Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-09-10


AND OBJECTs
Republican and Democratic Parties
(Concuded.9
Banks Must be Started!
Yes, Banks must be started to turn the
State bonds into money. To negotiate them
with the People of Minnesota, and make
them cash them. If they will not sell for
money they must be broken up into money
money must be made out of them-they
must yield more than % per cent.
But here let US recur again to the Bank
ing Law of the State. Section L, of the
Amended Act, says:
Proridcd, That if, in the opinion of the
AUDITOR and GOVERNOR, any stocks of:
fered shall be deemed Insecure, they shall not
be received as such securities under the pro-
visions of this Ac.'
BY this, you will see, the Democratic ad-
ministration, the Auditor and Governor, pos
sessed the po,ner to Protect the People. The
authority was placed in their hands to step
in between designing men and the people,
How did they fulfill their trust :?
Mr.. Sibley as Acting Governor of the
State, knew that the Railroad bonds were
only worth twenty-five cents on the dollar,
in New York. But Mr.. Sibley, as Vice Pre-
sident and Director of the Cedar Valley
Railroad, knew the holders of them would
never be satisfied to issue bank notes-phich
they did not themselves intend to redeem-at
that rate. They might as well take Wins
low, Lanier Co.'S offer. The bonds must
yield more.
Mr.. Sibley then drew up, in his own hand.
writing, the draft of an agreement between
the Cedar Valley Railroad Company, of
which he was Vice President, and Messrs.
Pease, Chalfant d Co., of st. Paul, Bankers,
OF which draft the following is a literal CODY /:
COPY OF THE ROUGH DRAFT OF CONTRACT
WITH MR.. PEAsE TO ISSUE owAToNNA AND
cHIsAGo CURRENCY, DRAWN UP BY HENRY
H. sIBLEY, THE DEMOCRATIC GOVERNOR, IN
HIS OWN HANDWRITING.
al. 100000 to be sold to R. M. Pease at 95
cents. He to place $4,000 to credit of
MINI. d Cedar Valley r. r. Co, in the
books OF Pease, Chalfant & Co.. on INSTALL
ments, as per section 4. payable in current
WtnneSotd currency upon the checks of the
treasurer OF the Co., except about $23,-
900, (more or less due by the Company
to Borup 4 Oakes, which shall be paid in
current Minnesota currency, or in exchange
on New ork, at current rates, at the op-
tion of Borup & Oakes.
"2. Exchange required by the Company to
meet their obligations in N. Y, to be pro-
vided for by p. G. & Co. at lowest current
rates, as the obligations become due.
"3. $4,000 Of State Bonds to be deposited
with P. g. & Co. for mouths without In
terest said p. G. & Co. to meet the inter-
est thereon 60 days in advance of the time
when coupons thereon fall due, either in
cash or coupons, as required by the Treas
urer, said $5O, 600 in bonds to be return
ed by P. Z, & Co. to SAID Company on de-
mand after six months, or their proceeds at
their current value at that time.
81. The Company, not having 100000 in
State Bonds now on hand, they are to de-
liver to R. NJ. S. Pease $4,000 in Bonds,
from which, at the rate of IS cents, as
aforesaid, Borup & Oakes are to be paid
as per 1st section, and the rest to re main
on deposit with P. G. & Co. subject to the
drafts of the Treasurer of the Co. aft er the
I'd installment of bonds are issued to said
Pease; the aforesaid deposit to made AS
SOON AS CURRENCY is RECEIVED RY HIM
FROM THE AUDITOR, for which he SHALL
MAKE APPLICATION WITHOUT DELAYI
"5. The interest on all the State II. R.
Bonds issued to the Company, is to be
provided for out of the proceeds Of the
above named 100 bonds, either in cash or
coupons, according 10 the requir, ,ments Of
the law-fOr which purpose P. y. & Co.,
are to issue their certificates of deposit for
the amount due and payable on the lst day
OF June, said certificates to be made paya-
BILE to the order of the State Treasurer. in
exchange on New York, at current rates
or coupons"
The original of the above paper in the
hand writing of Mr.. Sibley, can be seen on an.
plication to Daniel Rohrer, Esq, at his off ce
in St PAUL.
What, fellow-citizens, do you deduce from
this paper? Simply this:
[. The Bonds could not be sold.
Ii. An arrangement must be made by which
they would appear to be sold.
III. 100000 of the Bonds were to be
sold to Pease, Chalfant & Co., aud not one
cent ofcash was to be received for them.
But Pease, Chalfant & Co., were to 20 to
Mr.. Sibley ard State Auditor Dunbar--"make
application to the Auditor without delay"
stipulatc;s Mr.. S.-turn these bonds into bank
notes, (''currency': Mr.. s. calls them,) at the
rate OF 95 cents on the dollar, and place that
$4,000 to the credit of the Railroad compa-
ny on their books. For this, Messrs. Pease,
Chalfant Il Co. were to receive the free use
of $4,000 for six months.
Nv. What then is all this but the using of
Messrs. Pease, Chalfant & Co., as agents for
the purpose Of turning the bonds into bank
notes at the rate of 95 cents on the dollar,
and compensating them for those sevices /!
Now, all this is brought home to the knowl.
edge of Mr.. Sibley. This agreement, this
arrangement is made by him it is in his
own handwriting. He knew better than any
other man the value ofthose bonds he knew
they were worth but % cents on the dollar
in New York; and that in this transaction noi
one cent passed that Pease, Chalfant & %
were but the agents of the Railroad comnonv
that the whole thing was got up to Owe tTe
bonds fictitious value, that would answe,
the purposes of the Railroad company, in tn,
payment of their debts-though ultimately
the expense of the whole cOmmunity-ant
yet under all the circumstances bank note
aoere aAoped by Democratic approval to O
forth among the people at the rate of 9
CENTS ON THE DOLLAR !-when they mus
have betieUea that it would all result in til
end in sUiadliag the people out of all but q
cents on the dollar, Or, in other words, tha
the people would loose SS cents on every do
lar note issued .-.'
Can any State Administration exhibit
darker record Here was a good bankin
law altered by Democratic Iesisla,ure 4
allow room for fraud. Hee was /. Demo
cratic Administration employed in drawiu
up two distinct contracts. -''
By the first it is proved to know the biut
est cash value Of certain bonds to be but 2
cts. on the dollar. -
By the second, it is found devising ippep
ious devices to give those bonds fictiticu
pice. .-- -
While by the law it is made the iudpe