Clement National Bank, Rutland, VT (Charter 2950)

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A 2019 photo of the old Clement National Bank building with clock and Merchants Row, Rutland, Vermont
A 2019 photo of the old Clement National Bank (building with clock) and Merchants Row, Rutland, Vermont. TD Bank operated a branch at this location at the time of the photo. Courtesy of Google Maps

Clement National Bank, Rutland, VT (Chartered 1883 - Open past 1935)

Town History

Rutland is the only city in and the seat of Rutland County, Vermont. It is located approximately 65 miles north of the Massachusetts state line, 35 miles west of New Hampshire state line, and 20 miles east of the New York state line. Rutland is the third largest city in the state of Vermont after Burlington and South Burlington. Rutland City is completely surrounded by Rutland Town, which is a separate municipality. As of the 2020 census, the city had a total population of 15,807. In 1880 the population was 7,502, growing to 17,315 by 1930.

The town of Rutland was chartered in 1761 and named after John Manners, 3rd Duke of Rutland. It was settled in 1770 and served as one of the capitals of the Republic of Vermont. In the early 19th century, small high-quality marble deposits were discovered in Rutland, and in the 1830s a large deposit of nearly solid marble was found in what is now West Rutland. By the 1840s, small firms had begun excavations, but marble quarries proved profitable only after the railroad arrived in 1851. Rutland eventually became one of the world's leading marble producers. A large number of Italians with experience in the industry immigrated and brought their families to Rutland.

Rutland had seven National Banks chartered during the Bank Note Era, and six of those banks issued National Bank Notes.

Bank History

Series of 1875 $5 Proof, approved July 15, 1881. This was the only plate made for Charter 2537, but no notes were issued, the bank having liquidated on August 1, 1881. Courtesy of the Smithsonian Institution Archives
Advertisement from November 1881 for the State Trust Company, Rutland, Vermont.[1]
A 2011 photo of the entrance to the old Clement National Bank building
Entrance to the old Clement National Bank, Rutland, Vermont. Courtesy of Google Maps ca2011
The Clement National Bank building and Merchants Row in the early 20th century decorated for the Rutland Carnival, an annual event in downtown Rutland during fair week.  In 1961 it became the home of the First Vermont Bank after a merger with the Killington Bank & Trust Co. First Vermont celebrated its 75th anniversary in 1981.[2]
A 1957 advertisement for the Killington Bank and Trust Company.[3]

In July 1881, the Clement National Bank, recently organized at Rutland with $200,000 capital planned to receive no deposits. Purchasing 3 1/2% bonds with its capital, the new bank would deposit the same at Washington and receive $180,000 in national bank notes. This money it expected to lend to those concerned in local industries at about 6% per annum. Keeping 5% of its circulation, as required by law on deposit with the redemption fund, the bank would have $170,000 net capital to lend. The income from loans at six per cent, together with the interest of the bonds upon deposit would, it was supposed, amount to $19,400 against which were tax on circulation and salary of a clerk or teller, leaving net about 8 1/2% yearly on the capital.[4] 

Charles Clement began organizing The Clement National Bank of Rutland, Vermont, on June 20, 1881. Waldo P. Clement, his youngest son, was listed on the organization certificate as the cashier. The Comptroller of the Currency awarded Charter #2537 to the bank three days later, upon the deposit of $35,000 in 3.5% bonds to secure their currency, and a $5 Series of 1875 plate was ordered. However, something went amiss. The bonds were sold August 1st, and the bank was liquidated that same day.[5]

On June 8, 1881, a new banking institution commenced business in Rutland. The State Trust Company of Rutland was organized under the laws of the State of Vermont. It had peculiar advantages not possessed by banks doing business under the national system. The trust company was authorized by law to act as executor and administrator of wills and estates; guardian of the estates of minors; to accept and execute trusts for married women in regard to their separate property; to accept deposits where public officers or municipal or private corporations were authorized or required by law to deposit money in a bank, and such deposits could be made officers or corporations with the State Trust Company. It also had a savings institution where money could be deposited, payable on demand, drawing interest from the day of deposit. This was an important feature, as under present laws, the depositor was exempt from taxation, the tax being paid by the company as a special tax. It could also loan money on bonds and mortgages. The trust company had already contracted for the finest and most secure vault and safe work in Vermont, having all the latest improvements and inventions known. One important part of their vault work would be a nest of 60 safe deposit boxes. This was understood to be the first safe deposit vault in the State. While this work was underway, temporary arrangements had been made by the company for keeping all its valuables safe. They would for the present occupy No. 28 Merchants Row. The capital was $100,000, all paid-in and the following directors elected: Charles Clement, Hon. W. G. Veazey, John A. Mead, MD, Percival W. Clement, and John N. Woodfin. At a subsequent meeting of the directors, Charles Clement was elected president, John N. Woodfin treasurer and O.F. Harrison assistant treasurer.[6]

