The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-03-24
Home Currency Bssed o" RAILROAD
Bonds.

In the M,nnesot'an Of yesterday. we find
an able letter from Hon. JouS w. NORTH,
President Of the Minneapolis aud Cedar
Valley Railroad Company, addressed to j.
JAY KNOX Il Co., rebuking that firm for
their attempts to deprecate the value OF the
Minnesota State bonds, as 0 basis for
banking purposes. The Messrs. KNOX are
the authors Of the money articles " in the
N,nnesot,an, 10 which their reflections on
the reliability Of the State securities have
been made public. We quote below, the
greater portion OF Mr.. NoRrHs moderate,
yet iorcible rejoinder to the insinuations of
KNOX Il Co.
To the Editors Of the Nnns.o,ian
j. j. KNOX 4 CO-Gents: Your money
article in the Winnssoi,an Of Saturday, like
others that have preceded it, discusses some
what plainly the character Of the Minnesota
seven per cent Bonds, and particularly those
issued TO the Minneapolis and Cedar Valley
Railroad Company, as the only ones now
received by the Auditor as a basis for
Banking.
would by no means question your right.
As writers OF financial articles, to discuss the
value Of State or Railroad securities or 10
express your own opinions of their value.
But while | concede to you this right, you
will not, trust, deny to me the exercise Of
the same right. And while deal plainly
with our financial matters, you will excuse
me for dealing with equal plainuess with
yonr article.
For year or two past believe you have
been issuing to the public a. money. what
purports to be the bills OF the Gray Bank of
Maine, having no value but what is given to
it By your endorsement. This you have
asked the public to take at par, as money
and the public, reposing confidence in your
ability and integrity have accepted and
still continue to accept, this currency at your
hands, and still continue their generous con-
fdence in your ability to redeem il. by which
you have been greatly benefited, and the
public convenience subservel. find no
fault in this tor in the existing scarcity OF
currency, even endorsed currency is much
better than nothing Bu, every business
man has long wished for currency regula-
ted by law. aud having more substantial
basis.
This the State Of Minnesota has attempted
10 provide for, by issuing her State Bonds.
and passing law making those Bonds
basis Ter banking. may also add, that our
Railroad Company gives what additional
value IT can TO these Bonds. by its own en-
dorsemsnts. and by placing in the hauds OF
the state oil q lands, road, property and
franchises, as security tor their payment
These State Bonds. thus secured. YOU
very uncerenonioasly pass Judgment upon,
as really worth bat scveniyive cents on a
dollar; and in your money article for the
NiEncoiiGn, tell the public that II is no,
safe that larger amount OF currency should
h Issued upon them. Then il would seem,
that in your opinion. the responsibility OF
the State OF Minnesota. and that Of Land
Grant Railroad Company combined fall
short OF the value OF your own endorsement.
twenty-five cent, on the dollar hayc no
obrrlion 10 any one having a comfortable
estimate OF their own powers bat | would
respectfully suggest whether this is no,
placing Il rather high
Ba, have another inquiry TO make at
this poiu, IL /, quite right for an intended
purchasr 10 Use the columns OF a newspaper
10 deprecia,e the ar icle he wishes 10 pur.
chase, and thus try 10 erias II down 10 bis
own tgurv nAy ~ mlsinformei but