality of these 
 two officers was $205,780.24, which was charged to the 
 surplus account. It turned out that they had been 
 extensive speculators in stocks. At one time they had 
 made more than $100,000 in Reading Railroad stock, 
 but had afterwards lost it in a corner in the stock of 
 the Canton Company. la October of the previous 
 
THE SUFFOLK BANK. 43 
 
 year, just after the semi-annual examination of the 
 bank by the directors, they began to sell stocks short 
 very heavily in New York tlirough a broker in that 
 city ; the market suddenly rose, and they were tempted 
 to take money and send it to New York to make their 
 margins good. The whole amount was stolen between 
 the two semi-annual examinations ; they knew it was 
 about time for the April examination ; that then the 
 defolcation must be discovered ; and they sought safety 
 in flight. 
 
 At the time of the teller's arrest by the officers in 
 New York they were as ignorant of the defalcation in 
 the Suffolk Bank as were the officers of that institu- 
 tion themselves. Some years previous he had been 
 employed in the Thames Bank at Norwich, in which 
 his brother-in-law was also emploj^ed. These two 
 young men had been in the habit of bringing to Bos- 
 ton the money from the Norwich banks for redemp- 
 tion ; taking the night express to Boston and return- 
 ing the next day, carrying back the currency of the 
 Norwich banks that had been redeemed by the Suffolk 
 Bank. One night while on the way to take the train 
 at Norwich, between the bank and the station the 
 brother-in-law of the teller was knocked down, very 
 badly wounded, and robbed of his valise containing 
 the money for redemption. Detectives were at once 
 put upon the track both in New York and Boston. 
 But no clue to the money or the robber was ever 
 found. Some time after he came to Boston, and found 
 employment as teller in the Suffolk Bank. From that 
 time he was " shadowed " by the Norwich detectives, al- 
 though the fact was imknown to the officers of that 
 bank ; nor had they ever known that any suspicion 
 
44 THE SUFFOLK BANK. 
 
 had attached to him. The afternoon he left Boston to 
 go to New York it was known to the detectives ; and 
 they, suspecting something wrong, hastened to New 
 York, and caused his arrest on board the steamer the 
 next morning. They supposed they had recovered 
 part of the money stolen from the Norwich Bank ; and 
 it was not until after the steamer liad sailed that they 
 discovered that the money found upon the teller did 
 not belong to the Norwich Bank, but " to the old con- 
 cern in Boston," as he expressed it. The book-keeper 
 was on board at the time, but seeing the arrest of his 
 accomplice made his escape before he was discovered 
 by the officers. 
 
 So great a defalcation would have been impossible 
 by a single officer ; but by the connivance of two the 
 affiiir was concealed for a long time ; although it must 
 necessarily have been discovered at the next semi-an- 
 nual examination of the bank by the directors. Not- 
 withstanding the magnitude of the loss, the business of 
 the bank was so prosperous that the directors felt jus- 
 tified in paying in April the usual semi-annual divi- 
 dend of five per cent. 
 
 During the summer of this year, the bank at South 
 Royalston, Vt., desired to make an arrangement with 
 the Suffialk differing from that usually made with other 
 banks. This the Suffolk, in justice to its other corre- 
 spondents, declined to do, and notified the South Royal- 
 ston Bank that, unless the usual terms were complied 
 with, it should send home for specie a large amount of 
 bills then on hand. Accordingly a messenger was sent 
 with $10,000 in bills of that bank, with orders to de- 
 mand payment in specie. Instead of paying, by some 
 process of Vermont law the bills were attached and 
 
THE SUFFOLK BANK. 45 
 
 the messenger put under arrest. A novel way of pay- 
 ing one's promises ! A writ of replevin was at once 
 taken out, and the attachment dissolved. At the same 
 time notice was given that no more bills of the South 
 Eoyalston Bank would be received by the Suffolk. At 
 the request of the other banks in Vermont the diffi- 
 culty was finally adjusted, the South Eoyalston Bank 
 accedino; to the usual terms. 
 
 In 1853 it was found necessary again to increase the 
 appropriation for the foreign money department. Mr. 
 Grubb's salary was raised to f 24,000 per annum, and 
 a gratuity of $1,700 was divided among the officers of 
 the banking department for their assistance in the for- 
 eign money department during the past year. 
 
46 THE SUFFOLK BANK. 
 
 CHAPTER VI. 
 
 The banks of New England were divided into two 
 classes : those keeping a deposit with the SuiFolk Bank 
 and redeeming their bills at its counter ; and those 
 which kept an account with some other Boston bank, 
 with which an arrangement Avas made for the redemp- 
 tion of their bills. The Suffolk Bank did not require 
 the New England banks to keep a deposit with it as 
 a condition precedent to receiving their bills at par. 
 On the contrary, it received at par the bills of all sound 
 New England banks, whether they kept an account 
 with it or not. It only required that they should re- 
 deem their bills at some convenient place on penalty 
 of having them sent home for specie. 
 
 For the bills of the former class of banks the Suffolk 
 had security in the form of deposits and collections. 
 For the bills of the other class it had no security ex- 
 cept the good faith of the banks acting as their agents, 
 and to which it charged and sent daily all the bills for 
 the redemption of which they were responsible. As 
 these could not be sent till the day after they were re- 
 ceived, the Suffolk Bank was actually taking the risk 
 of redemption on all this class of bills for one day with- 
 out any security; and should any of these banks fail 
 it had no positive assurance that the redeeming bank, 
 with which such failed bank kept an account, would 
 receivefromu it the bills it might have in hand. 
 
THE SUFFOLK BANK. 47 
 
 Early in 1853 the Eastern Bank of West Killingly 
 and the Woodbiny Bank of Connecticut got into 
 trouble, and the Boston bank with which they kept 
 their accounts, and which acted as their agent, de- 
 clined to receive from the Suffolk the bills of these 
 two banks which it had on hand. The directors at 
 once instructed the cashier to send the following cir- 
 cular to those banks in Boston which acted as agents 
 in redeeming the bills of country banks : — 
 
 " Suffolk Bank, Boston, March 21, 1853. 
 " To THE President and Directors of the Bank. 
 