In May 1883, the new Clement National Bank building at the north end of the depot park was nearly complete. In all its appointments it was well-adapted for the intended purpose for banking and offices. An elevator was installed for the convenience of moving people from the ground floor to the upper stories. This was the first elevator in use in Vermont.[7] 

In August 1883, the new president of the Rutland Railroad was Charles Clement who was almost 70 years old. He was the senior member of the firm of Clement & Sons and was president of the Clement National Bank and of the State Trust Company, institutions of great financial strength in Rutland.  His sons, Wallace C. and Percival W., were active businessmen in the prime of life. Their wealth was estimated to be from $800,000 to $1,500,000.  The other new directors included Governor Stewart, a member of Congress from the First Vermont district; General Wm. Wells, collector at Burlington, and Mr. B.B. Smalley, clerk of the U.S. Courts in Vermont.  Mr. Geo. H. Ball of Worcester was son-in-law of the late George W. Gill and through him was a large owner of the stock and bonds of the road. Mr. John T. Coolidge was president of the Columbian National Bank of Boston and Mr. Barnard was a director. He was a prominent part in the old litigations. Mr. Sargent was a well-known Bostonian of financial ability and was president of the Globe Bank before it received its national charter.  Altogether it was a powerful directorate.[8] 

The failure and deficit in the accounts of Joel M. Haven, late treasurer of the Rutland Railroad, then the discovery of the over-issue of a large amount of the stock in the road, started the Clement-Page warfare. The last was a suit brought by ex-Governor John B. Page against Clement & Son for libel, setting the damages at $200,000 and attaching the stock of the defendants in the Clement National Bank and in the State Trust Company as well as the real estate held by them. The attorneys for Gov. Page were ex-Judge John Prout and Col. Aldace F. Walker. The action was on the premise that the defendants had contrived and maliciously written in the form of a printed circular letter addressed to the stockholders of the Rutland Railroad Co. intending to injure Mr. Page in his credit and good name in his office as President of the Rutland Railroad.[9]

In October 1883, the report of condition of the Clement National bank of Rutland showed total resources of $236,699.41. The capital was $100,000, undivided profits $4,947.47, circulation $76,500 and deposits of $55,251.94. Percival W. Clement was cashier and the directors attesting to the correctness of the report were John N. Woodfin, H.A. Sawyer, and John A. Mead.[10]

In January 1891, the directors were Charles Clement, John A. Mead, S.M. Willson, H.A. Sawyer, P.W. Clement, N.R. Bardy, J.C. Baker, W.P. Clement, D.M. White, E.T. Smith. Charles Clement was president; W.C. Clement, vice president; E.T. Smith, cashier; and O.F. Harrison, teller.[11]

In 1899, Mr. Percival W. Clement had just closed his term as mayor of Rutland. He came from a family long-prominent in Rutland County. He began in the marble business, in connection with the quarrying and manufacturing enterprise established by his father, and in later years had been prominent in railroads and other affairs. Mr. Clement was the son of Charles and Elizabeth (Wood) Clement. He was born in Rutland on July 7, 1846, and his home had always been in that town. He was educated at the high school, St Paul's School, Concord, New Hampshire, and Trinity College, Hartford. He began business life as a clerk in the Rutland office of his father's firm, Clement & Sons, in the same year and became a partner in 1871. This firm sold out to the Rutland Marble company in 1876 for a price which made the transaction the largest then known in the marble business of this country. The members of the firm then organized the State Trust Company and afterwards the Clement National Bank, both of Rutland, and both corporations have since remained under their control. Mr. Clement was engaged in the banking business until 1882, when he began buying largely of the stock of the Rutland Railroad Company. He became the active manager of the affairs of the railroad in 1883. The finances of the Rutland Road were demoralized and its securities greatly depressed, and for four years Mr. Clement gave his attention to the property, finally acquiring absolute control of it. The stocks and bonds of the corporation advanced in price enormously and its credit was restored. In 1887 Mr. Clement sold out to the Delaware and Hudson Canal Company. He remained with the railroad company as its president and in 1891 negotiated a lease of the property to the Central Vermont Railroad. Besides his connection with the Rutland banks named, Mr. Clement was a director of the Howe Scale Works and the chief owner of the Rutland Herald. He represented his town as a Republican in the legislature of 1892.[12] In 1918 he was elected Governor of Vermont, serving from January 9, 1919, to January 6, 1921. 

