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


Legislature, for the purpose ofcondering them must ar
rest the serious attention OF every rejecting citizen
Virginia.
propose TO Offer in this communication few practics
suggestions on the important subjects fully discussed
these papers in the of which shall touch upor
our financial dcultes-their cause.-the remedies pro
posed-their effect the interests the State As bod,
polite and upon all classes OF the people, whether
ed in commerce. manufactures Agriculture and lastly
shall suggest the only remedy that afford prospec,
of relief
In entering upon this investigation, beg it be un
dersood that am influenced by personal sectional OF
political considerations ardeuy desire to see all the
great works of Virginia completion and h.
believe may be done in tme without destroying her
credit and bringing distress and ruin her people
lst Our financial difficulties The committee Of the
House OF Delegates has presented clear
and candid statement of ianccs From this we e.
without entering into details, that the State is indebted in
round numbers, IN u not less than thirty millions of
dollars-that there will be deficiency means to meet
accruiug liabilities for interest &c without further appro
pratons Tor internal improvements the 3Oth OF Sept
next of one million sax hundred aud fifty thousand dollars
and further deficiency the close OF the next fiscal wear
OF eight hundred aud thousand doirs-that
not be levied in time u meet these liabilities that the
sale OF State bonds is longer possible and cannot be
relied on as RESOURCE for supplying the Treasury We
are thus brought TO pause in career aud before
considering remedy it be well To understand the
cause of this startling condition of our affairs
The Governor right IN surprising that the public
dit is not impaired The criterion OF public credit this
If the State borrow favorable as indiv-
duas who offer undoubted security, her credit Is intact
Can the best private paper however secured be now sold
in market above the current of State bonds
This is the
But with all due Difference the Governor it is not for
the of OF trade because the value OF the
dollar has changed that experience these difficulties
50 from this the dollar is worth less by y per cent
in exchange for all commodities, than it few years
ago Nor is it owing To any stringency OF the money
market; that may be IN part effect OF difficulties
but not the cause. Money performs necessary iunc
ton in all transactions that apt be deceived
its real importance element of public wealth IL
is drop in the ocean compared with the wealth of
mankind The drought of last inflicted heavier
loss this country than the value Of ali the precious
ta within it. The Secretary of the Treasury in his last
annual report estimates the whole of specie
circulation and in the banks o the United States at
hundred aud fifty millions OF dollars. This sum, though
far greater than In the country Lcfore
is entirely insignificant element Of value in estiua
ting the wealth VI the country IL would less
than dollars Tor each white nhsbitant and Virgins
had her iull share il would pay third Of her debt
The OF difficulties lies much deeper IL Is can't
tai To be invested, not money II medium of ca.
change that Capital Is usually divided by po-
litica economists INTO fixed and circulating. Fixed
capital being in houses improved lands mills manulacto
ries machinery SC Circulating capital consisting OF
rous commodities and values employed by the industrious
classes carving the business of commerce manufac-
lures and agriculture 10 which may be added the capital
employed in banking the proper office of which is ia
I
Capital Of the second class though strictly speaking
fixed, cannot without difficulty d the general derange-
ment of business be diverted from its proper objects ad
therefore be relied apOn by those seeking loans tor
investment. To these divisions OF capital may, for
clearness OF illustration be added third which may be
denominated free cdpIi, and be deiued the sur.
plus gains of all industry aud wealth after paying expen,
ses aud supporting the population OF the county and
which seeks investment as it is accumulated" Apply the
tombstone of analysis OF what does the wealth Vir-
GINA consist. OF houses, lands mills, and other real
"A
and OF the slaves cattle horses and other capital Employ
ed in agriculture, ami OF The banking capital OF
ready appropriated by the business classes Where the
ffcs cd seeking INVESTMENT Where are the rich men,
Examine them, in what does their wealth Consist IL
consists IN tie articles just enumerated and in Stocks Of
tie state which though evidence of their wealth
tihcates OF the States poycrtyand far public
and new investments concerned negative quantity
The truth is the State has already appropriated works
now unprOdGctye, hOTever valuable in prospect Only
all the cdpi OF the people OF the alth and
~ that her credit could draw from abroad but by her
competition 10 tho losn market has encroached largely
on means that ought 10 have been left the indus
classes to enable them successfully conduct their bust
nes-not only has the State Invested thus largely in
productive works, but individuals aud corporations have
been equally liberal in Investing, and there the
market Stale, cooperation, and county bonds sufficient
absorb al the Tree capita, Of lhe Commonwealth for years
to come Nor the condition OF things better in the
other States and may in vain look for relief any
quarter in this country. Independently of these there
! ure other causes or less operative.
