Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1853-02-11
THE LOAN SYSTEM.
REMARKS OF MR NEWMAN, OF MADISON,
D., liz IL.Lls. nf iL:L.LntcS ,Lun.Qru laLt. iS53.

REMARKS OF FIR NEWMAN, OF MADISON,
| In he House Of Delegates January loh, 1853:
| The BIZ Tor loan o! :eU0Oo0 10 the South Sds Kan
| Road Cumpay being under consideration,
Mr. NEWMAN said MIR. Srcakcr-it is act known
tu you every member Of this House. that seldom rrtard
tho progress u business By any remarks oil NINE nave nne
since the cCncluS"n that II members "Ouu aiA
less work Iore lie public business would be guile as
we'll executed aad certainly dispatched VIA greater icly
IT with extreme reluctance md naasc'ea rinoa!'assch
tila rise - break tia! silence "hlc! nave 81 Goa
santy observed sinr the OF the sesson
and whiri had hoped to practice 10 the end bu' me
pronosioa under con-irraon is one vi such MAGNITUDE
that tus il will afford 10 lacnDcrs an apology Tor no sh"r
tine that shall trcsplss upon their pallsace
! what, Sir, is the proposition I II Is ilat !oan o.
$50 900 hc made BY the The South Size tnll ROAD
Company 10 enable Them 10 complete that road-as IL IL
said oy those who make the application Tor me loan on
this loan syse:a as proposed, IS, 10 my m:it nl-
yerou. enc aud il adopted Tor the rciei ot tao internal
Improvement ccmpAuie> will upprehend result IN most
Cases il n all, consequences oi serious character
n he State In c,rruaaratlun of that apprehension IS
oy necessary the history OF loans mace To com
panics by nasi Legislatures mirti challenge gentlemen
% point single nsanc" in wE:c ne hlrc'rf maze !.
loan wlhout loss Oar legislative history Is iul OF ada"n-
o upon his subject. This 1a system is no ne" sSpe't-
n.ent Ii has been tried and w"ul Ike TO hear MS friends
detail the results OF former experiments VII! ln'l'c me
attention 81 the House 10 example Win "ch h III
som. cSi,i.; !l.,ia btcase l. is CONNECTED win NAT sec
iJ, "i the state from wnic: come a!l.ie !" me i',
va..nuocs Navigation Company That CompLhy came
be-! III Legislature years ago ana obtained oa
u s00QG1 enable them 10 prosecute Their scheme
btesuliic they represented the safety o Tie Investment 'i
earnestly AMI p@usiy a. lHe iiei"s " H's on Ito
.n the a.,,y 81 lhu nye.cal Indeed, in one respect,
it presented superior Claims % Tie present acnHic. ne
state held no sock il company and wn-ihrds Of the
n:on.Y :.ccssi. construct the work had been invested
and expea, ~ Illc;s. TITO State was ei"cn morteags
uua The "uik tie payment ~ me loan; n"t "ha'
is gl OF OF that appiicstion ilc o's'e
tas ncy a received ct interest due upon mo loa
ura probably never viii Tic !nv:=;Hcn, Is almost
a inrai Lag The ticrGs .! that Improvement nave
a bill now upon year tshIc /" convert tina! oal n'o
stock, ana lncy tell that i in1ef the circumstances
lie ulos; advantageous disposition which tho state c. maze
Of III: Investment; SIppose you adop! her i'l,o''l'
- Ia; - III b. the Why loss the Sta:e; o"@aise
The STOCK ,.arI b. gca:y under pr Yet, II you reject
their prGpo :uH and iyiec'%e ia MORTGAGE ahf sen INC
wuk f shat would ur!ne is generally c1Gc"dcd that
the Snic in thar contingency, wou't sustain heapF
uss Indeed =ir would n fortunate 10 receive any part :"
the So yoa c!ccivc dispose OF as you may loss
To the STAT" Is inrr'tH'iG. :
IN, ii; i!,.fn ara ,.r i5aaccA cQgay striking. Re
renr gvc "iac u: 81 familiar with NC p.a'-
rl rc= .! hG !ol mad" TO nc june l:IFc' a';a y
nav IL, COMPANY. Fas! Legislatures leaned iit coup ny
several millions ani Iar&!cei their bon! jf several ni-
,tc !-y CONE here and rfi"cly ASH inc -
ri.. m t i. ~; money enough pay tie Interest due
"a !hr stat. interest the guaranteed hoEos -
Til I!u,r l,-a..c .tc honor =; lie Slate, sdnltec
Bill !f.c M the o.sd Public Works pay r ntees:
r waci Sip,U uound, and declined 10 lend th m
money y '!r STATE 's interest due to Tie STATS prefer
ripr - r. power collect that by compulsory ncu-
n4,, az IMPROVEMENT aid then has IN Borrow money - pay
tho inter-. lair cunCiGtc that Tie investment was
no, vcr Iuic.ou And think this James River ara
knn,wI l;;vycinrrt furnishes Gnrruvoca' evidence oi
tia. tic and i Ganii"a VIII not be convinced from Fac
;i:. 1t the un,y and unsa!cty "l loans
these iacTG.! Improvement companies, ara G'cf; o!
