Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-01-22


during the year. $o,6 I4z w
This statement shows q steady contraction, dur
ing the past fiscal year, OF the currency issued by
this department Still greater is the contrast OF
the actual circulation Of all the banks, including
the chartered and free banks, following the sus-
pension of October 1857.
The extreme point of actual bank note circula
ton in this State by our own institutions, was
reached on the Goth of September, 1856, amount
ing at that date to S34 633. 1t fell during the
year previous to the suspension, to 1927, l22,9O4
this being the actual circulation on the 26th of
September, 1857, seventeen days previous to the
suspension of specie payments. A steady and
constant reduction of the volume of our actual
currency followed and on the 18th of the follow
ing March, it became reduced to $22, nc, 15S. Of
this reduction of currency, amounting during the
year to $11, 309, Ats, $4.4l2746 occurred between
the 26th of September, 1857, and the 18th of the
following March. ,-..---
The chief recommendation made by the
Bank Superintendent is that New York State
fre per cent stock shall be received at par,
as basis for currency. In these three States,
commencing with New York, where the idea
originated, we have samples of the Free Bank
ing system and of the almost perfect working
of their plan for the issue of currency. In
those three States, where there have been in
circulation the past year, over forty millions
of dollars Of currency, the bill holder has
hardly lost dollar, Notwithstanding, that du-
ring the year, one Of the worst panics ragged
ever known, panic which excited the nerves
| of the people to their highest tension where
ever the ends of their fingers came contact
with bank note. 1t is pity that Mime
sofa Legislature could not have been content
to have copied the wisdom Of others, rather
than to have embodied their own foolishness
in statute. We need a banking law in Min
nesota that will allow an issue of bank notes
upon all State stocks at their average rate in
New York for the four months preceding !;
that will allow their issue upon all New York
State stocks while they are at par in New
York that will also allow their issue on all
United States stocks at their average quota
ton price in New York for the four months
preceding. Such law would give us a
currency in six months that would be per-
fectly reliable, and that would readily circu-
late throughout the whole West, and would
soon drive out all doubtful issues. The law
now on the statute book is disgrace to the
legislature that passed it, as well as disgrace
to the State. 1t not only tends to prevent
the issue of currency that is really good, but
also taints the good by the readiness with
which it allows State officer to exchange
good securities, for those Of more doubtful
| character. E3s4tAEJ ao-1-. VI - 4sists 4,
A good deal Of controversy has been raised
the past week by the action Of the County
Board with regard to the issue of scrip. Ar
arrangement has been proposed by which
$4e, 900 of county scrip is to be issued and
redeemed in gold at current rates by three
bankers in town. The arrangement would
provide the county with means to pay prompt
" the interest on its bonds, which have al
ready in more cases than one been disgraced
it would increase the revenue of the county
it receiving hereafter one dollar for taxes
where now it receives but from 60 to S0cts
it would also reduce its expenses in precisely
the same rate. To accomplish this tn,
county proposes to give to three parties, eacl
the use of four or five thousand dollars Q
, their own issues of scrip, which, before tn
+ arrangement was proposed, could have readil,
been bought from 65 to Roots. The arrange
MIGHT perhaps be an advantage to all parties