The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1865-03-16
Action of the School Land COMMISSIONERS on
the State Currency Question.

hGtI0H OI Tue ScIO0l ldlu UOHliSSlUH6FS vi
the State Currency Question.
The School Land Commissioners on Sat
urday last sent the following communities
ton to the Legislature;
lit is apparent to us, in view of recent
events that soon portion of the bills Of
! Wisconsin State bands, and ultimately all,
must go out of circulation suddenly. The
refusal of some State banks to receive many
of these bills naturally tends to excite alarm
which, unless checkedsby an exhibition Of
facts to the people, will result in deprecia-
ton and loss to holders. We suppose that
to some extent this is unavoidable, i'll as
much as bonds of our own State, which fornl
tue basis and security OF part of that eur
rency, have never been pressed upon east
ern markets, and in consequence cannot be
converted at once into cash.
| We, however have not a shadow Of doubt
that these bouds are to be paid, principal
and interest, to the last cent; and we have
no hesitation in using the power conferred
upon US by law of investing in them the
| principal of the school fund, and other trust
| funds under our control, as far as they may
be available in our hands. We are morally
certain that no safer disposition could be
made of the money, or any which will bt
more satisfactory or beneficial to the people
of this State, in as much as bills of State
banks are easily convertible into these
bonds and would form medium of effect
ling such conversion convenient to the peo-
lple; and in as much as we deem it desire
/ able to encourage the purchase of State
bonds, in order to increase the funds above
mentioned, we have determined both as a
m easure Of justice and expediency, having
in view permanent as well as present advan
| tages, to continue to receive bills of all
Wisconsin State banks, not in process ofli-
quotation in payment Of the principal sums
now owing to the State on account of any
of these funds, aud also in payment Of any
onds heretofore sold entirely for cash.
We make this communication Ill order
that our resolution, being made known to
the Legislature, may be the subject of their
action, if not in accordance with their
views.
Ia. FAIRoHILD, Sec'y of State,
S. d. HASTINGS, State Treasurer,
W. SMITH, Atty General.
Commissioners ex-officio of school and uni
versity lands.
The Legislature has taken decided action
by the adoption, almost unanimously, of the
following resolutions:
WHEREAS. 1t has heretofore been the
policy Of this State to create currency for
the use of the people, based upon unques-
tionabe securities, provided for its ultimate
redemption, among which the bonds of our
own State, have been regarded equal to
any as safe and desirable investments,
and
WHEREAS, In consequence of the exist
ing rebellion, it has been deemed expedient
by the Congress of the United States in or
der to diminish the amount of bank bills in
circulation, to impose tax upon the curren-
cy of the State banks as to compel it's with
drawel, and
WHEREAs, The bills of the banks crea-
ted under our own laws, must, for these
reasons, be forced to redemption, and in
some instances, the bonds deposited by the
banks may be suddenly thrown upon an
unprepared market
ReSoj0ed, by the Senate, the Assembly
concurring that the obligation of the State
to pay its bonds is sacred and unquestiona-
bic; that nothing shall be omitted on tn e
part Oh the Legislature 10 MAINTAIN TO the ut
most, the credit OF The State, and to vindi-
cate its honor; that il is the judgment of
this Legislature, and we feel warranted in
pIedging the faith of the people, that no at
tempt will ever be made to evade tn fulfill
nent of the obligations assumed by the
State.
ReSoJ0ed, Further, that we deem the
support of the currency of our State banks
worthy OF our best efforts, being so intimate
ly connected with the credit OF our bonds
and of such Importance to the welfare of the
people, that we will adopt any reasonable
and proper measures calculated to sustain
that currency and prevent losses thereon;
and that during the present session of the
Legislature we will devise and enact such
m easures as appear suitable to that end, and
that we will not hesitate if necessary, to i'm
pose such tax or taxes for that object as
shall speedily result in absorbing that cur
rency and retain all the State bonds that
are likely to be thrown upon the market
ReSotUed, That the proposed action of
School and commissioners, as this day com
municated to the Legislature, to receive
Wisconsin currency III payment of State
lands, and the principal sum due the State
on account of its various trust funds, meets
our unqualified approval.