loss w.l vii, cnn.iGco iic;i H i' II raH
wlsAon :J;n cApe!i'nce oh&' co'npan'ss III oi spi
by s,ia!i ed h the 4iiant rc-e"i 81 c iniGrc CaIn:
before ar c'cs Obtained lGiu :rJn inc Stac 20 c"@inn
rhr wa;s; ou; wa,t Is the condition 4" gone Of mem
now! i TOO ia:nrniGi, "a detail presume II vii not
Be denied b" gentleman upon this firo! tina, TIC t"'t
ought 10 Iuy satisfied with The security for tho prompt
paymcnl u! the loan, If it should b. made Now lei us cx.
anime the character ii The security proposed Ia be given
the State b. gentlemen who are pressing So 2eh'a>Y e
H., cir SIls,p T1lrI " lIr
On Tic wurk and The arising iheEGoH 30 cid the
RaauaEalHnck CpmpaI 10 which have Just alluded, give
lien iaon their and did the james River and Ka
nawha Company give mortgage upon mer "ots anu II
seems il is only necessary 10 become familiar with he
condition those two Improvements to Judge 0 the uanf.
c!cncy the security given 10 the Siatt bat Lr would
beg members remember that the State already owns three
hs OF irprov upon which the company propose
10 give her mortgage for the payment OF tho loan The
State in her licray advanced three lhs Of the money
10 construct this Improvement Ia The extent II has BEEN
made ard III, aivocltcs Of the loan doubling their
ability raise The sum necessary ca The I1nt STOCK prHcl-
Me prI,cc!" The "O L, ia terminus come before tins
Icusc with application Tor loan % $SUuOO0 ami "ilcT
security mortgage upon IL" work ana me dTaehds arr.
Sin. ihciacm, iirct'hs o which ALREADY belong 10 he
state II does t. me :n: the proposition Is too MON
strc need cyDcsorr I" e.nccac more clearly It's enor-
nty viii suppose H% you and w" other gentlemen hd
rirrd yourselves nn Joint stock company In the sub.
,r,pti1a goa p,! three tlthsio other two gentlemen
i've fltEi. vii! lrhe. suppose, that you had - bur-
row Tie money To pay your subscription, aEd that
YOU have since borrowed money Ia pay the interest,"
Now suppose tha, - needed The two gentle
further come 10 you and propose TO discontinue The
Joint stock principle for the that they doubt their
sbily the money They say 10 yon, notwhsand-
ing you had borrow tie money pay subscription,
and since borrowed 10 pay the interest on lie Gum ton oei
iaa!y borrowed you, because you have mare cred
il than We have, lei IA have sS00GQ0 continue the
work. and 0icr You security mortgage upon the work
aad dividends, 35is Of which already belong 10 youthus
giving lien upon your own property Sir ho,s w"ni
you treat such propagation eau readily Imagine me
prompuIe with which you would REJECT IT, .un would
refuse cncrIan it io oic moment thiE'; 20" would
consider that those VINO made H. were aoorne under ne
serious mental Authorization NnT Sir observe tc Striking
sGi.Gjy bet"t. lie which have Jnsi supposed and
the ole before ~" lrGsc: The STA G subscribed three ls
q! the li,a OF the South SIDE ,llrcadIndiviuaia two
hilns. They forward and say 10 the Stale, We
Gpah ability raise t'.e money necessary &c con,uc!
w0rA the }nt stock principle an! We have not cred
i; The extent you have and therefore We wish YOU TO
rad $500 GOO, aud offer security mortgage upon
tie work anl dividends hrcchs Of which already belongs
10 The S@ie II understand H. that is The character Of the
sCcu:ity upJsciGs giving the State lien upon her own
property Sir private capitalists wond not lend upon those
terms presume hut very ic" ':oud,-is II night is II
props, that should lead the peoples money upon such
tc.rn,7 / think As faithful sennes upon the watch
tower il to guard with the vigilance the
public r.H"y ttai would guard our own. Sir Is II not
strictly legitimate II aEt!ciHIir similar results rom Ike
causc is !ga"s - ""f co'n'Ttst have Iesa.Fi d"iri-
;r.a..iIy . 'tr y ~" rw:a nay no.
Inv, ~. an,f Ma: t. :c., III ;|a case
is nay t. thai II st1:t :ne WIN n" R,Epohahnoc.
~ proportion h. 5:uu. hg:o-r the legislature
crnvcrr loan III" stock and 'hai stock greatly uEdct
mar Thea t.r suaa.tT, Who 'i have bear the a;dcu
WHO q II have be false the money pay the
dc.r? Your and nine and the constituents o!
other cen :smen upon this uoF
in mo Improvement further :an the general welfare 81 Tic
STATE j.. concerned ian 10 The paper hold in my hand.
Wny should your constituents aad be taxed ~ build
road when the .ople contiguous H. and whose prosperity
would be greatly promoted BY its constructions sub
scribe IL II Joint sock r!lnc:pe7 They present
the plea nj inability 10 SUBSCRIBE yet they say their
credit is sufficiently good TO borrow from the State. Now,
sir hty are not ohtaia subscription when would
they cite pay back 10 the State the loan Alter The
comp etion Il the work - HEIR answtT d9la! not Their
| 81 IDI hpi lime
vince lIt e! Their mistake
The trainers Of the Constitution very wisely iacnr.
po;ac. clause in that INSTRUMENT which positively in
.eracl- the Legislature from guaranteeing n, hoEds OF any
ION 81 company That saluary provision contributed
greatly tue adoption al THAI 10y the people II
ih1i is Loan SS:rn mere ceS!cc - r"ae
No Ianis