The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-06-02

tnem W protest. ne Exchange Dank Vi
Glencoe has had for several weeks-we might
say months--to withstand hostile COM
bination Of small money dealers, whose ideas
Of finance are shocked by tie existence Of
Minnesota currency in whose circulation
they are not interested-whicb, in other
words, they are not paid to circulate. The
object OF this persistent pursuit Of the banks,
embraces no such wide views, as that Of
bringing the State Railroad Bonds into dis
credit. The past and present career Of the
belligerent brokers shows that it is no de-
sire to maintain the standard of Minnesota
currency, which actuates their assaults up
On the issues Of the banks and while they
apply TO the elected victims OF their tempo
rary rage, the uncompromising test Of re-
demption in gold, they are not above circu-
lating, without scrupe, the shinplasters of
other States, or even their own illegal certi-
ficates Of deposit.
We by no means approve Of system Of
Banking upon unconvertible stocks, no mat
ter what interest they may represent. But
on the other hand, it is apparent that nothl
ing can be so disastrous to the business
interests Of Minnesota, as for our business
men to pursue course, the direct effect of
which must be to make the Railroad Bonds
OF the State inconvertible If, then, comb.
nations Of brokers are successful in discredit'
ing the currency based on Minnesota rs, 80
as to render them no longer safe basis for
banking the obvious effect is to make the
stocks themselves unmarketable, and to
strike death blow at the credit of the
State, in that quarter where it is most easily
assailable; and to bring down with it the
splendid Ra ilroad policy which was founded
on the credit Of the State.
In accepting this system of State credit,
we must accept all its implications. The
whole financial policy Of the State is COM
promise between the present and the future.
II we draw on the future to build our Rail
roads, the same rule Of expediency to GER
tain extent must govern our system Of Bank
ing. 1t is an evil doubtless, and great one,
that our Bank issues are not based, dollar
for dollar, on gold In the vaults. We have
strong doubts whether paper currency, in
any point Of view, is not a financial error.
But public opinion is not prepared to dis
pense with paper currency, and unfortun-
ately the nature Of the currency is such that
it cannot and never does represent an equal
amount Of specie under it. Although good
bank notes are always theoretically redeem
able in gold, every one knows that, in fact,
no bank notes in the United States repre-
sent an equivalent Of specie, in reserve; that
a sudden run upon almost any bank in
the Union with one half or less of its circu.
lation, would force it into liquidation. The
proportion Of specie to currency in the banks
Of Illinois and Wisconsin, is az one dollar
to four or FIVE, or at best, as one to three
We are far from advocating the principle
of the system Of Banking which the State
has put in operation, when we say that it is
as safe as that Of Illinois and Wisconsin,
and that il il Is for the interest Of the com.
munity to have a currency at all, it is for
its interest to discourage combinations Of
sharpers to impose extraordinary tests upon
its specie resources.
Banks which in the ordinary course Of
business refuse specie ought not Of course to
be sustained. The whole principle of
paper currency rests upon the liberation Of
the people. The limit Of that liberation
must be defined by their own discretion.
Since our last review, two banks have
gone into operation the Fillmore County
Bank, located at Preston, capital $4,000,
based on Minnesota 7s. The arrangements
tor the redemption Of this currency are so
complete as to place it in the first class Of
our banks. The name Of the owner, WV
X. MA@HALL is tower Of strength for it.
II is redcemabe in gold by FARSHAx 4 Co,
st. Anthony. Also the Peoples Bank,
capital $4,000, located a, ST. Peter
1t is redeemed a, st. Paul by f. S. EpcER.
ron, in gold and exchange at current rates.
The owners are FRASKLrS STEELE and J.
W. NORTH.
Exchange on New York for Illinois and
Wisconsin currency sells at per cent; for
Minnesota country bank notes, except Mic.
ollet County, exchange sells at 4 to 6 per
cent for the currency Of the ST. Paul and
Nieollet County banks, a, "a per cent.
Gold sells at = per cent premium, and is
b,ugh, by brokers at par.
Tuv Nau Narl T.,l.. =. ..ol. A..