Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1851-03-13

The most important bill OF the present
Legislature is now under consideration IN
the House Of Delegates, entitled AN act 10
in1prore me firm Of Tie pg6iic de5t."-
Under the present system, person who
makes loan to the Commonwealth, re
ceives her bond for the amount, payable at
definite period III the future say twenty
years from its date. to himself and his
name is entered in the books of the Audi
tor as the holder The seui-annual inter-
est Of this bond, as it regularly accrues,
and the principal at maturity, are payable
only az Richm0zd. IL the bond be at any
time transferred by the original to another
person, that person cannot draw the subsc-
quently accruing interest, or the final pgin-
cipal, without power ofattorney from the
original holder to receive it, and the bond
itself cannot become his legal property IN
til an actnal transfer has been made upon
the books ofihe Auditor atRichmond. which
is only done by authority from tie original
holder, given either in person in the Audi
tors Office, or proved BY duly authentica-
ted power Of attorney.
The present bond Of the State, therefore,
however convenient for the Virginia hold
CT, meets little favor in the foreign market
LIST, because the foreign holder can receive
his interest only at the City Of Richmond;
which puts himto the expense, trouble and
delay, either Of visiting that city himself, or
Of executing power ofattorney, authori-
sing some resident Of the place, and prob
ably stranger to himself, to recciveitf for him;
and 2d,because he cannot sell and transfer
his bond to another person, except by visi-
ting Richmond, and personally authorizing
the transfer, or by executing power Of at
torney for that purposc,and forwardingit to
the Auditors office.
The coupon hand differs from the bond a.
bove described, and now in use, in the fol-
lowing essential particulars: Itis express
sed on its face to be transferable by deliv-
cry, aud therefore passes hike an ordinary
bank-note, from hand tohand. The semi
annual interest upon it, accruing each half
year from the date of its issue to the date
Gifts maturity, is provided for thus wise
If the bond is due twenty years after its
date, there are printed, at It's bottom, forty
warrants upon the treasury, parable 10
bearer, tone for each half year intervening
between its date and maturity for the semi
annual interest accruing ateach period those
due earliest being at the bottom of the pa
per on which the bond is printed. As this
| interest accrucs this warrant or coupon, or
coupon Of interest from the French word
copper, to cut is cm off, is itself transient
BILE by delivery, and itself passes as a bank
note, from hand to hand, until it reaches the
Treasurer's Office at Richmond, its place Of
payment The amount Of each coupon is
Of course the amount Of each half years
instalmcnt Of interest Theholder OF such
a bond, in any part Of the world, may col
lect his semi-annual interest by simply cut
ting off the co4poa from its bottom, and
having it cashed by the nearest bank with
in his reach. He may dispose as wen Of
his coupons of interest, as of his bond itself,
by mere delivery, and finally, when the
principal Of the bond becomes due, may re-
ce;yc it from the nearest banking house in
exchange for the bond without the formal
ity, expenseor delay ofaduly authenticated
power Of attorney.
IL IS plain that the coupon bond ofother
States is vastly preferable to the present
Virginia bonds IN the foreign market
Their value is superior to the present form
OF our bond, by the amount ofexpense now
incurred by theforeign holderof the latter.
Mountaineering andtransmittingp powers Of
attorney, III commissions for collection, and
in the cost Of transmitting and delay inre-
ceiving his interest and principal after it
becomes due. Not only is the London,
the Bremen, the New York, and the BALI
more holder Of the present Virginia bond,
subjected tothesc delays and expenses; but
also every holder in the State of Virginia,
out OF the city of Richmond. The conse-
quence Of this state Of things is, that the
bonds Of almost every State Of the Union
are preferred il the markets Of the world
to, and command higher prices than those
Of Virginia Since other States have adop-
ted the coupon bond, the bonds of Virginia
find slow and very difficult sale without
her own borders. Her large issues have
| therefore no other market than that athome,
and consequently, the home demand Is en-
tircly supplied--thc home market complete
ly gluited.
Large issues ofbonds arc Yet to be made
by the State to meet her subscriptions TO
public works, under acts of passed Leeis-
latures. Shll larger issues will have to be
made to Fill the requirements ofthe present
winters legislation, and these issues are to
be made upon a market which the Second
Auditor,ln hlslast annual report, has already
announced to be exhausted. 1t is plain,
| therefore, that new modes must be adopt
ed TO extend the marketfor our bonds, and
to improve the home demand; otherwise
ourpublic works must be discontinued. The
coupon bond Will extend the market for
! Virginia stocks over the whole CONNER
cal world, and give new impulse to their
sale in every part Of Virginia, outside Of
the city of Richmond. This Improvement
alone will accomplish every thing desired
in facilitating their sale, commensurately
with the requirements of our public works.
TO show the superiority Of the coupon
bond over that now issued BY Virginia, we
give the last New York quotations for the
bonds ofseveral States.
New York, six per cent Slf43 to 1888
HNe luOy 10 lUO
Pennsylv'a, SIX 3" ITO tolls
Maryland, 4" I" 1o2 to 1913
Estates, il63to 1174
Virginia, " 100 to l0l
OHIO, q III to lis
Maryland and Pennsylvania have repu-
dated; yet their bonds command higher
prices than those of Virginia, gainst whose
honor and responsibility breath of suspi-
cion was never whispered. Her financial
and commercial resources are not surpas-
sed by those Of any State in the Uuion, not
even Of New York herself Her taxes are
not one-third of those either of Ohio.
Maryland or Pennsylvania, and vet the