 "Gentlemen, — In receiving at par the bills of New England 
 banks we have not required that they should keep their accounts with 
 us, but have given them the option of keeping them in other banks 
 in Boston. It is obvious, however, that in such cases we must rely 
 for our security upon the assurance, expressed or implied, that those 
 Boston banks which act as agents in paying the bills of other banks 
 would continue to redeem the bills taken by us in our regular busi- 
 ness until after notice to the contrary. Without such assurance, the 
 collections and deposits, in other words, all the security, would be 
 in the hands of one party, while all the risk was incurred by the 
 other. 
 
 " We cannot believe that any other interpretation of the existing 
 arrangements could be seriously contemplated ; but to preclude any 
 possible doubt, we take the liberty of stating in terms, that we re- 
 ceive the bills of all those country banks, that are sent into other 
 Boston banks for redemption, for account and at the risk of such 
 Boston banks until after notice shall be given to us of their inten- 
 tion to discontinue such redemption. 
 
 " If you have any bank accounts that you cannot continue on these 
 terms, please advise us of such bank, that we may either discontinue 
 receiving their bills, or notify them that a different arrangement 
 must be made. Respectfully yours, 
 
 " I. C. Brewer, Cashier." 
 
 To this circular very few of the banks made any 
 reply. By their silence they accepted it as a notice 
 
48 THE SUFFOLK BANK. 
 
 from the Suffolk Bank, by the terms of which they 
 were to be bound in future transactions. The Ex- 
 change Bank of Boston sent a pi'otest decHning to be 
 bound by its requirements. This bank had the ac- 
 counts of some twenty country banks, and was acting 
 as their agent. Unless the Exchange Bank complied 
 with the terms of the circular the Suffolk must throw 
 out the bills of all these banks. Before doing so, how- 
 ever, it sent a letter to each of the country banks, cor- 
 respondents of the Exchange, making a plain state- 
 ment of the ficts. The country banks were naturally 
 very much displeased at the action of the Exchange 
 Bank. They regarded it as a want of confidence in 
 their credit, and ten or more of them at once trans- 
 ferred their accounts to the Suffolk. 
 
 About this time an effort was being made to estab- 
 lish a bank in opposition to the Suffolk. As yet it had 
 met with no favor from the Boston banks. Its princi- 
 pal suppox'ters had been out of town banks, who for 
 one reason or another had become prejudiced against 
 the Suffolk. But now the enterprise was joined by 
 the Exchange Bank, which felt itself aggrieved at the 
 action of the Suffolk, and all its influence was exerted 
 to carry the project to a successful termination. This 
 was not accomplished till some years later. But there 
 is little doubt that the circular the twenty-first of 
 March was one of the remote caiises which led to the 
 establishment of the Bank of Mutual Redemption. 
 
 The country banks opposed to the Suffolk naturally 
 exerted their powers to annoy it, and sometimes they 
 were very ingenious. One of the most strenuous op- 
 ponents of the Suffolk Bank system was the Veazie 
 Bank of Bangor. Through its instrumentality a law 
 
THE SUFFOLK BANK. 49 
 
 was passed in Maine giving the banks of that State a 
 certain delay, after demand at their counters, in which 
 to redeem their bills in specie. The Veazie Bank 
 availed itself of the time allowed, which it used to the 
 annoyance of the Suflblk Bank. Having received in 
 the regular course of its business a quantity of Veazie 
 Bank notes, the Suffolk Bank would send a messenger 
 to Bangor and demand specie for the same. The bank 
 would acknowledge the demand and claim the lawful 
 delay. In the mean time it would collect Boston funds 
 and send them to a well-known Boston broker, who, 
 himself no friend of the Suffolk Bank, would take 
 great pleasure in exchanging them in one way and an- 
 other for checks on that bank. He would then pre- 
 sent himself at the bank, demand specie for his checks, 
 and with the coin thus obtained pay it for the bills for 
 which it had demanded specie some days before : in 
 short, not only requiring the Suffolk Bank to hold the 
 bills of the Veazie Bank for a certain specified time, but 
 at the end of that time to furnish specie for their re- 
 demption. 
 
 On the twenty-fifth of July, 1853, the cashier, Mr. 
 I. C. Brewer, tendered his resignation, having served 
 the bank in this capacity sixteen years, and having 
 been in its employ thirty years. His resignation waa 
 accepted, his salary continued to the end of the year, 
 and he was invited to visit the bank from time to time, 
 as his convenience might enable him, and render such 
 assistance to the new cashier as he might find agree- 
 able. On the sixth of August, Mr. Edward Tyler was 
 elected in his stead, and on the first of September he 
 entered upon the duties of the office. 
 
 The receipts of foreign money were now so large 
 
50 THE SUFFOLK BANK. 
 
 that it was impossible to finish the daily counting and 
 assorting till nearly midnight. To expedite matters, a 
 circular was sent to the Boston banks to the effect that 
 no New England money would be received from them 
 later than twelve o'clock each day. This was found 
 necessary because many of the Boston banks did not 
 make their deposits till nearly three o'clock, and the 
 redemptions on some days amounted to almost a mil- 
 lion dollars. The banks demun-ed, and a modification 
 was made whereby they were allowed till one o'clock 
 to send in their foreign money ; and that whicli they 
 received between one and two o'clock they sent in to 
 the Suffolk the next morning ; for this it gave them 
 Suffolk funds paj'able that day. 
 
 During this year it was deemed expedient to make 
 extensive alterations in the interior of the bank build- 
 ing for the use of the foreign money department, and 
 the matter was put in charge of the President. At 
 the annual meeting in October, Mr. Richardson ac- 
 cepted a reelection with much reluctance, as his health 
 was not good, and he felt that he should necessarily 
 be absent from his duties much of the time. The di- 
 rectors, however, prevailed upon him to continue in 
 office, and appointed Mr. William W. Tucker to attend 
 to the aflairs of the bank during his absence. 
 
 In April, 1854, his health still failing him, Mr. Rich- 
 ardson sent in his resignation, and Mr. J. Amory Davis 
 was elected in his stead. Upon accepting the resigna- 
 tion a vote was passed recognizing the high sense en- 
 tertained by the directors of the value of Mr. Richard- 
 son's long, faithful, and efficient services as President 
 and director ; and, at the same time, a committee was 
 appointed to make some suitable acknowledgment to 
 
THE SUFFOLK BANK. 51 
 
 Mr. Richardson for his extra labor in superintending the 
 alterations in the building for the use of the foreign 
 money department, to which he had given much at- 
 tention. This same committee was also charged with 
 the duty of making a like recognition of the value of 
 Mr. Tucker's services in attending to the duties of the 
 Pi'esident during his absence on account of sickness. 
 In accordance with these votes a silver vase was pre- 
 sented to Mr. Tucker, and three pieces of plate — 
 pitcher, vase, and salver — to Mr. Richardson. 
 
