The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-07-07
Minnesota Banks..The EVIL and the
RemeAy.
WAsIoJA, Dodge Co., June II.

WAsIoJA. Dodge Co., June II.
To the Editors Of the Pioassr And Demoora.
Here We are in regular muss about the
Minnesota currency. 1t is out and in the
hands Of the people, aud what can they do
with it? The honest farmer Of Dodge
county sells perhaps almost his last COW OF
horse, receives his pay in cash In Rochester
money, and goes to Red Wing to buy pro.
visions for his needy family. But his money,
or what be took for money, 'front.' pass. He
goes home, finds the purchaser, and wants
other money. He don't get it, for the pur.
chaser has no other. With few hasty
imprecations on the merchants, little grum-
bling about the rotten banks, and the supe-
riority Of the metal" he stores the bills in
the hollow sided wallet, and goes home.
A short time ago q gentleman passed
through this place on.a " run to the Roch.
ester bank with some fifteen hundred dollars
"Execrable wretch" thought |, :" 80 to con.
spire against our home currency" lie came
home foiIed by the bank--he could not get it
redeemed He came along again short
time afterwards, and |, with some degree Of
embarrassment approached him on the bank
question. The fact was, US | learned from
him, some halt dozen different persons had
taken Rochester money in bis county, having
parted with every thing they could " rake
and scrape" to get means to redeem their
land, which had been sold on mortgage The
purchasers Of the land would not take Roch.
ester money, aid the redemptioners could
not get any other, so they deputed the gen.
tleman aforesaid to make trip to Roches'
ter 10 get the proprietors Of the bank at
that place 10 do rhat they agreed, redeem
their bills He told me that unless be could
get other money the land would be lost as
the time Of redemption lacked only few
days OF being out.
Now, who are to blame for this ? Are
our merchants? Can they buy groceries or
goods with it? Not at all. Then, how
can they take it? Will the mortgage hold
ers Of our lsnds-who are generally nom
residents-take it? Not they.
1t is asked why it is not as good as the
stock banks OF Indiana, Illinois and WiscOn-
sin. The reason is obvious. Our State is
sparseiy populated, our people are weighed
down with heavy taxes aud burdensome
debts our Railroad enterprises are nearly
at stand still, and at least some OF the
companies are unable to pay the laborers
who done the work by which they got the
bonds, which now serve as banking capt.
tai. Ia addition to this, the laws Of our
State do not sufficiently secure the bill
holders.
The most OF our banks are based on State
stocks at its ,Parkei value, one dollar worth
OF stock being deposited with the Auditor
for every dollar bill issued. In addition to
this the share holders of the bank are respon-
sible for double the amount OF their respect.
i've shares. This is the only security. Not
Que dollars worth OF coin is required TO be-
kept on hand for the redemption of the
bills. 1t may be safely presumed that the
liability OF the shareholders adds nothing to
the credit OF the bills, tor the reason that
the stock holders are generally persons ire
spons;be and unknown.
The bills then, are only the representa-
tives of so many dollars worth OF State
stock 10 the hands OF tn Auditor. On tail
ure of the bank to redeem within forty days,
the Auditor, on giving thirty days notice,
is to sell the bonds, thus making 1t serenity
days before the stock can be converted iuto
money, and then, after deducting the cost OF
advertisement, OF a trip to New York and
back by the Auditor, (ior they are TO be
sold in New York and Of SALE the residue
Of the proceeds are to be appropriated TO
pro rata payment Of the bills.
Under these circumstances, is IL 70 be
wondered at that our bankers should be
treated with suspicious at home, and repudia-
ted abroad Add to this the interested
warfare Of the banks of the neighboriDg state
and the brokers OF our own, who have here
,ofore furnished our currency on their own
terms, and the failure OF our own banks
is explained.
What, then, under these circumstances,
ore We to do? Separate the good from the
bad. Let US at once repudate the rotten
and sustain the sound. A number OF our
banks are established on firm basis, but
like the poor Dog Tray, they are abused Tor
being found 10 bad company. say what
you will about the soIveDcy OF our state, and
the improbability OF reputation our ralI'
road bonds at tins time have no reliable
market value, and the assumed valuation at
which they are received by the Auditor,
cannot give credit to the bllls. Now If the
banks, instead Of whining over the persecu-
tons with which they are b'set, will but
voluntarily add 70 their securities, and mu'
,ually combine with an honest determine
ton TO support each other, and use proper
care to redeem their notes, they can survive
the present warfare upon them and obtain
credit at home and abroad. But let rs
crush the irresponsible, unr1ieeming, unse-
cured swindIlng banks in the germ
This may occasion presen, rOubie' but vii
prevent de- spread los a few months or a
year hence. This kind Of talk may not be