Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1856-03-11

nit, OF our case Gentlemen do seem to realize the
true difficulties OF situation States as well as indi.
vduas have often had the runous shifts OF
the spend-thrift to raise their
And has our prudence been such that can claim CT.
empton from this necessity What has been the cxpe.
rence OF England with all her boascd resourcess Upon
what terms has she borrowed For accurate inorma.
ton, would refer gentlemen to clear and con,phen
sve article on the "ptogesSo the national debt in the
a'h volume OF the Ednburg Review. Though bank and
commercial interest in England has usually been from 10
per cent the interest the whole British debt up 10
isss WAS near 81 the nation having cont acted
obligations To to the eudcrs more than fifty per cpt
on the average above the actually advanced the no.
mnal loan bearing interest of 3 per cent Thus in
the loan OF 1898, OF thirteen millions every one hundred
pounds advanced entitled the lender TO fi75 per cent
stock Ego per cent stock and annuity Of shilng-
Tor sxtytwo bound the country 10 an annual
20 Is od exclusive OF the long annuity OF shilngs
ana IN making the loan Of twentysevcn millions in 1915
was stipulated that every subscriber of flOo should he
entitled to ETA per aud per cent stcl
permanent loans In Virginia at Ia per cent per an.
num- would be, considering the legal rate of interest with
ns quite favorable obtained by IN. Br;,
sh "overnment-yet we are expected to get money at
per cent almost without limit simply by 'dyerti.ing for
loan when all the world already knows too we'll that
w ate quite ready to borrow.
The committee recommends for the relief Of pressing ne
seSs'ues the issue OF TRsASURY NorEs PER CENT
INTEREST. This free to admit is the only .,n,I.,,
that seems adequate meet the prcseut exrrucv I,nd
may no doubt be raised upon them being used AT the
op"n OF the holders a. currency, would he much less in
furious Ia the business o the country than n :, ,,h
capital was distracted tor State bonds or ON nm or;,,
loan the proceeds OF which would 20 the State in
specie most probably, 10 interest foreign creditors
or Tor rail road iron To object this mode of borrown,
on constitutional grounds implies rather stitnons than
street rule OF Interpretation Ii enarges the meaning Of
Puases IN the federal constitution, imposing restriction
on the power of the States much beyond their true mport
or the Intention OF the trainers OF the constitution APP
prehend Governor Floyd spoke without due reflection when
he raised tho point in the House
IHs SALE OF THE RANK SrocK owuedby the State seems
measure oil very questionable policy. IL is safe invest
nentthe dividends than the interest of AN
amount of public debt-why should We sell il tcn cxrsn,
To meet pressing neccssy-and the sale is not propo
ed Tor this purpose II the proceeds to be invested
Just now I'm farther prosecution the public works il NAV
BE- well to consider its eject upon the business of the in
dusttious classes of the State who are of nec.sx h
r"eIs Oh eapal We have already that there is
no " free capital seeking Investment aud if sold so low
as TO he good speculation the capital he withdrawn
rom tue business community already scanv sun.
pneu is Is sld to be golden dgs but in Virginia it
seems the aye or iroHod is coninu ly going out aud
iron coming in, until the life blood of our banking system
has been drained and banks are almost a. powrrs
tor good ifecss corpse The process, cannot viii,
safety BE- carried farther.
Much seoms to be expected from REINSTATEMENT or
hp'' Inc eneci OF this measure will depend greatly on
the policy OF the State and on future CONTINGENCIES =
That the lands OF Eastern Virginia hayo incr,.J ,r,l
In value since the last is most gratyo f,ci
To what Is this enhanced value be attributed To
higher prices for the products of agriculture TO gar,
skii and industry among farmers, but above ALL to
the practice, almost unve sal ofapplyinc captal b.
rally to the land There thousands Of acres in East
ern virginia now valuable SIMPLY because il has ~
ascertaned by experience that capital apped to sucb
lands IS exceedingly productive Yet in their present
condition, without capital they would not b.. worth sy
cents an acre These lands mostly by poor peo
pie who borrow capital The writer has at on. time nur
chased more than $4,000 worth Of guano to he usd y
arIners on their lands many of them poor men who hal
never seen bank of them taking rs little a. baIr
ton ana vet Their negotiable notes months were pa!
With puuctualiiy the last dollar A man OF th. c,,
SAID To me short time ago, II you know very
poor man, having To- labor but myself when he
gan to improve my land, could get but Que bag of gu
ino ts year have applied two tons my wheat aud
PAID cash Tor IT, and am, to-day worth thousand dollar
more than when | got frSt bag of gu,Do If ,h.
state, as borrower for unprOiuctiye investment cont
ues 10 nonopoze all the free capital aud the means of
the banks which ought to be left the productive classes.
thee poor lands 90 unnproved and their
tall far short Of tlsr Intrinsic value Or soul VA, viii,
England be the result of pending difficulties the reasss
inent would prove aitOget hcr illusory
The Governor relies mainly TAXATION and the stNy
ING ftND, 10 retrieve fortunes Whenever a STAT.
continues 10 borrow, sinking fund is mere deusion-
In order 10 have any effect you must cease to Contract
debts But tue absurdiiy oil the ching becomes plplb
Mhen state, as in our case borrows own sinking fund
The Practical effect however is precisely the same so far
a. the ekuGguishment of the State debt is concerned
whether We borrow from the sinking fund ar from, otbs
CPon uat principle, the debt will be unpaid At the
day Of Judgment Has England reduced her debt by her
sinking fund Is not the remark OF Adam Smith sill
true at least IN regard 10 the nations of Europe? Has
national debt ever been extinguishcd exccpt by national
bankruptcy! cannot pursue the subject farther Wide
Hamilton on the national debt of Great Britain and Saw
Pol. Eco. 1851
TAXATION is a sure resort 10 r-deeu tho ,rtI;. ..,
Whether the "oyscr iundImI will lie available remains vet
To be tested As VrginlAn having no come Sion with
the SUBJECT except AS tax payer saw Law on the taxes
u'ti we are assured that the honor of the State will be
teal opes would advise shat we Law too co.e reeGaJ
with head to the wind, and wait "A more proptou. sea
son TO proceed upon voyage.
We''moreland county, Va. March Sd, 1856.