 Soon after the election of the new President, Mr. 
 Grubb laid before the directors a statement of the ex- 
 penses of the foreign money department, showing them 
 to have been f 31,600 for the year, including his deficit 
 at the time his salary was raised to ^24,000. Accord- 
 ingly, it was voted to pay Mr. Grubb $7,600 to make 
 up to him the deficit to date, and to fix the salary for 
 the present at f 27,000 per annum. Six months later 
 the business had increased to so great an extent that 
 it became necessary to appropriate |30,000 for the an- 
 nual expenses of the department, and to make prep- 
 aration for the enlargement of the premises occupied 
 by it. 
 
 The sum of $8,000 was collected this year from the 
 bondsmen of the late defaulting teller, in addition to 
 which he himself returned $1,200. 
 
 In December, 1854, Mr. Grubb informed the direc- 
 tors that the losses in his department from the fifth of 
 October, 1853, to the second of August, 1854, had 
 amounted to $11,098, in addition- to which there were 
 unsettled claims of various banks aggregating $2,200. 
 This department now employed seventy clerks ; and the 
 accommodations were such that the countinor and as- 
 
62 THE SUFFOLK BANK. 
 
 soi'ting could not be carried on in one room, under the 
 eje of a single overseer. The directors at once took 
 the matter in hand, and instituted a private examina- 
 tion of each member of the department. They also 
 made a careful inquiry into every suspicious circum- 
 stance that had come to their knowledge, but they 
 failed to fix any guilt upon any employe. They 
 found the character of most of the clerks to be unex- 
 ceptionable. Six, however, whose habits were calcu- 
 lated to invite suspicion, were discharged ; but even 
 in these cases there was no actual evidence of dis- 
 honesty. 
 
 In December, 1855, the difficulties attending the 
 business had become so great that the propriety of 
 giving up the whole system or of dividing the business 
 between two banks was seriously discussed. After 
 much earnest consideration of the matter it was finally 
 decided to continue as before, and for that purpose to 
 enlarge the building. Accordingly, a committee was 
 appointed to petition the Legislature for leave to in- 
 crease the investment in real estate. The petition was 
 granted by the Senate, but rejected by the House. To 
 obtain enlarged accommodations the rear land was 
 leased to the National Insurance Company, who erected 
 a building thereon and leased the same to the bank for 
 a term of ten years ; at the expiration of which time, 
 the lease to the insurance company expiring, the build- 
 ings would belong to the bank. At the same time the 
 building on State Street was improved and made fire- 
 proof at an expense of |38,493.G8, which was charged 
 to profit and loss. 
 
 In order to give the clerks in the foreign money 
 department a pecuniary interest in securing the utmost 
 
THE SUFFOLK BANK. 53 
 
 accuracy ami fidelity m its business, a fund was created 
 for tlieir|benefit. To this fund {"ivti thousand dollars 
 was to be credited annually, and to it were to be 
 charged the losses in the department, and the interest 
 of the balance was to be divided among the clerks. 
 But the losses more than countei'balanced the fund, 
 and nothing was gained to them. Premiums for accu- 
 racy were also tried, but the losses still continued. In 
 October, 1855, |14,211.27 was paid on this account, 
 and in October, 1856, |7,728.06. That these losses 
 were not always attributable to dishonesty is evidenced 
 by the' fact that on one occasion, shortly after there 
 had been a loss in tliis department of $2,929, the 
 President received through the post-office an envelope 
 inclosing the same amount, with a memorandum at- 
 tached, " Lost by carelessness." 
 
 In July, 1857, $40,000 was appropriated for the ex- 
 penses of the foreign money department. This was the 
 largest amount that was ever appropriated for the 
 business. The redemptions for the year amounted to 
 1400,000,000. This amount, for New England alone, 
 is nearly double the amount redeemed for the whole 
 United States for the fiscal year 1876-77, by the Re- 
 demntion Bureau at Washington, under the United 
 States Bank Act. This department, during that year, 
 redeemed $214,361,300 at an expense of $167,704.05, 
 as follows : — 
 
 For salaries $150,695 68 
 
 Printing and binding .... 6,604 30 
 
 Stationery 3,818 10 
 
 Postage 3,716 66 
 
 Contingent expenses ..... 2,869 31 
 
 $167,704 05 
 
54 THE SUFFOLK BANK. 
 
 showing the cost of assorting and counting the bills by 
 the United States to have been over seventy cents per 
 $1,000 for salaries alone, while the Suffolk Bank' as- 
 sorted and counted $400,000,000 in 1857 at an expense 
 for salaries of |40,000, or ten cents per $1,000; the 
 United States Redemption Bureau thus expending 
 seven times as much as did the Suffolk Bank to do the 
 same work. It is true that the United States Bureau 
 assorts and counts the bills of two thousand banks; 
 while the Suffolk assorted and counted the bills of live 
 hundred banks only. But this is counterbalanced by 
 the fact that all the national banks are numbered and 
 the notes of each bear across their ftice a number in red 
 ink twice imprinted, indicating the number of the bank, 
 so that they can be readily and easily assorted by num- 
 bers ; while the Suffolk Bank was obliged to assort by 
 names, a much more difficult and tedious task. The 
 national bank notes are moreover printed from sim- 
 ilar plates and on the same quality of paper, all fur- 
 nished by the Comptroller of the Currency, making it 
 easy to detect counterfeits and altered bills ; while the 
 notes which the Suffolk Bank counted and assorted 
 were printed from almost as many plates, and on as 
 various qualities of paper, as there were banks. 
 
