Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1854-04-07


THAT communication however informs US that $3.50. 900 of
bonds were sold 10 various parties between October 10Th, and
December 22l OF last year at rates varying from one to sx
per cent, being an average OF 2.S2 per cent. or yelling al
Ter deincung the e.ents commission, a net premium Of ! So
per cent. | will remark, by the way, that When the agents
make a sale at one per cent. premium, nominal!y, il yields
the Stit. less than par, and is, in my opinion, directly con-
trary to law. Blu: !. Is curious in the account Of these sales
10 had some al Elk per cent and others on the Same da Y at
only:onc per cent, and what is especially remarkable is that
although the s1sss were made al various dates last year, yet
not q ccat Of premium was ever paid by the agents. until af.
Ter the Legislature had bc2ua its ionniries into IN, whole
subject. Then on FEB. ~, the Board received a draft for
SIC, l2O; where WA THIS money meantime, and who had the
use oiit7
This sum Of sI5,l2O,i is the whole amount. of premiums
ever yet received from these ae!n.s; and /, really seems
doubtful whether any other actual sales Of our bonds have
been elected. 1t is true, tina, a contrac. has been made
with the Earrings Tor one million certain, and two millions
more conditional, from which no money has vet BEEN re.
reiyeI. This is the only contract, | believe. which the Board
mas in its own possession, and though I,sand other members,
have eecn il, aad We have been partially Informed of its con-
tenls, yet no copy has been off :ially communicated 10 u.s.
The House, doubtless, recolect5 that gentlemen, who, | pre-.
sumo, spoke the sentiments Of the Board, per.uaded us not
TO call for a copy, TO-: the curious reason, that the Bariags
were accustomed 10 deal with crowned heads. and would
not endure the publicity, with which We poor Republican ms,
are wont TO conduct the business of our government. The
history Of tn contract illustrates the tendency, perhaps In.
evitl BILE tendency, OF such an agency as Se!den. Withers,
& Co hold, to OyersIcp The authority Of law. The Original
contract ~rrcYidcs, that al! sales OF Virginia bonds on State
account, shall DC Suspended until the LIST Of April, and that
in all la;u!r lolns ana Issues, mo time being lImitcd) Bi.
ring L. B.o.het-, sh, III have preference to purchase them q
the lowest price n: which the State is willing to sell the
SANE. When this came 10 the knowledge OF the Board,
they were forced 10 interfere, and, while they limited The ope.
ration Of this clause to figo years, 10 declare that they had
no power thus 10 bind the State. While | fear that serious
embarrassment may arise in the construction ot tbs clause
of the contract, yet | will TAKE occasion 10 say that l am
alai such a house as The Bl:ings has become largely Inter
es,ch in oar bonds. ! only regret that the Board did not q,
once apply 10 parties Of such world. wide reputation, instead
Of committing our fortunes 10 q comparatively obscure nfE
in Washington. On This subject, / will only adj tina: since
this contract with Bayings & Brothers Ia for sterling 3 pei
cent. bonds at 80, SO mai the bond sells for less than The prln'
cipal sum il promises to pay, no part Of the loan will 20 In
to tha general treasury on account OF premiums.
Tie Board turtle, inlo:ms Us that The agents have soil
$500, 900 OF bonds at ~ per cent premium, Il learn that Ihls
-ale WAS to T. p. James) and $500 600 Of 2 per cent. Ihls
does not include an additional sale OF another million 10 Al
wood L Rcber at the same rate. Bat the terms OF thcse
sales, and | befure called your attention TO the fact that the
Board had no copies Of the contracts, must have been very
singular. For .! his con,rac, at * per cent. premium for
$4,000 of bonds, r. p. JImes, it appears, has received
s275 600; yet No premium has ever been paid. So too ne
Tmns-Allcghany Bank, which contracted for a million, has
received 25 600; Sturses has received SoIUUUU and Atwood
Il Reher Sl70 600; bat not 4 dollar has ever been received
from thrtn, or from Gus agin!s, for premiums on these bonds
Do the agents retain, at lheiI pleasure, these premiums, as
II seems they did The premiums on the SS3O 00O before men
iioned1 OF are these alleged sales really mere hypothecations1
i part, or an addition to The 81 3l5 600 of bonds reported, on
February oh, 10 have been hypolhecated} Probably these
bonds were originally delivered 10 thesc parties on hypothe-
cation, and they afterwards bought them. Such a supposi-
lion wouli go far IN explain their sails att per cent, when
even the registered bonds 10 our Auditors Office have been
selling al 8 and 8 per cent. premium, for we all know a pawn
broker buys the goods tina! have been pawned with him at
his own price. By what authority Of law can these Wash.
lnGlon brokers. or even The Board itself, pawn our bonds all
over the world?