Business Of a kinds is productive profits high espe-
ciay in agriculture, and the natural tendency is in
vest tue surplus PROFITS free capital in enterprises
aud further improvements. A farmer who has surplus
OF 81 300 at the end of the year, will scarcely invest
per cent stock discount, when he knows by
lending 1t ~ his land he realise 90 loo per cent
As general rule it nay be affirmed when profits are high
stocks are Ow-AnOiher operating against the
ue OF stocks redeemable II distant day l. the progressive
depreciation OF the currency owing the great Influx
The precious metals The value paid to the public creditor
atthe end Of twenty years may not he halt what he adya
vances to-day through he receive the weight
tai An opposite principle IN operation before the
discovery OF the mines OF California; and Australia Owing
TO the distu Dances ia Spanish America arising ont Of the
revolution the mines neglected or abandoned aud
il estimated by McCuock that the supply OF the pre-
cOus metals in the world fell short Of the consumption in
the arts by cent in twenty years that the value
Of the metals constantly rising aud the more distant
the day OF payment the more valuable public security
became. Prudent men in making investment are begin
ming 70 take this principle into calculItiuu.
Europe in this respect is now in condition THAI
our country. There is "free capital fOr investment
there. The aggregate public debt OF the European na
Ons, according article IN the forthcoming edition
the Encyclopedia Britannica exceeds the eighteen
hundred millions Of pounds sterling and j. in our money
about nine thousand million Of dollars. A almost in
conceivable IN magnitudeso great that all the money in
tue world COLLECTED "a Pile would not third Of IT,
The idea Of such debt being paid prcDOseruus
The annual interest constitutes permanent mortgage
the bour and property Of the people IL isObyiOus that
this enormous debt "SpOngcd,' the aggregate
worth Of Europe would neither be- diminished nor incres
ed Yet what constitutes the wealth Of the Bsng- Roth.
childs and other great capitalists Of Europe Certificates
this dobi aud out Of ths entity they expected
supply not only the sineFs Of che igocnts O
Europe but 70 furnish leg capital for public i'm
provenent throughout to the world. so far the debtor
nations arc concerned. every loan that they make il
but compoundng the interest Of the old debt the banker.
who negotiate the loans being than agents he
tween the governments and their creditors Yet crude
are the common notions Ofhnance that among euig
ened men, public stocks, which best a mere ga
tive guaranty, are often regarded part Of the national
| wealth
! brilliant wrterin lace number OF BlackwOod a
magazine usual distinguished 10 ability aud aout.-
ne-s compacenty asks what II England hls wasted fort
mlionsoi pounds 10 the compagn ia the Cmes that
anything compared with her vast resources Which, no
proceeds 10 state exclusive Of real estate are equal u NOR,
than ldD10OO,0oO Of pounds sterling, viz ak hundred
millions engaged To- commerce manufacture and ugrcuure
three hundred millions iH railroads end eight hundred
millions IN public securities Upon the ZANE pfncip
| Virginia has but 70 follow the example Of England
compound the interest Of her twenty four millions o fun
ded Debt aud borrow largely she may whether 70 b.
expended productivity unprOductvely sud when hci
debt amounts 10 two hundred millions She will t,i.
respect be nearly 9s rich in proportion To population
Great Britain
England with this enormous debit Notwithstanding be
decreased income from taxes finds deficiency In be-
revenue for the year Of twenty millions Of pounds. nvol
wing the necessity Of loan that amount dnrn,
the gne7iOu ri