The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-08-20

Hinder the above head the washington Republic has
an article OF interest," commenting the Virginia State
.,ocL 10 CAPITALISTS generally profitable investment
Ths.s .ocks are now in market under favorable crcum
stances and are recently were, sold at lo4 1t lie also
..d thai the government has invested or will invest In
them trust fund OF about a million OF dollars
The credit OF the State. always good and doubt
ed has recently been placed foundation for the
future by the adoption of the following fundamental pro-
visions in her new constitution, TO wit
l. That fund of per cent OF the present debt
shall be apart for the payment OF It's interest and the
gradual redemption OF the principal
q That fund OF eight per cent OF every debt herea
ter created shall likewise be sci apart Tor the payment Of
its interest and principal
g. That the leg Stature authorize no loans for longer
period than ,hn,y tour years =
poaed company the interest principal OF any debt due
from it 10 the State
No doubt entertained as to the adoption of the cons.
tuition containing these provisions.
The following paragraphs we extract from the expose
in the Republic, 10 wit:
Upon examining a correspondence between Governor
Floyd and Mr.. J. H. Carter. of Baltimore. we were
struck with surprise that little appeared to be known
of the fiscal affairs Of this great Commonwealth. II
that change Of policy in the sale Of State bonds
has rendered necessary the exposition Embodied IN the
correspondence and documents accompanying It.. The
stocks OF Virginia have been but little known IN the
northern foreign market they are little quoted in the
prices currents nor do they any extent form the me-
dunn Of remittance, In this we think the admnisua.
ton Of her fiscal stem has heretofore been defective
We glad that is TO be changed, Ind that the
securities of Virginia 10 be in future offered under
circumstances winch will secure their proper appreca-
II has heretofore been the policy OF Virginia to sell
cusvey TO her citizens She has annually sold
about $780, 600 This sufficient for her fiscal wants,
and represented the annual accumulation OF domestic
capital seeking permanent investment in State securl
ties.
Indifferent, probably to the introduction Of for
egn capital, Virginia has lost the benefit OF competition
for her stocks They have rarely been above whilst
those OF o,i States and OF corporate cities have
been negotiated at q premium.
From lie same cause hpr has been heretofore no au
thentic explanation OF the Stale investment no array OF
her resources offered to the capitalist OF Europe and
America whilst, IN addition 10 The want OF ohcal IN
formation the stock kel, the authorities OF Virginia
have labored under her disadvantages.
Until recently her hsca system has wanted those facil-
tiles u sale and transfer Which are Indispensable
The pay ment OF her interest has been made at the
treasury alone, upon formallty OF application very in
convenient to nOn-residents
The authorities OF the Stae have contented the mselves
with the Official exhibit annually made they have taken
no pains TO publish abroad The true condition Of the
treasury, have they countrracied the extraordinary
inpr in egard the Of the debt and the
OF her Investments The facts stated BY Governor
Floyd will therefore surprise many who have not looked
~ the substantial wealth and renewed progress OF Vr
gina. This will dlsabuse the minds OF those who be-
lieved thar The Stale in declining condition. II
will also remove prejudice created by The opposition Of
larse section OF the Stale 10 the foundation OF State
debt for internal improvement
The change OF policy, however, adopted by her l.gisa.
be comprised as follows:
l. A system Of banking to be based on a deposte OF
State stocks.
g. The payment Of interes, at any commercial point in
the United S ates Europe.
g. The issue OF coupon bonds, to facilitate the collec
ton OF interest by nonresident, stockholders, and 10 aid
the Stale circulation.
We have given the reasons why the stocks OF Virginia
are 70 little known in market, and the auspices under
which they are now brought forward. Stock dealers
may now know the amount of debt value OF investment,
reliable resources, and ultimate responsibility oil the
Slae All this may be obtained in detail from the lucid
exp siion OF Governor Floyd, and The official documents
which accompanyt.
Blu, succnct OF the subject, based upon obvi-
rules OF financial responsibility, will show that the
stocks OF Virginia equal in value 10 any that be
offered in market
In estimating the sovency OF State of indi.
vidua il is scarcely safe 10 rely upon the valuation OF
assets made by the pariy interested they usually
constitute the investment OF the proceeds OF the debt
itself.
Let u.s. therefore, in estimating the responsibility of
Virginia, discard the investments as If they were uncer-
tain in value, and moi TO be relied on, in the event an
enforced payment renders their realization necessary
Let US, moreover, discard distinction taken by the
domestic fnancier between debt" and "liabilites"
This distinction is unknown amongst slock .Jobbers and
capitalists. To them all obligations are "debt."
The value OF the taxable property Of Virginia is es,i
mated BY the Commissioned OF Patents at The sum OF
$3.50 10000.
The absolute and incidental deb, of Virginia amounts
TO 9l6 $40 9s5. This constitutes ad vaorem oblga
ton OF u per cent upon the whole taxable values OF
Virginia, the interest on which would require an annual
nd valofem tax OF four millions per annum II, then. the
whole outstanding debt OF Virginia without repre-
sentative investment 1t nigh be extngushed by sim
gle contribution OF "a per ceDtum upon her taxable val
ues Nor would ihs require The sacrifice OF her property
According TO be Estimate OF accurate statesmen, the
nual income Of Virginia arising from the sales OF her
products little short Of her whole actual debt The
suits OF single year OF ordinary prosperity would,
therefore, discharge the obligation forever With such
indispuabe evidences of the sovency OF the State il
apparent that nothing except want OF moral fidelity
could render the public obligations OF Virginia for
\ moment doubtful OF the probabilities OF this the
world can Judge well ourselves.
Having subjected the responsibility OF Virginia stocks
to tes which will be satisfactory 10 the most sus-
picious, add observations to show their peculiar
value.
Whilst we have deliberately excluded her whole stock
investment, refer TO Official statements TO prove that
she holds bank stocks TO the value of nearly millions
debt 10 due from department Of the State another
Besides this, she holds stocks in various works
pleiing progress, amounting 10 nearly twelve mil.
lions OF dollars The value oil The lailer varously
timated Some statements show that the State in effect
nothing Others adopting higher rslio OF vslua-
ton, alter deducng the State debt from the State invest
ment, show a positive surplus The estimate which
have offered s, however conclusive of the solvency Of
the State The capitalist will hrd that her fiscal Affairs
are honesiy and ably administered that her il
promptly paid and her obiiga tions ia lhfuy met at
un,y; they will find her taxable capital ample. and her
fahh unqus-tioned. Wits, have not chosen to
oxnss The investments of Virginia a resource for
MAKING good her debt, may safely affirm that TINS
deDt nas peen invested IN a manner which should meet
the appreciation OF every capitalist II has been almost
excusvey due on account OF internal Improvement. and
educanon-'wo investments which cannot be misaiti,d
bu, which must directly or indirectly furnish ,he materials
l. IL Ia.,.I