Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-09-03

pressly issued ain the name" of a corpora.
ton, were State Bonds, and might be received
by the State Auditor and Governor as a ba-
SIS for banking under our banking law |! l.
And they have been SO received
Thus the people of the State have been
still further unjustly saddled by means of De-
mocratic legal legerdemain, with an additional
debt, of SAC, 900 for the benefit Of Univer-
sity building at st. Anthony, and of those
who profited in itserection--a building whose
threshold has never yet been entered by a
student, and whose wa lis form the abOdeOnly
TRAITS and BATS s;r55 o. rcni 7s4.... ,.loI
Such is Democratic ccOnomy-Such is De-
mocratic management. Yet they beg fer a
new lease of power "''..5 2F.s."l u i'E1ac.
The interest on these University bonds is
IL per cent. per annum and the whole
amount of principal and interest due at the
end of this year will not be far from &c.
600! ----- ---
THE BOGUS BANKS, AND THE DEn-
OCRATIC WILDCAT CURRENCY.
Let us turn next to another subject, and
one of the most direct Importance to the peo.
pie of the State, in q pecuniary sense. $500 NJ
These arc conclusions to which you have
all arrived. That by the action of some per-
son or persons, the whole community has
fearfully suffered from q Rotten and Depre.
ciated Currency: .... ....... ...r p. - 49,.
That almost everywhere the People
have lost more or less by discounts on the
notes of certain Banks established in Mime
sofa.
1t is proper for us to inquire upon whom
the heavy responsibility of all this loss and
suffering shall be laid. We charge that re-
sponsibility on the Democratic party and the
officials it elected. ....... 3ug.l
First, q word of explanation as to the
character of our Banking Law. 1t is law
permitting men to establish Banks and issue
bank notes on certain conditions.
First, for every bank note issued, "a cores
| ponding amount of stocks of the United
| State, or State stocks of some State in the
| Union, must be deposited with an officer ap-
pointed by the government.
The purpose Of this is, that if the banks do
not, according to the printed promise on the
face of their notes, redeem them in gold OF
silver when presented, that the State stocks
deposited as security, shall be sold to pay the
outstanding notes. The system is very
plain and simple one. 1t is q pledge of Sc
curaies to enable the banker to issue notes
the securities to be used to pay the notes and
protect the bill holders, who are the people a,
large, in case the banker does not. Hence
the most important and most essential fea
deposited, that is, their capacity Of conuerti
the city of New York, in gold and SLIDER, +
meet the notes. And hence GU, banking law
by its 9Th section, provided that no stocks o
any State should be received as q basis To-
banking except those on which full interes
is semi. annually paid said stocks to be val
ued at rate to be estimated and governed
by the average rate at which such stock
have been sold in the city af New York
within the next six months preceding the tim
when such stocks may be left on deposit wit
the State Auditor.
The purpose in all this is plain. If tn
banks fail, and the notes are unpaid, il orde
to meet those notes, it is provided by s.ctio
Is, that tie Auditor of State may "procee
to sell at the Merchants Exchange in the cit
of New York, at public auction, the secnritie
} so deposited, and out of the proceeds OF sue
sale, shall pay pro rata and cancel all bill
and notes which have been issued by sue
bank" "
This law was passed by the State Lsgisls
turc, July 90, 1858. On August 10Th, 1855
it was amended so as to allow the deposit {
; the stocks of the State of Minnesota at the
''CarreRt 0atue.'
HERE THE DOOR WAS OPENED Fol
: THE CURRENCY SWINDLE UPOl
THE PEOPLE.
) The law of July 26, 1858, was too soun
1 to firm, too fair, too well drawn it must
got around in some way. Under the fir
law, the STATE stocks are to be valued Il
banking at their average rate Of sale in Ne
D York during the past six months. This d
7 not suit the selfish interests of some. Th'
1 therefore had the law amended, and intr
duced into it, that vague, informal phrss
4 s'their current value" Their current valu,
where /? Among railroad companies Amor
+, sharpers who will shift them from hand
hand In the back-woods =? Or in II
4 prairies2 Or in the Commercial Metropol
of the nation, New York, where they are
i be sold in case the Banks defaulted
The plot thickens An attempt is mat
: during one or two months, IN the City
New York, by the possessors of the bon
r to sell them at any reasonable rate, but wit
out success. At length the Democratic
cumbent of the Executive Chair Of Mimi
!, sofa is sent for. Obedent to the call he go
to New York he becomes the agent Of &
;, different Railroad Companies and descen
from his high position as Chief Magistrate
our young State to chatter and bargain wi
= the brokers in Wall street. He too spends
:. length of time in New York, at least 8
~ weeks, and he too finds tn vt the bonds ba
no value there at anything like their face.
: sIBLEY's CONTRACT WITH WINSTON, LAME
J. L. 4 co." .'H ts.-'.
The result of his negotiations is found
= the following extracts from contract dat
- Feb. Is, 1859, signed by Winslow, Lanier
: Co. of the City of New York, Bankers, p,
- ties of the one part, and by "The Minneso
. and Pacific Railroad Company, the MINI
- apolis and Cedar Valley Railroad Compar
- the Southern Minnesota Railroad Compar
= and the Transit Railroad Company, by II.
SibIey. Agent, party on the other part w
pesses present, J. S. Lamade and A. G.
y. nier.
:. "First-The said companies shall place
T. Bonds already issued, and those hereafter
= be issued by the State in the hands of
said party Of the second part Winslow, |
q p nier & Co. for negotiation, and upon all sa
~ of such bonds, said party shall be allowed
-. ~ retain from the proceeds thereof three
~ cent. commission ON the par uoLae thereof.
!. "Sscond--The said party of the secc
w part [WinsIow, Lanier & Col shall act
w agents for the payment of the interest W
~ the Bonds, which is payable in New Y
I,S City, for which services they shall receive
no per cent. on the sum actually paid.
rs
: "Fourth-The sal. party Of the second r
:. [Wnslow, Lanier & Col shall act as age
"a for the purchase of all Railroad iron nee
or required by the said companies, for wi
all services they shall receive commission
vo | ,.r, >,,1 o,e-bnlf Yer cent