Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1853-02-08

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...-, 81, .qy, ;o~c b; ii, fo'Hia: s:sc'; IN
~ =, :, c .s.rriti 81 a%ei, 'ia - va. ~ u
,,,,.s 10 go Of puu!ic money, !" acc. ~ -, o,h
I"' h.. i,1G 900 OF money procured uy private sae-
Tn III, ~ ana ccoi:I.,: r!actiael and secure IN
NJ Of private MEANS VIXEN ccn!stea with me
r,,ayarance attendant on the Oh PIoc
/ Iii .lways exhibit al least these proportions. .
- Nave denounced the Loan System rs mere c1pedleh'
10 construct work at the expense OF the Public treasury
M tba. system the State advances A the capital; no IN
dv;ta subscription is required counterpoae ii inc
vok provc lucrative The profit will enurc to the sole beneht
Of tho Company The State receive no more than IS
simulated in the OF Loan If the ForE prove IN
oduciivc the State the Hssbecausc the Com
nany will have fund from which 10 pay tho interest me
State then ncnrs The whole risk in the experiment; whist
Iraded from tie possibility o! pr"t IN the enterprise
II The work prove GuwnGta!c and the Company DO con-
squen,!y unable Gect their obligation, they viii come 10
tile LEGISLATURE and, h iG", compel subscription la ht
stock the Company equal ~ thu amount or tie Lean
THUS converting r Loan into soca-whc Is equivalent !"
direct approximation. h., be replied that this
not be accomplished except 5y the Of he Lesl:la
Che decision will BE controlled by HE power OF The
Companj" ii The Legislature Ii they have The poMern now,
hy combining gclher the State c make The Loan
they viii have tie same power by Tho same continuation 10
bear down ali opposition, and force HE Safe 10 convert The
Loan ina soc and thus 10 esibgush the debt BY reces
ing par stock which viii not communal hy per cent OF
| par in The market
And although the Consl:!u lion expressly forbid that the
debt aud lien shall be relnqushcd commuted they will
give that clause different constructions and II VIII con
siiue small impeachment TO the accomplishment oil he
wishes.
several cumpanica npFcans Tor loans II wil harpen
tim, the commonwealth will own about toa iths o the slncA
Of each company Th"s" viii &c claimed as pfeGeaers 10
recurring the State 30 subscribe GJhlhs OF ms capital
stock in all iatcrna improvement 1In STOCK companies
and tie principle Of the lon! STOCK law, viii DC So n'e s
10 require subscription Of ou lbs by me S!ae III 'he or
giuiXalipn Of new companies.
point Trey will 5r hell valid BY men anxious t9 establish
the rG'e.
m lays organizing the in.:nai nprn yoment fund orig
nay required srrsels Subscription on :he pa ni lndl'
vduaIs When the James River company receiver i's en-
Ter they could procure The quota Of private subscription
and applied me Legislature l. relax The rule ~ was re-.
sisted on The ground The pccsdcnt would b. claimed 70 JUS
,iy relaxation in other tho advocates o the pro,
no.ition rened there was but James River Canal and
that, therefore, could claimed prcceden I'm other
cases The argument prevailed The rule was rehxeo-
tc state took s OF the stock and In very sh1fi
,mc The practice became general and now universal Tic
cummna skies three tlIs in every company NOM
he more certain than that shall witness smilar
rrsui, now and it will become the universal pracuce
r,r the commonwealth Ia subscribe tour !iths
This system !oans is commended TO our favor as I
financial scheme having virtue 10 complete our phnlic
wo,ks and 10 avoid increased taxation My friend from Pc
,afE5u.n has anaGuaced plan Tor The application OF me sS
tern three great works on the Sm"th sds ~ Jane
awe, Fl. proposes lean Of SS000t0 10 the SouihSle
Railroad 81 OU0 U9U The Vagina ma Tennessee RaiIrotd
an! GS00UuO the Rjchincnt and Danyi'c tao"a maG'
nr it necessary raise or lie three, siouVOo ms NJ
thinks can BE- accomplished "thnu! !s="Etns 70 hc ease
taxes without any loss 10 the Treasury uad ~ nc' scc
rirg to the Commonwealth actual gam OF - ioy uOo 70
be cpoyei IN. close OF thryIoac years his pan WIS
disclosed oT the first time in his !ss speech ana by con5e
qucnce small opportunity has been doFde! tor is ANALYSIS
The first step in the process .! lnanrerins 10 - 'ase
s. 400 go b. aac Of The Snnis OF tic Commonwealth Tie
assumes shat ines viii cuGnnd prcmum OF ten per cent
and therefore tina. $3.50 000 OF bonds will produce
3g5 GOO in cash. which with The email sum oil SZUuU ADDED
Will BIZ loaned Ia the coInanies IN The proportions neaay
indebted The State will thus be receiving from the com
pancs interest 50 400 000 whilst she will pay TO me pub
he creditor interest only go OOp both being cslcua-
rJ a. ~ cent sais'Y the acquisitions OF The sinking
fund The STATE will receive s6S'DO annually and pay
Sl5 SEQ annually thus SECURING eifly gam oil Sio SUI
ID. FERN IN
OF 81! 600 II close OF This lie his first and as
o., cot 10 SLOW, his oniy element If gain.
liz I,md neSt G5S!1rt that il the lDacs be withheld the
Cunpai,, must bc RENTED 10 o"!r":" money % sale 81
thcir bonds wmc.. lie ASSUMES cann" be effected a.
