The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1858-02-04

passagc, put tbefc hot Nlng tWptnItus Oh
the members present, it was laid upon the
table. The bill Us il now stands. gives au.
thority TO the Governor to make loan Of
S250,0 900, at as low rates of interest A. pos
sible, but not to exceed eight per cent. per
annum, aud makes the interest payable an
nually.
While it is the duty Of the Legislature to
frame law that will secure the sale Of these
bonds at the loves, possible rate Of interest.
yet the necessity which exists for their
sale at Nh early day, makes it incum
bent that the law should not be 30 restrictive
as to defeat the object Of its passage For
this reason, We think the members Of the
Legislature should pause. and reflect, wheth.
er there might not contingency arise that
would require the Legislature, after u
months delay, to change the law so Us to
accommodate the rate Of interest at which
the bonds can be sold II is true, our Con
s,itution provides that tax, to pay the
interest annually, and the principal within
ten years, shall be levied but this provision
does not make our bonds more valuable on
this account, than those Of other States,
which provide for the principal and interest
by Legislative enactment There IL, then, no
reason why Minnesota Bonds should be more
valuable in the stock market than those OF
any other State; and il cannot be expect
cd that they will he purchased 80 freely as
those Of other States more fayorably known
Minnesota credit has not been tested, and
until capitalists are fully convinced that the
interest will be met promptly, they will pre-
fer to invest in the bonds OF other States
which have never failed to pay promptly.
Although the capitalists Of our own State
might have no fears Of investing in our
State Bonds, yet they would only be gov
erned in their purchase by the New York
market, which regulates the prices OF bonds
throughout the Union, There can be no
question, that even il every dollar Of the
bonds could be sold in this State, the price
would be no greater than could be- received
at New York. II then becomes necessary
TO give such limit 10 the rate Of interest
| these bonds shall bear. SO ns to secure their
sale at par, that there can I've no doubt Of
the loan being obtained without delay. A
glance at the prices Of stocks in tho New
York market, reveals these facts, that an in
vestment in California bonds would realizc
nine and seven-tenths per cent per annum
payable semi annually, with two per cent
per anDum additional TO he added. at the
maturity OF bonds due in twelve years
Missouri bonds would realize seven and one
tenth per cent per annum payable semi-sn-
nually, with Cne and onehalf per cent. pr
annum to be added at the maturity OF bond.
due in ten years. The investment in Mig
souri, c. would be equal TO an annual inter
est Of eight and four,iiiths per cent.
II We take the value Of Missouri stock,
as criterion TO Judge Of the value OF Min
ncsota stocks, we will probably approximate
as nearly 10 their real value as il IL possible
without having any absolute test before US
10 guide CIR conclusions
In assuming that Minnesota bonds will
be worth about the same amount OF money
q. Missouri bonds, VIC fDd that the annual
interest on Minnesota stocks must be fixed
at nine PER cent. pr apnum to secure Their
sale a. the prcsen, stock rates and IL ,hf
interest is paid only annually, even at this
pr cent, Missouri boDis will he entitled 10
a preference with the capitalist.
Looking al the value Of our bonds in this
light, and VIZ can sce no reason, Why they
should he worth more, on their first sale W.
pcoe EARLY come 10 the conclusion, that 'h'
limit Of eight pr cent. interest provided by
the Bill now before tn HouD may prevent
The sale Of Bonds AT par, and thereby cau'
delay 10 securing the loan which IL abs2
lu,cly necessary to carryo the Government
We have the utmost conf,bpce in the Stat
oN;cers whose duty j; u TO make this loan
,ha, il the legislature placed 10 restrictions
, IN the bill that the loan would be ef'ect'd al
the lorest possible rate Of interet. Thai
rate Of interest might be Iess than eight F''
ccut; but W. have shown that il our toid'
ere worth no more than Missouri bonds, tn
interest mus, be nine pr cent TO prevent
the possibility Of failure 10 negotiate ,hess
bomb, we respectfully urge upon the mem
her. Il the IIon=e 10 review thar he''on' so'
allow limit Of TN pr ceb'. and make
provision that thu iniere., shall l'e paid setni
annually. az ia the case with nearly oil stocks