 The expense of the Redemption Bureau at Wash- 
 ington has to be borne by the national banks, in addi- 
 tion to keeping with the Treasurer at Washington a 
 permanent deposit equal to five per cent, of the entire 
 circulation of the banks, a greater permanent deposit 
 proportionately than was required by the Suffolk Bank, 
 for the use alone of which it was contented to bear 
 all the expense, and take all the risk of redemption ; 
 a risk which, so fiir as the United States Treasurer is 
 
THE SUFFOLK BANK. 55 
 
 concerned, is nothing, as he has collateral security in 
 his hands for all redemptions in the form of United 
 States bonds at ninety cents on the dollar. 
 ( If the local banks of New England had any just 
 cause of complaint against the Suffolk Bank and its 
 system, well might the national banks of to-day pro- 
 test against the expenses of the Redemption Bureau. 
 That no such protest is made may be attributed to the 
 useful lessons taught by the Suffolk Bank, namely, 
 that the bank currency of a country, to be sound and 
 healthy, must be redeemable at some central point; 
 that the more certain the community is of its redemp- 
 tion upon demand the more widely it will circulate, 
 thus benefiting both the banks and the public ; and 
 that consequently the banks should complain of no 
 reasonable expense that will accomplish so desirable 
 an object. The history of the Suffolk Bank amply 
 proves that such a purpose might be effected by pri- 
 vate enterprise at less expense, and yet with as much 
 safety to the public. 
 
 During the five yeai's preceding 1857 a large in- 
 crease of banks took place in New England. In 1852 
 the number was three hundred and sixty-one, and in 
 1857, five hundred and four. Speculation was ram- 
 pant, merchandise of all kinds had advanced in price, 
 and the bank loans were very high, while the specie 
 reserve was low, being less than nine per cent, of the 
 circulation and deposits. The loans had increased 
 from $147,839,000 in 1852 to |192,450,000 in 1857; 
 so that the banks were in a very poor condition to 
 withstand the panic which then took place. The 
 directors of the Suffolk Bank had prepared them- 
 selves to meet the coming crisis, and had reduced their 
 
56 THE SUFFOLK BANK. 
 
 loans from |2,009,646.69 on the first day of April, to 
 $1,409,641.74 on the first day of October. On the 
 third of the month they voted to hold daily meetings, 
 and on the fourteenth, in common with the other 
 banks, and in accordance with the recommendation of 
 the clearing house, they voted to suspend specie pay- 
 ments, recording the following vote : — 
 
 " That specie payments be suspended by this bank for a season ; 
 but that the business be conducted with reference to a resumption at 
 the earliest practicable time ; and that in the opinion of tliis board 
 specie payments might and would have been continued in Boston but 
 for the unfortunate action in New York." 
 
 In common with the other banks the Suffolk re- 
 sumed the following year. 
 
 Early in October, before the suspension, when the 
 pressure on the banks was very great, a committee 
 from the banks of Springfield, Massachusetts, fearing 
 that the Suffolk would throw out the bills of some of 
 the banks in the western part of the State, waited upon 
 Mr. J. Amory Davis, the President, asking the Sufiblk 
 Bank to sustain the banks in Springfield. Tlie matter 
 was referred to the directors, who voted that the Presi- 
 dent reply to the committee that — 
 
 "At the present time there is no intention to strike off any partic- 
 ular bank in Springfield, or elsewhere in the western part of the 
 State ; but tliat it is impossible for the Suffolk Bank, in justice to it- 
 self, or the country or city banks of New England, to pledge itself to 
 sustain any one bank or class of banks ; that it must judge in each 
 particular case as it may arise what it may be its duty to do ; and 
 further, that it is disposed to continue the same liberality in general 
 to the country banks which the committee has so handsomely ac- 
 knowledged has been its practice heretofore." 
 
THE SUFFOLK BANK. 57 
 
 CHAPTER Vir. 
 
 There had now for some years been a growing im- 
 pression that the redemption of foreign money was 
 very profitable to the Suffolk Bank ; and the country 
 banks felt that an agency might be established in Bos- 
 ton, in the profits of which, as stockholders, they might 
 share. There was also the old feeling of ill-will among 
 the weak banks, which had been compelled to keep 
 their circulation within bounds. These were glad to 
 join any enterprise which, while offering the prospect 
 of more liberal terms and at the same time of profit, 
 would do anything towards checking the prosperity of 
 the Suffolk, and breaking up what they considered an 
 unjust monopoly. 
 
 Accordingly, an application was made to the Legis- 
 lature, and in 1855 a charter was granted to the Bank 
 of Mutual Redemption. This bank did not go into 
 operation till 1858 ; and then, so firmly grounded in 
 the good opinion of the Boston banks was the Suffolk 
 system, it met with great opposition, not only from 
 the Suffolk Bank, but also from the other banks con- 
 nected with the clearing house, which denied it ad- 
 mission to that association. 
 
 Many of the country banks interested in the Mut- 
 ual Redemption at once withdrew their permanent 
 deposits from the Suffolk, and requested it to send any 
 
58 THE SUFFOLK BANK. 
 
 bills of tlieii' issue which might come into its posses- 
 sion to the new bank for redemption. This the Suf- 
 folk declined to do, because the new bank kept no 
 permanent deposit with it ; and consequently it could 
 not receive current money from it in exchange with- 
 out giving it an advantage over the Boston banks, 
 which paid for the privilege by a deposit ; thus doing 
 for the Mutual Redemption gratuitously what all the 
 other banks paid it for doing, and so virtually break- 
 ing up the system. 
 
 Much confusion was naturally the result, and be- 
 tween the two stools some of the country banks feared 
 they might come to the ground. Having withdrawn 
 their permanent deposit from the Suffolk, and that 
 bank declining to send their bills for redemption to the 
 new bank, they were anxious lest it should send them 
 home and demand specie. Not keeping an account 
 with the new bank, and the Suffolk declining to receive 
 current money from it, they were fearful that the 
 Bank of Mutual Redemption would send their bills 
 home for the same purpose. 
 
 Finally, after much correspondence between the two 
 banks, an understanding was arrived at on the ninth of 
 March, 1859; each bank agreeing to receive from the 
 other such bills as either might receive in the regular 
 course of the business of banks keeping an account 
 with it. This arrangement was continued till the 
 twenty-second of March, 1860, when it was broken 
 off on account of a disagreement as to when the re- 
 sponsibility on the redeemed bills of the Rhode Island 
 banks should cease. 
 
