Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-03-19
Monetary Matters. ~ -
Prepared sosskly By !. joy Kmoe d Co., Bankers,
PA0aie Rock, Third It,, 81. PGu1. w

Prepared sosskIy ~ y. jay A~o~ d Co., Bankers,
PAoaie B1ock, Third IT., 81. Pau!. .I-
The chief topic of interest in monetary cir
cles the past week, has been with regard to
the admission of the State Railroad Bonds as
basis for Banking. The Bank Department
has decided that the State Railroad Bonds of
the Cedar Valley Railroad shall be received.as
basis for currency @ 95c.; and arrange
ments are nearly completed to issue from
three to five hundred thousand dollars during
the next thirty or sixty days. 1t is expected
the Transit and Southern Minnesota Railroads
will also givesa first mortgage to the State and
issue currency. The issue of so large an
amount Of currency is of great importance
both to those who have debts to collect and
debts to pay. 1t is an addition of SO much
capital to the State, and if the currencyis safe
it is the duty of all parties to aid in sustaining
it If is unsafe, then it is matter of the
greatest importance to the people and to the
owners of the Bouds to make the currency
good from the start. To the railroads them
selves it is a question of success or complete
ruin under their present organization.
The best currency comprises the two re-
quisites of safety and conuerti6ility, and cur
rency without eithre of these characteristics is
sure to fail. The currency of New York is
safe and at once convertible. The currency
of New England is easily convertible, without
being secure and the currency of Wisconsin
is safe without being easily convertible. Let
New York or Wisconsin Bank fail to-day
and its currency will circulate hundreds of
miles from home, provided the securities are
ample for its ultimate redemption; but let the
currency of New England Bank be discred-
tied in Boston, and its circulation Throughout
the whole country is stopped until its resour-
ces are ascertained.
The currency of Minnesota about to be is
sued will depend mostly on home circulation.
1t will not circulate readily in our neighboring
States and the West until it's character is well
established.
fit is in good credit at home, it will soon
be received elsewhere. In order to make it
in good credit here, it must be either safe or
convertible; and in its first issues it is much
better policy to be on the safe side. There is
danger, however, in our new Minnesota Com
pany, that it will be neither safe nor convert
bic. There is not man in Minnesota who be-
lieves that Minnesota Railroad Bonds are
worth IS cents in cash. In other words, not
man in Minnesota can be found who would
95 cents for an investment. The Companies
to whom these bonds are issued, can afford to
have the issues on a larger margin. They
should issue at low figures, and when the
credit of the roads and the bonds is establish
ed, increase the currency. The amount of
currency issued on these bonds should not at
first exceed seventy-five cents. If currency
is issued at greater rate, it must he readily
convertible, or Its life will be short and full
of SORROW" If issued at IS cents, it must
either be located at point easily accessible for
redemption at par, or redeemed at some CEN
trail point at rate not above the. current rate
for gold We believe that if arrangements
are made to redeem this new currency in St.
Paul alacays promptly and cheerfully, at an
average rate of one per cent. discount in gold
for the next six months, there will be no dis
position on the part of any one to discredt it.
As much as this will be demanded by the
people, and the owners of the bonds should
cheerfully meet the demand.
In this connection we annex the following,
clipped from the money article of the Chicago
Press and Tribune:
MINNESOTA BANKS.
"The following letter was mislaid, or it
would have received earlier attention:
HEYwoRrH, ILL.,, Feb. II, 1859.
Editors Of Press and Tribune:
Will you be so kind as to state in your
money article in the Press and Tribune why
it is that the bills of the Bank of the State of
Minnesota are not taken in Chicago, and why
they are not bankable there? BY answering
the above, you will oblige subscriber.
Yours respectfully,
j. VANoRDsrRAND.
"a plain statement will best answer the
inquiries of our correspondent. Our bankers
have not entire confidence in the Minnesota
banking law. Several of the banks in that
State are believed to be established on stocks
that are good now; but as the law is under
stood here, there is nothing in it to prevent
these stocks being replaced by Minnesota rail-
way bonds, some varieties of which are tho't
to be worth not more than fifty cents on the
dollar. The simple truth is our bankers have
not confidence in the provisions of the Mime
sofa Banking Law. Good banks will be es-
tablished and exist under it but our bankers
fear that there is no power in the State Off
GERS to keep them good. This is very much
to be regretted. Very few of the bills of that
State are in circulation here. They are bought
by the brokers, if purchased at all, at from
three to five per cent. discount. We hope our
friends thereaway will so amend their bank
ing law as to commend their banks to the con-
fdence of the entire western public"
Hunts Merchants Magazine for March,
contains among other statistics, valuable and
complimentary notices of the "Growth of
the State of Minnesota and "the fur trade
Of st. Paul."
The Bullion Bank, of New York city, is
about to go into operation.
The Income Insurance Company, the OBJ
ject of which is to insure the regular payment
of rents, interest and income in general, is
about being established in New York. Money