Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1852-05-06

|
The last number Of the Tirginian con-
taned the contract Of Selden, Withers &
Co, with the State Of Virginia Cor the sale
OF $4,000 600 Of Coupon Bonds. We
| have heretofore taken little notice OF this
subject, because we desired to have every
possible light throw n on it. eiore we ven
| tured an opinion. We felt reluctant 10
condemn public officer .or transaction
| Of this character The conviction. how
ever. has forced itse If upon US. ll-al The
whole q fair deserves repi ehension and
that it is the duty Of the Press TO speak
cut.
! Til, contract is certainly Of a very ex-
traordinary characier-if indeed, that can
be called contract, which has only ons
side to it. It's only force and effect is TO
tie the hands Oft The State, in the DISPOSE
ton to be made of 100000 Of her sccu
rites. leaving Seldcn. Wi,hers & Co, IN
der no one obligation. Tie consequence
of the negotiation has been to deprive
Virginia Of all benefit which would have
resulted 10 her. from the enhanc ed price of
her bonds, which now command Sl10 in
the market.
|, appears that for some time previous
to this negotinion, the Board OF Pubic
Works had found great difficulty in meet
ing the calls of the different Internal I'm
prove,nen, Companies for money. There
were several reasons which operated 10
keep the bonds OF Virginia lelow ilosc OF
other States Ouc IVES the int on, onient
character Of the bonds themselves. Tie
coupon Iond has many advantages over
the old form and had been aln;ost uni, err
sally adopted b. The other States and b,
Companies. II asst, Virginia discos cred
that this simple change in The form Of her
| securities would render them more valua
bic. 1t was recommended by the Execn-
tive and adopted. Another measure tend
ing 10 tie same erd was 10 make the in
trrcsts pay ahle at important commercial
points. Such changes were expected to
enhance greatly the value OF Virginia
bonds These acts Of the Legislature
were follow ed by provision in the con-
stiinion, creating II sinking fund.
No one al all acq PAINTED with the mon
ey market doubted that these prov sions
would give a Eieat stimulus t" the credit
OF the State. Tie loan authorizing the
issue Of coupon bonds. was passed on the
29l, Of March 1851. On the 9th Of April
the Board Of Public Works passed res
oluiicn authorizing Governor Floyd to
ucgo,iaic. the sale of $1,000 coo of these
/ bonds. NJ this meeting OF! ile Board. the
Go, ernor, Treasurer, aud Register only
F.! were present On the 10Th the Governor
took the cars ior Waslingtoncity, and on
! tie next day (llihJ he closed this mos;
remarkable contact with S,lden, Wl,hers
& Co.
Ia li.e Jneen time The Board at home
became convinced that they had made a
false step They met on the 11ih and re-
scinded the resolutions Of the 9th. The
telegraph was out Of order and message
intcnted to be sent by it to the Governor
did not reach him. The speci.l messen-
ger " no conveyed the counter instr nciIHns
reached Washington Ciy.aitcrihe contract
was closed.
There are many questions which sug-
gcst themselves IN relation to Ills subject
Wcie these bankers pre-eminently
qualified or accommodating as to render
1t proper 10 exclude oil competition. by
closing tia contract within "a hours al
ter reaching Was!i,g'o No bonds
were issued before the 18th Of July fol
loving. Wus there not time enough to
consult other bankers and compare their
terms
Was it not known at tie Time that there
las probability Of selling $1,000 900 10
the Department Of the Interior, which o!
itself was caicnlated 10 advance the bondsl
Would i; not have been as we'll for the
Governor to have goneto New York before
closing The contract and performed these
scrv ices for the Lenttt Of the State. iicii
the contract required him to perform after
wards for the benefit OF Self en-, Wilhers
& Co. Z Would ii not have been easy
and natural in such contrac, to have Sip
uiated limit beyond which the compen-
sation to the brokers should rot gn2
Mr.. Barbour las made a labored speech
in defence of this negotiation hioh gives
no good reason in is favor.
Doubtless the plan adopted Of late years.
With such eminent success, hy the General
Cove rntneni, besides heing more disniFed,
would have succeeded equally well with
our State Government. That plan is to
sell all the bords Li,h are 10 be issued
within gwen period, by receiving sealed
bids AT the Treasury.
Mr.. Barbonr's argomc,ri that because
his method did nor succeed i'll the sale Of
! $500, GOO. in the summer o! Is O, 1t would
have failed in dlsrosing Of The $1,000 GOO,
in Is /, is not sound Ii is well kno H.
that it is only IN the sale Of large amounts
that This plan is most successful. The A.
mount must be sufficient to attract large
capitalists. 1t is rot probable. ihpt any
large Banllcr.w ould bid forS 100, coo while
it is highly probable, that sale Of ST.
! nnn 600 &c hnnds mnnil lnxn atirue.eL