 In the mean time, about one half of the banks in 
 New England had transferred their accounts to the 
 
THE SUFFOLK BANK. 59 
 
 Bank of Mutual Ecdemption ; and on the first of 
 November, 1858, the Suffolk discontinued the reg- 
 ular business of counting and assorting countrj'' money. 
 It signified, however, its willingness to I'eceive such 
 money at the rate of twenty-five cents per thou- 
 sand dollars; and many of the Boston banks made an 
 arrangement with it on this basis. It also continued to 
 receive from country banks, which kept a satisfactory 
 account with it, such country money as they might 
 have occasion to send it in the way of remittance. 
 This business it continued till 1866, and elected annu- 
 ally a foreign money committee to take charge of it. 
 
 In giving up the business the directors made the 
 following record : — 
 
 " The Suffolk Bank lias had for many years no motive beyond that 
 of securing to the community a continuance of the acknowledged 
 benefits of the system. The labor, expense, and risks of the business 
 have been equal to any remuneration received from the use of the 
 deposits. We cannot consent any longer to have the bank placed in 
 the position, as is charged against us, of carrying on the business 
 merely for its profits ; iior can we be expected to stand out against 
 public opinion, prejudiced and excited, in sustaining a system, how- 
 ever beneficial to the public, after it has become uuremunerative and 
 hazardous to the stockholders of the bank. If public sentiment is 
 now against it, and if it is less appreciated by the trading community 
 and the city banks than heretofore, the cause is not to be found in the 
 mode of pursuing it. The time has arrived for surrendering our 
 agency in the system as heretofore conducted. Our responsibility in 
 it must cease, because its main feature, the right to send home bills 
 for specie, cannot be given up without destroying its efficacy ; because 
 our exercise of this right is effectually made use of by those hostile 
 to the Suffolk Bank system to place the bank in a false attitude be- 
 fore the public ; and because, under existing circumstances, the bank 
 does not wish to stand in the way of a trial of the attempted experi- 
 ment of a foreign money system to be conducted on less stringent 
 principles." • 
 
60 THE SUFFOLK BANK. 
 
 y '-It was the underlying principle of the Suffolk Bank 
 system that any bank issuing circulation should keep 
 itself at all times in a condition to be able to redeem 
 it ; that it should measure the amount by its ability so 
 to do ; and that the exercise at any time of the right 
 to demand specie of a bank for its bills was some- 
 thing of which the issuing bank had no right to com- 
 plain. The directors enunciated this principle when 
 they first entered into the foreign money business, in 
 their controversy with the agent of the Springfield 
 Bank in 1824 ; they acted upon it during the whole 
 existence of the system, and they gave up the business 
 because the exercise of the right was made use of 
 effectually, by banks hostile to the sj-stem, to place the 
 Suffolk in a false position before the public?) Yet the 
 bank had not labored in vain : it found the currency of 
 New England in a chaotic state ; but by putting this 
 principle into practice it had brought order out of con- 
 fusion, and had compelled the banks to keep them- 
 selves stronger than tlaey otherwise would, and to live 
 up to a principle the justice of which they could not 
 deny, although the practice of it might cause them to 
 forego some seeming immediate profits: and to this 
 latter cause must be attributed much of the hostility 
 it provoked. 
 
 The directors of the Suffolk Bank were not only 
 just in their dealings with the other banks, but were 
 patriotic in the hour of their country's need. On the 
 seventeenth of April, 1861, the day after the Massa- 
 chusetts regiments of militia left Boston to relieve 
 Washington, then threatened by an invasion from the 
 seceded States, they voted to advance the Governor of 
 the Commonwealth $100,000, " to be used in the pres- 
 
THE SUFFOLK BANK. 61 
 
 ent emergency, and subject to the future approval of 
 the Legislature " ; also to purchase of the Secretary of 
 the Treasury, at Washington, a like amount of United 
 States six per cent. Treasury notes at par. Three 
 days after, J. Henry Williams, one of the clerks, left 
 for active duty with the militia of the State, and the 
 bank presented him with one hundred dollars towards 
 his outfit. 
 
 On the twenty-fourth of July, the bank loaned the 
 General Government $100,000 for sixty days; and on 
 the nineteenth of August voted it expedient to take 
 its proportion of the ten million national loan assigned 
 to Boston, under the proposed arrangement between 
 the Secretary of the Treasury and the banks of New 
 York, Philadelphia, and Boston. On the fifth of Octo- 
 ber it again subscribed its proportion to a loan of fifty 
 millions to the Government ; on the twentieth of No- 
 vember it took United States twenty-year bonds to 
 the amount of $300,000; and in Septembei", 1863, it 
 subscribed $250,000 towards the new loan, being its 
 full proportion. About this time leave of absence was 
 granted to Charles L. Holbrook, the book-keeper, who 
 had been connnissioned Colonel of the Forty-third 
 Massachusetts Regiment of Volunteers. In the case 
 of four other officers of the bank, who had been 
 drafted, substitutes were furnished on account of their 
 valuable services. The directors also voted six months' 
 back pay to the officers who had served in the army, 
 and afterwards returned to duty. 
 
 In May, 1862, Mr. Grubb died, after having served 
 the bank as principal officer of the foreign money de- 
 partment for nearly forty years; and the directors 
 placed on record their appreciation of his services as a 
 
62 THE SUFFOLK BANK. 
 
 most faithful, able, and judicious officer. He was suc- 
 ceeded by Mr. Eli E. Russell, who had been in the em- 
 ploy of the bank twenty-nine years. Mr. Russell con- 
 tinued in charge of the redemption department till 
 the twenty-fifth of April, 1866, when, the expenses of 
 the department becoming much in excess of its earn- 
 ings, a committee was appointed " to discontinue the 
 present system of redemption at the earliest practicable 
 moment." Accordingly, the clerks in this department 
 were discharged, and paid to the first of September. 
 Mr. E. E. Russell, the chief, received a grant of one 
 thousand dollars and pay to the first of October, hav- 
 ing been in the employ of the bank thirty-three years. 
 Like gratuity and pay were also given to D. H. Bel- 
 knap and W. B. Sherman, who had been in the depart- 
 ment forty years and seventeen years respectively. 
 
THE SUFFOLK BANK. 63 
 
 CHAPTER VIII. 
 
