Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-01-11

character for integrity for general intelligence ana lnr
experience and knowledge III financial subjects, TO MI
such all appointment
r.. his ncrod l,nv ever the state Of the money
kct in Europe which, instead OF improving from tic
first OF the summer had been constantly growing worse
had assumed an aspect so gloomy and 50 nnproinslng
as to induce the board of directors 10 postpone the de-
parure Of the agent ana 70 await lie aiffaI o. iu'ei
adviccs from abrold
This step was the result not merely of The current
news Of the day, bat Of intelligence. sought from inc
best sources Of information in the Cites oil fh'ladePha
and Sew York The subsequent suspension oi specie
navmcu,s by the banks accompanied it was by ac-
counts even still disastrous from Europe induced
the board of directors the November mreng TO DIS
continue the agency for the present. with The INTENTION
however, ofresumng npon inc occurrence "i Tue st
cbanue in the money market which may hold out rra
sonabe grounds for the expectation that the measure
would he attended with success
II NAV not be amiss TO add 10 what is already stated
by way of corroboraon ofte views OF The board that
about the LIST OF August last the President Of the Far
mer. Bank being called by business to the city of
PHILADELPHIA, and kindly offering me his friendly aid,
At nv rqncst renewed the enquiry as to the prrctica
biitv al that period Of sale Of per cent bonds and
likewise in regard to the probable result OF lssion to
Europe l., letter which he addressed 10 me on his
return he remarked: cit would mol he possible, be-
cve TO effect sale at any point in this country but on
terms which would be wholly nadmissbc; and of this
20 soon became satisfied that did not venture to offer
the-bonds for sale You may, | think, abandon all
markets abroad And in respect TO them, the Inst
counts are more unavorabe than the preceding bad
they are known to have been Letters by the last
steamer were read to me- which represented the foreign
market as literally closed against American securities
They spoke Of the perpetual arrival of additional
amounts each in their turn offered at reduced rates
having produced feeling of rcpugnancc towards them
among the brokers whose services might be useful IN
bringing them forward, well among every class OF
purchasers
n,J II he Et,uisr r-Dp staic further
vindcaton of the conduct of the Board, that one OF
the able professors Of the University of Virginia. whose
attention has been particularly directed to subjects OF
finance, went to Eng land carly IN the month Of July
and returned early in the month of October; and that
since his return lie has communicated 10 me his de-
cdcd conviction that al period since the meeting OF
the stockholdcrs in the month Of May, could ncgo-
tiation upon the terms prescribed by our law (hy which
the rate Of interest 70 be allowed IS limited 10 SIX per
ccnt) have been successfully conducted in the market
abroad Nor was his opinion shaken by tho fact that
The Pennsylvania, Maryland and Illinois agents have
subsequently, succeeded for although be had not heard
the Terms he felt well assured that they were much
more advantageous than those which authorized
TO offer
To the facts and circumstances which have been
mentioned, the remark should be added that after
failures at home it would he highly pcrnicious 10 the
fiscal credit of the company, as we'll as TO that OF the
State with her guarantee annexed TO the stock that
an unsuccessful attempt negotiation should be made
in the markets abroad.
How long it may be before such change shall have
taken place would render il cxpeGient and proper TO
send agent Europe, is impossible to predict with
any degree O! certainty seems however, to be gen
orally conceded that indications Of amendment have
already appeared and increasing; and the board Of
directors indusc the hope and expectation that the
change which is now in progress vii! have advanced
TO such extent that the agency may be successfully
renewed IN the o! the ensuing spring.
= The issue OF pos, notes in payment Of debts due
from the company.
Il was at the meeting in the month Of June that the
board Of directors TO this resolutions and can
assure the stockholders that it postponed until
perfectly asceraincd that unless II should he adopt
Cd the progress OF the work would nc arrested al IN
celcuabe loss to the company and at the hazard Of
total failure of the whole scheme Of Improvement.
At the period referred 10, the whole line OF untnsh
ed works from Richmond 20 lynchhurg actively
advancing towards completion At az expenditure per
month of about Sllu,uG0
The Of the company al this period consist
ed of the power to negotiate the permanent loan oil
Il 800 100 authorized hy the act of I'D of March last,
and Of the remainder OF its old capital amounting 10
about $40 600: making together aggregate amount
Of upwards Of go Geo: ana: 10 meet e monthly pay
mems, il ndspcnsahly necessary either 10 draw IN
these to anticipate them III sonc form or
other.
By the statement already made it has hccn shown
that timely aid to be derived from the power to
make the permanent loan. The experiment had just
been made III the American market under The most IA
vOraole auspices, anu ndu liiicG,
ropcan market had been in favorable condition,
impossible 10 reach It III time. IT was at the
June meeting rs heretofore stated that the attempt to
embark the President OF the Bank of Virginia and the
President ofthc Farmers Bank in the agency had failed,
chiefly upon the ground that the negotiation OF the
loan gould s probably be effected earlier than the en-.
SUNG spring.
The course Of subsequent events, detailed in the
preceding narrative has unfortunately proven that this
anticipation we'll founded, and that it was utterly
iprtl Ia oE,1
Gent ofthe power Of contracting permanent loan
in that direction.
Nor was it possible 10 meet the engagements Of the
company by drawing upon the nnrealzcd remainder OF
the old capital. The effort had been made and had
failed; and it this failure which gave rise TO the
then embarrassed state Of the companys funds.
OF the residue of old capital remaining on the lst
December last. all that could be readily made avaia-
be consisting Of the Of subscription 10 be-
come due from the Bank Of Virginia and the State had
been anticipated, and along with the balance on hand
at The commencement: OF the year, had been aprropr
atcd TO the purposes Of the work.
The balance o.! the old capital remaining on hand al
The June meeting amounting about 7i0,0Co con-
sisted of S2 ,2ji due from individual subscribers,
and $500, al OF unrcaZcd corporate subscription vi
the latter amount S29i ,4l consisted Of unrcalized
subscription Of the city Of Richmond sol 500 Of the
town of Lynchburg, and 81, 100 Of Washington col
lcge.
The board of directors having been obliged to re-
ceye payment from the city Of Richmond in the form
of city stock, and after partial sales, having found
it npracticablc 10 dispose of the stock at par, had
been reluctantly driven by necessity IN the early part
of the spring 10 reduce the price TO % per cent But
even this reduced price, receivable in current bank
notes, found 10 be vendb!e article, but TO
very inconsiderablc amount.
In regard TO the balance Of the individual subscrip
ton amounting 10 2 I very small part of which
if any will ultimately be lost nothing had been Lett
undcne b the board facilitate to hasten the col
cction but these efforts had been attended with very
little success
In consequence OF these unfortunate failures, the
receipts upon account of the old capital fell far short
of the necessary to pay the monthly estimates;
and hence arose constantly increasing necessity OF
anticipating the future resources of the company IN
the form of temporary loans. \; the period OF the
June meeting Of the board, besides the anticipation
through the medium of tho Bank Of Virginia of the
last mstanens fail due from the bank and the State,
various accommodations, III the ape Of original or re-
newed credits, had been obtained - sundry periods
81. ND MI from, Rank AZ