Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1852-04-29

- '"e 'i'c'csts oi Inc otalc, anu 10 vtOIo.
ton OF her laws. il is natural that ~
should view ii with less favor,
Where can We find the autsoritv Of
law Tor such contract as fl,isi IN vain
shall such authority he looked far Ii The
net authorizing the issnc Of Coupon tonjs.
liy the 4tl, section of thar act tho sum of
$4,000 il placed under,h ,he management "
he Board Of Public Works to effect ,hs
objects of the act. All will agree thu, tho
compensation allowed the agen, is tibrs
than $4,000. And Yet thrrcis. besides thib
~, sec'lon. u" provision in thr act of
iSal''o authorize the employment and
compensation of an agent, unless il be thar
par, of the act Of 1881, which make. ,he
Coupon bonds, hen payable ciscw here
Than al The Treasury Of tic Stale, .u,,icrt
to such OF the provisions of ihr 9th uhsb.
ter OF The Code a, relate to the borrow I'm
Of money in Europe.
When we turn 10 that chapter We find
that the third is the only section IL !, re.
iatng to the agents compensation. Il
may be well to advert TO the history ~
That section. The act Of April. 1898. en-.
powered the Board to procure loans eth.
er IN the United Suites or Europe, aud for
lha' purpose 70 appoint agents and allow
them rcasohablc compensation. Ii allow
ed any Bank Incorporated in this Stnte ID
act as agent of the Board. ip negotiating
the loan and transferring the proceeds III
10 the Treasury. III 1889 another act
passed. anlhorizipg cerrica,estu To be issued
without the pre,mus payment Of money
INTO ih- treasury, and such certificates 10
no te'iv red To the board or their agent,
The board never availrd ifclf Of the pow.
er given ',y these acts of 1888 and 1889
IN regard 10 borrowing money abroad
and making the certlicntcs payable else.
where than AT tie t'easury; yct these acts
had not been repealed hen the rrvisors
acted on the uljcci in lS47. In the mean
time instances had occurred of agents az
States and public componies Who hsd
been entrusted with, their bunds for sale
nar'ing with such bonds, and making tho
States and companies liable without tbci.
receiving the money. The revisors desirr
"d TO guard against the danger Of such a
result IN respect TO bonds Of Virpinia.asz
With this view the third section of CHAPTER
81 oflhc Code was framed and passed IN
these terms:
ANY ofihe Banks Incorporated by this
State may act ms agent for the Board. in
respect 10 such loan. Whenever money
rs received from the lenders elsewhere
than at the public treasury. it shall be su
received only through one of The said
Banks. The Bank through " hich il Il
received shall, by bills Of exchange 9TH
ervise, cause the money 10 he paid
promptly into tie public treasury. The
bonrd may allow reasonable comnrnsas
mon to The Bank or any other agents
employed in The matter.
No authority flaw exists for the con.
tract that has been made, unless il cau I've
deduc-d from this section. and this sec
'iondoesnot give the authority to do what
has lren done.
While il allows the Board to emplov
agents IN negotiating the loan, it imrera.
ii'ely requires that the money, II received
from Mc tndeys csew here Than at the pul,.
lie treasury shall hc,reccived only through
one Of the banks incorporated by this
State.
In other words. the lenders are no, "a
have the S;aic bonds until the money
tor them Is received into the public treas.
nry or ~ one of our State innks. And
Vet notwithstanding such il the lava
s"rt ol Contract has been made importpv
that Sedcn Withers & Co.are constitufrd
agent. ,f H. s,a,.. M, ,a',.. .o"s''u.
ale the bonds, but to sell and dispose Of
them n nd rec.i, 20 tI., ,,,,,.,,. H.. .Is
II will nat ,lo IN s,u IT,, s.t, W.,
er. & Co. aficr ,ec,;,;n., u .a...,. 60
the lenders nv !, III, NJ,
one Of the Ba,ks ;,,cor,,a,.,.i ~ liz .a.:D
S,a,c. Tho ,;,I,,;on r. H. i! ,".'
ling the bonds on ;p,o IN. b,r.l. ~ ~ ,a,..
.iers or i.to ti,, NAM. ~ S..I.laa VI
& Co LeG,rc the r,on., ia. - ......i
INTO III. Treasnrv mr. ,,,..r .,,- e..
Banks. The S,nte /. ,,,.r,l.S .,J. ;..,.I,
a ri.k which il Was ,l,c o,,;.,, I'll. /.
guard asniust. So c,..'.,. E,s.I
and the Board of pot,,;c V,rL. ,.,I, ~.
ii. they have cmpover,J S.,J.n W;,La..
&Co',o receive III nroc..Js ~ ,,...,.' u
the bonds imam tb.;i ,nsro raL.J a''.a1.
mrut TO nav over m ,l,.. RI 81,
.oen, as m. S,a,c sbanl, .''I'.a, ~ ~ ~"
c,.d. ,,,nu, M. ,.,.,a....''.,;.
Withers ca
Thi. i, ,b,. case IN Which ,bo Grs, 4o.o
lu,;on ,u,Iic. Ths rosol,,,;nn MI, ,...It
90 much f,,,bor ,hnn /, ,j,a.. e,r H. "a..
rr,ct Ia. henn ,,,J.. y;,,'nn,1 r,I..,,l,a
itv in Other res,cc,s
Where IS The. authority f,r hi. ,nos, az.
traorIinarv provisiopq
ITO enable IA, s,;J S..Iten yy;,ho~.
& Co 10 redeem, in prou.r time. Ike Con.
lons of interest. AZ the same shall lecone
lin. ,j,osa;J I b. y II ~