 In June, 1864, the present National Bank Act was 
 passed ; and on the first of January following the bank 
 organized under that Act as the Suifolk National Bank, 
 by which name it is now known. A dividend of $128 
 per share was paid to the stockholders, in addition to 
 which they received one share in the new national 
 bank for each share held by them in the old bank. 
 At the same time the capital of the new bank was 
 increased from $1,000,000 to $1,500,000, and each 
 stockholder had the privilege of taking one new share 
 for each two shares held before. 
 
 On the fifth of May, 1865, Mr. J. Amory Davis, the 
 President, died, and on the twenty-fourth of June Mr. 
 Nathaniel Hooper was elected to fill the vacancy. Mr. 
 Hooper took the position temporarily only, and on the 
 thirty-first of January, 1866, resigned, and Mr. Samuel 
 W. Swett was elected. 
 
 The redemption of foreign money being now at an 
 end, the bank turned its attention to the regular busi- 
 ness of discounting mercantile paper. It retained the 
 accounts of a large number of New England banks, 
 which had been its correspondents under the old sys- 
 tem. On these accoimts interest was paid. Its suc- 
 cess was marked, till the panic of 1873, having paid 
 an average dividend of nine and three eighths per 
 cent, per annum, and accumulated a surplus of two 
 
64 THE SUFFOLK BANK. 
 
 hundred thousand dollars since its incorporation as a 
 national bank. The panic found it in a strong condi- 
 tion ; and it was able to meet all its liabilities, without 
 being obliged to resort to clearing-house certificates 
 by the pledge of its securities. 
 
 Since 1873, by reason of the low rates of interest 
 and the heavy burden of taxes, it has been obliged to 
 reduce its dividends first to eight per cent, and subse- 
 quently to six per cent, per annum. 
 
 On the thirty-first of January, 1874, Mr. Swett re- 
 signed on account of ill health, having served as Presi- 
 dent just eight years ; and Mr. Henry Austin Whitney 
 was chosen in his place. He occupied the position but 
 two years, when he resigned to take the presidency 
 of the Boston and Providence Railroad. Mr. Swett 
 again held the position temporarily till the first of 
 April, 1876, when the office was filled by the election 
 of the present incumbent. 
 
APPENDIX. 
 
OFFICERS 
 
 OF 
 
 THE SUFFOLK BANK, 
 
 FROM APRIL 1, 1818, TO DECEMBER 31, 1864. 
 
 Ebenezer Francis . 
 Samuel Plubbard . 
 Henry B. Stone 
 Jeffrey Richardson 
 J. Amory Davis 
 
 Matthew S. Parlier 
 Isaac C. Brewer 
 Edward Tyler . . 
 
 PRESIDENTS. 
 
 April, 1818, to April, 1825. 
 
 April, 1825, to November, 1825. 
 
 November, 1825, to June, 1849. 
 
 June, 1849, to April, 1854. 
 
 April, 1854, to December, 1864. 
 
 CASHIERS. 
 
 . April, 
 
 February, 
 . August, 
 
 1818, to February, 1837. 
 1837, to August, 1853. 
 1853, to December, 18G4. 
 
 FOREIGN MONEY COMIOTTEE. 
 
 John Amory Lowell . 
 Jeffrey Richardson 
 William Lawrence 
 Ebenezer Breed . . 
 Henry B. Stone . . 
 William W. Tucker . 
 J. Wiley Edmands 
 Samuel Frothingham, Jr 
 J. Amory Davis . . 
 Frauds Curtis . . 
 James S. Amory . . 
 
 April, 
 
 April, 
 
 April, 
 
 April, 
 
 November, 
 
 October, 
 
 October, 
 
 October, 
 
 April, 
 
 October, 
 
 January, 
 
 1825, to 
 1825, to 
 1825, to 
 1825, to 
 1825, to 
 1847, to 
 1849, to 
 
 1853, to 
 
 1854, to 
 1853, to 
 1865, to 
 
 January, 
 
 January, 
 
 October, 
 
 October, 
 
 June, 
 
 November, 
 
 December, 
 
 January, 
 
 May, 
 
 January, 
 
 January, 
 
 1867 
 1867. 
 1848. 
 1839. 
 1849. 
 1854. 
 1852. 
 1867. 
 1865. 
 1865. 
 1867. 
 
DIRECTORS 
 
 of 
 
 THE SUFFOLK BANK, 
 
 FROM APIUL 1, 1818, TO DECEMBER 31, 1864. 
 
 Ebenezer Breed . . 
 
 . . February, 
 
 1818, to October, 
 
 1839 
 
 Andrew Ritchie . . . 
 
 . . February, 
 
 1818, to October, 
 
 1818 
 
 Thomas Motley . . . 
 
 f February, 
 ( October, 
 
 1818, to October, 
 1820, to October, 
 
 1818 
 1822 
 
 Samuel Hubbard . . 
 
 . . February, 
 
 1818, to March, 
 
 1842. 
 
 
 / February, 
 
 1818, to October, 
 
 1820 
 
 John W. Boott . . . 
 
 . . } April, 
 
 1822, to October, 
 
 1822 
 
 
 ' . January 
 
 1826, to October, 
 
 182G 
 
 Daniel P. Parker . . 
 
 . . February, 
 
 1818, to October, 
 
 1822 
 
 William Lawrence . . 
 
 . . F"ebruary, 
 
 1818, to October, 
 
 1848. 
 
 Eliphalet "Williams . . 
 
 . . February, 
 
 1818, to October, 
 
 1818 
 
 Edmund Muuroe . . 
 
 . . February, 
 
 1818, to October, 
 
 1818. 
 
 Patrick T. Jackson . 
 
 . . February, 
 
 1818, to October, 
 
 1822 
 
 Ebenezer Francis . . 
 
 < February, 
 ( October, 
 
 1818, to October, 
 1837, to October, 
 
 1832 
 1838 
 
 George Bond . . . 
 
 . . February, 
 
 1818, to October, 
 
 1837 
 
 William Appleton . . 
 
 . . October, 
 
 1818, to October, 
 
 1822 
 
 Samuel Appleton . . 
 
 . . October, 
 
 1819, to October, 
 
 1820 
 
 William Lander . . . 
 
 . . October, 
 
 1819, to Novembei 
 
 ,1825 
 
 Nathaniel P. Russell . 
 
