The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1866-02-22
The State BOndS-HaVe the People been
SWindled /?

The opposition papers have of late been
renewing their cutlery against the disposition
made of the 1900, 900 in bonds issued bv
the State during the war. They pronounce
1T 'swindle upon the State "a grand rob
berry perpetrated on the tax payers, and
call upon the people to wax indignant, to
repudlate the Union party, aud to give the
control OF affairs to the Democracy.
The disease must be desperate indeed.
which requires such remedy, and there is
reason to doubt the entire dsinterestedness
OF the doctors who preside over it. Before
trylngit, the people should be careful to as
certain the precise facts in the case
The charges by the opposition are in
brief that while the State Treasurer pro-
fessed to sell the bonds at par he in fact
sold them for seventy cents on the dollar.
taking considerable portion of his paw in
deprecated bank notes; that having sold
the bonds at these rates to the bankers, the
State accepted the bonds at their full value
from the bankers as security for bank notes;
and finally that the State has assumed to
redeem the notes so secured receiving from
the bank comptroller it's own bonds at par.
We Will now state the facts as we under
stand them and as the facts actually exist.
The Legislature authorized issuing
81 800, 900 in bonds for war purposes, in
1861. The State Treasurer was designated
to negotiate them. For that purpose he
went to New York. 1t was time Of great
financial depression. The bonds of the
United States, with interest payable in gold
were selling at S45 cents on the dollar The
bonds of Wisconsin, if disposed of in that
market, would not then have brought
much if any more than so. Mr. Hastings,
the treasurer returned home. At this
time the outstanding circulation
of our State banks was about
81, 10000 Nearly all the money held by
the people of the State was Wisconsin cur
rency. 1t was secured by State stoc ks,
mostly of States in rebellion and whose cred
it was rapidly sinking to zero. A terrible
financial collapse was in prospect unless
wise and vigorous measures were at once
adopted to prevent it. The bankers had
bought their securities in good faith 1t
was no fault OF theirs that treason was max
ing their securities worthless Unless the
State came to their assistance they would pc
ruined, and the people involved in financial
distress. 1t was then that the State Treas
urer made the arrangement by which the
bankers took $500, 900 in State bonds pay
ing 70 cents On the dollar down, and agree
ing to pay 80 cents in semi-aunual install
ments of one per cent The bonds thus sold
were deposited with the Bank Comptroller
in place of the southern securities which
were becoming worthless. In this manner
the State currency was kept at par, and the
State saved from financial collapse of the
most sweeping and calamitous character
M hi lie ~ 4
thus sold. They were used solely to pro-
tect the currency III circulation. Subse-
quently some further sales were made on
the same terms and later, as the demand
for our bonds advanced, some W ere sold at
! par.
Last winter by the passage of an act by
Congress designed to tax State banks out Of
existence and by the action of National
banks throwing out State currency, it be-
came necessary again to protect the State
currency by legislation, or see it depreciate
and the bill-holders suffer heavy loss. Such
panic ran through the State that in some
places people were anxious to get rid OF
State currency at a sacrifice of 40 cents on
the dollar. The prompt action of the Leg
, islature stopped the panic at the very be-
ginning. 1t was resolved that the State
would protect the currency it had authorized
to receive it for taxes, and by taking up the
bonds deposited as security, to redeem it al
the Treasury. In doing this, enough has
not in all cases been realized to redeem the
circulation and pay up what was due on the
thirty per cent Of arrears. 1t is estimated
that in the aggregate the State will realize
on the sale of its bonds at least 80 per cent
and Mr.. Hastings in his last report as State
Treasurer, challenges any one to show {
Northwestern State that has realized al
large sum from the sale of it's bonds dur
, ing the war.
Before we admit that the people hav
been wronged by these transactions,o or tina
a Democratic administration would have
done better, we want those who find faul
to tell US what should have been done
Would it have been better to have permit
ted all the banks in the State to fail and ia
ken three or four millions of dollars out O
the pockets Of the people Would it hav
been better to have thrown our bonds into
the New York market and sold them for fiji
ty cents on the dollar These are pertinen
questions. 1t is easy to find fault, gentle
; men; but tell us how this business coul
have been better managed for the real in
terests of the State and It's people -MGdl
son Journal