Richmond daily times. [volume] (Richmond [Va.]) 1850-1853, 1852-04-28

on what terms the services of a suitable agent
could be obtained, the Board should, on the very
day the subject was first taken up for considera-
ton, have gone as far as they did. In an instant,
a negotiation was directed of the large sum of
four millions. In an instant, it was determined
what should be the compensation of the agent.
The Governor of the State, it will be observed,
was to be sort of agent to transact the business.
swift agent he proved to be. The very next day
he took the cars and went to Washington City;
and the day after he got there 1--WE are told) he
made contract with Selden, Withers & Co.
This was rather more expeditions than was
agreeable to some of his colleagues in the
Board.
The resolutions adopted the 9th Of April,
were on the 18th of April reconsidered and res
ended; the Board now came to resolution which
would have been more proper to begin the matter
with, than the resolutions of the 9Th They now
authorize the Governor to visit the Northern c-
ties for the purpose of ascertaning the practical
bility of negotiating loan of two millions of
dollars should it be required the terms upon which
such services would be rendered; and they now
requested the Governor to report to the Board
the result of his enquiries and any proposal that
might be submitted to him. The result shows
that they were right in supposing that loan to
them of two millions would suffice; for up to
the 9Th of February, 1852, (the date OF document
No. 36) less than two millions of coupon bonds
had been sold; and yet with this amount added
to the proceeds of other certificates, the Board
has met all the demands upon it and had sur
plus out of which it has lent money to the gener-
al treasury.
The resolutions of the 18th of April were sent
by Mr.. De Witt to Washington, but 1--WE are told)
were not received by the Governor until after the
contract had been made. The contract bears
date the ! lth of April. One of two conclusions
is irresistible; either the matter was pre-arranged
between Governor Floyd and Selden, Withers &
Co., or there was a most improper haste in
transaction of so much importance-a haste i'll
consistent with due regard for the interests Of
the State. This case does not admit of the apollo
gy that money was wanted and Immediately OBJ
tanned; fSr there was no sale to Selden, Withers
rs Co.; they were only agents to effect sales, and
made none till after the 18th of July. Had mo-
ney been wanting Immediately, it could doubtless
have been obtained from our State Banks, upon a
deposite of the coupon bonds with them as agents
and they would probably have acted as such
for very small per centage, perhaps a quarter
or half per cent. By the haste, however, in
making the contract, an impeachment was thrown
in the way of other arrangements which might
have been more advantageous to the State.
| After making the con ractwith Selden, Withers
& Co., the Governor then visited the Northern
cities. He was not then in condition to avail
himsefo the best means of negotiating loan
for the State, and his visit could be for no such
lUCOnSS.
! tent with his contract. That contract contains
this remarkable provision:
Gas it is doubtful whether any premium can
be gotten on the sale of the coupon bonds of the
State of Virginia, and if none can be gotten the
State might suffer from an inability to dispose of
her bonds: it is agreed that the said John B.
Floyd, and any others whom he shall select to at
tend him, shall visit Baltimore, Philadelphia and
| New York, and inform himself as fully as practi-
cable about the present state and future prosper
| ity of the money market as well in Europe as
| in this country, and that if after that the said
John B. Floyd shall be clearly of opinion that
the provisions as herein before stated are too
| high and may prevent a sale of the bonds, that
then in such event he will report the result of
his convictions to the Board of Public Works,
and use his efforts and influence in getting those
premiums reduced. After all which, should the
Board of Public Works still insist on keeping up
the premiums as herein fixed, the said Selden,
Withers & Co., shall possess the option to con-
tinue the contract or not as their judgment shall
dictate"
The Governor now was in the best possible
position to subserve the interests of Selden,
| Withers & Co., certainly in much better posi-
ton for subscribing their interests than the inter-
| ests of the State.
| Having made the contract under resolution
rescinded by the Board, his bias now was to
show the contract to be judicious tor the State
to show the premiums high enough, if not too
| high, and the reasonableness of the compensa-
ton.
The three letters which the Governor obtained,
| it is obvious were obtained with view of salts
flying the Board of the righteousness of his course
Yetthere is very little in them entitled to weight
for any such purpose. The Governor asks Mr..
Cuttings of Baltimore, to give him his views as to
causes operating upon the minds of capitalists
seeking securities for investment in favor of Mary
10 IF md
iy Mr.. Cuttings politely gives him such views.
The only letter obtained from New York is from
| George Newbold and William H. Aspinwall.
This, we may infer, contains as much to sustain
| the righteousness of the Governors course as any
which he found it convenient to obtain; and yet
this letter contains this clause;
awe would however suggest for your consid-
Grafton whether it would not be best for you to
offer the bonds for sale by suitable public ad-
vertisement, inviting bids or sealed proposals for
specified period, thus dispose of the bonds to
the highest bidders, but of course no bid below
par to be received.
"1his mode of selling would place you in d.
rect contact with all those wto are seeking in
vestments, and would test the value of the bonds
in public estimation, and would at the same time
give the State the benefit of the premium on the
bonds (if there should be any on the sale of
them. On the other hand, we must not overlook
the fact that if this mode of offering the bonds
for sale should be adopted, and should not be
successful, the result would be very preudicial
to the interests of the State. and might prevent
the sale of the bonds altogether, at least during
the existing limits. We incline to the opinion
however, that this mode of disposing of the
bonds would prove to be successful to the extent
at least, of one million of dollars"
1t was, however, too late to use this mode of
disposing of the bonds. Coming back from New
York, the Governor obtained his third letter.
1t is from Mr.. VIM. Selden of Washington city.
This gentleman extols the wisdom of Governor
Floyd's course. Mr. Seden's partners in the
firm of Seden, Withers & Co., would doubtless
express similar views