Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1852-04-22
WorL, al ,hc crc.;den, and directors Of

sand, five hundred and eighteen dollar
and nine,v-one cents. The relation which
is borne 10 the commonwealth by these
state corporations, is such as to create an
impression on the par, of some eminent
men. that il is not necessary 10 compute
this sum in the estimate Tor the sinking
fund-though it is conceded that the an
nual interest must be paid thereon,through
all time. Ifthis construction be sustained,
the estimate for the sinking fund viii be
reduccd 10 seventeen million. one hundred
and thirty.six thousand, eight hundred
and sixsyrhree dollars snd fifteen cents;
hut there will be a continued necessity to
raise a sum equal TO the annual interest,
which will occasion variation III the est
m1te equal to one per cent. on thlsamount.
II has been further insisted by disiin-
euished men. that the amount Of subscript-
ion authorized to be made 10 joint stock
companies not yet organized; shall also be
EXCEEDED from the estimate for sinking
fund II the force Of their reasoning shall
prevail, and that sum be deducted from the
estimate. there will remain sixteen. milliSn
four hundred and four thousand three
hundred ahd three dollars and fifteen cents,
as the smallest possible estimate for u
sinking fund-lcaving the necessity, how
ever. to provide fer the annual interest
accruing on any portion of the seven hun
drcd and thirty-two thousand five hun
dred and sixty dollars; which may be rem
dcred valid against the treasury"
The committee estimate the probable
receipts into the treasury during the fiscal
wear, ending on the 30th Semptcmber
1853, exclusive of license and property
tax. at s663,545 50.
The receipts ofls54 are put down at
the same amount, making an aggregate
for the two wears, ofSl, 1927 09l rs. The
Disbursements from the treasury for the
same period are estimcd at 81 0lS,76647,
leaving the sum of s272i ,67i.71 TO be
raised in two years by license and proper
ty5tax.
These estimates must be enlarged by
any appropriation made by the General
Assembly at this session. and by any sum
which may be demanded on account Of in
terest TO be paid on bonds of corporations
guaranteed by the State and by any sum
to be paid 10 joint stock companies.
In estimating the amount Of the public
debt the COMMITTEES fail to credit the com
monwealth by all Of her available resour-
ccs. regarding nine Of them as applicable
10 the extingushment of the public debt
with the exception Of those constituting
the fund for internal improvement. The
probable receipts from this source for the
year 1858, are put down ut Si9i,f53.16
The views Of the present Committee OF
Finance, with reference to this subject are
not in accordance with those of former
committees. and will not, we imagine,
command the assent Of the Legislature or
of the public generally. 1t is proposed
TO adopt the sum Of sixteen millions and
upwards, as the basis Of the sinking fund;
but as The actual funded debt Of the State
is only about eleven millions, we should
think that the requirements ofthe Constltu-
ton would be amply satisfied by setting
aside seven per cent of the latter sum-
The report concludes with statementin
relation to the contract with Selden, With
ers x Co., which we copy entire:
On the 11th day Of April. 1851, the
Board Of public works entered into con
tract with Selden, Withers & Co, private
bankers Of the city Of Washington, by
which that house was authorized 10 dis
pose ofthe bonds Of the commonwealth, to
the amount of one million of dollars, at par;
and also the further sum Of three millions
ofdolars, at two per cent. above par. BY
The terms Of the contract, tho house was
to enjoy the benefit OF any premium which
the bonds would command above the
terms specified in the contract, and such
premium was 10 be received as tho com
pensation for negotiating the sale.
Selden, Withers & Co., were not pur-
chascrs of the bonds, but only agents for
effcciing the sale; and by consequence.
were not bound to advance funds, except
such as were procured by the sale of the
credit of the commonwealth. II is mol
perceived that any security was exacted
Of them for the faithful execution Of their
part OF the contract, IN accounting for any
money which may be received by them as
agents of the state.
Under this Contract. bonds Of the state
had been disposed of on the 18th March,
amounting to two millions two hundred
and sixty-eight thousand dollars, and there
remained. subject TO the operation of the
contract, the sum Of one million seven hun
drcd ard thirty-two thousand dollars
Without expressing an opinion as to the
necessity, or propriety Of placing beyond
the control OF the state the sale of so large
nm amount Of public credit, under the cir.
cumstanccs which existed at the date Of
the contract your committee recommend
that all sales hereafter TO be Effected, moi
embraced IN tins contract. shall be effected
Sticr reasonable notice. and under circuin
stances of lair and free competition among
bidders and capitalists.
They are also made agents for the peri
odical payment of interest on the bonds
until the debt shall be redeemed or dis
charged; and il does not appear that they
give any security for the proper applica
ton Of the funds stipulated to he placed a
their control and subject to their order
Bile
The amount to be thus placed at theiI
disposal being the interest on four million.
of dollars. is two hundred aud forty thou
sand dollars annually, or one hundred and
twenty thousand dollars semi-annnalIv, the
interest OF which for the. month required
10 be a, their disposal, is equal to twelve
hundred dollars annually. or one half OF
one per cent. As the interest on the four
millions of dollars is payable at any point
which may be agreed upon by the agents