,oss smaller ian ten per csa! Thu 10 RAISE u
viii b necessary sti s. SGT, lvoriar los cI
S-GG f57 Tie inicyst I;s, at ?cr cnnt Being com
yu;,l ipr - years aonts $685. 6:J which being adied
liz ,sj Of 500 G67 forms an aggregate loss 10
Tie cori.av in 3 wears equal I" S9O3 3D. But the state
or!nr tnfcc iililg u i- stock o. tie company wall
og,r % is loss equal 10 So42Ui5. and a! N"
Loan system is elect avoidance OF this loss II IL
thought just credit il with Tie amount as an actual gam
edo the s542 DIG 10 lie 6uo making an asgre-
cate 81, 2s3 GIG, gam
The next item in the list Of aaios Is derived from the as
,umed profits the works Tia gentleman shows mat Inc
S,a. la. already taken 81 O00000 The three companies
20 xkct lie adds $ss5 600 Commemorative stock IN IN,
ri, h,ond ana Petersburg Rail Road lie assumes That all
this viii be- wholly u!ipC"iIcl"c, until Tue "nrHs ns
:uGpIctr! AMI he further GSaea that iiry VIII OF ccHe
ted By lean sys:.n three Jsa: sooner than o. inc 'i"I
mode a.t, perhaps, biz ST important assumption - Una
his hrle sum OF 81 355 coo of Stock in .he companies
WILL INN da:ey ie comp .t!Gn yield per cent dlv
dand $3.50 500 annually, "hoh computed Tor ns ye:s
:ois sn aggregate OF Sl,QS2iu, WHICH, aided to h'
81 2S GAG, derived c' ne c'i"r '1 afhfcs lh'KcS H''
gain in s, scaSs equal - s@s"1 Go
Such i. me FIST srhane Commended 10 our favor by "t
gentleman t.nn Petersburg. ills sc@od = Ike ifin al
parculascXcep: hat !- assumes 'c ho! OF the t"in
;uGnw eaIIh will comma I'd f-ngm OF we've tr cen ana
the cali al cu is made those figures Thus q a!'t
s. 10000 viii be necessary dispose Of bond: amount
>; even ur c,nt WI ID Annually slsoG0 multiplied hy
h:rt -:a4r ysg= prou:, STA go wiicn added I" tie
o. ncir Jsns an aggregate 1912 0iD profit in III" tcn-
To this j. added S5i20i6t!e uvu;dlscc he oss - IN t
first scheme nsciyr lh the 81 0a2 400 The dividend 81
the ccc?an'a Tor thee years making The gain IN 81 years
equal 10 81 $50 t5 s.cl is tic second scheme OF the gen
HI. ,hi pro-, .sas 10 raise tie BY the sale Of tho
bonds . Yar bl be, interest OF five per cent only--
to BIZ ar The companies Per cent annuity To-
tenn witch wi ,stinn1si iii" debt tng ahon 81 years
hc il lygad II the companies Al six per cent would
eyugsh iHe IH in 81 Vests Ia each casa leaving nf
i. Com nCnwcal:h Claim n@ciast TIE companies at the
Ct So al tie term, co al 10 s. G1CD0 cqn-i ~ he cni
tal rG",sct. .laj! esn'aHa ti'.:s r. ans tim
10 nr: with ;ns rr'' II i; = be o5a@f'sd assume. ht
t.l,aata. Indispensable. pn-iulit:
',si-I'at The boris al the State VII ;"rnm'ni :'re
MUM ui IL per cent.
Sycona-li The Loan Syslsn be rejected. the bonds o
tho Pan;cs VAL be $ni a. ii.c?ut Of 70 per cent
Third-Thc c"l.aa!"s w! be s5io 10 pay the l-osH
an annIG. Interest vi pr cent
Fourth The. t!n loan bs rciectcd Inc companies wi
declare no dividend FOR five years.
Fifth the loan be made The companies, the close
years, will pay dividend Of per cen! on The Taot
stock Of Common wealth. equal 81 1855 0Q0 $3.50 sUl
dividend annually.
ConceLing it true that the bonds Of tho Stale might com
u,and n premium al 10 per cent, the sale Of 81 l5QUUu
conInd 81 500 co., wh;C;l with two thousand sdded
would DC 81 400 900 which State would receive in
teresl-"tis s,- wUad he paying Interest only
GU 1c!Hg $685. 600 css than lh- which she
is rercvn. interest. Ana this is Ii" and sole clement
of sin Bat The geae;ln has "nii'st IN important .ie
meat ia r caitr!;!cn. III. 90 HnJH"c4!t VIII pay late
r-st o. s. $50 go from date 81 tie Of loan Rn
by ro.t.ia- i i gentleman ;rnn Petersburg the cor,
hty. -;,l lp ty.