Cooper's Clarksburg register. [volume] (Clarksburg, Va. [W. Va.]) 1851-1861, 1856-03-14
The Board of Public works:

article published in the Richmond Enqui7
rers 1t contains information which should
be placed before the people. The remain
der of the article was mutilated in making
up our Legislative summary, or we should
publish it entire. l-..-.. 49,
The transactions with Selden, With>
ers & Co. and the practice. of hypotheca.
tons and advances are reviewed in the
report of the Finance Committee, and
used as the basis for reprobatory and de-
precntory remarks. We. do, not favor
:. hYpothecations" or "adYances, of
State bonds, and we do not understand
that the Board of Public Works have ever
consented to either as matter of choice.
Previous to the LIST of July last, the Board
obtsiued an advance of S270, 900 upon a
similar amount Of bonds, with the condi-
ton that the bonds were, under no cir
cumstances, to be sold for less than their
par value. The advance was made by n
party who had a contract privilege to buy
a large amount Of bonds, and who, on ac-
count OF tho tightness Of the money mar
ket, indicated disposition to surrender
his privilege. Anxious, if possible, to
sell 10 him all the bonds provided for in
his contract, the Board agreed to give him
n longer time in which to avail himself of
his privilege, provided he would make the
advance Just referred to. This, We learn,
is the secret ofthat hypothecatiou-if ny
pothecation it may be called. Tue other
was Of sterling bonds, and occurred thus ::
The Board had contracted with Barring,
Brothers & Co., of London, to act as
agents for the sale of Virginia 5 per cent.
sterling bonds, and had directed bonds to
the amount OF ElOO,oOO to be prepared
and forwarded to that house for SALE
Before those bonds were ready to be de>
livered. parties in New York city, who
entertained almost positive convictions
that the Earrings, or some other agent Of
Virginia. would, in a very short time, ef
feet a large sale of Virginia securities,
which fact, Of itself. would have a ten
drncy TO enhance their market value
and desiring to take the chances of pro-
titable investment. proposed to advance
to the Board. on those E10O.OOO Of ster-
ling bonds. the sum Of $4,000 at 6 per
cent. interest, provided they should be
permitted to control the time at which
the bonds were to be sold, and should re-
ceive any advance that may take place
in those bonds above Sc and exchange"
This proposition the Board accepted
The understanding, however, was that
the bonds were still TO be sold by the
Barings. and, although not Immediately
sent to them, they were held always sub
ject To their order. whenever sales could
be made. Unfortunately, the war in Eu-
rope has greatly deprecated the market
value Of all American securities, and no
sales have been made by the Earrings. and
thus this temporary arrangement has as
sumcd the shape of an ypothecation,
when, at the time, no one esteemed it as
such, and all concerned were sanguine in
the belief that in few weeks, or mouths
ut the farthest, large sale would be ne
gotiated, by which all balances would be
settled. and the State permanently re-
licvcd from her embarrassments. 100.
" This is the explanation we have re-
ceived Of the circumstances attending the
last hypothecation by the Board-circum-
stances. we are free to admit. that GO very
far to mitigate the evils OF the hypotheca-
ton, and to extenuate the act. -. r..
! w
require some notice from US while con-
sidering this report, and that will carry
us farther back in the history Of the Board
of Public Works,-to the Spring of the
wear 1851. For some time previous to
that period. the Board had very slender
means under their control and were far
from able 20 meet the demands upon the
internal improvement fund. Indeed, in
the month Of April in that year, drafts
had accumulated upon the table Of the
Board to the amount of several hundred
thousand dollars, TO pay which there were
no funds. In this emergency, the Board
Of Public Works conferred on their Presi-
dent, Governor Floyd, authority to nego-
tate loan of $4,000. 900 by. the sale Of
coupon bonds, the issue of which, for the
first time, had been authorized by the
preceding Legislature. Gov. Floyd went
10 Washington. and in obedience to the
powers vested in him. entered into con-
tract with Selden, Withers, q Co., as
agents 10 sell S4,oOo.oo0 of Virginia 6
per cent. coupon bonds, provided those
agents should be able to sell $1,000, 900
OF those bonds at par, and The remaining
So, 0OO. 900 attwo per cent, above par
The COMPENSATION of the agents was moth
ing il they could not sell on those terms :;
if they did sell on the terms specified.
their compensation, was Fixed in the con-
tract at whatever they can obtain above
par BAR, on Tie first million, and all above Nv 0
per cent. on the other three millions.'-
This contract has Teen greatly misunder>
stood aud extensively misrepresented. 1T
,,,I,' ~ q inns " hon NirTiDio kon,Is
we're, below. par, and comparatively obs
scure, except in: Virginia, and when the
State was in. the Immediate want Of AZ
Iar.. amount Of funds. Twas made with
d house that Demonstrated its ability to
fuifii, atleast, every e qpire neAt of that
cor,lri,el 6. ar,tt 4. placed lie boads,of Yir