The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-09-30

other party, was authorized to bid for
the State, and should bid to the extent
of the bonds issued, one million and quar-
ter dollars, where would the surplus 90,
after paying the amount due to the State on
account of interest? That surplus would
60 the companies. Therefore it is, l main
tain that this policy not only results in
inevitable taxation but inevitable loss of
all the State securities, which, according to
Mr.. Bakers statement the other night, are
worth $6,OOO,OOO at least. Hear, hear.)
The fact is, they say taxation and mean it;
but when they are at loss, they say their
pledge amounts to nothing. But, they tell
US, "Oh we will have a new bill;" we will
have seven devils worse than the first
Laughter.) These gentlemen seem to
think that all the railroad organizations in
the world are waiting to snatch at these
lines in Minnesota. They would have you
believe that the present condition of West
ern railways is better than that of one and
half years ago when this bill was
passed. With all these professions,
however, they do not point you to any
great advance in railroad securities. Oh
no! We have, say they, a magnificent
donation worth $25,O0O,OOO, and these
companies are all standing ready to grasp
it. None of US can place any reliance on
such magnificent possibilities. / do not
believe that the State is now any better
than it was two years ago-at least so far
as its railway enterprises are concerned.
(Hear). And now [ would draw your at
tention for few moments to the policy of
Democracy, as distinguished from Republi.
canism. They tell US that Democracy
means taxation and Republcanism the abo.
lition of taxes. Now boldly assert, and
am prepared to maintain, that the result Of
the Democratic policy is to obviate the ne
cessity of levying taxation. 1 would par
ticularly desire to be understood here; for I
have been misconstrued by some portion of
the press. I say that the effect of the
adoption of the Democratic policy will be
to appreciate the bonds of the State-to
enable the companies to pay their own in.
terest, and thus obviate the necessity of
levying tax, after the tax law shall have
passed, should such law be deemed neces-
sary.
l distinctly say that in my opinion some
Legislative action should be taken on the
subject. Let it take the shape of tempo
rary loan, or what shape you will-some
legislation is necessary to negate the idea of
reputation which has, unhappily, become
associated with the State bonds Of Mime
sofa (cheers). Why is it that those bene-
fits conferred by the State have been worse
than useless =? What is it that makes our
State worse than Wisconsin, or any other
State The railway bonds are in fact better
secured than the $25O,OOO bonds. Yet
it's bonds are not worth anything in the
market, because it is mere question of hon.
or. On the part of the people of the State
there is no legal liability to pay these bonds.
And leading parties in the State have unhes-
itatingly and persstently advocated repudi-
alton, because, if you please, of that pledge
of the Legislature which, according to Mr..
Baker, has been the ruin of these bonds.
This pledge was, in. reality, reputation in
advance. After its passage it was immedi-
ately placarded and forwarded to Wall street
from the Minnesotian Office so that when
parties from the State went to w II street to
raise the necessary money, this reputation
document was presented to them, and their
mission was failure. This was the result
of their reputation pledge (cheers). 1t is,
l hold, necessary that the State should do
something to indicate to the capitalists of
the east that the policy of Minnesota was
opposed to repudiation-that let the worst
come to the worst, Minnesota would not
dishonor herself (cheers). Under the DEM
ocratic policy, then, the companies would be
enabled to pay their interest; and even
should the State have to foreclose the secu.
rites, still you will get all the advantages
your Republican friends promise you. You
would also secure in addition, an apprecis.-
ton of the bonds, and keep up the character
of the State (cheers) In his letter to Mr..
Becker, Mr.. Banning admits that the effect
of such legislation, repledging the good faith
of the State-would be to make these bonds
valuable at par and that the company
would make $l,900000 clear out of the
transaction with an expenditure of only
100000. Yet, with strange inconsistency,
he says in the same breath that these lands
are worth $25 100000, and companies would
soon be found to prosecute the scheme. He
thus assume the extremely improbable
ground that the present railway companies
were quite willing to bandOn such splendid
schemes for the sake of avoiding the pay
ment of paltry sum of interest as it fell
due. Such state of things is by no means
probable. People do not thus carelessly
throw aside scheme endowed to the extent
of $4,000 mile. We have thus seen
that the Republican policy involves loss.
1t should also be remembered that under
that policy, the enterprises would be put
into the hands of new parties who would
be entirely exempted from all obligation to
pay the $2,5OO,O0O; and these securities
would of course be inevitably lost (hear,
hear. Antagonistic to this, you have the
Democratic policy which enables the COM
panies themselves to pay their own interest
which sets in active circulation $780,
600 of your currency now laid up-which,
with bank tax on even that amount of
capital would 60 a great way Of itself to-
ward, paying this interest (cheers). You
would, under this policy, secure the con-
struction of your roads,-at least 6211a
miles of each line, and you would secure
more than enough to pay the bonds (cheersj.
These are in my mind, the results of the
Democratic policy. The policy to which it
was opposed is that of Reputation for it
promises or pledges its professors to nothing:
1t is a policy which cannot fail to entail
additional distress for the reason that it it
can be called an enunciation of policy at all,
it is policy resulting in the loss OF two
million and half OF bonds already issued,
lin the loss Of your securities, and in inev.
*