The project of building the Rutland-Canadian Railroad was due to Mr. Clement, who was successful in obtaining a charter for the road from the Vermont legislature. It was through his efforts that the Rutland Railroad Company changed owners and the purchase of the Ogdensburg and Lake Champlain road effected. With the new line connecting the Rutland Road with the Ogdensburg and Lake Champlain Road, a through line to the west was secured and also entrance into New York City and Boston, thus making one of the best combinations for through freight travel from the west.

In January 1901, stockholders met at the Clement Building and elected the following directors: Wallace C. Clement, Percival W. Clement, Waldo P. Clement, H.W. Clement, and O.F. Harrison.[13] Directors of the Clement National Bank elected Wallace C. Clement, president; O.F. Harrison, cashier and H.F. Kingsley, teller. The directors of the State Trust Company elected Percival W. Clement, president and O.F. Harrison, treasurer.[14] Henry G. Smith of Rutland was promoted from treasurer to vice president of the Rutland Railroad Company, and Olaf F. Harrison, cashier of the Clement National was appointed treasurer.[15] In January 1923, the directors were Percival W. Clement, O.J. Maigne, Henry G. Smith, William H. Field, Miles S. Sawyer, George T. Jarvis, Will L. Davis, and Charles H. Harrison. The officers were Henry G. Smith, president; Miles S. Sawyer, vice president; Charles H. Harrison, cashier; and Edmund P. Shaw, assistant cashier. The bank reported on December 29, 1922, deposits of $2,425,702.19, and circulation $100,000.[16]

On February 27, 1937, Charles H. Harrison, cashier of the Clement National Bank and treasurer of the State Trust Company died at Rutland Hospital after two weeks' illness which followed an operation. Mr. Harrison was a veteran of the Spanish American War having been with Company A., Vermont National Guard at Chickamauga Park, Georgia in 1898. Soon after returning home from service, he entered the employ of the Clement Bank. In 1902, at the age of 23, he succeeded his father, Oliff F. Harrison as cashier. His wife, Elsie Blossom Harrison and a son, Harold C. Harrison, professor of chemistry at Alfred College, Alfred, New York, survived him.[17]

In January 1940, stockholders of the Clement National Bank re-elected the following directors: Henry G. Smith, Will L. Davis, Robert C. Boynton, William Field, and George G. Smith.[18] The directors met on Friday and re-elected the following officers: Henry G. Smith, president; Will L. Davis, vice president; Edmund P. Shaw, cashier; and George G. Smith, trust officer.[19]

On Tuesday, September 9, 1941, the directors voted to pay a first liquidating dividend of $300,000 to holders of its 15,000 shares of $10 par value stock. The figure represented a payment of $20 a share. The bank was in the process of voluntary liquidation since the directors approved sale of the banking house and the institution's assets to the Killington National Bank and the Rutland Trust Company. The Clement National maintained an office in the Herald Building on Wales Street.[20] 

After the 1941 merger, the officers of the Killington National Bank of Rutland were Cleon A. Perkins, president; Walter A. Clark, vice president; Henry A. Dahlgren, cashier; and George A. Sabin and Edmund P. Shaw, assistant cashiers. The officers of the Rutland Trust Company were H. Edward Dyer, president; Albert W. Gurton, vice president; Henry A. Dahlgren, treasurer, and Julia B. Granger and Edmund P. Shaw, assistant treasurers.[21]

On Monday, August 14, 1961, the Killington Bank & Trust Co. opened its doors as the Vermont Bank and Trust Co., Killington office. The 78-year-old Rutland institution completed the merger Friday with the larger Vermont Bank & Trust Co. The merged bank operated branches in Brattleboro, Bellows Falls, Bennington and Chester with assets of approximately $41 million and trust resources of over $18 million. Henry A. Dahlgren, Killington president, became a senior vice president under the new setup. H. Edward Dyer would be appointed a vice president. In January 1883, a group of Rutlanders got together to form the Killington National Bank and the Rutland Trust Co. Why the Killington was formed, no one knows as the village of Rutland already had eight banks at the time. Killington's first board of directors consisted of Redfield Proctor, president; Edson P. Gilson, Frederick Chaffee, Horace H. Dyer, H.H. Smith, George Willis and John A. Sheldon. Trust company directors were Justin Batcheller, president, Dyer, Smith, Willis, Gilson, Levi Rice, A.F. Walker, and George Briggs. In 1941 the Killington absorbed the Clement National Bank and assumed the latter's location at the corner of Merchants Row and Evelyn Street. Since then it was known as "the bank under the clock." Although the Killington was considered to have almost always been a single unit, it wasn't until June 1951 that the Killington National Bank and its sister institution, Rutland Trust Co., merged into what had been known for the past 10 years as the Killington Bank & Trust Co.[22]

