The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1857-12-19
10 BR

Ing, SaIe-Keeplng ana dSDurSlcg the puDil
revenues. The organization Of the tinancia
department of Government is both Difficult
and important. Once established it is no
easy of change or modification. Economy
simplicity and efficiency are the leading idea
which should preside over its development
BY the excellent provisions of our Consti u
tiOn, the sub-treasury system is effectually
secured, and the unrighteous connection be
tween the taxes of the people, raised tor th'
tiOn of bankers, is forever prohibit d and de
clared embezzlement of the State finances
keepngth this great feature of the Constitution
and sound Government ever in mind, it will
be your duty to provide such checks ant
safeguards as will secure safety and efficen
cy in the financial department.
1--WE hope the Democratic majority vii
take to heart the Governors ideas about
ECONOMY" Thus far they don't appear to
be on that tack.
State Debt-Issue of State Bonds
1t is high compliment to the trainers o.
our Constitution that they carefully protect
ed the people from a heavy and onerous
State debt, unless in time ofwar or invasion
Two hundred and fifty thousand dollars is
the maximum of deLt authorized and care
is taken, also, to provide that tax, not only
to pay the interest, but to diminish the prin.
cipal, shall be levied, commencing with the
contracting of the debt. This will place the
credit of the State on the fi!mest basis and
no difficulty need be apprehended in selling
InIo of dc klo<
amount bearing an interest Of eight or ten
per cent The prompt sale of these bonds
will secure the means to put the State ma
chinery in successful operation and add much
to the relief of the people.
We guess the sale of the bonds will not
be so prompt, if puthorized by law signed
by a usurping Governor. No capitalist
would touch them, bearing on their face SO
fatal flaw to their validity.l
Sam spreads hin,seI on the "Monetary Di6acutties'
The monetary difficulties which Cypress
the country at the time of our transition
from Territorial to State or sanization
while probabably embarrassing your delber.
ationS to some extent, will doubtless prove
fortunate in impartirg greater caution and
wisdom to your legislation. Ycu may
draw therefrom many useful lessons, and di.
rect your conclusions in regard to the State
finances from cotemporary experience. The
existence of these difficulties proves how un-
reliable are our hopes of continued success
and expected wealth, when, to all outward
appearance, they are within our reach. In
the midst of the greatest prosperity and plen-
ty the shock c''mes, and industry is paral
yzcd. Surely there is some radical error
here, and it is the duty of statesmen, entrust
ed with the public interests, TO trace it to its
origin and guard against the recurrence OF
its evils. if within human wisdom and legisla-
tive power. But in the hour of panic, when
every financial empyric vaunts his specific as
a certain remedy, it becomes the more neces-
sary to resist his solemn appeals and selfish
designs.
One O'his old Editorials d1otu Imitation, Rank Pa,
per, cold and SilUer,
The history of the world bears evidence
that every attempt, either to debase or initiate
the medium of commerce, or the measure of
value in the exchange Of commodities, by
governmental expedients, has only ended in
oppression and bankruptcy.
What is false both in theory and sound NOR
ality, can be but pernicious in practice
In new country, with little export
trade, and comparatively isolated from the
rest of the world, restricted paper currency
may, for time, prove convenient, as circu-
lating medium but so soon Us commercial
transactions become of any magnitude, they
are affected by the standard of value with
which they come in contact, and a common
medium is required to regulate the inter-
course.
That medium, by the common consent of
all civilized nations, is gold and silver. Ev-
cry act, therefore, that tends to substitute a
baser and less valuable circulating medium,
disturbs the true standard, ard robs labor and
trade of q portion of it's reward. When gold
ard silver are announced at premium, it
might be of some public interest to know
what had been substituted as the standard
of value.
The calamities brought upon the colonies
by paper money during the struggle for inde-
pendence. led the trainers of the Constitution
to insert in that instrument clause making
gold and silver the only legal tender for debt;
with an additional prohibition against any
State emitting "bils of credit" How far
these wise provisions have been observed in
practice cannot much longer escape discuss
ion and investigation.
Every effort made to avoid their strict OBJ
servance and common sense Interpretation,
either by the General or State Government,
has led to bankruptcy and ruin. After de-
serting one error, from its signal failure, we
resorted to another and again, after fair
and full trial, we find the country struggling
with PROSTATE hopes, suspensions, bankrupt
cies, and comparatively worthless currency.
Banking an Minnesota to be Carefully Guarded.
The Constitution of Minnesota, though
not entirely prohibiting banks o. issue, has
thrown around any charters that may be au-
many restrictions and requires
tt at any Banking Bill, before it becomes a
law, must secure vote of two thirds of the
of the Legislature. 1t is hoped
that these provisions may prevent the pas
sage of Bank Law unless it is first subject
ed to the severeSt scrutiny. No one will de.
ny the necessity of places of deposit, of deal
ing in exchange, of loaning money, &c. But
such establishments should be under strict
legal supervision, whether transacting busi-
ness under charters granted by the Le.isla-
ture or otherwise. The depositor as we'll as
the bill holder should have legislative protec-
ton. The practice of loaning deposits, is
at all times precarious business; but when
these deposits are hired at what should be a
full interest for :he ordinary use of money,
and loaned at an extrayagant percentage, at
risks generally proportioned to the amount
paid by the borrower, suspensions and assign.
ments inevitably follow sudden crisis. The
high character of the individual, and life of
integrity, are insufficient to divert
from a common ruin such wide departures
from the rules of prudence and the lessons of
experience. The Banker becomes the COM
mon endorser for all who leave money in his
hands. What then inust be the consequent
ces, when such business is left to the unres-
tricted license of the unprincipled and de-
signing, whose leading purpose must be to
'lefraud the unsuspecting of their hard earn
ings.