Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1848-03-21

Holland "a quarter ol d m.ii'oI; - : bo
fifty thousand dollars: anu .nis, - ,hav cnn
ginning Of their insuflerable cohduc'i 'hey con
s ". a onns,rnc,ion OF lheir canal al extra
ordinarii high prices, and PAID Inc constructor
in anarantced bonds, ,or scrip, winch was worse,
,,sich u.,e thrown into the marker by hundreds
~ ,hnnsands. and. Notwithstanding hey were
~ or,rsn,ied nv The Stale, they deprecated, ! think
81 n,n ,heir market value was go 10 The Sl0O-s
S;.ronn, NJ mere Than SO per cent.-bonds gnar
antied by The Stale, bearing b per cent. interest
and interest payable every six monihs.
This is he way that The credis oil virginia i
10 Inc IrI1ed with again, | presume.
Ifibal b. their intention, | will make Them tut
Ter before am done with Them. lwiil introduce
q Joint resolution 10 instruct The Board oil Puhllc
Works 10 cash those bonds, and pay money aiohe
10 those companies, instead OF issuing Inc oohas
o. the Stale, as has been The Pfacllce heretofore
We will then see who it is that IS 50 reckless a.
10 traffic OF The bonds o! The State al any price, u
carry oul their eXtravagant scheiles oi lecAles'
policy. | will bring you 10 me scratch Sehue'
men. | mend the peoPleo OF Virginia s"di Nho"
how hes things are managed !
would ask you, Mr.. Speaker, cnn'd any per-
son toreiel The disasters hat would "veIlakc Inc
country2 There will be (unless we check.ma'el me
old Coon Stale bonds in the market lnis year %
The enormous sum oi one miilion OF collars, oa
Whereabouts. Where j. The money ocome IRONS
Can The loan BE- negotiated in Europe say
M. Can il be negotiated IN the Norm NO; lor
they never have taken any nl thcm-they nave as
much as they can do 10 pay her own aeo.u, ol
To provide Tor their own llabiil,ies. ihen
we must look Tor q marker ID Virginia, ioi
The bonds o; the State. Can they be sold IN vir.
uio;a AZ their par vaIue2 No, | I'm satisfied
ihey cannot, 10 the amount that would be forced
into marker. Then, according 10 The provisions
OF The avs, authorisins loans 10 be negotiated ioI
works ut internal Improvements, no 6oGd snali
be sold in the market Tor less Than us par Value,
then follows the other policy as before ~re!erfea
10. The companies will receipt 10 The Board oil
Public Works Tor the bonds Of The Slate, as cash,
and ,hen hey will contract 10 have Their ROAD con-
sl!uciei for Stale bonds; or, In other WORDS, they
agree with Tie contractors 10 pay mem IN oid'e
bonds. The contractors will necessarily demand
a much higher price Tor their work, than II they
were paid in cash, and in a short time, We would
have as many peIsons in the market hawking State
bonds about, as there were contractors upon The
various improvements. Ii is well known that
mos. Ui The contractors tof pubic woiKs arc en-
terpfiZins men OF small capital, and would ne
| ceSsanly lie compelled 10 cash the bond, Il praise
| means 10 pav heir labofer> employed IN CON
struciiag ihe works. What has been he course
| pursued by capitalists IN occasions Ike this, AMI
what may we naturally inter will be ihcif
course again? They will withhold their invest.
mems and &c .cby force the holders, (who They
know will BE- obliged 10 sell, } % take such price
MS they may dictate. Thus it was in 1912, H.
The conduc' Gl the James River and kanaWha
Company, in paying contractors III guaranteed
bonds, 50 that The quantity thrown III market was
20 enormous rs na, onij 10 btns Gown their own
;alue33 per cent, bat actually dragged down The
l,rl. - tra ~,..a n. ah,uf S~l-nr .Ca 90 cont
below pal.
Mr.. speaker, | would ask the House 10 take a
commun.sense view OF The operation OF such a
policy, al ih.s time, ami | think il will al once be
cen, what lie Jesuit would Re. Th. first con-
tractors, unde! ;his new operation, who are paid
in bonds, would come into HE market with hem
ID a pr { reduced below their par value, al which
lhey would b. compelled % sell them perhap,
greatly less Than they anlicipa Cd al he lime they
| contracted to lake hem. This would necessarily
| max" hen III their second contracts, run up the
ptic- OF tn" WORK, an, consequently, put down
ne value oil Inc bonds corresponding with the
downward tendency ui The market. The effect
ui lhis new system OF inancieIns, will BE-, that
The Stale bonds will soon be put down as iow as
they were in 1912, or at any other price lha. CAPT.
laliSls may dic;alc.
