The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1857-12-17

Sitlers' TO discuss such plans a. may DO
practicable under our constitution. II will
be easy enough for the Representatives Of
the people, to inangurate a system Of bank
ing. A literal copy of the laws upon the
subject, Of Wisconsin, Or Illinois, or New
York prefixed with the BE it enacted by
the Legislature Of the State Of Minnesota
and signed by whoever is 10 be our Gov
ernor will do that but TO initiate plan
which will afford relief to the industry and
enterprise Of our people, and at the same
time give assurance OF positive spundness
and safety, as well in after years AS in the
beginning, a. well in storm AZ in sunshine,
to lay the foundation for system Of finance,
which shall merit and receive the universal
conviction Of its absolute impregnabity at
all times and under all circumstances, is a
task which will command more than Oh
hours thought or days debate. And it il
q system like this or az near ike it as
human imperfec,ion will allow, that the
people expect and demand of their Repre-.
/ sentatiyes.
Our Constitution has made provisions for
Banking system similar to that of Wscou-
sin and Illinois, which has demonstrated to
he the safest which has yet been devised. 49,
Under this system, in those States, paper
currency has been in circulation so well
guarded and secured by pledges Of public
faith, that not even period of the widest
panic, and Of almost universal insolvency,
has been able to prevail against it. h IS
@fe; so every one feels, and will continue to
feel, 40 long as sovereign States can bear
up against destruction and ruin, and remain
solvent. Yet, while this system affords al.
most perfect security TO tho holder of bank
notes, guaranteeing them against ultimate
loss by the absolute pledge OF the property.
faith and credit Of an entire community. il,
contains within itself, or fails to eradicate
some Of the evils inhcren, in every scheme
Of finance. The abuses Of joint stock cor.
porations, giving the control of the large
sums OF money to men in measure IRE
sponslblc; the expansion and contraction Of
credits; the temptation to pcculation and
embenlcmcnt on the part of corporation
officers these and other evils all OF which
il is proposed to discuss more at length in
future communications, with your permits
sion Nr. Editor, are still incident 10 the
Banking system Of all the States
To obviate some Of these ditiiculties in the
way of successful banking, il has been pro.
posed TO divorce the power Of issuing pa
per currency. from all corporations and ia.
dlv,luals, and retain it rs power inherent
IN the state alone and il is 20 introduce
this scheme TO the notice of the readers OF
the PIONEER, that this communication has
been written a Mr. REYNOLDS, an old
successful Merchan, and Banker of Boston.
has proposed the adoption Of the scheme in
Massachusetts,, and it has met the approval
of a large number Of the leading commercial
and financial men OF the metropolis of tina,
State.
The present ia most favorable time for
iuaugurating whatever plan shall seem 10
the collective wisdom 10 be the best. mas
much ~ there are here no old banks 10 be
remodeled, no vested right to be interfere,
with, and no old prejudiccs let us hope) to
be overcome. | hope the plan here propose,
for Massachusetts will b. thoroughly scru
tinizcd for objections against its adoption in
Minnesota, and there may be no cditoria
,ln,,.nlttu. IN tho uu nf f,rfL.r al.
Of its feasibility in these columns.
The plan OF Mr.. REYNOLDS is a. follows
l. That while banks Of discount and deposit
Il established ON sound principles. may be mul
tiplled 10 any extent with advantage To the pub
lie, Il ia advisable that the business OF is.uins
notes PAYABLE on demand should he sntrel,
separate aud distinct from other general bank
ing business, and that the power of making an,
issuing paper money should be withdrawn from
banks whose principal bushes. It - to LOAF
money.
3 That the power Of furnishing the stat,
with currency should be exercised by the stat,
Tor the benefit OF the public at large and tina
the profits on the circulation Of bank note
should be applied cater icductipg the expeu
SEA attendant upon the ts-ne) towards a reduc
ton Of the public taxes.
:. That IN lieu " the one hundred and seven
ty-hve banks Of issue, now EXISTING N the Stat
II Massac husetts each acting for itself and eac
furnishing IT. portion of the currency. Their,
should be but one bank ~ department II issa,
managed 10y the Directors aud Commi,.on
appointed hy the state foy account 81 the pub
lie and that the business Of these Offices shout,
T bc confined 30 the issuing u note. against pub
he securities and gold bullion, without an,
banking or discouRtug privileges these 20 b,
lett where they nov are, nth the banks am
with individuals.
L. That IN establishing the relative proper
lions between the issues 81 tlah note, aud th,
secuTtes aud bullion held by the issue dcpar,
meHt Tor their redemption, TIE perfect convert
ibility ol the bank note into specie At all time
should he secured beyond shadow of doub.
which, II u generally admitted, may be done h'
holding two thrl~ II uudoabt,i securities an,
one third m bullion FOR The amount of notes u
citCu,at.oU, The bauk n, 20 should be a leg,
tender anywhere cNccpthy iac issue depar,
mcn,.
.. Tia, the banks oi Discount, aud deposit
irsteld ~ i.suiuS their own note, a. Al press NJ
should be furnished With notes hy the depart
mont. of issue sssinst DEPOSIT " publ,e 80
cutltirS and baih0n N the propogti on. aireai,