South Branch intelligencer. [volume] (Romney, Va. [W. Va.]) 1830-1896, 1834-12-20

for the punctual payment of all the in.
ierest on this public debt. In this state
of things, the account Of this Govern
ment with the United States was settled
in port. Out of the proceeds then
paid to the Commonwealth, sum suf-
Gclent to extinguish the debt then pay
able by it, was applied TO that purpose;
but having no immediate occasion for
the residue, to avoid the evils arising
from huctuating system ofrevenue, or
large surplus in the Treasury, this
residue was appropriated by an act Of
the General Assembly passed in 1916,
"to public education"
Such is a brief history Of the origin
and progress oftbat great Corporation,
now styled "the President and Directo-
~ of the Literary Fund" By the
prudent management Of the affairs of
this Institution, (which with single
well known exception, have been adj
mirabiy conducted, its funds have aug
mented to an amount that's now COM
puted quite low, when it is estimated
in money, at million and half of dol.
lars. The annual receipts from this
capital, after defrayjng the annual
charges upon them Of $50, 900, and all
the expenses Of the Corporation, have
generally left surplus much exceeding
$4,000, to be re-invesled and con-
verted into new capital.
1t is the judicious investments ofthe
capital stock of this institution, and its
surplus profits, that has given to it
character and use not foreseen by its
authors, and makes it a most valuable
fiscal agent. A very large portion Of
the debt due by the State directly, is
now held by and constitutes part of
the capital stock Of this Corporation.
The surplus prof, Of this capital, being
regularly invested in other stocks fur
the payment of which the Common.
wealth is bound ultimately, creates new
competition in the acquisition Of these
stocks thus increases their value and
productiveness; SO preserves the ere.
dit Of the State, and facilitates greatly
many Of its fiscal operations.
To give foil effect to this scheme,
recommend to you the enac!ion Of a
statute authorizing new loans to be
made, to an amount equal to the debt
now due, or soon to become due by
the State directly. Some portion Of
this debt bears an interest higher than
even the legal rate, and much higher
than that at which new loan for the
same amount may be effected, proba-
bly,. Therefore, by applying the pro.
ceeds of such loan to the extinction
Of the existing debt, the Treasury may
be at once relieved from much Of the !
burthen ofinterest now charged upon
it; and as the stock is held by this
Corporation, the only effect will be, to
change the character of this stock, and
to diminish somewhatthe future surplus
profits ofthis institution. By continu-
ing this process from time to time, as
the debts become due for which the
Commonwealth is bound directly, the
Treasury may be greatly relieved, with.
out diminishing the capital stock of this
Corporation in the least.
1t will be prudent also, as | think, TO
provide, that so soon as the permanent
capital Of this institution shall have &C.
to an amount deemed suffi-
cient TO satisfy, out Of its annual pro-
fits, the annual expenses Of the Corpo-
ration, and the annual charge with
which it may be thought proper to en-
cumber it, that the surplus of such an
nual profits should be paid into the pub
lie Treasury, and applied to the exlinc-
lion ofany debt due by the State direct
ly. Sound policy seems to forbid, that
any Corporation should possess the pri-
vilege of unlimited accumulation of
capital. All our Governments them
selves are restricted, not only by the
enumeration of the powers they may
exercise, but by the specification of,he
objects for The attainment of which the
enumerated powers may by exerted:
so that they are inhibited from accom-
plishing any other than a permitted
end, and this only be granted means.
The privilege given to this Corpora
tion ofincreasing its stock indefinitely,
by the annual conversion of surplus
profit into permanent capital, has al
ready been used TO very grea, extent,
although hitherto beneficially. But il
acquires new strength daily by its pros
gress in this direction; and the time
is not far distant, perhaps, when if left
unchecked, its disposable means will
exceed those of the State itself The
feet Of snch state of THINGS all NAV