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


objected that upon the winding up Of
bank, under the banking law, they ma,
be thrown upon the market, and soit
less than par, and the bill-holders be th,
sufferers. While it is possible that such ;
thing may occur, there is no certainty or he
cessity that it should. After the frs
day Of December next, no bonds 9th,
| than those OF the United States and the
State of Wisconsin can be used as banking
security in this State. This will create i
demand for Wisconsin Bonds, and when,
ever any Wisconsin Bonds are thrown
upon the market by tue closing up Of a
bank, it will be for the interest of any
other bank having Bonds of this kind or
deposit, to prevent the bonds being soo
less than par; for, in the event they were
thus sold, the loss to the holders OF those
remaining on deposit, by the depreciation
of their bonds in the banking department
would be greater than the disadvantage
could possibly he to them to combine and
purchase at their face the bonds that were
offered for sale.
But to place the question Of loss by the
holder Of notes secured by Wisconsin
bonds beyond all possible contingency, a
law could be passed authorizing the State
Treasurer, whenever such bonds were
thrown upon the market by The closing up
Of bank, to purchase them at their face,
on behalf of the State, at the New York
Exchange, and in case they We're not
speedily sold again at the same rate at
home for banking security, they could be
cancelled and retired.
There has been no time during the past
three years when some twenty or thirty
thousand dollars could not have been tenn
porary used in this way, without at all
embarrassing the finances OF the State, and
by providing for the matter in advance a
much larger amount could at all times be
made available for this purpose. 1t has
been suggested that the semi-annual pay
Inent OF one per cent. on the principal OF
the bonds could be set apart as a fund to
be used for the purchase OF bonds when
thrown upon the market by the winding
up OF banks. The State would in this way
fix value upon hel own bonds which
would give them credit at their face at ali
times, and in all circumstances, and would
ronder it certain that no loss could accrue
to the holder Of the currency Of banksse cur-
ell by Wisconsin bonds.
A FEW WORDS ABOUT FIGURES.
It is remark sometimes made, that
Figures won't lie" This may be true
and if SO, it is also equally true that figures
may be so placed ana commented upon, a
wonderfully to confuse those who can no
fathom such mysteries.
Sundry elaborate articles have appeared
in different newspapers, backed up with
long arrays Of mysterious figures designed
to prove that the state has made very
bad bargain in the sale Of her bonds.
No attempt will be made to explain
these figures, or to show the fallacy OF the
conclusions reached A few plain state
ments must suffice. TIE State was under
the necessity OF raising money. In order
to do this, the Legislature authorized a
loan, bearing six per cent interest. The
bonds must be SOLD to raise the money. Ii
was satisfactorily ascertained that after
again calling together the Legislature for
the purpose Of changing the terms Of the
law authorizing the loan, the bonds would
not be in demand in Wall street at any
thing like Their face. In case the State
had been shut up to the New York market
there is no reason for believing that more
than 70 cents on the dollar could have been
realized for her bonds. If the $S00,0o0
bonds had been sold for that sum, we
should realize $560,000, and would be
Obliged to pay an annual interest Of 49,
o0o
Bv the sale that has been made, the
State receives this amount ($560,OO0) in
cash, at the time of the delivery OF the
bonds, pays the same amount OF annual in
terest, TO wit, $48,O00, and receives an
annual payment on account Of the principal
of $4,000, for l 5 years, max ny total
Of $4,000. Now If any one can 50 mix
ND figures and comment upon them as to
prove that the State woGld have made Il
better bargain by selling her bonds for
$500, 900, and pay upon this amount $751;
600 annual interest, than she makes by sell
inc them so as to realize the same amount
at the time ofdelivery, pay the same utter
est, and receive additional payments, OF
$4,000 in fifteen years, am willing they
should do so, but fear many will fail to
be convinced IF the correctness OF the con
clusion reached.
THE BANKS.
AT the risk Of being styled an apologist
for "stump tail" | shall venture to offer a
suggestion III relation to the banks Of Wis
cousin. | believe in FAIR PLAY. We all
have enough to answer for without being
charged with crimes we have never com
mitted. Is there not much unjust feeling
existing in the community against the
banks! Let us look candidiy d moment at
few facts. The first Constitution which
was Submitted to the people Of Wisconsin,
I l.