St. Paul daily globe., 1893-06-14

law minnesota VIII nave SLdl6 ClTCuld-
ton as good in every way as the ma
tional bank notes. and besides possess
ing the virtue of elasticity about which
eX-Gov. Merriam has written and talked
SO much. Section Is. article 9 of the
constitution of the state of Minnesota,
provides the following conditions to be
complied with in all respects before the
legislature can authorize bank of
issue:
In the Constitution
Sec. Is. The legislature may. by a
two-thirdS vote. pass a general bank
law, with the following restrictions and
requirements, viz:
FirSt-The legislature shall have no
power to pass any law sanctioning i'll
any manner. directly or indirectly, the
suspension of specie payments by any
person. association or. corporation is
suing bank notes of any description.
Second-The legislature shall pro-
vide by law for the registry of all bills
or notes issued or put in circulation as
money and shall require ample security
in United States stock or state stocks
for the redemption of the same in speci e :;
and in case of depreciation of said
stocks. or any part thereof, TO the
amount of 10 per cent or more on the
dollar, the bank or banks owning sal
stocks shall be required to make up said
deficiency by additional stocks.
Third-The stockholders in any cor
poration and joint association for bank
ing purposes, issuing bank notes. shall
be individually liable in an amount
equal to double the amount of stock
owned by them for all the debts of such
corporation or association; and such in
dividuaf liability shall continue for one
year after any transfer or sale of stock
by any stakeholder or stockholders.
Fourth In case of the insolvency of
any bank or banking ASSOCIATION. the
bill holders thereof shall be entitled to
preference in payment over all other
creditors of such bank or association.
Ffth-Any general banking law
which may be passed in accordance
with this article shall provide for re-
cording the names of all stockholders in
such corporation. the amount of stock
held by each, the time of transfer. and
to whom transferred.
Better Than National Bank Notes.
With Minnesota bonds worth as much
as the bonds of the national govern
ment, what could be more solid than
the banks of the North Star State iSSu-
ing currency under laws framed in
conformity to the constitutional proyis-
ions given above?
In Gov. Merrlam's article. published
in the st. Paul Dispatch last week, he
made the following statement:
What this country needs is a banking
system, national in its character, the
right to issue notes, based on the metal
lie reserve and redeemable at the place
of issuance, or at the great money cen
ters. at par. Currency that will be safe
that responds to the demands of COM
merce, move the crop of cereals and
cotton, and then return again to its
place of issuance to be used when occa-
Sion."
The national bank notes now in circu-
lation meet scarcely any of the prime re-
quirements in Gov. Merrian's state
ment. There is no elasticity to til cur
rency issued by national banks. When
great amounts of money are needed to
move the crops, the national banks are
unable to temporarily increase their cir
culation. But this is not the point. The
facts i'll the matter are that there is no
possible show of securing the repeal of
the Sherman law unless the repeating
bill is coupled with proposition to re
peal this prOhibltiye tax Oh the clrcula-
ton of state banks.
Make \ Better Roast.
"Dick" WinterSmith. of Kentucky, is
still a familiar figure around the hotels
of Washington. He is waiting for an ap-
polntment and. in the meantime, he is
furnishing the boys with great deal of
amusement. He is probably the best
storyteller ever produced by the Blue
Grass state and he never Spoils good
story to save himself. A few weeks ago
he put in an application, likely because
of the fact that the day was extremely
warm, for the position OF collector of
customs at Sitka, Alaska. a day or two
later the report was waited over from
the White house that "Dick" was being
considered in connection with the con
sulship to Colon; indeed. one enthusi-
astie friend assured him that he was
booked for the place.
"Why is it, colonel" he said, that
they throw you into the torrid zone
when you wanted to go to the North
pole?'
- Il don't know" replied the humorous
Kentuckian, ''unleSs they think will
make better roast than frappe."
Grover Turned Him Down.
Eight years ago when President Cleve-
land first took hold of the ship of state,
Col. Wintersmith wanted to be ap-
pointed register Of deeds for the Dis
trict OF Columbia, and he wanted the
place pretty badly, too. He made a
vigorous campaign, and when the preSi-
dent turned him down and APPOINTED a
colored man the colonefs heart was
nearly broken. He was sore, and he did
not care who knew it. He evidently
had not recovered in 1890; for when the
census man came around and asked him
his politics the old gentleman straight
ened up and said:
crat, too respectable tie be Republican;
by God, | am an old line Wing and a
gentleman"
Fred Norris ON Deck.
Minnesota men can bO found almost
anywhere in the world, and the best
part of it II is that they are alive and
we'll up II ward the front of the process
sion VIII rever they ar. All Minneso-
tans W II remember Frad Norris, the
bright and capable private secretary of
Senr or Sabin. He is still in w ishing--
ton. although not in office, and is irg
we just at present he is actively
woIk on scheme for railroad
between Washington and the Chesa-