Daily Richmond Whig. [volume] (Richmond, Va.) 1865-1869, 1866-01-04
Explanation of the Bill TO Incorporate 'Th,
American Industrial Agency"
EY DUFF GREEN.

Fly DUFF GREEN.
The war has Impoverished tine state it has, how
ever left Us our lands The purpose of the bill is to
make these available as q reserved fund, upon the
credit of which the owners, retaining their proprie-
sry interest may obtain the cash capital requisite
20 pay the wages of labor and thus revive the pros
perity of the state by the active uevelopement of our
/ agricultural mining aud manufacturing resources;
and hence it provides that one-har of the capital
shall be invested by the directors, in good secur-
Ties and held as a reserved fund, and pledged for
the payment of any contingent liability which may
/ be created in the course OF their business
The contingent liabilities thus to be provided for
are the risks created 10y the insurance Of property,
the insurance of lives. the guarantee of the per-
| Torrance Of contracts and the general liabilities
| Incurred as an agency aud trustee. To create this
reserve fund it is proposed that the owners OF real
estate DE permitted 10 subscribe for shares payable
40 the rate of hve per cent. per anuum which pay
ueut shall De secured by a mortgage on unncum-
bered lands worth twice the sum for the payment ot
which they may thus be pledged. In this case the
bond and mortgage will he a good security and
-lc shares thus paid for, aud the growing crop will
be an ample security ON which the agency may adj
vance the funds requisite 10 pay the wages OF labor
| employed i'm cativating the lands. To illustrate
saw that John Jones has a tract of land worth ten
thousand dollars, and subscribes for twenty shares
| two thousand dollars of the capital stock, to be
paid in instruments Of five per cent, per annum,
| which payment is secured by a bond and mortgage
/ On lands worth four thousand dollars, the bond aud
mortgage being good security becomes part Of
,hc reserved fund upon which the agency is author
eel to insure property, to insure lives and guorn-
/ tee the performance of contracts. rs experience
hath proved that the premiums will much more than
cover the losses in such risks, the surplus will be in
addition to the interest paid on loans. Thus John
Jones' rs debtor, will pay six per cent. on the two
thousand dollar mortgage, and rece i've. ~ share
holder at least twelve per cent dividend on the
twenty shares of the stock of the agency, and a.
these twenty shares viii have been paid for by the
bond and mortgage, the twenty shares and the
growing crop will he a good security ON which
| the agency may advance one thousand dollars to
pay the wages of the labor employed in the cultiva
/ ton Of the land, which wages may be- assumedto'be
not more than twenty-five per cent Of the value of
thecrop Assuming these data, the account current
Of John Jones with the agency, may be stated thus
| John Jones' Ia the american Industrial Agency
Dir.
/ For interest at ak per cent on twenty
shares - OO0l for twelve months. l2O OO
For cash credit 10 pay wages OF labor. lOOO w
/ To interest on cash credit of : 1900 average
| SiX months, at six per cent.............. 81 W
SI.I5O O0
CONTRA CREDIT.
/ By dividend on 20 shares Agency
stock ,S2OOOl at u per CENTS $40 ~
| BY product Of labor, being the
/ growing crop, worth........... 1000 OO
Balance in favor of John Jones ........S s. go OO
I'm told tntthis statement would be plausible if
it embraced the active cash capital from which the
wages of labor are to be paid / reply that 10 OBJ
tain the active cash capital we must give good Sc
curity." aud large dividends; and that To enable
the Agency to divide ten, twelve. or even larger
per cent on its shares the charter authorizes the in
,lranc, of goods and property the insurance of
/ lives the guarantee of theperrormance Of contracts
and the exercise OF trust powers, all of which are
! kindred privileges and may all be exercised by
single company: each of which giving premiums,
wI add 90 the fund from which dividends are To Le
paid. and being all combined under single admin
.,ta,fou. will enable the Agency to pay at least
twelve per cent. dividends, and such dividends will
command the requisite active cash subscriptions
VIII any one say that any one of the privileges If
granted would prejudice the public or any single
individual Are they not all such to benefit the
public ana the individuals who may avail themselves
OF their Use It the Agency n,urcS John Jones
goods and lends him money, and guarantees his con
tracts. John Jones can afford To pay the Agency
premiums on the insurance aud on the guarantees a.,
well as the interest on the money loaned. and mas
much as Silas >hoddy, who has realised many thou
sand, ON government contracts has large sums seek
ING investment if we can satisfy Mr.. Shodiy that
VS. can give him good security in shape of the
shares of the Agency. which will pay him twelve or
more per cent in dividends then Mr.. Shoddy will in.
vest his surplus active cash capital in the shares of
the Agency and Us Mr.. John Jones will realise three
thousand and ninety dollars per annum by the Use
nf the credit created BY his subscription of two
thousand dollars 10 the reerved fund OF the Agency
PAYABLE 40 the rate OF five per cent per anuum, and
IN, is enabled % do this 10y giving bond and mort
gage on his land retaining his proprietary Interest
in. and control Of the lands he can well afford Ia
pay the interest Of $500 on his stock note and the
y further sum of $50 a, interest on the cash credit
II which will have enabled him to pay the $1,000 a.
e. the wages OF the labor which made the crop worth
$1,000, out of the proceeds of which he will refund
g the $1,000 cash, advanced for wages.
Il is admitted that We want capital to pay tn,
wages of labor. The sum wanted for this use. a,
compared with the value Of the products OF labor
is but small part of the value of the real estat,
r which, under the system proposed bv the charter
may be made available to obtain il. leaving tn,
e proprietary interest and control with the nrassnt
- owners of the land; and it will be seen that tbs
privileges asked for for their use and benefit and
inasmuch as no one can deny their merit as class
and as the privileges, if granted will greatly benefit
Them and injure one, it is respectfully urged that
70 the charter should pass the Legislature.
3 But the war has not only ipated our slaves
+ and thus diminished power of producing cottor
q and tobacco, but by doing So it has increased
the price As to stimulate production in British India