Cooper's Clarksburg register. [volume] (Clarksburg, Va. [W. Va.]) 1851-1861, 1857-12-18
tosmeet their immediate liabilities for pa.
per currency, based upon the paper Of

to meet their immediate liabilities for pa-
per currency. based upon the paper of
State bonds.
"A. Byallowing ourown jointcompanies
to sell their securities and evidences of
debt below par.
$. By allowing our own joint stock
companies 60 borrow money at 2 and s
per cent. interest, whilstth State bonds
can be sold only at par. and at a maxi
mum rate Of s ger cent. And
6. Above all. by taxing OF State bonds
for State revenue, and by permitting mu-
nicipal corporations to tax public credit
also.
Assuredly it is false economy for any
people to tax their own bonds. It is not
only no relief from taxation, but materi.
ally adds to their burden. They take
from one hand to put into another. with
all the costs Of commission on receipts
and disbursements. Nothing can tend
moro to diminish taxation than to- keep
State bonds at par. That alone will pre-
vent sacrifice Of credit or means to raise
money. And nothing can tend more 10
depreciate State bonds than to abstract by
taxes from the amount Of their interest.
And. yet. the State imposes a tax. of six
and three .fourths per cent. interest on the
interest Of its own stock. And the city
Of Richmond imposes a tax Of one per
cent. on the State stock--the two togeth-
er making 81 40 on every six. reducing
the amount received by individuals ITO
$3.50 instead Of per centum. Andthe
city exempts its own stock from taxation.
The consequence is. capitalists invest in
city stocks in preference to State, securi>
ties. Other corporatins are, believe.
following the example Of Richmond and
unless they are all prohibited from taxing
State stocks, they can never rise to par.
Our bonds have stood almost everything.
and have held up unaccountably in the
money market. They are guaranteed by
sinking fund Of one per cent over their
rate of interest, which is honestly and
rapidly applied and the States punctu-
ality in paying interest without failure
has given her bonds stable and intrinsic
value of credit. But tax upon their
And whatever is their price at our own
metropolis, is certain criterion of their
price throughout the State and whasev>
er is the price in the State herself, will be
the criterion everywhere abroad. Under
this onus of taxes our 6s were really at
par at less than II cents in the dollar.
Yet until the panic of this crisis they
ranged steadily at 90 or nearly 90 per
cent above real par, and in spite of this
crisis, have rebounded to go. If any thing
should be exempted from taxation, it is
certainly State credit and if the bonds
would sell at 90, with a rate of Sd, so,
what would they not have brought in
the market at 6 per centum If it be
said that capitalists who invest in State
bonds should be no more exempt than
others who otherwise invest, the reply is
obvious that this exemption is the best
and most economical premium which a
Stale can possibly pay to raise her bonds
to par, and to appreciate her credit. But
whether this be true of the State or not,
the corporations should assuredly be re-
strained from taxing State credit. But
the bonds were effected:
7. BY the last Legislatures omission &c
provide for the Withdrawal, or payment
or redemption of large amount of bonds
HYPoTHEcATED in New York for advances,
W a GUN 1858 ny GQOOO1oON
than the par amount Of the bonds. l have
endeavored in vain to ascertain precisely
how this nYPoTHECAT1oN was made. II
seemed at first that 100000 Of sterling
bonds were placed in an agents hands by
the Board of Public Works to be RENTED
to Europe and sold. On these he made
an advance .o$4OO,ooO and pledged the
bonds for that amount. He then entered
into a contract with another person, ir
behalf Of the Board of Public Works. t.
sell our bonds in federal currency. They
were to be taken by instalments from
time to time as called for by the contract
and paid for before delivery. To facili
tate their.delivery when sold, they were
deposited by the Board or their agent il
the Bank of the Republic, of which the
agent was president. to be READY ONLY
FOR DELIVERY by HIM WHEN SOLD. Instead
Of selling and delivering them and pay
ing over their proceeds to the credit o.
the Board of Public Works, it seems he
advanced 10000 dollars in addition tc
the $500, 900 before advanced, and took
the State federal currency bonds from the
deposit in The Bank Of the Republic. where
they were awaiting sale, to the amount OIL
100000, Thus were bonds issued to the
amount of $47o,ooo, and hypothecated
them also for the advauces-amounting
in all to $67o.ooo. Thus were bonds
issued for the amount of 100000,
pledged for 100000 dollars advanced,
and the State has no means for identify
ing the bonds except the sterling ones,
and interest as far as preserved has been
paid on the whole amount of the bonds
Tor 100000 advanced until this day
and a considerable amount Of the bonds
has been forced into market, and, fear,
sacrificed.