The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1858-02-06
For The Ainnssotidn.
The General Banking Law.

tea crudlty OF conception mas ho', 'e"'"''
to say, ever been exhibited, in any deibera-
tive assembly, than has characterised the
members on the subject of banks.
Flra-An idea pervades the minds OF the
members that there is nothing like having the
banks they may authorize, based on Mime
sofa State Stock, to the exclusion of that of
other States This cannot be. Capital must
come from other States There is not suffi-
Gent here to form the basis of circulating
medium commensurate with the business to
be done here. The resources are here, ample
TO repay, finally, the means necessary to de-
yelope them, but they are not sufficiently
available vntll developed, to form the basis
Of good currency. Capital, then, must
come from elsewhere, and those bringing o;
seniing it here should be-must be-(f they
are expected to risk their money here) at lib
erty TO buy what stocks they please. How
ever painful the knowledge of it may be- it is
nevertheless truth, that there are many
moned men who will not appreciate Mime
sofa State bonds So highly as We do here al
home and who will prefer the bonds of some
other states to form the basis IF their bank
ing operations. And besides have no hes
itancy saying, that Minnesota State bonds
bearing twelve per cent. interest (the highest
rate yet proposed) cannot be sold at par
The idea, then, of creating currency, aSed
exclusively upon home security, is fallacous;
and, repeat, the money coming from abroad,
the security must come fom abroad; WHEREBY
er the capitalist chooses to take it and in
that view the strongest inducement consis-
tent with the public interest should be held
out to capital to come here.
The prevailing prejudice against foreign
capital, and nonresident SPECTATORS, is
most unnatural. What would St. Paul be
now, but for capital invested here by those
who never resided here Would she have
one fourth the population and wealth she
has ? No intelligent and impartial man will
answer. in the affirmative. And why are spec
ulators so odious -? What but speculation
has developed the resources, and built up the
towns and cities of the West a.? Who but
spectators have built the hundred Railroads
that have brought the East in hailing distance
of the West, and clasped the bonds of the
Union so firmly that they are equally invul
nerable to the vapor of demagogueism and
the violence of sectional strife?
Second. They propose virtually to sane
ton the suspension of specie payments (in
violation of Sec. ID, Art nine of the Consti-
tution,) by declaring certain amount-a
very small proportion to the circulation-,f
specie shall always be kept on hand. To
say that certain amount shall be kept on
hand, virtually says no more need be kept on
hand: and of course if bank has circula-
ton of five or six times the amount of It's
specie, it is liable at any m ment to be COM
PEELED to suspend. And how is it to be
kaoacn how much specie bank has on hand
L apprehend very few men, having either
character, credit or means will establish a
bank if liable to have it overhauled by Tom,
Dick and Harry or even by committee of
the Legislature Of Minnesota. All the Leg
iSlature has to do is to provide for the giving
ofgood security, and let the details be left to
tie bankers themselves. If their pride, their
self-respect, their character as bankers and
their own interest, are not sufficient to in
duce them to maintain their credit, no law
can do it. Give them free scope to exercise
their Judgment. Sometimes it may be ne
cessary to have nearly as Tuch specie on
hand as they hare issues out-at other times
1t may be entirely safe to have q very small
proportion.
Many banks have been ruined by being
confined to the crude prescription of an ig-
norant legislature Ignorant of banking az
fairs), when if left free to exercise their own
discretion they would have sustained them
selves, and prevented financial 'crisis"-
Either pass liberal law or pass none at ALL
DO not grant privileges with conditions that
contravene the free exercise of those privilege
es. Trust the bankers or do not trust them.
The best way to make men dishonest is to
impose upon them restraints implying susp-
cion of their honesty. Those who will estab-
li>h banks, if good liberal law is passed,
will take care Of their own interest, and the
note holders will be safe No banker will
suffer himself to be discredited by refusing to
redeem his notes when presented. lie will
always have specie enough on hand to pro-
tect his credit, and of what quantity may be
necessary for that purpose, he is better
judge than the members of the Legislature,
not many of whom, it is safe to say, have
been brought up in an iron safe.
Let a bank bill be drawn, by a man capa-
BILE of drawing it, whether he be member
OF the Legislature or not let it be submit
ted to other capable men for suggestions
those who are not members as we'll as mem.
bers, and thus perfected, let it pass. In this
way good banking law may be passed. But
Ii IN Its progress through the Legislature, the
members, prompted by the undgested
thoughts that occur to them at the moment
spring to their feet and propose amendments
and they are voted upon by other members
than the mover with equal thoughtlesness,
then there is no hope Of good law. Bank
ing is science, the most abstrusc of all sci.
ences-one that. in practice, more deeply af.
fects the public interest than all others, and
should be regulated and managed by men of
skill and practice would as soon appoint
a commission of butchers to dissect a human
body for scientific purposes as to refer bank
bill to Committee of the Whole of either