Another method of furnishing the community with a circulating medium was resorted to by a law of July 23, 1858. The state auditor was authorized to issue his warrants for any indebtedness which the state owed to any person in small sums, and the warrants were made to resemble bank notes, and bore twelve per cent interest. The credit of the state was not sufficiently well established in the public confidence to make these warrants, which were known as "state scrip," worth much over sixty-five or seventy cents on the dollar. They were taken by the money changers at that valuation, and when the state made its first loan of $250,000, they were all redeemed in gold at par, with interest at twelve per cent.
In this uncertain way, the financial interests of the territory were cared for until the breaking out of the Civil War, and the establishment of the national and state systems which still exist.
Another evidence of the growth of the state may be found in the fact that at the present time the state has within its limits banks in good standing as follows: State banks, 172 in number, with a paid-in capital stock of $6,736,800, and sixty-seven national banks, with a capital stock paid in of $11,220,000. This statement does not include either the surplus or the undivided profits of these banks, nor the capital employed by private banking concerns which do not fall under the supervision of the state, which latter item can safely be estimated at $2,000,000.
THE FUR TRADE.
The first legitimate business of the territory was the fur trade, and the carrying business resulting therefrom. Prior to the year 1842 the Northwestern Fur Company occupied the territory which is now Minnesota. In 1842 it sold out to, and was merged into, the American Fur Company, which was owned by P. Choteau & Company. This company had trading stations at Prairie du Chien and Mendota, Henry H. Sibley being their chief factor at the latter. The goods imported into the Red river settlements and the furs exported therefrom all came and went through the difficult and circuitous route by way of Hudson Bay. This route was only navigable for about two months in the year, on account of the ice. The catch of furs and buffalo robes in that region was practically monopolized by the Hudson Bay Company. The American Fur Company soon became well established in the Northwest. In 1844 this company sent Mr. Norman W. Kittson from the Mendota outfit to establish a trading post at Pembina, just south of the British possessions, with the design of diverting some of the fur trade of that region in the direction of the navigable waters of the Mississippi. The company, through Mr. Kittson, invested some $2,000 in furs at Pembina, and had them transported to Mendota in six Pembina carts, which returned loaded with merchandise of the character needed by the people of that distant region. This venture was the beginning of the fur trade with the Red river country, but did not prove a financial success. It entailed a loss of about $600, and similar results attended the next two years' operations, but the trade increased, notwithstanding the desperate efforts of the Hudson Bay Company to obstruct it. This company had enjoyed a monopoly of the trade without any outside interference for so long that it looked upon this new enterprise as a direct attack on its vested rights. But Mr. Kittson had faith in being able in the near future to work up a paying trade, and he persevered. By the year 1850 the business had so far increased as to involve a consumption of goods to the extent of $10,000, with a return of furs to the amount of $15,000. Five years later the goods sent to Pembina amounted in value to $24,000, and the return of furs to $40,000. In 1851 the firm of Forbes & Kittson was organized, and also "The St. Paul Outfit," to carry on the supply business. When St. Paul became of some importance in 1849 the terminus and supply depot was removed to that point, and the trade rapidly increased in magnitude, and made St. Paul one of the largest fur markets in America, second only to St. Louis, the trade of which city consisted mostly of buffalo robes, which was always regarded as a distinct branch of the business, in contrast with that of fine furs. In the early days the Indians and a few professional trappers were about all who caught fur animals, but as the country became more settled the squatters added to their incomes by such trapping as their environments afforded, which increased the market at St. Paul by the addition of all Minnesota, which then included both of the Dakotas, and northern Wisconsin.
The extent and value of this trade can better be understood by a statement of the increase of the number of carts engaged in it between 1844 and 1858. In the first year mentioned six carts performed all the required service, and in 1858 six hundred carts came from Pembina to St. Paul. After the year 1858 the number of carts engaged in the traffic fell off, as a steamer had been put in operation on the Red river, which reduced the land transportation to 216 miles, which had formerly been 448 miles, J. C. & H. C. Burbank having established a line of freight trains connecting with the steamer. In 1867, when the St. Paul & Pacific Railroad reached St. Cloud, the caravans of carts ceased their annual visits to St. Paul. St. Cloud then became the terminus of the traffic, until the increase of freight lines and the completion of the Northern Pacific Railroad to the Red river drove these most primitive of all transportation vehicles out of business. Another cause of the decrease in the fur trade was the imposition of a duty of twenty-five per cent on all dressed skins, which included buffalo robes, and from that time on robes that formerly came to St. Paul from the British possessions were diverted to Montreal.
The extent and value of this trade to Minnesota, which was then in its infancy, can easily be judged by a brief statement of its growth. In 1844 it amounted to $1,400 and in 1863 to $250,000. All the money paid out for these furs, and large sums besides, would be expended in St. Paul for merchandise, in the shape of groceries, liquors, dry goods, blankets, household utensils, guns and ammunition, and, in fact every article demanded by the needs of a primitive people. Even threshers and mowers were included, which were taken apart and loaded on the return carts. This trade was the pioneer of the great commercial activity which now prevails.
I cannot permit this opportunity to pass without describing the Red river cart, and the picturesque people who used it, as their like will never be seen again. The inhabitants of the Pembina country were principally Chippewa half breeds, with an occasional white man, prominently Joseph Rolette, of whom I shall hereafter speak as the man who vetoed the capital removal bill, by running away with it, in 1857. Their principal business was hunting the buffalo, in connection with small farming, and defending themselves against the invasions of their hereditary enemies, the Sioux. They were a bold, free race, skilled in the arts of Indian war, fine horsemen, and good fighters.