 ( October, 
 ( April, 
 
 1819, to October, 
 1822, to October, 
 
 1820 
 
 1848 
 
 John Belknap . . • 
 
 f October, 
 
 1820, to December 
 
 1825 
 
 ( October, 
 
 1832, to October, 
 
 1854 
 
 Kirk Boott .... 
 
 . . October, 
 
 1820, to October, 
 
 1822 
 
 Joseph Baker . . . 
 
 . April, 
 
 1822, to October, 
 
 1839 
 
THE SUFFOLK BANK. 69 
 
 George Searle April, 1822, to October, 1822 
 
 John Amory Lowell . . . October, 1822, to December, 1864. 
 
 Nathan Appleton .... October, 1822, to January, 1823. 
 
 Aaron Baldwin October, 1822, to October, 1823. 
 
 Jeffrey Richardson .... January, 1823, to December, 1864. 
 
 James Means October, 1823, to October, 1842. 
 
 Henry B. Stone November, 1825, to June, 1849. 
 
 Benjamin R. Nichols . . . October, 1826, to October, 1848. 
 
 Amos A. Lawrence . . . October, 1838, to October, 1855. 
 
 Joseph Balch October, 1839, to October, 1850. 
 
 Ebenezer Chadwick . . . October, 1841, to October, 1852. 
 
 J. Wiley Edmands . . . f O^^'o^^e'-. 1842, to December, 1852. 
 
 ( November, 1855, to December, 1864. 
 William W. Tucker . . f October, 1843, to October, 1855. 
 
 (.November, 1856, to December, 1864. 
 
 William Gray October, 1848, to May, 1852. 
 
 Nathaniel Hooper .... October, 1848, to December, 1864. 
 Edward D. Peters .... October, 1848, to October, 1856. 
 Edward Austin | ^^'ober, 1849, to May, 1852. 
 
 (.November, 1854, to December, 1864. 
 
 Francis Curtis May, 1852, to October, 1864. 
 
 Samuel Frothingham, Jr. . May, 1852, to December, 1864. 
 
 Charles Amory October, 1852, to December, 1864. 
 
 Thomas A. Goddard . . . November, 1853, to December, 1864. 
 
 J. Amory Davis February, 1854, to December, 1864. 
 
 Francis B. Crowninshield . November, 1856, to December, 1864. 
 James S. Amory .... November, 1864, to December, 1864. 
 Samuel W. Swett .... November, 1864, to December, 1864. 
 
DIVroENDS 
 
 THE SUFFOLK BANK, 
 
 FROM APRIL, 1, 1818, TO DECEMBER 31, 1864. 
 
 1818. 
 
 1819. April, 3 J- per cent. 
 
 1820. April, 3^ per cent. 
 
 1821. April, 2^ per cent. 
 
 1822. April, 2^^ per cent. 
 
 1823. April, 2^ per cent. 
 
 1824. April, 2^ per cent. 
 
 1825. April, 3 per cent. 
 
 1826. April, 2^ per cent. 
 
 1827. April, 3 per cent. 
 
 1828. April, 3 per cent. 
 
 1829. April, 3 per cent. 
 
 1830. April, 3 per cent. 
 
 1831. April, 3 per cent. 
 
 1832. April, 3 per cent. 
 
 1833. April, 3 per cent. 
 
 1834. April, 4 per cent. 
 
 1835. April, 4 per cent. 
 
 1836. April, 4 per cent. 
 
 1837. April, 5 per cent. 
 
 1838. April, 4 per cent. 
 
 1839. April, 5 per cent. 
 
 1839. September, extra div 
 
 1840. April, 4 per cent. 
 
 October, H per cent. 
 October, 3h per cent. 
 October, 3^ per cent. 
 October, 3 per cent. 
 October, 2i^ per cent. 
 October, 2h per cent. 
 October, 2 J per cent. 
 October, 2J per cent. 
 October, 3 per cent. 
 October, 3 per cent. 
 October, 3 per cent. 
 October, 3 per cent. 
 October, 3 per cent. 
 October, 3 per cent. 
 October, 3 per cent. 
 October, 3i per cent. 
 October, 4 per cent. 
 October, 4 per cent. 
 October, 5 per cent. 
 October, 4 per cent. 
 October, 5 per cent. 
 October, 3 per cent. 
 idend, 33J per cent. 
 October, 4 per cent. 
 
 = 1 i per cent. 
 = 7 per cent. 
 = 7 per cent. 
 = 5^ per cent. 
 = 5 per cent. 
 = 5 per cent. 
 = 5i per cent. 
 r=; 5^^ per cent, 
 =;: 5^^ per cent. 
 = 6 per cent. 
 = 6 per cent. 
 = 6 per cent. 
 = 6 per cent. 
 = 6 per cent. 
 = 6 per cent. 
 ^=z 6^ per cent. 
 = 8 per cent. 
 = 8 per cent. 
 = 9 per cent. 
 = 9 per cent. 
 = 9 per cent. 
 =: 8 per cent. 
 
 = 8 per cent. 
 
THE SUFFOLK BANK. 
 
 71 
 
 1841. 
 1842. 
 1843. 
 1844. 
 1845. 
 1846. 
 1847. 
 1848. 
 1849. 
 1850. 
 1851. 
 1852. 
 1853. 
 1854. 
 1855. 
 1856. 
 1857. 
 1858. 
 1859. 
 ,1860. 
 1861. 
 1862. 
 1863. 
 1864. 
 1865. 
 
 April, 4 
 April, 4 
 April, 4 
 April, 4 
 April, 4 
 April, 4 
 April, 5 
 April, 5 
 April, 5 
 April, 5 
 April, 5 
 April, 5 
 April, 5 
 April, 5 
 April, 5 
 April, 5 
 April, 5 
 April, 5 
 April, 5 
 April, 4^ 
 April, 4i- 
 April, Air 
 April, 5 
 April, 5 
 January, 
 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent. 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent. 
 128 per cent 
 
 October, 4 
 October, 4 
 October, 4 
 October, 4 
 October, 4 
 October, 4 
 October, 5 
 October, 5 
 October, 5 
 October, 5 
 October, 5 
 October, 5 
 October, 5 
 October, 5 
 October, 5 
 October, 5 
 October, 5 
 October, 5 
 October, 4 
 October, 4A- 
 October, 4^ 
 October, 5 
 October, 5 
 October, 5 
 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent, 
 per cent. 
 
