The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1858-01-14


believe that If the Government of the
United States, in its early history, had pre-
vented entirely the issue Of bank notes.
much Of the mischief that has occurred BY
such "panics " as that through which we
have passed might have been prevented
But, unfortunately, in tie early history Of
the country this whole subject was left to
the action Of the different States. The
power which the general government once
held has now virtually passed to the States,
aud President Buchanan himself, though
really always 10 favor Of hard money cur
rency, virtually concedes in his last mes
sage, that we can now only look TO the
States for a reform in the currency. We
would be glad if there was any hope that a
reform would he made by the different State
Legislatures. A few States like louisiana,
and Missouri, and Iowa, have refused TO
allow bank issues of any kind. Louisiana
and Missouri have both recently passed
banking laws. No bank issues have vet
appeared in Iowa, and probably no State
in the Union is so cursed with irresponsible
bank issues as Iowa. Dubuque has its har-
Dor currency in spite Of the laws, and al
most every town in the State has its local
shinplasters that will not pass ten miles
from their place Of issue. Cook, SARGENT
4. 4 t,,,
flooded the State Of Iowa with Nebraska
currency, and though the whole people be-
ieve it, in most cases, TO be vaueless, still
it is ia their hands, and they give it curren-
cy because they feel that they must take it
or go without, or receive something worse.
Their only choice is local sblnplasters, Ne
braska currency, or nothing, The people
Of Iowa have found out their mistake, and
have voted to amend their Constitution and
create a banking law.
II il precisely so in Minnesota, We must
either create Minnesota State currency for
our own use, or we shal. only be place for
the circulation for the refuse currency of
other States. Ii the bankers OF St Paul
had all given credit 10 Nebraska currency,
our whole Territory woull have been food
cd with it. The currency is now 80 scarce
that City and County Scrip is made to go,
because there is 80 little else Minneapolis
aud 81. Anthony are filed with nothing but
shiuplasters Of the very worst kind and un-
less we have "A General Law, this Kind Of
mischief will certainly increase. Such "a
law. we believe, is required in the present
emergency. The question Is not between
gold and silver and bank note currency in
Minnesota. On that point we would pet
hesitate to decide. The question is between
a currency like Wisconsin, that will cir
culate and be known 20 be worth lis face
aud shinplasters, which in many cases ara
really worth noting The whole credit OF
Wisconsin currency rests upon tne securities
deposited at Madison.
II the Banks of Wisconsin, to-day, were
called on for the gold for their Issues, MT
three banks in the State could respond. If
the Wisconsin aud Illinois banks had been
obliged 10 have redeemed their notes in Chi
cago during the late panic. there are not ten
banks in both States but what would have
been discre1tci. Every man who knows
anything Of banking in these States knows
that the credit of Illinois and Wisconsin cur
rency rests to-day, not on the gold IN the
vaults OF the banks. bat on the stocks and
bonds by which tnry are secured and which
are the representatives. IL goid n the State de-
partmcnt. When gold is worth five per
cent. premium throughou; the whole North
west, Il is useless TO expect that bankers
viii issue currency. unless they are protected
from specie demand f,r large sums accumu-
latest tor that purpose. 1t IS for The interest
Of the people 10 secure themselves from loss.
aud then encourage the Banker to keep his
currency In circulation and net heard it for
fear tia; the gold moy. at any moment. be
demanded 0al himself subjected to loss---
The Other States have made the question Of
gold basis fiction, and it i only left for as
to avail ourselves Of the best plan that re.
mains. The securities in Wisconsin ard
Illinois have been tried in the worst times,
and have been found almost as good az gold
Let q genera. banking law then be passed,
requiring securities in stocks 20 be deposited
with the State Treasurer ample for the re-
demplion OF he currency issued.
This is the grand feature OF such law,
ani # that is sufficiently guarded the other
provisions are of miaor Importance. We
would prefer they should be mos; liberal and
ihus dir Inducements for the issue Of COED