, 1859-06-17
39te&8 &Trih1&ue,
FRIDAY, 1tSE H. -ls5a. :,
FINANCIAL TROUBLES IN MIN.
NE30TA.

FRIDAY, Jt5SG 35SSG IT, sissaZ ::
= = :. = :. =. -
FINANCIAL TROUBLES IN MIN
NESOTA.
The people Of Minnesota hars experienced,
ut III earlier day than VIC had anticipated,
toresaste "s tile evils growing out Of tic mis-
taken policy II lending thc credit Of that State
to the horde Of spectators aud sharpers con-
ncc'ed with her projected system Of railroads.
Although their troubles have but Just hcgpu,
their present coudiuon is deplorable Ia the e1-
tscnc. The most profound despondency has
settled down upon ali csasses1 which. 10
stranger just landed in any ono Of her prin.
eipal tee,1s, is suggestive Of tie times d dead-
ly cpdem'cs Wien the. Sictims*of to-day re-
celve scpul,urc at the hands Of those who will
re?u;rcilic same sad Offices Of others tomorrow
Since the revulsion Of 1887 set ia, every
rar1 Of the country has experienced moro or
less pecuniary reverses aud endorsements;
but III Minnesota there have been Guperadded
to the bur&l'cns which the people Of othe
STATES they hare borne in common with
the pressure Of loan Of FIVE millions Of
dollars which they must eventually pay,
both principal and interest," and also
an irresponsible currency based upon these
bonds issued to meet this loan. Their condi-
ton is precisely what ours would be in Illinois
it. in adli,on to the late financial revulsion a,
st,a r,r. fn;1,,ro <,f +o t&]<,,,o o- Aha }ac+ +c
years, we were about to be saddled with dou.
lie the rates ofour present taxation, and ifthe
currency. furnished by our stock security
banks, llal suddenly become worthless in tue
hands Of the people While VIC deeply sym
pathe with our neighbors for finding them
selves involved in financial difficulties from
which cxtricaton is we'll nigh impossible, it
Affords us not little qualification to remember,
thut willie yet they had the power to
avert tile evil, we urged them to use 1t wisely
to that end.
Tie history Of the projected railroad system
in Minnesota is famiGar to readers Of the
PnEss AND TRIBUNE 4 muni6cent grant Of
lands was made to the State by Congress to
MD in building certain roads, most Of which
will not be needed within the next ten years,
and not more than one Of which, it now COM
plo,ed, would pay running expenses. As j
consequence, the muniGceut endowment was
turned over to q set Of political and financial
udrcnturers, who had neither tue capital nor
the credit requisite for tue successful manage
ment Of IN enterprise Of such vast magnitude;
nor is there any reason to believe that the
leading neu among them contemplated
:4nrlhing from the arrangement but q
gigantic swindle, out Of which they were tt
grow rich ut the cxpeuse Of the indiviaHla:|
bankruptcy Of the people and Of the State
Having ob,alncd possession Of tho railroad
franchises and Ct the land grants, mud finding
they could not render the latter available n
security in negotiating for money, their nex'
move vas to secure the passage Of bill
through the Legislature, loaning them tl't
credit Of the State TO tile extent Of FIVE mil
lions Of dollars, We shall not repeat here th'
statements current ia Minnesota rs to tn
corrupt means employed to secure this legisla
tive action no. need VIC recall the promise
Tint were not to he fulfilled and tue specious nr
gumcuts that lave all been since exploded b.
the stern logic Of events by which the pcop]
Of Minnesota were dcluded into an indorse
men. Of the measure. It is enough for ou
present purpose to state briefly the variou
eteps which have brought disaster upon til
State, measurably destroyed her credit, Set he
back in tie raco Of progress ut least half
score Of years, ard which llayc already reduce
1nanr Of her citizens to the condition Of bank
ruptcy, and threatened with the same fate thor
sands Of others who have not Jet succumbet
Had the sharpcrs, spectators and swindlcr
rested cou;ent with i loan Of tue state crcdi
the condition Of Minnesota, bad as that mea.
urc aione must inevitably llayu made 1t, woul
still be siatspri,g i,,1oad, compared with what
is daily becoming from the elects Of anotlle
law. adopted By the same Legislature, whc
was in fact the complement Of the loan-law, an
Which a'ouo gave efficiency 10 it. We mean Il
41A -4ktuC44[1Ats 01Aho VI A1aAI1 AAA EElA4|%
the state bonds loaned 10 tue railroad companit
to be used rs 4 currency basis at fictitio,
value. AS it was impossible to nesotiase the.
bonde in New York o. elsewhere, in the al
sencc Of such 4 provision in the banking II
they would have remained useless upon ii
hands Of the railroad companies-thc 1att
could not hare prosecuted tie work on Il
roads to any extent, and the amount Of bon'
which they would have drawn from the Sta
would have tcen incousiderable. 1t was a
sol.,tcls essential therefore, 10 the SUCCESS
the gigantic scheme Of plunder, to secure t
Incorporation Of provision into the bankil
Inv authorizing circulation based upon tho
bonds at fictitious value. 1t is asserted
Minnesota, that the same corrupt means VIC
employed iu this case that had signalized t
passage Of the loau tiu through the 1efis
tire, md with the same success. Tho p
vision WAS inserted aud the plundercrs enter
upoa the execution Of their villainous schcm
Cp to this t,mc there have been issued to t
rallroad companies rs VIC are informed, St:
bonds to the value Of about S., 100000. Sol
Of til Sc bonds have been deposited as coll
cral security for tue loan II money at fr'
twenty TO twenty-five per cont. Of their IA
Soms Of them havo been paid oye. to prof
slonal 1obby-ageuts, some have been paid
retiring rcctors to get them out Of Boa,
where olLer men were wanted, and some
about $500, ,o00-l.ave been used as bank
basis nj ninety five cents on the dollar. Til
Is m evidence that a single bond
ever been sud. While bonds Of the St
Of Minnesota Issued for other .purpo ;cs "
WORT! SLOT in the New York market, cap
ists there refused to touch tue new batch 10
el TO lhe railroads. at any prica whatever.
thrown upon Wall street without rcser
there is no probability that they would rea
ten cents On the dollar. Yet here is circ,
tion4 Of nearly s3o0,oo0 formi, the c
currency Of Minnesota, based u. on bond.
this character valued at ninety fire cents
the dollar. 1t WIS the intention Of the p]
derers TO issue currency for the whole batcl
$5,00o,00o bonds as fast as received +.
the State. In ordinary times perhaps t
would hare succeeded in doing so; but un
the influence Of continual financial depress
the bubble has burst, sooner than they had
pccted, and il IL to be hoped that tho gaznf
not only blocked, but that it will stay bloc2