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


counts of the high premiums at which State
stocks are selling, estimate the discount at which
those stocks would at this moment stand, if that
Board had failed in its efforts to negotiate the
four million loan at par ? An unsuccessful nego-
tlatlon of that loan would have been fatal blow
at the ntornalimprovement system in this State.
The internal improvement party would have
stood denounced and impotent at the mercy of
its opponents. This result, | am aware, would
not have been disagreeabe to some gentlemen
here, and it is not astonishing that they should
be chagrined at the success which has crowned
the judcious and energetic efforts of the Board to
rescue the State credit from the perils in which it
was then placed. But, surely, Mr.. Speaker, the
Board had some right to expect fair hearing,
and liberal Judgment from Richmond commu-
nifty and the representatives of Richmond inte-
rests. Richmond is the pet of the internal i'm
provement system of this State, which pours all
Its richest treasures into her lap. The mainte-
nance oil her present prosperity and her future
growth depend upon the maintenance of this
system. No place in this Commonwealth had
more at stake on the success of the operations of
the Board of Public Works last spring than this
city of Richmond. Instead of sending its repre-
sentatives here to file indictments and array
charges against that Board, it ought to erect
statues to them, and express their thanks in eve
ry form Ill which a community can applaud
public servant who has rendered signally impor-
tant, successful and beneficial services, and Rich
mond representatives ought to be the last of all
others to ''shuifle OFF so good turn with such
uncurrent pay"
Can any candid man deny that the documents
before us afford the most ample proof of the
great difficulty, indeed Of the apparent impossi-
blllty, at the time, of negotiating at para loan of
four or. even of two, millions Before referring
to the evidence on that point choose at this
moment to meet the charge that the Board erred
IN liking the amount of the loan at four mill
hons As have before said, there were actual
subscriptions by the State to the amount of near
~ SIX millions and a half, and authorised SUBJ
scrptlons not actually made amounting to lit
tie more than one Million The appropriations
thus amounted to about seven millions and
half, and the Board of Public Works were au-
th0rlzed by law to contract loans to that amount
what portion OF this sum they would embrace in
this first loan, was question which the Board
had to decide in view of all the facts then before
them. Upon this subject there seems to have
been some difference of opinion among the men,
bers OF the Board. None thought it ought to be
less than two millions. Two, three and four
millions were the amounts suggested and consid-
cred BY the resolution of the 9th Of April, I'M
der which the Governor was sent to Washington
and contracted with Selden, Withers & Co., four
millions was fixed as the amount of the Loan
Events have fully justified the estimates upon
which that conclusion was founded. In order to
negotiate the loan successfully, it was necessary
to embrace IN one transaction all that it would
be necessary to borrow for a considerable length
OF time. Dealers in stocks would not make large
investments, If it was expected that the State
would IN any short time throw new issues into
the markets. They purchase with the expecta-
ton of re-selling at a profit, which they could
not effect unless they have some power to regu-
late the supply Stocks are as much subject of
speculation IN the market as any article of mer-
chandise and their prices are affected By the re.
lations of supply and demand. The successful
dealer must have some power to apportion the
supply to the demand. IF in the midst of his
operations new issues are thrown into the mar
kets, all his plans may be foiled and heavy losses
fall upon him at the very moment that he is ex-
pecting to realize the profits upon his invest
ment. Hence, to induce capitalists to make large
investments, be must have some assurance that
he Will have time to dispose of what he has pur-
chased, before more stocks are thrown into com.
petition with his. That some such assurance is
a necessary preliminary to any successful negoti-
alton for large loan, must be plain to every
man OF common sense without the evidence that
is afforded in these documents But will refer
the House to the opinions of eminent capitalists,
as expressed in the printed documents. Here is
the statement of one of the most distinguished
firms in New York. Newbold & Aspinwall, in
their letter TO Governor Floyd, say 1--WE think
1t probable, however that one or two millions
could be disposed of at par provided the sale, or
negotiation, should be 5udicaouSly manage ed, and 1t
should be distinctly understood that no part of
the remainder Of The bonds should be sold or Of
tered for sale for gear at least so that the pur-
chaser should have the market to himself for that
period, to enable him to sell off the bonds and
realise profit by the transaction" Precisely
to the same effect is the statement Of Mr.. VIII
liam Selden. Here it is: 1.-The stocks purchased
IN New York are mostly bought to sell again and
to 60 abroad. and purchasers, whether on TO-
reign on domestic account, prefer to purchase the
whole issue, even should it amount to millions,
rather than merely portion, which may compete
IN the market with the vender's schemes When
buyer buys the whole he can monopolise the
market and regulate the prices of the stock, and
sell or hold as prospects and circumstances may
suggest. There is Mr.. Selden's statement of facts
derived from his own observation in the sphere of
his own business. The gentleman from Rich
mond, may endeavor, as he did endeavor to I'M
derrate the value of this gentlemans statements
by referring to his connection with this uransac-
ton, but such remark will have no force where
MIR. Selden is known. have but slight personal
acquaintance with him. but upon the represen-
tation Of those in whom | confide, have been
familiar with his character from nv earliest re-
collection OF public characters. If [ were called
on to single out man in this State, or in this
confederacy, in whose high toned chivalrous sense
of honor, in whose unblemished integrity, l would
place the most implicit confidence, there is no
one to whom would sooner look than to Will
ham Selden. When [ have his statement of
facts, give them as much credit as if had the
testimony OF my own observation.
IT, then, it was best for the interest of
the State to embrace in one negotiation all
the bonds that were to be sold or offered
for sale for the required period, what were
the proper estimates for the Board to en-
brace! II seems to me that they should have
embraced full estimates of the probable calls for
money, for the remnant of the then existing fiscal
year, and for the present fiscal year. Will any
gentleman here censure the Board for including
in loan the Amounts nncascn..- CO... 49, 80