The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-10-14
SAINT PAUL. FRIDAY, OCTOBER Ia, 1864

two years in mining stocks of all kinds,
good and bad, the very best having at
tanned prices which, when compared with
their intrinsic value, we're quite as specu-
lative as the worst of the "wild cats. :"
The rapid rise in the price of these stocks
made everybody ready to put their money
into all kinds of mining enterprises, and it
flowed into the Territory in rivers. Very
little of it, however, went to the develop
ment of the mines, but was absorbed in
princely salaries paid to the officers of the
companies, and in expensive litigation
about doubtful claims. Much of it was
squandered outright, much stolen, and
none returned to the stockholders.
Some of the good mines kept working
away and paying handsome dividends,
which kept up the faith OF stockholders in
all the other companies and they paid
their assessments in the full faith of rich
returns at no distant day. The result Of
all this was, that every body in the Terri
tory had plenty of money. Lawyers re-
ceived fees never before heard of in the
history of legislation merchants prosper
ed laborers had plenty to do, and gam
blers, saloon keepers, and other unmen-
tionable places absolutely revelled. The
country was pronounced in high state
of prosperity, and all went as merily as
such pecuniary devise would naturally
inspire.
After while the outsiders began to get
sleepy from such excessive phlebotomy
without any corresponding recuperation
of their financial systems, and stopped
paying, stocks began to find less ready
market parties holding stocks as collat-
erals put them on sale. They began to
get downward tendency and as always
follows in such cases there was panic
and crash. All the "wild cats - reached
a mere nominal figure, and the "Gould
and Curry" which is as good as it ever
was, fell from over 5000 foot to 81 900,
which it now holds. Whether it was ever
worth much more than the present figures
I would not venture to say, but very much
doubt it. At such times men call in their
funds, that is when their funds are in gold
which will keep, and all manner of busi-
ness feels the deadening effect. Such is
my general view of thespeculation theory.
CONDITION OF THE CURRENCY.
Intimately connected with this trouble
is another, which must necessarily retard
to q certain extent, the return of good
times, and the revival of business, and
that is the condition of the currency Ofthe
country. You must remember that paper
money has never been recognized on this
coast. Gold and silver has always been the
standard of value, and the medium of COM
mercial intercourse. Even the green back
scheme with the Government of the Unit
ed States behind it, and its legal ten
der props and supports never has in any
way affected the general currency Of the
country. All the transactions OF daily life
are made in coin, and all the debts have
been contracted and the property of the
people acquired and held on gold basis.
This, of course, is simply the result of the
commcn consent of the community.
Doubts exist in all minds whether, when
this state OF things comes in conflict with
the laws of the United States making their
paper legal tender in payment of debts,
the custom will not be compelled to sue
cumb to the statute. The necessary infu-
ence upon the industry and commerce of
the country is to render capitalists fearful
of operating with their coin if they may be
repaid in fluctuating, doubtful, and per-
haps ultimately worthless currency, now
worth forty cents on the dollar, and with
no immediate prospects of improvement.
Coin is, therefore, shut up; loans cannot
be had at any price; and universal de-
preston is the legitimate result. You can
readily see that man cannot afford to
loan thousand dollars in coin, and take
the chances of being repaid in greenbacks
at perhaps ten cents on the dollar, nor can
merchants afford to sell goods that cost
them coin on the same uncertainties. No
one thinks of enforcing debt, because the
Judgment can be paid in legal tenders,
which is simply no payment at all. Wheth-
er this is the law or not makes no differ
ence. People are as much deferred by the
doubt that hangs over the question as if it
had been so decided. You will see the
embarrassments that meet the people at
every step.
There is bitter attack being made by
the press on the judicial department Of the
Territory, and all the ills are charged to
their door. Many of the mines are tied
up with injunctions and thus rendered un-
profitable, and the courts are charged with
all kinds of corruption and incompetency.
One party insist that all the stagnation in
business can be traced to this source.
REMEDIES PROPOSED.
Now what are the remedies proposed?
1st. The formation of State govern
ment.
I'd. The adoption of the Greenback
currency.
The great argument in favor of State
government is the change it will effect in
the judiciary. They claim that by in
creasing the judicial force, and placing
men on the bench in whom the people
have confidence, the litigation Of the