Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1861-08-28


Objections being offered to The manner
the war bonds Of our State were sold or
bartered for part gold, part so-ealled par
paper and part infnitessimd promises to
pay by the banks, Mr.. State Treasurer
Hastings writes letter in license of the
Loan Commissioners, Of which commits
sioners he is the head, Here is the argu-
ment which he presents after preliminary
statements:
WAS THE SALE OF THE BONDS AN ADvAN-
TAGEoUs ONE FOR THE STATES
1t is often much easier to find fault with
the way a thing has been done than to show
how it could have been done better.
Our country is in the midst OF q war.
! Our State had been called upon to furnish
its share Of volunteers. Tie Legislature
had provided for the neg tiaton Of loan
Of twelve hundred thousand dollars, and
previous to its negotiation had authorized
the temporary use of nearly all the money
IN the State Treasury. The exigeneies Of
the case required prompt acton. Under
the authority Of law, nearly two hundred
thousand dollars Of The money in the
Treasury had been expended in anticipa-
ton of the receipt of money from the sale
of the bonds about to be issued, and La
| bilites to the amount of two hundred
| thousand dollars more had been contracted.
One If the commissioners had just returned
| from New York, where he had ascertalned
that our Bonds could not be negotiated in
Wall street on any terms, under the law as
it then existed.
A home market must be found for them
or another session OF the Legislature must
he called and the law changed. The call
ing Of the Legislature together again, 50
soon after the close of one extra session,
was regarded a great evil in itself, indepen-
dent of the expense and delay which would
consequently result. 1t was Of the first
| inpoi lance that the money which had been
advanced from the various funds IN the
treasury should be speedily replaced as the
legitimate demands against these funds were
rapidly maturing, ard it was equally i'm
portant that provision should be made for
meeting demands which We're maturing
against the War Fund. Before calling the
| Legislature together it was thought best to
see what could he done with our Banks at
home. A cunfero ce was had with those
representing the bulk Of the banking cap
ital of the State. The final conference was
had the dav after the bank riot in Mil
waukee, time Of most intense and painful
exc. tement. 1t seemed almost impossible
to prevent financial panic Of the most dis
astrous kind. Two months previous, about
one-half Of the currency Of the State had
been discredited, subjecting the people to a
loss of nearly a million Of dollars, and, had
the balance Of our currency been discred-
tied at that time, the people would have
cen subjected to the loss Of another mil
| lion at least, besides complete prostration
Of all business for the time being. The
Banks have all been crippled and embar-
raised, and it would not have been in their
] power to have furnished the State the
money that was then required.
An extra session of the Legislature
would have been neeled, and after a
change of the law, the State could have
tried its chances in Wall street. Before
this could been brought around, the State
would have been greatly embarrassed for
the want Of money that had been adj
yanced from the treasury, and for addi-
tional means to meet accruing liabilities
against the War Fund Another thing {:
| at the time this conference was had with
the bankers, (June 25th,) there was about
one hundred and fifty thousand dollars Of
/ Wisconsin bank notes in the State treas
ury. Had the whole of the currency OF
| the Wisconsin banks been discredited at
| that time, the direct loss to the State on
the money then on hand would not have
been less than seventy-tive thousand dol
lars. besides tying up the entire amount in
the treasury, and leaving the State virtu-
ally bankrupt fer the time being.
These were some Of the stubborn facts
that had TO be looked directly in the face.
| Was there any way to save this threatened
bank panic-this financial ciiss-this pros
/ tratIOn OF DQSlneSS-lillS loss 10 Tic ottttS
this loss OF million dollars to u peo-
ple-and at the same time dispose of the
State Bones at a fair price? After care
| fully looking over the whole ground, the
LoSn Commissioners made the offer OF the
Bonds to the bankers, as stated in the COM
mencement Of this article, beng satisfied
that in case it was accepted, they would be
getting for the bonds, in cash paid dorm,
as much as they could realize, IN any event.
in Wall street, after the trouble and expense
Of another session Of the Legislature for
the purpose Of changing the law, had been
incurred; and that all which was received,
over and above the 70 per cent, would be
dear gain to the State; at the same tiise
the threatened paniesand consequent losses
to the people and to the State would 9
ayeted. Could the State, in the circum-
stances, have made better disposition Of
the Bonds Could they have been sold
Tor 4 larger price! Could they have ben
sold IN any other way 50 as % have pso-
duced collateral results 50 beneficial = the
State, and to the people generally After