Saint Paul weekly Minnesotian., 1859-04-23
~ ~e MOSS


Minnesota Notwithstanding Under
Dimcultiess...SiGht at Certain Mat
ters.
Correspondence Of the N. Y. Post,
Sr. ANTHONY, March 26.
| hardly know what to say of the financia
prospects of Minnesota. That with !" all the
rest of mankind" we have been most incon.
veniently ''short," or, in other words, p" hare
up'' in money matters for the last year and 8
half,is fact already well understood the world
over, But while other States are recovering
from the revulsion of 1857, and are exhibit.
ing MANY signs of renewed prosperity by the
revival of legitimate trade and business, Min.
nesota is pursuing widely different course,
hoping, no doubt to hasten the return of that
golden period of two or three years since,
without waiting the slow and regular course
of other and older communities At first
they expected to secure such result by the
railroad policy adopted year ago the coming
month. In this, however, they have become
satisfied they were in error but, nowise dis
couraged by one unsuccessful experiment,
they have Immediately resorted to another,
which, to many minds, is sure to succeed,
and this policy is new and general banking
system. When, therefore, the railroad COM
panies of this State, disappointed in negotiat-
ing their bonds in New York, announced
their intention of ofconverting them into curren-
cy, a new hope spring up in the hearts of
our people, and they are quite sanguine that
| what was worthless in Wall street yester-
day may be converted into safe and sound
currency to-day. To be sure our business
men look with fear and distrust upon the
measure, and urge some ugly reasons against
such policy and currency. First, they say
that our banking law, which by constitutional
provision must receive two-third vote of the
legislature, was amended for the express pur-
pose of admitting these bonds as a banking
basis by vote of only thirty five in house
of eighty members not majority of the
members elected even, saying nothing about
the two third constitutional requirement-and
therefore the whole thing is illegal. Measures
are now taken to bring this point before the
| Supreme Court for adjudication among pro-
| fessional men there is but one opinion as to
what the result will be, and that is, that the
amendment will be declared unconstitution-
al" .
Then, again, it is insisted by some that
bonds which have travelled throbgh all the
money markets of the country, and found no
sale at any price, and that have been "spout-
ed" here and there all over the country at
fifty cents on the dollar, having no market
| value whatever, are not safe basis for cur
rency-and this position appears quite plausi-
bic, at least.
At present however, the state railroad bonds
are being rapidly turned into currency, the
Auditor receiving them at just such figures as
the parties swear they paid for them, which
thus far is from ninety-five to nlnety-seven
| cents on the dollar, the companies receiving
| in payment the currency issued upon them.
This railroad monhy," as it is here termed,
passes readily among us thus far, and ex-
change, in small amounts, on New York, can
be procured wit it but for any amount of
gold or exchange it is utterly refused even by
those who are the principal instruments in
putting it into circulation. That this curren-
cy is to be short-lived is readily admitted by
all but every person hopes to make it an
swer their purpose, and be very careful not
to have any of it on hand when the crash
comes.
There has been great excitement in some
quarters within the past few days, in conse-
quence Of certain developments in relation to
the manner in which our railroad affairs are
managed, and the appearance Of a new class
ofoperators on the stage.
"A lew uayS SitlCe, WIlle CLc DodIu VI LII
rector of the Transi! Company were in ses-
sion at st. Paul, a Mrs, or Miss, FORM
erly, if not present, of Washington, arrived
in town, and presented to the board a claim
against the Transit Company, of forty y-three
thousand dollars for services rendered in get
| ting the Land Grant bill through Congress.
| The lady was informed that her claim would
not be recognised, where upon she employed
al xx,bn 1Inrrf fn rt
| Injunction restraining the Governor from issu-
ing any more bonds to the Transit Company
&c. She also exhibited to her counsel a copy
of a private contra =. entered into between the
directors of that road and the contractors, by
which the contractors agreed to pay back to
certain directors eight thousand dollars per
mile of the amount the received from the
company.
Learning the course the fair claimant was
tlking, and that she was possessed of such
Important papers and secrets, the directors
came to the "footlights" and paid her ten
thousand dollars in State railroad bonds.
In connection with the above-stated facts. lit
should be known that an extensive change has
recently been made in the direction of that
company, seven directors resigning, so as to
give certain parties the entire control of the
road In consideration of their resigning sim
ply, the seven directors received two hundred
thousand dollars in State bonds and half in the
bonds of the company. l merely state the
facts, leaving your reads to draw their own
conclusions. | may add, however, that our
people are quite puzzled to understand how
the railroad companies are going Ito develope
the resources of the State" by such applica-
ton of the bonds voted by them to build rail
roads with.
None of your readers will have forgotten the
Fort Smelling swindle, of which so much was
said and written, and as the subject has re-
Gently been revived here, it may not be amiss
to give you the facts lately brought out Al
though it was insisted by the Democratic press
of the country that the Fort Smelling sale was
q perfectly fair and honest transaction, it vet
appears that certain parties in close communion
with the administration, as well as Mr.. Frank
lin Steele, were very anxious to have the mat
ter " hushed up" So anxious as to give five
hundred dollar drafts to persons connected
with certain newspapers. In one case at least
the draft of Edmund Rice, the present Prsi
dent of the Minnesota and Pacific Railroad
company, and brother of Hon. II. NJ. Rice
on Franklin Steele, for five hundred dollars
was protested for non payment, Mr.. Rice anC
Mr.. Steele alleging that the editor to whom i
was given, in violation of the contract, de
nounced the sale as fraud. .. -..... -..-
Why these persons should pay five hun
dred dollars each to various parties to "husf
up an honest transaction seems a little Gu
rious, but then this is said to be "a curiou!
world" you know. s. x =
| 49, 49,
The Voice of the whang-Doodle.
A "Whang- Doodle hard-shell Preacher
wound up flaming sermon with this magni
fcent peroration 80
"My brethern and sisters if man
full of religion you can't hurt him Their
was the three Arabian children they're in
fiery furnance, hetted seven times hotter tha,
| :. .s,,ll br l,ot ond Il d;d,nt c;ppo n ho;r -,