Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1856-12-05


, the commonwealth equally ;: not fl're !tse'9'''4 ="
T.. sna.Ay completion !han any oihsr.
,',air. nj thu last srssion ot :hs LfEislhru,e az GO
WINS passed. direcsinG the Board OF funiln """s ~
suhscr,bs for tvs huudred thousand uoli.rs u 'nG
cnni;al stock of the Virginia and len;irs>te hti''oa"
Innnenv, and to pay one half in The yenr lo1"' ano
m. nt;,er half III the wear lS5'. Under lHe INV" W
force I'D to the first OF Ocf"he: last, the h'HEo "
Public Works accepted the draft ci '!'ai v"nl
pany for two hundred and tiiy thousand u|n "'
which draft Was converted into Stale p"iiu'
and ,ros. bonds were used by the company, adEan
tageously, in meeting it, engagement. VA 'nt Is
,t january urxr, when the other instrument WI De
come due, umleas il can BE- raired By Il sale Oh o'a''
bonds ut not less than their par value, IL cAn,ot y y
maid; the com2any's draft on the lizard OF RUM
Works for The amount, or any part thereof, chnNo
b. accepted, nor can the company receive STATE oonu'
in payment. OF course, the natural consequence :" ="
he embarrassment, ] far, serious embarrassment y
that cu,erpris;ng company and its stupendous "oFh
With a road two hundred and four miles loh2 JUS
completed, in admirable order and in successful OPP
raiimi, would il not be cruel. would it not De Il PUN,
calamity 10 cripple its resources, to impair JUS u,Ilut
ness and to FILTER IFS commerce. III ms ine h'et - ~"
Of its promising existence All this must resu'' .'
a failure to receive that last iustalnent early III '"e
next year. ..o
Here let me stop 10 enquire, could the iLhS."'uae
have anticipated this state of affairs, woaIu II na,e
adjourned when it did! Would il not have proiohE
| ed its session. or requested the Governor 10 convene
an extra session. II surely did not suspect snch re-
lu 'AlAH 'Esl'I ~ NV NO.
suits from its action. 1t must have antlclpa'eu hnon
tirely different, a far more pr"pitlous s'a'e .. n"m
While the members of the Legislature a"n .le! ="
~, are responsible for this signal wan, oi e'hcI'".i :"
their otficia! acts, they may not De De!u accouuta
for nj! the urhappy results attending Inc c'"' m
existence Of those acts; for there IL an eye anne Cdp''
fol that can ser, better than others ri ~ u'S'An'''
things as they are, and there Is az fhe SHp%" "a f~t"
,,al voice that can call together those widely a's'rlnu
ted members, inform them of the necessities OF the
it,. g a.. ,,.;Is yvhicI, threaten tn6 StRIN, vi VI
iniuri.s that i:nve been inflicted upon her CITIZENS, anu
commend 10 them the grateful task OF rec''fihs pass
errors and Of once more launching the old shiP OF
state upon the broad ard deep and placid ocean OF
prosperity and honnf.
Z Tb. Great d.yreciation In the price Of our State
securities il n suffice. of universal and deep regret IN
Virginia. This regret is increased ~hen we re'he"
Der that our securities are, lntrinslcai!y., "o''n "s
much az those Of any other State III tne oh'oh' anu
that, therefore, instead of being at n discount they
ough, to command a premium. Various causes nave
conspired 70 produce this painfully Illuminating re
suit. some, nj least, cf which are evidently wlthln Inc
control of the Legislature of Virginia. LII th's place'
it is suffi cient 10 mention two-one operating aoroau'
the other at home.
In tn. Summer of The last year, the Board ct Pub
lie Work. INDUCED the, then, very reasonable e1pec
ration that they would, AT the ~farthest' Ov the sue
c.eding autumn, effect a sale IN London OF u leas'
1--WE millions Of dollars OF Virginia bonds. lhey,
however, being in present want OF a large amount oi
funds to meet the very pressing demands upon 'neh'
obtained at parties in tho city OF New YORK O loan
nf six hundred and seventy thousand dollars l"r whlch
they were 10 pay intereDt at TIE ruteoi SIX per ceii'un
Der aunun. As security for this loan, the Board placed
in the hands oflhe parties making if,an equal AMOUNT OF
Virginia bunds-infendin., AMI expecting IN " sii"rt
time TO redeem the bonds with q portion oil inc P'oece"S
Of the sale in London. That sale, howertt, was moi
made, and tn. bonds in New York have never been
redeemed. They are s,ill in New York in the hands
If tho parties who made the loan, who, by the way.
