Republican vindicator. [volume] (Staunton, Va.) 1849-1857, 1857-12-19
Iii Advance,
NUMBER 81.

: fhave been compelled TO put them IN tbs
market at sacrifice, in order to meet tloi1
: immediate liabilities for paper currency
{ based upon the paper of State bonds.
/ 4th. BY a'ieviag our own JOINT stoc'
companies to sell their securities and cyi-
dences Of debt below par
f 9th. By allowing our own joint stock
companies to borrow money at ! and s per
cent. interest, whilst the State bonds can be
sold az par, aud at a maximum rate of six
per cent And
9th. Above al, By the taxing of State
bonds ior State revenue, and by permitting
municipal corporations to tax public credit
also
Assurodly it is false economy tor any PEG.
pie e tax their o{gn bonds. It is not only
no relief from taxation. bat materially adds
to its burden. They take from one hand to
put into another, with Ill the cost Of com-
missions on receipts and Disbursements
Nothing can tend more to diminish taxation
than to keep State bonds At par. That clone
viii prevent sacrifice OF credit or Of means
70 raise money. Aud nothing can tend
more to depreoiate State bonds than to alb
stract by taxes from the amount Of their in
'NtN-F" 4AIAs Gb tuG t3ttttG iFOcFH 4 tIA ~
- Der cent on the interest ef It's own stock.
, And the city Of Richmond imposes tax Of
one per cent. on the State stock-the tsro
together making 81 10 cents on every six.
reducing the amount received by individuals
+ ta 81 90 instead Of Sc per eentum And
the city cXcnpts its own stock from taxation
fae consequence l., capitalists invest in city
tocks III preference to State securities. 0ther
corporations are, believe, following the cx
ample Of Richmond aud unless they arc
al prohibited from taxing State stocks, they
can never raise 10 par. OR bonds have
stood almost everything and held II &c
eouhtably in tic money market They arc
guaranteed by q sinking fund Of one per
cent. over their rate Of interest, which is
honestly aud rapidly applied and ahe States
punetuality of paying interest without fail
uras has given her bonds stable and IN
irinsie value Ct credit. But tax upon
their interest is dimination Of their value
And whatever Is their price at cur own
metropolis, is criterion Of Their arico
throughout the State and whatever is the
price il tho State herself, will he the critic
rion every where abroad. Under this onus
Of taxes our SIS we're really at par at less
than Z cts n tie dollar Yet Until The
panic Of this crisis they ranged steadily at
81 or near 20 per cent above real par and
il spite of the crisis, have rebeunded to 80
II anything should be exempt from taxa
Ton. It IS certainly State credit and i the
bonds should sell at 90. With rate of s.
To, what would they haea nat brought i'll
the market at 6 per eentam lit Be said
yhat capitalists who invest in State bonds
should be no more exempt than others who
otherwise invest, the reply IS obrious that
this exemption is the best and most ee0noln-
'cal premium which Stata can possibly
~ TO raiso her bonds te par, and - ap
precia.e her credit fut whether this be
tree cf the State or rot tho CORPORATIONS
should assuredly be restrained from taxing
State credit But tie bonds were effected
III. BY the late Legislatures omission
to provide for the withdrawal, or payment.
or redemption of large amount of bonds
which had been hypotheteeated IN y. Yor},
Ter adgaaces, amonnting 70 sum less by
$500 000 tlan the par amoant Of the bonds
J have endeayoroa ia vain % ascertain pre-
ciscly how this hypotheeation was made.
Il seems at fast that goo. coo Of sterling
bonds were placed III an agents hands by
the Board Of Public Works to be reunited
to Europe and sold. On these he made an
advance Of 500, 09e aud pledged the
beads for that amount. lie then entered
into contract with another nerson, in be-
half Of the Beard Of Public Works, 70 sell
or bonds II federal currency. They we're
to be taken b. iusta.inents froG time tc
time as called for By tic contract and to be
paid for before delivery To facilitate their
delivery whoa sold they were deposited by
the board or gent in the Bank Of the Re
public, Of which fle agent was president
te be ready only for delivery By him when
se# Instead Of selling and delivering
them, aud paying over their proceeds to the
credit Of the Board of hatlis works, il
seems that he advanced s37o, coo, in addi-
ton to the s 400, 600 before agvaneed, AMI
took Ike Stnte federal currency bonds from,
their deposit II the 3dak of he Republic.
where they were azTaitihg sale. to the a.
mount of $40. $50 and hypothetical them
also ior the advances mounting in all t.
S6}0 zoo linus were bonds issued for the
am'eat . 500 00a, pledged for SG70, eco
advanced aad tn state has no means Of !
IDENTIFY iug the bonds except the sterling
ones "n4 Interest As lar as preserved has
been lai3 on tue whole amount Of the bonds
for SOTO 900 advanced until this day and
a considerable amount Of the bonds has
been forced into the market, aud, fear.
sacrificed
After lie commissioners Of the sinking
Fund lad prepared their present report, and
aftor it was printed, q sum Of upwards a.
s. $4,000 was certified to them by the Board
of Public Works, TO be due for interest
They stated tl.ae Inc hank OF the Republic
had advanced thst amount as unpaid by tho
commissioners Of the Sinking Fund The
commissioners of the Sinking Fund had
provided Tor Re 'ntrrest en- all the public
debt which had been recognized. aud which
they hid beer officially informed On en-
quiry they found tbat this amount Of inte
est IN arrears proceeded probably from the
bonds which had never ben issued, bnt
had been Hypothetical as described ara
which had never been included by the com
m'ssioners of Sinking Fund in their accounts
et public debt Aud The Board If Public
: Works had never reported this as public
, debt until lately, when they informed the