The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-28
will some time recommend itself to the
people at Washington.
BANK OF MINNESOTA REORGANIZA-
TION

BANK OF MINNESOTA REORGANIZA-
TION.
We publish IN another column COM
munication signed by a number OF
creditors of the Bank Of Minnesota.
which is in detail their plan for re-
organization Of that institution. We
do not propose to discuss the merits
of the scheme as presented, or to argue
either for or against its feasibility,
which Is a matter to be settled between
the debtors and creditors themselves.
It is proper for US to say, however, that
there is no question about the desira-
bility Of carrying through some reor-
ganization plan. It would have been
a good thing for the community had
this been done long ago, and 1t will
be we'll for both the community and
the creditors Of the bank If it can
now be done. It is hardly necessary
that we should reiterate the familiar
fact that the creditors Of the bank
themselves. If tremendously organized
under a good system Of financing, can
always realize more from its assets
than any other persons.
The receivership Of the Bank Of
Minnesota has been faithfully and
admirably conducted; and, If the
affairs Of the institution remain
in the receivers hands, the best
possible arrangement Of them under
that system will be carried through.
It is no reflection upon them, or upon
any receivers, to advert to the fact
that the ultimate results Of a receiver
ship are not as favorable as those Of
a reorganization Of a concern that has
gone into liquidation. This follows
from the fact that, when the persons
interested are in charge Of their own
business, they can do things which re-
ceivers are not permitted to do under
the law. For instance. in the present
case 1t is known that a very large part
Of the assets Of the Bank Of Minnesota
consists Of titles or equities to real es-
tate. In many cases these equities
need protection. The expenditure Of q
small amount of money upon the prop
erty or the renewal Of a first mortgage,
by which it may now be covered, and
which may require renewal, would as
sure the realization Of a considerable
sum in the future. The receivers can
not put out money collected for the
depositors on property that is already
encountered, although they may be
convinced that to do so would save g.
handsome amount in the future. If the
bank were reorganiZed it could take
care of the real estate that belongs to
the creditors, and we think no intelli-
gent person doubts that the time is not
SO far distant when this can be con-
verted into cash.
Again, as has been pointed out in the
statement by the creditors. there is a
considerable portion Of the real estate
for which depositors would be quite
wiling to surrender their certificates
in exchange. All such arrangements
as this, by which indebtedness might
be discharged and assets realized upon,
could be carried forward expeditiously
and to advantage by a careful and
conservative management under reor-
ganization. We have now completely
passed the crisis in which some of our
banks were involved a year ago. Con-
fldence is restored and business is ex-
cellent. These are conditions that seem
to be very favorable to a reorganiza-
ton movement, and it seems to us that
all interests will be we'll served by
such a conduct Of the affairs of the
Bank of Minnesota under some such
plan as that which has been suggested.