The Minnesota pioneer. [volume] (St. Paul, Minn. Territory) 1849-1855, 1850-11-21
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by Eastern currency, we mean noteS vs.
sued by banks or States east of the above
States. This currency costs the banks
which furnish il, no interest, and the amount
lost and destroyed is equal, in the aggregate
10 one per cent per annum. 1t 10 liberal,
then, TO put the annual amount of Joss TO the
Western States, and gain to Eastern bank
ers, at seven per cent on the sixteen mil
lions, at, amount equal to 81, 100, 900 yearly.
We know that the people of the West look
upon this paper money as capital furnished
ny the banks for their use, and they feel
tha, they are fortunate in getting it at any
rate.
In our reasoning we omit TO take into ac
count the broken bank and counterfeit notes
by which another heavy loss is sustained; !;
for had they banks OF their own, this loss
might not be less than it now is. The
chances are, in our opinion, however, that it
would be less; for The people would certainly
be better judges Of home currency, than a
foreign. The banks which furnish curren-
cy for the West are not, generally speaking,
of the better class. Our experience is, that
insolvent banks and fraudulent bankers ex-
ert themselves TO put their currency West,
While our soundest and most independent i'll
situations do very little of thar business con
sequently the risk to the western people on
the eastern currency which which they hold, :,
is large.
The failure Of the State Bank of Illinois,
at Shawneetown, and Of the brood Of Mich
igan "wild CATS" and the political barangues
against bank rags, and in favor Of specie
currency, are still Influencing the people in
their vote, and the legislator in reasoning
Despite this prejudice, and despite laws aud
constitutional prohibitions, we see spring
ing into circulation q currency Of checks,
drafts and sham certificates of deposite in
shan, banks, which, though good for time
will la the end he as great fraud on The
public as were the wild cats of Michigan.
| For several years past, banking in the sg-
gregate mas been good. Public suspicion,
aided by our buldogis,n, in breaking down
! frauds, has kept in check vast number Of
| fog bankers, and irresponsible currency
makers. But as suspicion dies away and
confidence indiscriminate, in paper none y
takes its place, we are measurably disarnled
for the fight.
These remarks prepare the mind for the
questions;
lst. How can the Western States save
the tax of Si,l2o,0Oc per anuun, which
they pay to Eastern bankers?
| ID. How can the people Of the West a.
void an irresponsible, and secure a reliable
currencyl
An answer to which may be embodied in
a system Of
| BANKING FOR THE WESTERN STATES.
The system should contain provisions for
a liberal issue of amply secured CURRENCY
The security should he deposited with a
board Of commissioners, with ample pow
ers, and should consist Of one quarter spe-
Gle aud three quarters solid interest paying
stocks. The board Of commissioners should
furnish the currency, registered and coun-
tersigned as the banks might want, and
should, on The return of currency, surren-
der back broportionate amount Of the Sc
curity. No bank should start on less than
$4,000 capital, actually paid in, and no
bank should receive more than five times
its actual capital in currency. Every bank
should have not less than FIVE directors,
and no one stock holder should ever hold
more than one-fifth of the stock. Three
fiiths, at least, of the directors Of bank
should be bona find residents of the town
ship where the bank is located.
AS far as possible, each State should a
dOpt its own stock, AT fair valuation, as Sc.
curity for currency, thus bringing power
ful interest to bear in favor of the credi. OF
the State, by binding the interest Of the
banks and the credit of the State together
and the people generally holding The cur
rency would also be interested in sustain.
ing the State credit.
Connect these leading features with lib
eral but safe details in system of genera
banking, and the Western States will soon
cease paying tribute to Eastern hanks, and
more eastern Capitalists aud business mef
will establish themselves in every city anc
large village in States where banking car
be made to pay, particularly in Michigan
Illinois, Wisconsin end Iowa. We viii
pledge them $780, 900 capital and s400, GOT
Of currency, and our humble self as ci,i
zen.