The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1858-12-30
The EinaGetai Credit of Minnesota.

Some Of the Eastern journals-among
which we would especially note the New
York 1riJune-in the interest Of the Wall
street bears, are doing what they can to
prejudice the financial credit OF the State oil
Minnesota, IN the markets Of the East, with
the view ofdepreciating the State Aid Rail
Road bonds, on the successful negotiation Of
which depends the present prosecution of our
railroad enterprises. The money article OF
the Tribune, of the Eth inst, contains the
following paragraph;
THE Governor OF Minnesota is in town for
! the purpose OF consulting With the managers 0i
/ the four great Minnesota roads, and assisting
/ them In negotiating the State bonds issued in
aid OF their undertakings. We understand that
| under the ruling of the courts Of his State. he
! has consented TO receive as security for them
/ state stocks, the first mortgage bonds on the
/ roads at the rate e t3j 900 per mile. The is.
sue OF state bonds is at the rate Of 500, 900 per
| mile, and the Governor at first refused 10 issue
the state credit unless the first mortgage secu'
/ rity WAS confined TO the same amount. The
| Goyernor is Director IN one OF the roads, and
his road was willing TO give the security that
he as governor required. II will be found,
I probably, difficult to negotiate in this market
these railroad state bonds, as no provision has
been made by law for the payment and it is
unlikely that anew state Of only $50, 900 inhab.
itants could pay n sufficient tax even if the law
existed for collecting it,
Now, in order to set the egregious stupi-
dity OF this conclusion in the most advanta-
geous light, We cut the following paragraph
from the New York Courier and Enquirer,
Of the 10th, in which some Of the statistics Of
the valuation Of property in this State, last
year and the present, are reproduced
ave have received from the Auditor Of Min.
nes0ta, q statement OF valuation Of property on
which taxes were levied in 1857. in 81 counties;
| l6 counties had failed to report the amount
/ reported was "a 9i5,57i 81. loo; two Of the l6
counties report for 1858, taxable property
s6ss, l59 $500. For 1855, full report Is not
! yet made. but from scattering returns we no.
tlce slight decrease in several counties, while
IN others there If large increase from 80 to $50
per cent. The Auditor believes the total
amount will exceed fifty million dollars this
amount does not include any Of the Govern.
ment Lands. The City Treasurer Of Saint Paul
7
amount to tli0,ssi 50 100 The present vaua
ton Of real estate within the city is 1851, 1871
VI personal estate. .................l,l 1925
Total valuation. -, 030,570
Considering the depreciation Of property in
that city this year, il still shows q most rapid
improvement, when we consider that ten years
ago It could only boast Of few scattered
cabins, inhabited by about 200 people.
We shall publish tomorrow statement
OF the valuation Of property in this State,
which will corroborate this gratifying pic
ture Of our prosperity. Such facts as these
afford conclusive demonstration OF our
ability to meet to the full oil the financial
engagements Of the State.
II is matter of easy arithmetical sou.
ton. The solvsncy Of the State of Mime
sofa, the Tribune should know, does not de-
pend upon the number of its inhabitants,
but upon its financial resources in COMPARE
sou with its liabilities. Its taxes are as
sessed not upon the number Of its inhabi.
tants, but upon their property. The State
Of Minnesota is and will be Immediately liza
bic only for the interest on about one mil
lion OF railroad bonds at eight per cent, and
for seven per cent. interest yearly on some
two hundred and fifty thousand beside.
/ II the contingency should occur which
the Tribune assumes-that the Railroad
/ Companies should default in the payment of
interest when duet would also happen
that according to the conditions Of the law
authorizing the aid of the State, no more
bonds could be issued to the companies. SO
that a million Of dollars, payable in twenty
five years with seven per cent semi annual
interest, Is all the responsibility which the
state risks by the default of the compa
MES.
The amount of interest liability which the
State assumes, then, for the Railroad Com.
panies. if they should default in payment.
would be $4,000 on 100000, The prin-
cipal, let it be remembered, payable in
twenty-five years when, at the rate Of pro
gress which has become the recognized sw
OF Western growth, Minnesota would con-
tain two millions OF inhabitants Now. to
allege that the people of Minnesota. with an
aggregate property Of over s5000o,0o0,
could not pay an annual tax Of go 900, or
ten times that amount, if Necessary, is es-
scnsially preposterous, The assessment
would amount to but abou, one mill and
halt on the dollar, which would be consider.
ed light burden in New York if i, was
ten times as onerous. 1t should be recol-
Iectei. too. that the estimate We have given
Of the valuation OF property is for period
Il unusual depreciation, when property is
valued a, third and often a ha ( less than
last year. 10 ordinary times the valuation
would be much higher, and to morrow We
r,Il nrlar,.kc ~ ahow tho TIKI. IL. :,