The ianre, sir, we examine into these transactions, the
more remarkable they appear. Take, for Instance, the con-
tract with the Trans Allegheny Bank, which was chartered
last winter, and which is one Of lEOSoBanks whose circull-
lion is secured By @ pie lgc Of State Stock with the Trcasu.
rer. The contract with this Bank must have been made be-
fore our Officers had any notice OF its organic ltioni for ITS
first batch Of $500 Of noles wac obtained from the Trra.
surcr on Nov. 2lst, upon u deposit OF that amount OF coupon
bonds, delivered under this contract, by The agents. VI
curi5e these notes gave tho Bank The means OF advancing
TO Us an2ihe! iasic!Inrnt Of the loan, and procuring more
bond. ns a basis ior uGoliier issue OF notes. have exam.
ined The dates OF The successive Issues OF notes upon coupon
bonds deposited by this Bank, aud BY examining lheir NUN
bcrs havo ascertained when the Identical bonds In question
were delivered b. tie Auditor al the order OF The hoard OF
Public WORKS 10 It's gents for this Bank. A comparison
Of The two series Of dates makes It probable that The notes,
when represented one Issue Of bonds, were the means Of
purchasing the next issue, 80 that in this loan we have been
engaged in borrowing our own credit. and 10 converting our
interest. barring a;nrk into a non interest. bearing circulating
paper for tie benefit of The iran1.Alieghany Eink. and II
further appears. sir, that The ogents OF this INK. TO receive
the notes from The Treasurer, are Selien, Ntilers q Co.,
tho same parties, who, as agents for our Board, made the
contract with the Bank; and if We may trus; general re-
port, ono OF lhis trm 10 ii;sself a large stakeholder in that
institution. 1t Is said that he sutscTibed q suppose Tor him
slf and oIhrrs) for several hundred thoua md dollars OF the
stock.
/ promised 10 explain why I struck the item of premiums
from the Auditors estimate Of GGT resources. submit thai
have redeemed my promise. A saln Of Two per cent. nom,
inal premium, will net only a fraction OF ono per cent, and
tll5 a. ttDu2h % ! IN VI OOul3 INV oSNt w. -
agents, nothing for premiums. except the draft for sl5.l20
has been received. We cannot rely on such ilusory resour
ccs. and fts! justified in striking them from our financial
estimates. TIC auditor made his calculation Of $500 900 on
The snPpostion tina, our bonds would bring some S per cent.
current rate Of saIrs In his office. > With the new lights now
before Us. he will acknowledge that he was deceived.
1 have heard il said that these questions should not be too
closely Investigated. uni mat q publication Of the facts will
iHJnrs our credit. In private lie, sir, the FIRST sign Of an.
proaching bankruptcy is a desire TO conceal from the world,
and even from ourselves, the true condition of our debts and
CREDITS ISDr Ia IL illnrpnt WjtN SI1tHa The dnanotilna of
the old world, Russia and austria, nuy bolster up their cre-
dit by niysteryi but we have nothing TO gain By conceal
mGnl. Oar Stale has ample means 70 pay oil her oE.iga.
tons, and She need not fear al examination. Rely upon II,
sir, publicity-lhe constant vigilance of public opinion is
the necessary safeguard of republican administrations, and,
ms for our credit, with ordinary prudence and economy, il
cannot sulier; fer i; Is built on that rock which has never
been shaken the rock Of Old Virginia faith and truth.
The condition of nifairs, on which i have commented, i'm
pcr:ouslY demands A remedy. The entire system of loans
and credit, and The management OF our pubic works require
further legislation, and yet they cannot receive The need ul
Why rmploy Ihese foreign agents? Why may not Virginia,
like other States, and like The Federal Government, adyer-
tise her bonds, and sell In The open market OF the world to
the highest bidder7 Why submit 10 this huggcr musger
selling, this pawning and retailing of bonds, and the Dor
rowing OF money al every brokers' shop 10 America? And
yet, sir, without investigation, with no securities thrown
nbou, our credit, members have been found willing 20 invotrc
us in 2 luther debt Of millions upon millions OF dollars, and
then adiourniGg FOR two years, TO leave Seden, Withers Il
Go. the de flc!o government OF Virginia! To this point Of
reckless lnfatuation were some gen:lsmen willing to push
our legislation. Att! sT, the people will applaud tho wisdom
OF this House ia refusing to authorize any considerable in.
crease OF Debt unds- sncl circumstances. ii the Internal
improvement policy has faiIed for this aesaIon, il needful ap.
ere suspended, the fault lies with those whose
demands have shocked the patriotic prudence and mora!
sense of this House and Of tho people. Theirs is the re.
spoDsiblity, and vainly would they seek 10 cast II oil on my
other section or party in The State.
Yes, sir, came hero this winter, as did other delegates
from the Underwater, prepared 10 concede all that was reason.
able. Oar constituents have never known anything OF the
works Of internal Improvement. except by The ever growing
taxes they cntti!. We believe the system WAS foundad on
wrong principles; that ii il, as i general rule, unius, ond i'm.
polite for GovcrnhcC; to bull roads and canals, except for
some high poii,ica! purpose Of self defrncn or empire; that
when the OBJ. C! OF these works Is 10 incrcace the wealth o.!
The community, they should, like all other Industrial enter.
prisrs, nc left 10 private energy and capital, stimulated by in.
diviiull intcresli 70. money will. usually, be most probably
spent by those who make il; and the aggregate wealth Of the
country will grow fastest, when the citizen IL permitted 10
employ his capital and Income, Us be thinks best, una Tie
government does not seize Il Ia the form Of taxes, 10 invest
e. its pleasure iJr The advantage Of clsscs, sections or favor.
itc:. We believe that if these principles had guided the
State policy, the %coGImuni; woult now be- richer, and The
public WORKS nearer completion. and mcre Judicilus!y plann.
ed md economically executed thin they are. For no agOn.
cy In such undertakings Is 80 dilaiory, go expensive and
lnrifll.ss az that Of Government none 50 vigorous, cheap
and prudent as private interest These, sir, are still our
opinions on The original questions, and we believe that Viz.