Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1856-02-14

1.-THE contracts OF hypo,hecation we're really What the
board nsgincs then las the sale o the bond. must
tall on the holders. except $sOosi the computed excess
al the value OF sterling bonds the sum advanced on
them THIS excess the State may los,. These honls
however ought To be rescued fop ypothecation With the
hrs' funds that Dc raised 10y legitimate loans aud
structed.
In this place. il proper notice the ac, reported to
the senate, on the 10th oi January, by the Second Audi
tor, that the Of S9IO5nS rs is vet due ON the ntir
amount o bonds is-uedb lay the This los
ocrao"ed by the hypothecatoOs and advances See,
Nithcrs Co. and Others. part NAV saved Nv the
sll""oo oi bonds in the hands of Sutgcs and ms uO
that we're lost in the Arctic bat the practical cunse
quences will be- felt until the BOARD oi Public We IL
mas sold MI the bonds II IL nov authorized To- issue. IL
will then appear that their proceeds less than tn,
appropriations direccd by law, aud the difference i
exactly this of sa5n Sos rs whatever Il NAV he
reduced Ia by the assets at Sedcn, Withers Co
fninr" legislatures must provide for this deficiency when
/ il occurs.
The transactions above narrated the whole history
the agency OF Scjen. Withcrs 60. aud other reasons
have convinced the committee that Board of public
works is very bad financial agent and unsafe depository II
the gr power ocnntact loans Your committee does not
to imply dstrust at the ability and patriotic in.
tentions oi of the members OF the boar form
crly but the highly the are esteemed the
surely does Il follow that there he strong eau
n the very constitution of the board produce the mis-.
management and the frequent violations law and as
sumpton> Oi power history exhibits Sufficient exam
piles have slrady been gwen but more NAV b. men.
toned. On the 9th OF February the then board ordered
Sso,"oo Of coupon bonds be delivered Bank oi
Monccu Tor the purpose OF banking ia exchange Tor Al,
equal amount otdts issued by the board the Manassa
gap railroad company and bought up 10y that bank dobt-
less discount II the board could do this why not cx-
change all the drafts for State bonds aud effect at once.
What 1t Is admitted the legislature alone author
b izc2
little reflection will suggc, that these errors OF the
hoirl have arisen from laudahlr sympathy with the
psHics and desire aid them Ia every possible shv
In hcti the PRIMARY function the board is the admins
tation OF our internal Improvement system; and
-, Sal 81 g. -. r..
gard Tor the treasury. makes it, loan powers entirely
Scrvrut aud constantly tempted ovcrstrp the limits
the law It, time Is cngScd hN these works that
scarcely give the requisite attention 90 tS financial duties
witness the curious tact that Sricn Wthcrs 20 were
permitted make for sales and
without Immediately submitting such contracts to the
board who had regular .h them except
what tnrN kept Themselves. Hence the great difficulty
alluded ia their last report of ascer,ainng the ba,e.
/ actually due from their agent
Your committee therefore recommend that the Board OF
public works be deprived OF the power borrow money
ar contract loans such power IL be vested in board
formed of the governor first auditor treasurer
rotary of the commonwealth and attorney gcnera-tle,
to contract for all loans money he needed by the
board for purposes Of internal Improvement under
existing future laws Hypothecatons should be strictly
iorhiden and the commissioners requrctto keep
curate minute ct their and proceedings be fully
reported to each session of the legislature The proposed
board OF loans would have all it, feeling. with the res
the Board Of public works would with the improve
mrmi~. Etch would bc strongly impressed with the
wants and dhculiies of its department. and the
laws, anu better balanced regard Tor all the interests at
the commonwealth, both The public works designed
and the and means which essential their pros
pcrity.