have been greatly embarrassed IN consequence OF
that loan during the several monetary prrssnres mar
have occurred since IL was made. Inc 'rTal rate ~
INTEREST," in New York is s. ven per ceutnin per anHuiii'
and a. the Boarl can pay only SIX per cent, the small
est loss that those pg-;i,s can sustain IS one per cent
Now. ihls transaction is known in New York ana IN
London better than it is known in Richmond, ana II
cannot be expected that the value OF our SECURITIES
will be materially enhanced in either of those great
emporiums and centres of trade, SO long as the re
proach remains to Virginia that sh. has six hundred
and seventy Thousand dollars OF bonds hypoihtcated
in the city Of New York, which she cannot or will not
redeem.
By an act of the last Legislature, the Auditor Of
Public Accounts is authorized and directed, under
the supervision of The Governor, 10 sell the stocks
held IN the Banks by the Commonwealth. and apply
the proceeds IL the purchase of such outstanding
bonds or certificates I'll State debt rs were issued
prior to the LIST day Of January. 1852. Under this
law, but for one difficulty, the Auditor could sell the
Bank stock, aud, with The proceeds, go 10 New York
and buy up the hypo'hecated bonds. That difficulty
in lhis: the Auditor is, by the express words Of the
law, restricted to the purchase of bonds that were is.
SUED prior to the lat Of January, 1852. aud un'ortu-
nately, NJ | learn, ali Of those hypnthecaled bonds
nave been issued since the lst of January, 1859
Therefore the hands Of the Governor and Auditor, so
far as relief in this particular is concerned, nre tied.
Could not the Legislature Of Virginia, if convened
in extra session, modify this law, or devise som. 9th
.r plan for the redemption Of those bonds ani thus
remove one Serious impairment i'll the way Of their
speedy restoration to their par value!
The other causo OF tho depreciation of our
ho:G4 !, 20 bc ioand in the tax which is
ny Law u1on ;h- interest on the State bonds
pwned By citizen, Of N;rsinis. The scclrify bears
upon rs ince Il promise by The State TO pay six per
rcnrum per aGruln iatcrrst on The principal amount.
The Legislature I" Tax his in'creSt Is an indirect
violation Of the promise To pay the six per cent to the
extern, tia; il is diminished by the tax. Moreover,
IN. Common Council OF the City OF Richmond, fol-
lowing the example &c. b. ;hc Legislature has also
imposed a tax upon the interest M S'ntt bones own
I'd by persons residing in tho ci;y-at the snTne tlue
wisely declin;r. 70 impose any tex upon the bonds
,f the CITY. The result Of this double taxation is that
, citizen of Richmond, owning State SIX per cent
bonds, recl:zes in feet, only four aud thrGe-htifs per
zen, appI is inveslmrTit, whereas he ouSht IN silnpie
rsiice not only 10 receive ou, 10 ENJOY Tue Whoie OF
SIX per cent.
Now, while tEis double taxation continues, what
!nduceneu; is there for q citiz-n Of Richmond to in.
vest his surplus capital in Virginia bondsi And
while this State tax continues what inducement is
thrr. for a citizen Of Virginia 10 invest his funds i'll
her securities, when he can go easily purchase Others
WE'LL n 40 much !arger per cent!
Could not III. Legislature, il convened in extra ses-
,ion. devise some plan by which to remedy this cry.
ing aud unnecessary evil This ~deponen' answers in
the ahi NATIVE, without hesitation aud without doubt.
The mn,erial facts herein enumerated. it not within
'he knowledge, are within The convenient reach of
the Governor. and ! respectfully submit to him II
hey do not mike cut n case which may, without tx.
rayaraucc, be termed q necessity uf State" that
rught 10 be provided fnr by speedy legi.lation1
As to what the legislature can do, or will do, | ain
prepared to speak definitely. l am certain, how
yer. thn, the, can ''inend matters very con-idera.
tly. If hcy choO,s. II they are called together and
fail or r-iti-. to do so. il vii! b. Their fault; mud theirs,
not the Governor g, will be The responsibility and the
sbame for such failure or refusal. JUSTICE.