Alexandria daily gazette, commercial & political. [volume] (Alexandria [Va.]) 1808-1812, 1812-02-04
VIRGINIA LEGISLATURE,
Wednesday, January %.

Bank OF Virginia was rclerreu, WAS dSdiH Ia
4 ken up and a motion was made by Mr. Mer
Ger, to amend the said report, by striking GU
the whole thereof, from the second paragraph
ensuing the proposals by the committee OF the
stockholders of the Bank of Virginia, to the
end thereof, and to insert, in lieu of the par
SO proposed to be striker out, the follow
ing
They beg leave to submit to your censide
ration the following comparison OF the plar
for extending the banking capital OF the com
monwealth, which has been proposed to the
General Assembly by the committee repre-
senting the stockholders of the bank OF Vir
ginia, with the system designed to be main
tanned by the resolutions which the committee
have already had the honor of reporting to the
house of delegates. .
The terms submitted to the house OF della
gates by the committee acting in behalf OF the
stockholders of the bank Of Virginia require
OF the state
LIST. An extension of the charter OF the
present bank of Virginia until the first of May
1883
2dly. An augmentation of the stock of the
present bank by adding thereto one million
and a half of dollars AS soon as that sum can
be subscribed, with the privilege of extending
that a,neuEt half d million further, whene.
yer the stockholders shall deem it advisable
to do so.
~ 3dly. A restriction of the sale Of the new
stock to not less than 20 per cent. above par
SO as 10 prevent depreciation OF the old stock
below that advance.
Upon these conditions the committee or
the part of the bank of Virginia agree:
lst That the state Shall retain 5000 shares
of the new stock to be paid for, 1000 shares
In cash, * the remaining 1000, in four equal
annual instruments, with interest of per cent
year.
2dly. That the profit arising from the sale
of the residue Of the new stock, or the IL ,OoC
shares, at not less than 90 per cent. above
par, shall belong exclusively to the state.
Should these proposals be accepted, the
banking capital of the commonwealth will be
extended to three millions of dollars certainly,
and to three and half millions, should such
be the pleasure of the stockholders and
hence it results, that unless the banking ca
pital ofthe commonwealth be extended beyond
the last amount, no new 6onNs, or premium,
can be demanded by the state, before the lst
day of May 1888.
Ehe above terms are asserted to be more
favorable to the state than any others, equally
practicable that can be devised for the extern
sion of the banking capital of the common
wealth to the limited amount of 8 and hall
millions of dollars within the given period a
bove mentioned.
Let this assertion be tried by the test of fair
calculation.
IF the scheme of the committee prevails.
the state is to receive
lst. For $4,000 shares OF new
stock sold, at an advance of not
less than 90 per cent. above par,
profit of 8 100000
Out of this sum she is to pay for
1000 shares reserved to her own
use, 100000
Which will leave to be otherwise
applied, 100000
2dly, The state is also to reserve 1000 shares
of the new stock, to be paid for four equal
annual instal,nents, with an interest of per
cent a year, till paid. So that, computing
the dividends on the 2 900 shares, for the Is,
years, at per centum on S $4,000 year
and deducting that sum from each instalment
and the interest, as it becomes due, the state
will have to pay for the 1900 shares, at the
end of the lst year, S 42,ooC
At the end of the Cd. 10000
AT the end of the Sd, $4,000
At the end of tue 4th. $4,000
fthe above sum of 5 10000 be loaned a,
6 per cent. a year, ii viii enable the state to
pay those instalncnts. and leave at the end OF
the 4th year, or on the lst OF NAV, 1916 the
sum of S $500 unapplied. Saould the state
accept the proposals of TIL committee, she
will. therefore, on the ist of My, 1916, have
derived from the extensionef the banking
capital of the commonwealth, new stock, to
the amount of s 100000
Dividends on LOCO shares, at 8
per cent q year,a,nounting for four
years, 20 $4,000
And an unapplied surplus of