Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-03-19

The Centroversy Between the Banks.
. THE following article was called forth by !
an editorial item in the Times of Wednesday |
stating that bills of the Bank of the State of
Minnesota, presented by Messrs. BoRuP &
CAKES for redemption, had been redeemed in |
small coin, terming it trick" &c. We give
the reply Of the President of the Bank and
also appended statement from Messrs. BoRup
& OAKEs.-El
/ . ST.. Paul, March 16, 1859.
To the Editors Of the Times.
SIR: judging by the article in your paper
of this morning, headed "Something of q
Rum" you have been misinformed in relation
to the matter of redemptions by the Bank of
Messrs. Borup & Cakes. The following is a
true history of the matter which think you
should give to the public in your columns, in
answer to the article above alluded to.
This Bank has been subject to run from
Messrs. Borup & Cakes, which commenced
on the first day it opened its doors for bust
ness.
Mr.. Cakes presented for redemption on the
second day after opening 500 dollars of the
notes Of this Bank, demanding gold for them,
which he was paid.
They continued to present and demand gold
from time to time, until they had received
some 81, 500 gold for the said notes.
This Bank has always been ready to draw
on New York at quarter less than current
rates for its notes, thus making them worth
to the holder per cent. more than Illinois
and Wisconsin currency, and always convert
ible.
Messrs. B. & O., agreed with the officers
Of this Bank to become the footmen and Run.
ners of Messrs. B. & o., in q matter relating
to endorsed currency, the said b & O., forgot
the agreement they had previously made.
Aessrs. B. 60, by means Of such represen-
tations as they made to respectable notary,
persuaded him to present for them, notes of
this Bank for redemption. Said notary on pre-
sentng said notes, and learning the truth Of
the matter, refused to have anything further
to do with the business. . ....
Messrs. B. & o., then procured the services
of one S. S. Eaton, a notary who presented
notes for redemption, on the 18th inst, and
was paid legal coin of the United States,
which he left on the counter. He soon re-
turned, and pocketing his previous payment,
presented more notes, for which he was ten
dered legal coin.
The fourth time he called, he presented
eight dollars and demanded gold for them
The cashier made him legal tender for them,
which he refused, and asked the cashier if he
refused to pay gold. The cashier replied he
did not. Said notary left, and on Monday
evening this Bank received notice from the
Auditor Of the State, that he had received a
formal notice of protest of the notes of this
Bank, to the amount of eight dollars.
The said notary certified in his protest Of
said notes, that he demanded LAWFUL money
Of the United States, sohich scas refused
i The Bank of the State of Minnesota il
ready, at all times, to redeem its issues il
specie, and will do so, in gold, to the entir'
satisfaction of the public, when bills are pre-
scented in the usual course of business; bu
when extraordinary means to withdraw oul
bills from the channels of business, for tn,
purpose Of wantonly annoying and injurine
us, we feel justified in paying such coin al
the laws clearly uphold us in paying, withou
consulting the convenience of the harpies wht
seek not alone to injure US, but who, by dis
couraging Banks of issue, prevent theincreas,
Of many facilities, and strike blow At tn,
commercial interest of the community.
Not dollar would be invested in banks
anywhere, if their issues were to be system
atically run home for gold more especially
would this be true in this State, where the cir
culating medium is currency, at not less thar
one per cent. discount for gold. A moment.
regard to the operations Of business will rem
der this obvious A bank loans its bills at 6
moderate discount to business men, and is re-
paid in the ordinary mixed currency, worth
one per cent. less than gold If the bills sc
loaned out, are Immediately gathered up. and
returned to the bank for gold, tho bank sus.
tains loss that would compel it to retire it,
notes, and close business and to the extent
of its capital, the business community would
lose many facilities. We apprehend the pub.
lie will not be slow in appreciatng its interests
in this question. - -nr
p. WHITNEY, President.
To THE PUBLIc.-The issue between the
Bank of the State of Minnesota and ourselves
is simply this:
| l. We claim the privilege to demand the
redemption of their own bills at their OWE
counter, in regular business hours, just as j,
suits us, without giving any reason to the
bank for SO doing, and without paying any
premium for such redemption. At the same
time, we dsclaim all intention of running u
this Or any other bank, but we have daily to
make remittances to New York and else.
where, and can only do it by converting cur.
rency into something available for that pur:
pose. The bank has always offered to give
us exchange at Il, but for reasons of our own
we have preferred to take no risks, and pay.
ing in addition for doing 50.
q The Bank has repeatedly insisted upon
its right to redeem one bill at the time.
8. The Cashier has taken upon himself to
take the bills away from our messenger, offer
such redemption as be saw fit, and when this
was declined, he refused even to return the
bills.
4. The Bank claims the privilege of redeem
ing certain amount in ono cent pieces. To
all of this we object In our opinion there