Official Bank Title

1: The Clement National Bank of Rutland, VT

Bank Note Types Issued

1882 Brown Back $5 bank note
1882 Brown Back $5 bank note with pen signatures of Ed. T. Smith, Cashier and W.C. Clement, Vice President. Courtesy of Lyn Knight Auctions, www.lynknight.com
1902 Plain Back $20 bank note
1902 Plain Back $20 bank note with stamped signatures of C.H. Harrison, Cashier and Henry G. Smith, President. Courtesy of Heritage Auctions, www.ha.com
1929 Type 2 $10 bank note
1929 Type 2 $10 bank note with printed signatures of C.H. Harrison, Cashier and Henry G. Smith, President. Courtesy of Heritage Auctions, www.ha.com

A total of $2,155,950 in National Bank Notes was issued by this bank between 1883 and 1935. This consisted of a total of 186,909 notes (161,712 large size and 25,197 small size notes).

This bank issued the following Types and Denominations of bank notes:

Series/Type Sheet/Denoms Serial#s Sheet Comments
1882 Brown Back 4x5 1 - 5590
1882 Brown Back 3x10-20 1 - 4494
1902 Red Seal 3x10-20 1 - 2900
1902 Date Back 3x10-20 1 - 9800
1902 Plain Back 3x10-20 9801 - 27444
1929 Type 1 6x10 1 - 2834
1929 Type 1 6x20 1 - 724
1929 Type 2 10 1 - 3165
1929 Type 2 20 1 - 684

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1883 - 1935):

Presidents:

Cashiers:

Other Known Bank Note Signers

Bank Note History Links

Sources

  • Rutland, VT, on Wikipedia
  • Don C. Kelly, National Bank Notes, A Guide with Prices. 6th Edition (Oxford, OH: The Paper Money Institute, 2008).
  • Dean Oakes and John Hickman, Standard Catalog of National Bank Notes. 2nd Edition (Iola, WI: Krause Publications, 1990).
  • Banks & Bankers Historical Database (1782-1935), https://spmc.org/bank-note-history-project
  1. ↑ St. Albans Daily Messenger, Saint Albans, VT, Sat., Nov. 19, 1881.
  2. ↑ Rutland Daily Herald, Rutland, VT, Sun., Aug. 24, 1986.
  3. ↑ Rutland Daily Herald, Rutland, VT, Mon., Jan. 28, 1957.
  4. ↑ St. Albans Daily Messenger, Saint Albans, VT, Sat., July 16, 1881.
  5. ↑ Huntoon, Peter, Paper Money, Vol. 256, July/August 2008, pp 274-6.
  6. ↑ Rutland Daily Herald, Rutland, VT, Wed., June 8, 1881.
  7. ↑ The Poultney Journal, Poultney, VT, Fri., May 4, 1883.
  8. ↑ St. Albans Daily Messenger, Saint Albans, VT, Fri., Aug. 3, 1883.
  9. ↑ Argus and Patriot, Montpelier, VT, Wed., Aug. 1, 1883.
  10. ↑ Rutland Daily Herald, Rutland, VT, Tue., Oct. 9, 1883.
  11. ↑ Rutland Daily Herald, Rutland, VT, Wed., Jan. 14, 1891.
  12. ↑ Burlington Clipper, Burlington, VT, Sat., Apr. 1, 1899.
  13. ↑ The Poultney Journal, Poultney, VT, Fri., Jan. 11, 1901.
  14. ↑ Vergennes Enterprise, Vergennes, VT, Thu., Feb. 7, 1901.
  15. ↑ St. Albans Daily Messenger, St. Albans, VT, Mon., Feb. 18, 1901.
  16. ↑ Rutland Daily Herald, Rutland, VT, Tue., Jan. 9, 1923.
  17. ↑ The Burlington Free Press, Burlington VT, Mon., Mar. 1, 1937.
  18. ↑ Rutland Daily Herald, Rutland, VT, Wed., Jan. 10, 1940.
  19. ↑ Rutland Daily Herald, Rutland, VT, Sat., Jan. 13, 1940.
  20. ↑ Rutland Daily Herald, Rutland, VT, Wed., Sep. 10, 1941.
  21. ↑ Rutland Daily Herald, Rutland, VT, Mon., Sep., 22, 1941.
  22. ↑ Rutland Daily Herald, Rutland, VT, Sat., Aug. 12, 1961.
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