In this conncNou. committee proposes n charge in
the mode OF keepiug thu in your public Offices
which viii very much simplify them. avoid the
Tor the transfer o balances from another which per
plcNcs all hut the initiated and will nut them in such
form may bee readily understood 10y the public large
whom they Transfer all the bank stocks
held Toy the state o the first auditors Office, where
I he all tr,.
stock and bonds of companies held by the state direct
the gross revenue OF the internal improvement fund
stead o the net surplus be- paid into the general
sur! pay all the expenses OF the second auditors Office
not cirtgeable the Literary fund through the first au.
dtos Office where all the other ordinary expenses gov
erumet are pads pay from the same office all the interest
due tlt Literary fluid, well the amount psvabe
all disbursement, 10y commissioners Of the Sinking fund
To Toe d-hurs''l 10y them on account o the interest
principal ot the public debt The accounts this Office
should be- arranged under raj heads by some sucl,
classification the committee has made in their state
mcnt' OF receipts aud expenditures ami they will then
snow ti' whole amount received from all Other
than loans and the whole expended all object,
except internal improvements. The ct the
ond auditors office will exhibit the whole proceeds arising
from salc- of bonds and the spent in public work.
and the atrS o the Literary fund. \ redistribution ot
the clcrit force IN the offices would be necessary,
further smpfcatiou may be- effected in regard the
Literary fund.- which holds five and half, six and
per cent certificates oi debt in the aggregate
S2,lnd 80 in principal, paving annually interest," of
S12,5G' b. Your committee recommends these ccri-
b. plcdg Tor perpetnal annuity eual tn the Interest
Thi plan would inur, the Of the iud while.
would relieve the credit of the from the reputation
OF debt which, as We have seen, i in Truth doubt
all ANY legislature which would violate the solemn
pledge for this annuity nv repeating the permanent oppr-
pri'on would also destroy the iccious bonds held
by the fund The fiction oflaw, by which they exist CON
cr inm nobody the fact the pretended interest j.
truly permanent appropriation of education
The same arrangement might he extended include the
future we'll rs the prcseut Investments of that fund
We have thai the par value of tile states invest.
mrnt in various stocks considerably exceeds the amount
OF the outstanding lHdc deh vet they add hut little to
annual revenue and do still less lntu our cred.
it, When the capitalist enquiries the value OF Virginia
bond he does look this schedule unscab, stock
or even TO the Snkingund required 10y the constitution
Tor lac knows that the former are unavailable Tor immediate
wants, and that constitution and laws all exist
pleasure ofthe people Who establish them But he asks
whether the financial affairs OF the are prud-nv
managed whether she provides for her regular expcuii-
lures hy taxes or by loans and whether her history give.
OF punctualv in reecming her d-bs; and
prciuy what Is the amount OF bonds outstanding in the
market tor the laws OF supply aud demand influence the
value o credit well A. Of everything else. Ii there.
fore OF the utmost importance reduce this amount -
low a. possible by paying oil the publ, debt it b.
+ comes reieemable \ different policy has been
pursued under the construction placed upon
the law organizing the Sinking fund, and the
whole Of the one per cent. raised upon the
debt contracted since January |, 1872 las been lit
vested in new bonds, purchased Of the Board Of public
works. instead O being applied to the redemption of the
outstanding debt. The Sinking fund thus become. d
when nobody else will and it, are devoted
90 expenditures instead Of the redemption of debt You
committee recommends that the bonds has already pur
casei, amounting A. before stated, to S23j,129 is b,
exchanged for such outstanding bonds re-
de,mahl' aud that nc whole surplus OF tie revenue o
the Sinking Iu after the payment Of interest. "bc APP
plei a. the constitution requires, to the payment
th' principal Of such part tot the pubic debt ~ may u,
rcdrcuIhr. and II part ice rcdccniblc that IL snl
h'u be- u-ci in the purchase Of other outstanding bond
issued prior So. Nothing could tend more to rails
credit than for the Sinking fund compete ii the
H.. for the purchase ot bonis. still larger rrduc
ton of Outstanding debt NAV b. accomplished by
sale OF bank stocks, aud the appropriation of the pro
c"ed according 10 tho constitutions To the Sinking fund
This addition 10 the available Of that fund wuult
redeem and cancel more than three and half million,
Of debt aud proportionty raise credit. IN fact t
proposed oper tons would IN eight years entirely esu
gI.h the whole debt, 1913 30 which existed
January 1T, 1881 prior 10 the establishment NJ the Sink
ing fund aud the people would thus be relieved forever
from the -rycn per cent. required 10 bc raised tina
sum. After deiuctng the bank livdrnI.. lost by t,
rtt.s of the -furkf rpfu