Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-04-13

The members Of the council contract 10 pe'soh"
obligation, by reason of their administration.
Each shareholder is responsible only to inc extern
Of his shares.
Tb.r.is also g General A ssembly be composed oil
200 of the largest Stockholders, 4o OF ~nou' 'o"'
quorum. This General assembly is' no"e'e', uo''
ing more than fifth wheel. The Counci puo"o'e'
the names of lite members, one month oe'o'e ."' '0
of meeting The Council fixes the oroe' u '''e 0N'
No proposition can be entertained rAcep' 'u'' 90
smsnats from the Council, and such as may 10
spned by ten members, at least fifteen DAYS oe'ofe
the oonvocation. -
Such s the general constitution Of the Credit Mo
bilier We cannot better point out ts general ten'
denotes, than by an abrdgment Of H. Proudhons re-
Elections.
The Credit Mobilier viewed as an economical lnstl'
sutton, ia an industrial bank, vast enterprise OF
..commandites 80 far as the Bourse is concerned It
is grand Capitalization of stock :iobbing.
The guarantees are entirely illusory. With 60 mil
lions of actual capital it may and pr"oaoy GOES issue
600 millions of obligations. As guaranty Tor these
it purchases an equal amount OF STOCKS ana l'leS-
These purchases are made at its peril depreciation
In their value Immediately renders The amount OF as
sets insufficient to meet the obgsio ne oil the com
pany and since lite capital amounts 10 only ohe'te"'n
of ts loans and shareholders are only Responsible 10
the amount Of their shares fall OF PRICES averaging
ne.tenth Of the original cost, deIroys Inc whole
amount OF capital and the company becomes oank'
rupt.
This ia illustrated as follows: When the Company
was founded thrss per cent, stood at S6, and other
Eiyhtaan m0nfhR AT
forwards the three per cents fell to 6l5, loss OF IS
fr, say 80 per cent; all Other valuations falling in
proportion The. shares OF the Credit Mobilier were
quoted at i35 r., fall Of LAO on previous quota
tious and of 345 on those of elk months previous
Suppose them that on the Let of January, 1885, the
sixty millions OF capital being spent, the Company
had purchased ak hundred millions Of rail rost
stocks 81. On the 3rd of April 1854, the deprecia
tion of these we suppose would average l5per cent
Thus the entire assets of the Company, its capital in
ouded, would amount 10 but five hundred and tel
millions. Suppose, them that the creditors should
press for payment The Company would be bank
rupt it's sixty millions of capital exhausted and nne
ty millions transferred under lie guaranty from TN
pockets Of Its creditors to those Of it's vendors.
But there is another guaranty not comprehended II
| this calculation, and that is the immense gambling
transactions In which the Directors of the compan
NAV engage, with every possible facility of control
| ing the run of the game Az an instrument oil cir
oulson and of 'agiot," the organization of the com
psny ia mastery conception. The princes OF Rpt
oulation who WELD each capital Of from ten to on
hundred millions have the power to raise or lowe
stocks according to their will; but they become mer
minnows in the presence of an institution weldin
six hundred millions enough to buy up in siugl
day all the railroad and canal stocks to be found
the market. The Credit Mobilier can at any tim
produce abundance or scarcity, void or an ove
aowi it Is a gigantic monopoly, outside Of whlc
there Is no safety for the Spectator. Thus it is tina
the company realizes it's Immense profits. Thus il
that the directors of the company are enabled {
make each one his own private specuatlons withou
limit and almost without risk 1t doubles the capita
OF shareholders with tolersble celebrity. 1t enable
directors to realize ovsrgrown fortunes without tn
employment of any capital whatever. Under thes
circumstances, the bonds issued by the company al
doubtless we'll guaranteed.
However, this state of affairs cannot continue fol
| ever. Outsiders will get tired Of playing with th
| cards stocked against them. They may quit playin
against the company and range themselves on lite sid
| of the table.
How thenl The company will have no antago
uis,-no one to vctimiseDo one to pay the dtfe: or
oes in the purchase and sale of stocks. Its ocoupf
ton will be gone. Or suppose, on the other han'
that individual speculs0ra shall coaIesce against tn
monopoly and organize army against army Sup
pose the great mass of produoers capitalists and me
chants shall rebel The company will have no chant
of safety. According to NJ. Proudhon, the Cred
Mobilier must lead to QUE Of these alternatives.
But In the meantime there are immense PROFITS I
be realized, and this is doubtless the motive of Il
founders. In 1855, the profits amounted TO AZ ps
cent on the capital employed.
At tho outset, the share, stood at LBS fr.; i
1853 they varied between $40 ana $50; they fell
1854, once as low as AGO. afterwards they gradu
| ally rose to 700 and over, and reached 10 l.65D i
1855, and 800 in 1855. The oscillations are sudde
and extensive, sometimes varying sou fr., tIhe pa
| vaue) 10 the course Of sx weeka. The Credit Mo
bier Is the "highect incarnation Of tho spirit Of gan
bllng"-"apsoulatio dsoFdered, painting and fsve
lab"
THE RIGHT MAN IN TIE RIaHT PLACE
We cannot omit to express our hearty congratul;
lions over the appointment of the new Collector a
Norfolk which has iust been confirmed by the Sc
nate. The expiration Of the official term OF M
Samuel T. Sawyer The worthy ard efficient appointe
of President Pierce, having left this important poi
vacant, Mr.. Buchanan has exhibited Just appreci'
ton of the requirements of the public service by h
appointment Of DR.. j. j. Smkins.
No appointment. would be more satisfactory to tb
Il 4 A.
of Virginia gentleman. A spoiless reputation,
Christian purity of character, chsste refinement
TASTE cultivated intellect and benign smenity i
social intercourse, have ionG maintained for him III
sfsotiooate esteem of large circle Of personal 81
mirers. firm integrity OF purpose, clear an
vigorous judgment, and a thorough acQusintanc
with the management of business Details constitute
bis official qualifications.
| As an earnest and consistent Democrat, his CLAIM
to party favor yields to that OF man in Virginia
| and his extended popularity, much more than his OF
acal position gives full that the interest
Of his party will be safe in the hands of the presen
Collector.
We trust that we have not over stepped the bound
of dsicacy, in offering this slight tribute to the me
rlts OF an old and cherished .riaud.
THE JAMES RIVER AND KANAWHA CANAL
1t is We think to be deplored that this great State
work did not receive at the hands Of the late Legs
lature the fostering which ts Importance and il
pressing eIigencies demanded. Either Of the bill
proposed for ills relief would not only have ightenet
the immediate endorsements Of the company, bu
would have been the inauguration Of policy harm
less to every other interest in the Commonwealth
and yet which would have resulted, beyond doubt
in the completion of the water line to Covington.-
We should distrust the intelligence and the patriotism
Of the Virginia Legislature, if did not believe
that better counsels would prevail at future day.
WORTH PRESERVING.
We recommend to our readers the attentive perusa