Saint Paul weekly Minnesotian., 1858-11-27
For the Minnesotian.
The Currency Question.

The Currency Question.
Our business men, and indeed the entire
community, feel deep interest in the charac-
ter and value of the issues about to be made.
based ON Minnesota State Stocks, and known
as RAILROAD Bonds" the same having been
issued to the four Land Grant Railroad Com
panies) and are justly anxious to know what
construction has been, or is to be placed, by
the Department on the amendment to the
Banking Bill. This amendment was hurried
through on the last night of the session, and
reads as follows:
Be it enacted By the Legislature of the State Of Nin-
nes0ta.
SEC. l. Section five of said act is hereby amend
ed so us to read as follows: Whenever any person
association Of persons formed for the purpose OF
banking under the provisions of this act shall duly
assign transfer in trust to the Auditor of this
State any portion of the public stocks issued or to
be issued by the United States the State of Min
nesota at their current value, the stocks of any
other State of the United States which shall not
have been sold at less than their par value at the
stock exchange in the city of New York, within the
next six months preceding the time when such
stocks may be left on deposit with the Auditor of
state, such person or association of persons shall
DC entitled to receive from the Auditor an amount
oi such circulating notes of different danOmina-
TONS registered and cOuntersigned, equal to and
not exceeding the amount OF public stock assigned
and transferred aforesaid but such public stock
shall in all cases be, or be made equal to stock
producing six per cent. per annum; and if at any
time the stock assigned and transferred to the Au-
ditOr of State for circulating notes any part
thereof, shall deprecate ten per cent. more in
value, in the New IOrk market, the Auditor of
State shall reduce the rate at which the same shall
IN 10 ~ hapk
sOciatiOn or banker owning such stock to make up
the deficiency with such additional stocks requir
ed by this act. TO be transferred and assigned 70
aforesaid; or such banking association or banker
may make good such deficiency by returning to the
Auditor of State, such amount of bank bills pre-
viously issued to him or them, shall be equal to
the deficiency of security created caused by the
depreciation of the said stocks held as security as
aforesaid;
ErOrided, That if. in the opinion of the Auditor
and Governor, any stocks offered shall be deemed
insecure, they shall not be received such secur.
| ties under the provisions of this act.
SEC. 2. Section two of this act is hereby repealed
SEC. 3. This act shall take effect and be in force
from and after its passage.
GEORGE BRADLEY,
Speaker of the House of Representatives
WILLIAM HOLCOMBE,
President of the Senate
In regard to any State Stocks other than
the stocks of the State of Minnesota there
| can of course be no misunderstanding or diff
| ficulty, as the language of the law is plain !;
| for the cash value of the stocks is readily
known and ascertained, and is what they will
bring in the New York market at fair and
open public sale. This price limits the issue
of notes based thereon, and the bill-holder is
| of course entirely protected. This rule of
| ascertaining the exact or real value of the
stocks is however not so plain in regard to the
stocks above referred to, known as Rail Road
Stocks for they may be taken by the auditor
at their current value and the question at once
arises and becomes of paramount Importance
| as to what in the opinion of the Auditor and
Governor is the meaning of the words current
vatue as used in the banking bill. If current
value means the cash price at which these
stocks are from time to time fairly sold at the
New York Exchange and the issues allowed
by the Department are limited to this extent
and by this rule of value, then of course the
currency is well secured and will receive a
| ready credit in the community. Should how
ever the words "current value" be construed
by the Department to mean the price at which
| these stocks are taken by the Rail Road Com
panes or the price at which few of these
stocks may be sold and quoted in the New
York market the matter assumes different
shape and one by no means So favorable to
the note holder.
The recent decision of the Supreme Court,
py which the State is placed on the same foot
ing with all other mortgage creditors of the
Rail Road Companies will doubtless in the
opinion OF many, very materially affect the
value of these stocks and as direct conse-
| quence the issues made thereon, unless such
issues be limited to the actual cash price at
which the same are fairly sold in the New
York market. This is the market to which
| hey must 60 and be sold in case of default
/ on the part of the party making issues upon
hem, and the price at which they will thus
| sell, decides the value of the notes based
| thereon.
The business public, and as have said, the
entire community, are deeply interested in
this matter, and are waiting the issue of this
currency as means of giving new vitality to
all departments of trade, and perhaps no evil
could be worse to the people of our State than
the present scarcity of currency and ruinous
rates of interest, unless indeed, it be depre-
ciated and worthless currency
Should not the department then, having
charge of this important interest, and Oh which
so much depends, for good or evil establish
and make public their decision in regard to
this question, that the public may fully un-
derstand the matter CURRENCY.