Nr. SneaSer, can we defeat this OF am other
bill inr internal Improvement tear not
When 1 consider NE powerful! influences brought
10 Gear in favor oi Al: internal improvement bills,
| canno, say ! would be surprised il this Bill and
all oihar internal Improvement bills shohl pass
this House. ! say. sif, Inc iniiuences arcpowef.
IN, and ,he. afe made more - ~ The mEfipllci-
" III bids ioi Wo.&s oiimp5cTemenis hat irc now
pending; ~, strange Is i Giaf appear, here is
| scarcely one single hlil depending uporiis own
mcris iuI support, bul a.! ere made dtpendcnt
| upon each other. So, >ii, wc have the Influence
! II he isieui, ~ every scticinc 10 bear upon every
sin.ic hinthglm.v - advocated IN ms fonsc.-
Another s,rdr- i~Eiiacac. is n york, III Speak
er. The l!ta aas gone iofh to The 'cuniry,
rom the legislation u last winter, hat The
Sale is 10 be involved Tor as much IS il is
possible Tor Aerio bear; ami portions II the country
heretofore utterly opposed 10 Internal Improve.
melt (and nov opposed 10 il rom p~rincipe) have
wof.cd themselves up 10 The conclusion mat they
ought % eel something ioT their part Of tie coun-
Try. Tney say tnal large appropriations are be-
ia. made III olGer paris 81 the State, and we had
d well Get some Ice; and, lir. Speaker, I seem,
= inc lhal We aie !as, getting iatu 4 state Of pro-
tilaaie AIT was.eiu! appropriations oil moIey, that
val bring abaGi q scramble to see VINO can get
The most. And last, though not least, We rave The
cdpi'a!is's q In country 10 bear upon Ills sub
Ject. Tney dr,iie sale and profitable invest
menis tof ihelf capial, and they regard State
bonds, carrying SIX PER cent. interest, payable
scmi-annually, as being the best investment they
can make, especially when they can ha re an rp.
p%oriunity 10 bring them in ihc market for less than
their par value. Therefore this inieres: is al
work 10 induce large appropriations If money, III
order that the otai. bonds q a large amrusi may
IL ih'uMn ialO tae marker, that they maj nave
an OPP 'riunilr Of @ISin. sale. permanent and
profitable in2cs msn's u Their capital; ana State
Ton :, are the ONLY WAY IN whicn ,her can make
rermaren invcs,men sanc eer compound interest
was surprised % near ne idea advanced by
he Chairman Of Inc Committee u Finance (Mr.
poimaH} yesterday, and reiterated 10 tay ~ The
gentleman from Gfcenb;icr lNr. Price, that
STATE bonds carrying six rcr cent. Interest, 10 be
paid scmi-annualiy, The principal redeemable on
~ n The pleasure Of the Legislature. were no deb
al all. Mir. Speaker | entertain a very different
opinion. ] Ho!G u 10 hc The very wots, character
VI debt. What, an obligation Tor money. the in
lercsi e b. PAD puac;iat'r. every six months,
and The prlncipa' 70 - pail wh"ncver The debtor
ihinks proper 10 pay u, NJ debt a, all !
Now, Sit, suppose We illustrate" il. Suppose all
the bills nov pending before This House should
pass. The State debt and Liabilities in The ae-
srcgatc would then be Al least so OOO, 900, the
interest payable semi annually. will mol, 90 in
10 a minute calculation, 10 Show what would be
the interest pdyaoie every SIX months. The blouse
well knows, that any given sum would double
itself in about eleven or twelve wears. il the in
lercsl be added every twelve months and if
you compound The interest every six months.
as Is the case in STATE bonds, it would
double itself once in len years, which would be
equal 10 $4,000 600 charge per annum upon the
producers Of the country for, be II remembered,
that is the only source 70 which States or Govern
lDenis can look Tor means 10 meet their liabilities.
Yes, Sir, every class Of society as we'll as go
vernmenls, are dependent on The producers OF the
connrv tof their yearly subsistence; from the
poore-t operator in tie factories al Lowell, 10 the
p~rnuicsl slairsmau in the cannci : u The nation,
a! aic dependent upon the agricultural and min.
me ?snt!pc ION oi thc COUNT: !or dliir subsistence"
Substantial. wealth can ONLY he ing on ul the
Garth, ether W agriculture or mining. Then,
Sir, Il his be true, can This interest stand such a
drain as must necessarily be made on them, tc
nay The Interest on The present debt OF The State