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


500 paper included for all sales before their doors
Remarks of Mr.. ROBINSON, OF Richmond City,
on the Coupon Bonds, in the House of Dele
gates, April II, 1882
On motion of Mr.. Robinson of Rich mond, the
following preamble and resolutions were taken
up.
The Committee of Finance having reported to
the House of Delegates that on the 18th of April,
1851, the Board of Public Works contracted with
Selden, Withers & Co, private bankers of the
city of Washington that they might dispose of
the bonds Of the Commonwealth to the amount
of one millions of dollars at par; and also the fur
Their sum of three millions of dollars at two per
cent. above par, and might have as compensa-
ton for negotiating the SALE such premium as the
bonds would command above these terms; and
the committee further stating that they do not
perceive that any security was exacted of Selden,
Withers & Co. for the faithful execution of their
part of the contract in accounting for the money
which may be received by them as agents Of the
State
l. Resolved, Inasmuch as chapter 81 of the
Code provides that when money is received from
the lenders elsewhere than at the public treasu-
ny, it shall be so received only through one of the
banks incorporated by this State; and inasmuch
as this provision is not repealed by the act Of
March 90, 1851 authorizing the issue Of coupon
bonds, but on the contrary is preserved in full
force as to the certificates issued under said act,
by that part of it which makes said certificates,
when payable elsewhere than at the Treasury of
State, subject to such of the provisions of the
said 9th chapter as relate to the borrowing of
money in Europe, it would not have been lawful
for the Board of Public Works to allow Sede1l,
Withers & Co. to act as agents of the State in
ceiving money from the lenders even if they had
given security to account for the said money! and
the Of the Board is still less to be justified
if there be no security.
The Committee of Finance having recommend
ed that all sales hereafter to be effected, not
braced in this contract, shall be effected after
sonable notice, and under circumstances of fair
and free competition among bidders and capital
lists:
2. Resolved That this House approves the said
recommendation.
3. Resolved, That the Committee of Finance
enquire whether it was .justi6able or proper in
the Board of Public Works to deprive the State
of what the bonds embraced in said contract
would have produced, if sold with such notice
and after such competition; that they report as
near as they can, how many thousand dollars the
compensation allowed to Selden, Withers & Co.
will amount to, and whether the is not
much more than should have been allowed them
as reasonable compensation for the services
they were to perform.
The Committee of Finance having suggested
the propriety of enquiring into the practcability
of effecting some modification of the contract in
certain particulars, to make it more safe and in
consistent with the interest Of the Common
wealth:
4. Resolved, That the said committee enquire
and report to this House what modification of
the said contract it is advisable to make, and
what course, under all the circumstances, the &C.
neral Assembly should take in regard to it.
Mr.. Robinson said, the Committee of Finance
had, by their report, brought to the considera-
ton of the Assembly, facts in relation to a con-
tract with Selden, Withers & Co., which facts
are confirmed by communication from the Board
of Public Works, containing>a copy OF the con-
tract and of the proceedings of the Board. Upon
the facts which thus appear are based the resolu-
tons before the House. He would give an out
line of the case so far as it is now developed.
The act of 1928, required the Board of Public
Works in elfecting loans not to exceed, in any
case, five per centum per annum. His impress
sion was, that during the administration of Gov.
Tazewell, and perhaps some other Governors be-
fore 1889, premiums were sometimes obtained for
the State on certificates bearing but per cent.
interest. From 1889 to 1851, the rate of interest
paid by the State had been higher than in prevl-
Gus years, but never more than per cent
Gov. Floyd, in his annual message of Decem-
Der, 1850, expressed the opinion that State loans
to the amount of $5,000,000 would have shortly
to be raised, and he advised that this amount
should be raised upon coupon bonds. He went
further, and advised conversion into coupon
bonds of the State bonds previously issued. He
said he had emo doubt that considerable pre-
MUM would be gladly paid to obtain the ex-
change" and recommended such exchange, if it
could be effected at premium offs per cent on
the par value.
The Legislature, by the act of March 20, 1851,
did not 60 so far as to authorize the issue of
coupon bonds for the old State debt. They
limited the issue to such sums as might be need
ed to redeem the engagements of the State and
thus limiting it, had right to expect that when
they authorized bonds in this form-subjecting
the State to increased expense, both in paying
the interest and the principal-there would be
obtained for the State a premium of per cent.
or more; Or at least that reasonable efforts would
be used to obtain such premium.
Have such efforts been used 2 It will be very
difficult for any candid man to answer this ques-
ton in the affirmative, upon such facts as now
appear.
What are those facts The act authorizing
the issue of coupon bonds was passed the 29th
of March, 1851; on the 9th of April, 1851, the
Board of Public Works took up the subject for
consideration, and at once passed resolution
directing negotiation of loan of four millions
of dollars; the compensation of the agent to be
nothing, ssexcept such as he may be able to
sell the stocks for above par for the first million
of dollars, and for what he may sell the balance
of the loan hereby authorized, after paying to
the State the par value thereof, and two per cent
premium upon the same, or so much thereof as
he may be able to dispose Of" If any agent was
then appointed, it was only by the second reso
luton, which authorized the Governor to transact
the business embraced in the foregoing resolution,
and to take means to have the coupon bonds pre-
pared The third resolution directs the coupon
bonds to be prepared at once, and the likeness of
the Governor to be attached to the $500 bonds.
Time was to be taken to have the coupon bonds
prepared with the Governors likeness attached
the 18th of July, 1851, was the date of the first