 = 8 per cent. 
 
 = 8 per cent. 
 
 = 8 per cent. 
 
 = 8 per cent. 
 
 = 8 per cent. 
 
 = 8 per cent. 
 
 = 10 per cent. 
 
 =::; 10 per cent. 
 
 = 10 per cent. 
 
 = 10 per cent. 
 
 = 10 per cent. 
 
 = 10 per cent. 
 
 = 10 per cent. 
 
 = 10 per cent. 
 
 = 10 per cent. 
 
 = 10 per cent. 
 
 =: 10 per cent. 
 
 = 10 per cent. 
 
 = 9 per cent. 
 
 = 9 per cent. 
 
 = 9 per cent. 
 = 9^ per cent. 
 
 = 10 per cent. 
 
 = 10 per cent. 
 
 Average IH per cent, per annum ; or S-^^j; per cent, per annum 
 and two extra dividends amounting to \Ql-^^jj per cent. 
 
OFFICERS 
 
 THE SUFFOLK NATIONAL BANK, 
 
 FROM JANUARY 1, 1865, TO JANUARY 1, 1878. 
 
 J. Amory Davia . . . 
 Nathaniel Hooper . . 
 
 Samuel W. Swett . . 
 
 Henry Austin Whitney 
 David K. Whitney . . 
 
 PRESIDENTS. 
 
 
 
 . January, 
 
 1865, 
 
 to May, 1805 
 
 . June, 
 
 1865, 
 
 to January, 1866 
 
 ( January, 
 ( .January, 
 
 1866, 
 
 to January, 1874 
 
 1876, 
 
 to April, 1876 
 
 . February, 
 
 1874, 
 
 to January, 1876 
 
 . April, 
 
 1876, 
 
 to present time. 
 
 Edward Tyler 
 
 CASHIER. 
 . . January, 1865, to present time. 
 
 John Amory Lowell 
 Jeffrey Richardson . 
 J. Wiley Edmands . 
 William W. Tucker 
 Nathaniel Hooper . 
 Edward Austin . . 
 Samuel Frothingham, 
 Charles Amory . . 
 Thomas A. Goddard 
 J. Amory Davis 
 Francis B. Crowninsh 
 
 eld 
 
 DIRECTORS. 
 
 January, 
 January, 
 January, 
 January, 
 January, 
 January, 
 January, 
 January, 
 January, 
 January, 
 January, 
 
 1865, 
 1865, 
 1865, 
 1865, 
 1865, 
 1865, 
 1865, 
 1865. 
 1865, 
 1865, 
 1865, 
 
 to present time, 
 to present time, 
 to January, 1877. 
 to present time, 
 to present time, 
 to present time, 
 to January, 1873. 
 to January, 1866. 
 to January, 1869. 
 to May, 1865. 
 to May, 1877. 
 
THE SUFFOLK BANK. 
 
 73 
 
 James S. Amory . . 
 Samuel W. Swett . . 
 Henry Austin AVliitn(!y 
 Charles H. Dalton . . 
 David R. Whitney . . 
 A. Lawrence Ediuanda 
 
 10 
 
 January, 1865, to present time. 
 January, 1865, to present time. 
 February, 1874, to present time. 
 January, 1876, to present time. 
 April, 1876, to present time. 
 Elected January, 1878. 
 
 X » 8 « A y> 
 or THE 
 
DIVIDENDS 
 
 OP 
 
 THE SUFFOLK NATIONAL BANK, 
 
 FROM JANUAKY 1, 18C5, TO JANUARY 1, 1878. 
 
 1865. October, 5 per cent. := 5 per cent. 
 
 18G6. April, i per cent. October, 4 per cent. ;= 8 per cent. 
 
 1867. April, 4 per cent. October, 4 per cent. = 8 per cent. 
 
 1868. April, 4 per cent. October, 5 per cent. = 9 per cent. 
 
 1869. April, 5 per cent. October, 5 per cent. = 10 per cent. 
 
 1870. April, 5 per cent. October, 5 per cent. = 10 per cent. 
 
 1871. April, 5 per cent. October, 5 per cent. = 10 per cent. 
 
 1872. April, 5 per cent. October, 5 per cent. = 10 [ler cent. 
 
 1873. April, 5 per cent. October, 5 per cent. := 10 per cent. 
 
 1874. April, 4 per cent. October, 4 per cent. = 8 per cent. 
 
 1875. April, 4 per cent. October, 4 per cent. =^ 8 per cent. 
 
 1876. April, 3 per cent. October, 3 per cent. = 6 jicr cent. 
 
 1877. April, 3 per cent. October, 3 per cent. = 6 per cent. 
 Average 8.^% per cent, per annum. 
 
OFFICERS 
 
 THE SUFFOLK NATIONAL BANK, 
 
 JANUARY 1, 1878. 
 
 KECORD OF THEIR SERVICKS. 
 
 David R. Whitney . President, 1 year, 9 months. 
 Edwakd Tyler 
 
 ( Cashier, 24 years, 4 montlis. 
 
 C Boolv-keeper and Clerk, 15 years, 6 months. 
 
 John Amory Lowell 
 Jeffrey Eichardson 
 
 William W. Tuckek 
 
 Nathaniel Hooper 
 Edward Austin . 
 James S. Amory . 
 
 Samuel W. Swett 
 
 IIexuy Austin M'iiitney 
 Charles H. Dalton 
 
 DIRECTORS. 
 
 f Director, 55 years, 2 mos. 
 
 (. Foreign Money Com., 41 years, 9 mos. 
 
 Director, 54 years, 11 mos. 
 
 President, 4 years, 10 mos. 
 
 Foreign Money Com., 41 years 9 mos. 
 ( Director, 33 years, 1 mo. 
 
 (. Foreiga Money Com., 7 years, 1 mo. 
 \ Director, 29 years, 2 mos. . 
 
 I President, 7 mos. 
 
 Director, 25 years, 8 mos. 
 
 ( Director, 13 years, 1 mo. 
 
 ( Foreign Money Com., 2 years. 
 
 13 years, 1 mo. 
 8 years, 3 mos. 
 ( Director, 3 years, 10 mos. 
 
 (President, 1 year, 11 mus. 
 
 Director, 2 years. 
 
 j Director, 
 (, President, 
 

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