Saint Paul weekly Minnesotian., 1858-12-04

in monetary circles in New York city, we give
the following from Thompson's Bunk Note
Reporter.
From Thompsons Bank Note and Commercial Reporter
Of November 20.
Minnesota Banks and the Minnesota
Five Million Loan!
One month before the admission of Mime
sofa into the Union, her Legislature, (if she
could be said to have one) passed All act to
loan five millions of State Bonds to railroads;
and as her Constitution, which had not yet
received the sanction of Congress, prohibited
such loan of State credit" it became ne
cessary to take a vote of the people on the act
The State was admitted into the Union on
seventh of April. This act was passed on
the ninth of March preceding, and voted on
by the people on the 18th Of April. This is
emphatically Railroad progress
On the Goth of July, the Legislature passed
General Banking Law, and amended the
same ON the 18th of August
We make abbreviated extracts from each
of the acts above referred to:
Whenever either of the four Railroad
Companies shall satisfy the Governor that
dny ten miles of said road are ready for the
superstructure, he shall cause to be delivered
to said Company 100000 bonds, ETC., for
every ten miles; and whenever any ten miles
| are completed and cars running, the Cover
nor shall cause to be delivered another $780,
600 of bonds" -
Making 100000 for every ten miles of
road.
Each Company shall make provision for
the payment OF interest and principal in such
yna To %l1a g.
any advance of money for that purpose; and,
as security therefor, the Governor shall receive
! from each of said Companies an instrument
pledging the profits of said road, and con-
veyance of the first 240 sections of land Gov
ernment Grant, which the Company may be
authorized to sell. And as further security
the Company shall execute and transfer to the
State Treasurer an amount of first mortgage
bonds equal to the amount of State bonds re-
ceived on their road, land, &C.; and in case O.
default in the payment of either interest OF
principal of the State bonds, then the Cover
norshall proceed to sell the mortgage bond:
or the lands held in trust, or he may require;
foreclosure of the mortgage executed to secure
the same"
This is really all the provision made to Sc
cure the holders of these Minnesota Stat,
Railroad bonds. The State evidently stand
in the capacity of a trustee or agent betweel
the holders of the bonds and the Railroad
Companies. The whole tenor of the arrange
ment is indicative that the State will pay NJ
faster than the pledged securities can be mad
available.
Now, look at the Banking Law of Mime
sofa, and say whether or not we are unjust il
denouncing Minnesota Bank currency as un
safe"
Whenever any person or association form
ed for the purpose ofbanking shall transfer il
trust to the Auditor any portion of the pub
lie stocks issued or to be issued by the Unite
States, or the State of Minnesota, at their cur
rent value, or the stocks of any other Stat
which has not sold for less than par in Ne,
York for six months, such person or asSOcia
ton shall be entitled to circulating note
equal to the amount of Stocks thus transfer
red"
'1tis unnecessary for to say that Minnesot
Stocks of this Railroad issue will form almos
the entire security for Minnesota bank notes
And it is also unnecessary to say that tn
parties interested in the roads will, direct
or indirectly, start many banks, use thei
bonds for currency, and use the currency fo
building the roads, and due time the banks
the roads and the State will go to the wa
simultaneously.