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


Virginia. the value of her resources, the extent
of her Indebtedness, and the belief that she Will
at no distant day issue more stocks" And sir,
there Is an important fact disclosed to us which /
proves the sincerity of the opinion expressed In
this letter Now, SIR, | suppose that 1t will be |
admitted that this banking firm, whose business |
is partly TO deal in stocks. with all their facilities
could obtain better prices for the stocks than
Board Of Public Works could hope to do. By the /
terms Of the contract they were to have all over
par that they could obtain for the first million |
which they could sell. They would pocket eve-
~ dollar over par that they could get and yet /
they were glad to get this million off at par. 1t
the bonds could have been sold at that time at |
than par. 1t is not reasonable to suppose that
they weuld have failed to obtain it. Yet they ac- |
tually hailed 1t as a triumph in their operations |
when they succeeded in closing contract with |
the Department of the Interior at par. L hold
this sale of the first million at par, the strong
est evidence that at that time this banking agen-
ev with all their efforts and all their facilities,
could not effect sale at more than par. How
much less ought we to expect such a sale to be
effected by the Board of Public Works.
This being the condition Of things at the time,
diI the Board act iniudicousy in allowing this
contingent compensation to Selden, Withers &
Co? : sale at par was the best that they could
hope from any other quarter. By this contract
they were to get par for all that was sold, and 2
per cent premium OIL all that was sold over one
million. 1t was good bargain for the State, and
SO far from receiving censure, the Board deserve
credit fer having effected it. They secured all
that they could hope to get by advertising the
loan, and in addition secured the energetic, inter-
ested labors Of an efficient and extensive banking
agency in this first and important effort to give our
stocks place in the stock markets Sir we have
already experienced essential advantages from
the operations of those agents. Our stocks are
commanding high prices We have been enabled
to realize larger premiums tnan we have before
for number OF years any considerable sales
On three millions of the coupon bonds, we realized
premiums equal to 100000. On our sales of the
old registered bonds since July last, we have con-
stantly realized from to per cent premium.
] have examined the records for several years
past to ascertain the premiums that have been
obtained on the sales of the whole year. In 1S49
the premiums for the whole yevr amounted to
S2,4l2, or about one half of one per cent on the
sum OF the loans for that year. In 1850, they
amounted to 50, 64S, or one half per cent on the
of the loans for that year; and in 1851, prior
to the operations of this agency, they amounted
to $4,000, or one quarter of one per cent on the
sum of the sales. When I refer to the years
here, mean the fiscal years terminating Both
Sept IN each named year. Since this agency has
been employed the premiums for one year will
amount to fifty or sixty thousand dollars, and
they have raised the price, at which considerable
amounts Of the old registered bonds are sold, up
to 5 per cent above par. Is not that something
for an agency to accomplish? No one can sup
pose that this has been done without expense of
labor, time and money. They have had to
interest and enlist other capitalists in their
operations. [ am credibly informed that
several thousand dollars have been expended by
capitalists in publications on the subject of our
stocks. We all perceive and acknowledge the adj
vantages to the State which have accrued from
the labors of these agents. Do we grudgs them
the compensation which they have earned? Ex-
travagant statements have been made as to the
nal ed nv Sol g. 10 TIo
gentleman from Richmond represented them as
selling for 100 and accounting for 102. have
seen an article in the Alexandria Age, paper
published In the town Ia whieh-one of that firm
resldes-an article containing statements which
must have been derived from some of
that firm. In that article it is stated that
Selden, Withers Co. have contracted to
dispose of three millions at LOB. [ have rea-
son to believe that that statement is true
Ii so their whole profit is l per cent. on the
sale OF three Millions and nothing for the sale of
one million. The gentleman seemed to regard as
an additional compensation to them, the engage
ment on the part of the State to furnish the
amount sufficient to pay the interest one month
before it should become due. He then was under
the impression that the State had to pay the ex-
pense OF transmitting the money to the points
where the interest may be due. The letter of
Selden, Withers & Co. sent to us by the Board
IN obedience to the call. of the House on nv
motion, shows that by the contract they are
to bear TINS expense-an expense more than
equal to the advantage of using the money
for one month. Without this clause in the
contract, the State would have to transmit
at her own expense annually the interest due, to
the point where, by the terms of the coupon, it
may be due. An agent would have to be en-
ployed to transmit the money and disburse it.
Selden, Withers q Co. admit in their letters that
they have to render this service without charge
The only stipulation on the part of the State is,
to furnish them with the in sufficient tiyno
to enable them to perform the engagement pune
tually. Hence this engagement to furnish it one
= month IN advance, which costs the State nothing.
do not regard the gentle mans comments upon
what he regarded the unnecessary haste
of the Governor and the Board as wore
thy OF much notice. 1t was time foe
energetic and speedy action. IF the Board
had been endowed with all the sloth which the gen.
tleman seems to regard as essential to the finan-
cal character, they would have been reused into
motion by the emergency in which as have al
ready shown they were placed. When the
IRE IS upon the terrapins back, even he will
crawl. The resolutions of the 9th of April pre-
c1sey defined the terms upon which the Governor
was to employ agent. He went to Washing
ton and did precisely what he was directed to
do-n0thng more nor less. 1t surely cannot but be
subject OF compliment that he did quickly and
welljust what he was directed to do. The reso-
1utions left him but little discretion The terms
and the compensation upon which he was to en-
poy the agent, were all fixed in the resolution |
of the Board OF Public Works before he left Rich |
nond. If eensure is to fall anywhere, it is upon |
these who prescribed the terms in Richmond and |
not upon the Governor who promptly executed |
them in Washington. | think that I'have suffi-
GENTLY shown that the Board did not commit any
error in prescribing those terms. The passage Of
the law authorizing the sale of coupon bonds had |
been recommended by the Governor, who was
President of the Board, and its passage by fbr