Saint Paul weekly Minnesotian., 1858-12-18
a Safe Currency for the People!

Our readers yesterday had presented to
them, in the proceedings of the City Council,
the full official statement of the arrangement
they have just made with PEAsE, CHALFANr
d Co., Bankers, for the redemption of the City
Scrip or Orders, ION demand, "in gold or ex-
change, at current rates."
This is so important matter that we recall
public attention to the substance Of the ar
rangement:
1st. The City Of St. Paul, in anticipation Of
the collection of its taxes, is in the habit of is
suing to its creditors from time to time,
Orders or Scrip-printed from an engraved
steel plate, and on good bank-note paper
of the denominations of One, Two, and Five
| Dollars. These are duly numbered and reg
istered by the City Clerk. Heretofore the
Scrip has been generally worth on the dollar
about 70 cents in cash, or little more.
I'd. Under this new arrangement with the
Bankers, however, every Order hereafter so
issued, is to be stamped by the City Clerk in
red letters across its face, with the words
Rs<lsema6le in Gold or Exchange at current
rates, at the Banking Office Of Psass, Chal-
tant d Co., at St. Paul." The entire issue of
these Orders, however, is not to exceed in
amount twenty thousand dollars.
Sd. The consideration for which PEAsE,
CHALFANr & Co. agree thus to put the City
Orders at par is: That every amount of
Orders so issued to pay claimants, shall be
duplicated at the time Of issue, and these du-
plicate amounts which are obe termed " Re-
ele,nption Orders," are to be deposited with
the Bankers, who will thus have the opportu-
nifty Of using, without interest, twenty thou
sand dollars of City Scrip, in return for re-
dcen,ng at currency par, both the $4,000
bona tide and the $50, 900 Redemption Orders
Another consideration which arises to them
by the arrangement is, that in redeeming the
Scrip they will make q profit by selling their
gold 1t q per cent, and also by selling
to merchants and business men for the Scrip,
exchange on New York at the ordinary rates
they sell it for tho best currency.
4th. Though these Bankers are responsible
men and are backed by capital, it is right
ttas city should be sscured against the possible
contingency of loss from their not returning
the loan of the $4,000 Redemption Orders,
or else their face in cash. when required-and
they are therefore bound by their agreement,
before receiving those Orders, to deposit with
the City Treasurer, approved collateral seeu-
rity-city stocks, ctc.-in amount sufficient to
secure the redemption of the Orders loaned
them.
9th. AS the Scrip is from time 10 time paid
in to the City Treasurer for taxes, that officer
can require PEAsE, CHALFANr h Co., to pre-
sent to him an equal amount Of the Redemp-
ton Orders, for cancellation at the same time.
- The above is the arrangement as clearly
and briefly as we can present it to our read.
ers. The Comptroller and the City Treasurer
are the officers who decide upon the sufficiency
Of the collateral security deposited for the Re-
demption Orders. Their integrity and ability
is so well established that the public may re-
pose entire confidence in the city being made
unquestionably secure for the Orders loaned.
While we doubt the policy, as a general
thing, of municipal corporations entering into
the icurrency business, this entire arrange
ment seems SO well guarded in its provisions
that the currency predicated upon it, must be
the cery best in the State. In no event can
the bill-holder suffer loss though the city as
a corporation might, if the implicit confidence
that all men feel in her accounting officers
should happen to be abused, which, from their
character, is hardly within the range of even
possibility.
1t is not among the least of the benefits OF
this arrangement, that while it gives the peo-
pie of the City and State, par currency of
the soundest and most unimpeachable char
acter, it enables the City to pay its creditors
in par funds, and, above all, to pay without
discount or loss, the interest upon the City
Stocks.
We may be mistaken, but we are Of opin
ion that the results of this arrangement vii
DO credit to the financial acumen and foresight
IF all who have had hand in making it,