The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-12-23
The State Railroad Bonds -. Letter
from VIM. H0llinshead, Esq.

ST. PAUL, Dec. 13, 1859.
Editors of the Pioneer and Democrat.
1 have read, with some surprise at first
the letter of William L. Banning, Esq.
addressed to Governor Sibley, and published
in the St. Paul Daily Times Of the 18th
inst. On reflection, however, concluded
that no publication, however wrong, OF
ridiculous, emanatiug from the Black Re
publican party, or from any member of thai
party, or from any person in the habit Of
associating with Black Republicans, ought
to surprise anybody. Their organization is
founded by political bypocrites, upon hypo.
critical professions of hostility to slavery,
and love for the negro. 1t is sustained, and
carried on in its wild and evanescent career,
by engendering feuds between the citizens
of one portion of our country and another,
and by such conduct as will inevitably, if
attended by successful perseverance, discover
the Union of the States, and destroy our
national government.
No wonder, therefore, that a gentleman
of Mr.. Banning's intelligence, and, with all
his political errors, doubtless, a real and
sincere friend of our country and of this
State, should so str&ingly illustrate DIR.
Bushnell's theory of unconscious imita-
tion :" and whilst admitting that it is the
first duty of the State to maintain its honor
advocate real reputation of obligations to
which the faith and credit of the State is
pledged by organic law, under the assumed
and pettifoggiDg pretence that the Legisla.
ture has not the power to levy tax for the
payment of the interest and redemption of
the principal" due, or to become due, on the
Minnesota State Railroad Bonds :" and
that the bonds were given upon cOnside.
ration which has failed pretence which
can only be sustained by forced, unreason-
able, and therefore unjustifable construction
of the constitution of the State government.
/ think it is proper, as the Legislature is
now in session, to reply as briefly as possible
to the views of Mr.. Banning, as illustrated
in his letter, in order that both sides of the
question may be fairly presented.
Passing his remarks relative to our
excellent Governor and his message, the
injustice of which may be made apparent
from mere perusal of the manly and
statesmanlike communication of that officer
to the Legislature, at the commencement of
the present session, and all other remarks of
a merely personal or political character con.
tanned in the letter, propose to consider the
two legal propositions urged by Mr.. Ban.
ming in opposition to the payment of the
interest or principal of the bonds, now or
hereafter. These propositions are
l. That the Legislature has not any
power to levy tax to provide means for
such payment.
2. That the consideration for which the
bonds were given has failed.
AS l understand Mr.. Banning, his objec-
tons are not that it is inexpedient to tax
the people, in their present embarrassed and
impoverished condition, which all will admit,
but they go to an entire resistance of the
payment o.! the interest or principal of the
bonds at all, no matter what the wealth of
the st tie, or the people, on the ground of
equity and JUSTICE
He cites as authority for the first propo-
stion above stated, sections and 5, of ar
ticle TX, of the constitution of the State.
Section is as follows d" The Legislature
shall provide for an annual tax sufficient to
defray the estimated expenses of the State,
for each year, and whenever it shall happen
that such ordinary expenses of the State for
any year, shall exceed the income of the
State for such year, the Legislature shall
provide for levying tax for the ensuing
year, sufficient with other sources of income,
to pay the deficiency of the preceding year,
together with the estimated expenses of such
ensuing year."
Section provides that "for the purpose
of defrayipg extraordinary expenditures, the
State may contract public debts, but such
debts shall never, in the aggregate, exceed
two hundred and fifty thousand dollars"
1t will he observed that MIR. Banning
omits all reference. in this connection, to the
amendment of section 10, of the same article,
adopted April Is, 1858, which inaugurates
an entirely new policy in regard to the in
debtedness of the State, and abrogates the
Limitation specified in section 5, to which he
refers, ard provides that "the Governor
shall cause to be issued and delivered to
each of the companies in which said grants
grants of land by Copgress,) are vested by
the Legislative Assembly Of Minnesota, the
special bonds of the State, bearing an inter-
est OF seven per cent. per annum, payable
semi annually, in the City of New York, as
loan of public credit, to an amount not
exceeding twelve hundred and fifty thousand
dollars, or an aggregate amount to .all the
said companies, not exceeding five millions
of dollars" and pledges the faith and credit
of the State for the payment of the interest,
and the redemption OF the principal thereof.
This omission is significant, and clearly dis.
plays consciousness OF the unsoundness of
his published opinion. 1t does not require
any argument, surely, to prove that in the
event Of default by the Railroad companies,
the interest and principal of the minnesota
Railroad Bonds" became an ordinary ex-
pense of the State, just as effectually as any
other expense.
Mr.. Banning might as well insist that
Sec. o! Article TX. is yet in force, not.
withstanding the amendment referred to,
and that the whole railroad loan is nullity
because that section provides that the State
shall never contract any public debt, unless
in time of war, to repel invasion, or sup
press instruction, except in the cases and
10 the manner provided in sections 5 and 6.
When the people of this State, in the Con.
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