Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-12-02


in different Turnpike aud Canal Companies the Bank
of Virginia, and Of the Farmers Bank Of Virginia, and
with all the interest the State might acquire thereafter
bonus premium for the incorporation of other
Banks for the increase of their capital, the renewal
OF their charters. These funds and their proceeds al
though nomnally much greater, be Justly cst
mated, in money, at more than about two millions of
dollars; which may therefore, be considered
stituting the capital stock OF the Cooperation The
ceips from this capital are equal to about Sl5OOO
nually.
The object of this Institution was, to invest its annual
profits and the proceeds of such part of its capital
might be thought Judicious to invest in any work of
Int rnal improvements promising when completed, TO
be of advantage to the Commonwealth, and profitable 20
the other propricors of it, But of the difficulties
that would attend the iucous selection of such works.
the authors of the Corporation established rule 10y
which il should be governed, in every When any
work of Internal Improvement was proposed, IT, after the
requisite surveys of 1T had been mode and it's cost cst
mated by officers and at the expense of the Corporation
trcekths of the capital deemed necessary for the
the residue 20 be taken by the Corporation and paid
for by it, rateaby, with the sums advanced by tile private
Stockholders.
Ii this scheme had been carried into full effect
cordng To the original pan 1T quite obvious that
all the funds of the Corporation would have been uti-
matcy invested in the Stocks Of comparatively small
dcrtakngs, to the completion of which, the enterprise
and nnaded capital of individuals would have been per
ccty adcquate while great works. the very magnitude
OF which would prevent the combination of sufficient
number of individuals to subscribe the proportion
say to the cooperation of the State would
have been carried into effect Thus, while partial
improvements might have been made work of gene
and permanent utility would have been accomplished,
and the great object of the Corporation must have been
defeated. The discovery of this at last made hut
not until than 5000 600 of the capital of the lns
tuition had been invested in undertakings since abandon
cd in those, the profits which, quite inconsidcr
able much less than the average rate of profit III the
country generally.
To remedy this defect, modification of the original
plan adopted The Commonwealth assumed upon
ITSELF exclusively, the completion of certain great Inter
nal improvements in which, from their very nature, the
cooperation of sufficient number of individuals could
not be expected leaving all Others deemed of less gene
raj utility to the support of the Board of Public Works
Thus the subject of Internal Improvement has become
divided into two parts; in of which the State is
ccrned excusively-whie in the other, the Board of
Public Works is but co-partner with individuals
The effect of this division of the public interests, has
been attended with hazard alrcady-and unless
much discretion is used hereafter will be runous to the
Board of Public Works. and seriously oppressive to the
State itself The funds of the corporation not being
equal to the immediate accomplishment OF all the great
objects in which the Commonwealth was concerned
clusivey, and to the advancement at the same time of
the others IN which the Board of Public Works IN
teresed as co-partner with individuals to supply the
deficiency, had to loans The payment of the
interest and the reimbursement of the principal of these
loans, charged in the first instance upon the stock
for the benefit of which the loans had been effected but
should this prove insufficient the funds Of the Board
Public Works made subject 10 these payments; and
should deficiency still exist, the Treasury itself
made accountable for IL.
The example of relying upon loans for the accomplish
ment ofsuch public works being set, soon fol-
lowed in the Of works To be constructed ut the joint
charge of the State and of individuals Large sums have
been borrowed TO enable the payment OF the subscription
OF the Corporation these works also. The
of the interest and the reimbursement of the principal
these loans charged in like manner upon the
poate funds in the first nstance but should these prove
insufficient the Treasury ITSELF before made charge
able with any deficiency.
Thus it has happened, that while considerable por-
ton of the capital of this Corporation has been invested
in stocks absolutely unproductve very nearly 50, the
whole of this capital is charged with the payment
of the interest and reimbursement of the principal Of
large Debts for which the Treasury itself is ultimately
liableAs yet the income of the Corporation is equal
the satisfaction of all its expenses, and the payment
of the interest charged upon IT. 1t is believed aiso that
the capital IS sufficient TO discharge the principal OF all
these debts. But should any additional burthen be i'm
posed upon this Corporation at this time, it is probable
that its would suffice all its engage
mcnis, without imparng this capital. In that event. it
is obvious, that long, the whole weight of all these
engagements must fall upon the Treasury when to pre-
the credit of the State and burthensome
must be imposed upon the people.
To prevent such result, recommend TO you, most
earnestly that charge be imposed upon this Cor
Poration at present In few years 1T is expected very
confidently that all the works in which it is concerned,
and which are now in progress, wl be completed I'm
less individuals have been greatly deceived IN their est
mates of the effects of these works. the funds invested
in them will then become productive The profits of this
capital, its proceeds viii then enable the easy and
speedy reimbursement Of the debts with which the
poration is charged The whole funds of the Board
will then become applicable to other undertakings-and
the works of Internal Improvement may again proceed
with increased vigor and advantage. But If different
course il pursued the ruin of tins Corporation may be
the two probable consequence gricvOus taxation must
follow necessary effect of its ruinand the work OF
Internal improvement will receive shock, from which
IT will not recover for a long period.
AS fiscal agent the Board of Public Works has been,
and, under udicious management Will continue to be,
of great advantage to the Commonwealth So long as
ts plans public Appreciation will call into useful
action the unemployed capital of individuals making this
productive to its propretos, and beneficial to the
munity. Tie very debt which it may be compelled TO
contract occasionally will effect all the beneficial results
without producing any OF the evils attendant upon pub
lie debt; provided they are confined to limit within
which the income OF the Corporation after satisfying its
expenses will certainly pay the interest," and its capital
surely reimburse the principal But ifs different
is adopted this Institution, instead Of being useful s-
cal agent, will be than useless. IL will then be-
positively mischevous, acting perpetual drain
of the Treasury and cxhaustng its funds rcpeted often
as its Golfers must be- by heavy exacons from the Poo
pie.
One the great Corporations created for purposes Of
! Internal Improvement in which the Commonwealth is
now concerned exclusively, is hc James River Compa-
ny The origin of this must be sought for far back
as the year 1884 In that year, the General Assembly
passed an Act whereby they Incorporated Company
under this with capital Of 100000, divided in
to 800 shares Of 5000 each for the purpose of clearing
and extending the navigation Of James River from tide
water upwards, to the highest parts practicable the
forwards it declared that the highest place practical
bic within the meaning of the first Act, Crows
Ferry ut the mouth of ooncys Creek in the county OF
BOteourt and the capital stock Of the Company wasn-
creased to 700 shareS OF these shares the State became
subscriber go, with which the Board OF Public Works
was aitcrward endowed, part of IT'D capital when
this institution created in 1916.
After the work, for the accomplishment Of which this
charter granted had been completed, very nearly
il thought beneficial TO the State improve the
navigation Of James River beyond the highest point first
fixed, to the mouth OF Dunlaps Creek TO make a CON
venien road from thence to the great falls of the Kama
wha river and to make the last mentioned river naviga-
bic from the f1llq To I,t