The following statement contains a brief notice of the various objects for which these loans have been raised: Alabama.-The loans contracted by this state were employed in establishing and extending the State Bank; in 1835, this bank had four branches, the capital amounted to $5,300,000. Florida. The debt of this territory was contracted for the purpose of increasing the capital of the "Union Bank of Florida ;" the loans were raised by the directors of the bank on the faith of the territory. Illinois. The State Bank of Illinois has a capital of $200,000, half of which amount was provided by means of a loan. The state has also commenced the formation of a canal called the "Illinois and Michigan Canal," to extend about 95 miles; the cost is estimated at $7,000,000. Indiana. The loans raised by this state were for the purpose of establishing a bank, and for improving the country; the bank in 1835 had ten branches, the aggregate capital was $800,000, with power to increase it to $1,600,000. In January, 1836, a bill was passed by the legislature of the state, for the purpose of forming canals and railroads, which provides for a loan of $10,000,000 to be raised, as required, on the credit of the state. Several of these works are in progress. Kentucky.-The loan raised by this state was for the purpose of subscribing to the "Bank of Kentucky;" this bank was incorporated in 1834, with a capital of $5,000,000, of which $2,000,000 were subscribed by the legislature of Kentucky. Several extensive works of internal improvement are also in progress, to which the state has subscribed a portion of the funds required. Louisiana.-The loans of this state were raised in order to provide capital for several Banking Companies. The internal improvement of the country is carried on by incorporated associations, to which the legislature in many instances, have granted certain banking privileges. Maryland. In June, 1836, a bill was passed by the legislature of this state, authorizing the advance on the part of the state of $3,000,000, towards the construction of the Chesapeake and Ohio Canal-$3,000,000 towards the Baltimore and Ohio Railroad-$1,000,000 towards the Eastern Shore Railroad-$500,000 towards the Annapolis and Potomac Canal-and $500,000 towards the Maryland Canal. To supply these demands, the loans of the state have been principally raised. Mississippi. The public debt of this state was created for the purpose of establishing and improving the banks. New York. The loans raised by this state were entirely for the purpose of constructing canals; it appears from the report of the canal commissioners, that the canals which are the property of the state, extend collectively 658 miles, and that they have been constructed at a cost of $11,652,562. The first of these canals was completed in 1824, and the total amount received from tolls to January the 1st, 1836, on the whole of the canals then completed, was $12,278,105. Several other canals are in progress, those completed are as follow: New Jersey.The debt of this state has been contracted in order to supply capital for the State Bank. Ohio. The loans raised by the state of Ohio were entirely for the purpose of constructing canals: those owned by the state extend collectively 406 miles, and were completed at a cost of $5,356,150. On the 1st of January, 1836, the foreign debt of Ohio amounted to $4,400,000, the annual charge for interest on which, was $260,000. The domestic debt amounted to $579,287, the interest on which, was $34,757, making a total charge of $294,757, while the tolls on the canals, during the year ending the 1st of January, 1836, together with a small sum received from the sale of land attached to the canal, amounted to $306,906, being a surplus of receipts of $12,149. Pennsylvania.-The whole of the loans raised by this state have been devoted to the construction of canals and railroads, except the sum of $1,780,000, which was for the purpose of banking; the railroads owned by the state extend 118 miles, and the canals 601 miles. The receipts during the year ending the 31st of October, 1835 on the canals and railroads, amounted to $684,357. A great number of works are in progress by the state, and the amount already expended exceeds the sum of $22,000,000. Virginia. The debt of this state was contracted for the purpose of forming canals and railroads, and to assist public companies, incorporated for the purpose of improving the country by the construction of these works. The several state securities are either in the form of bonds of $1,000 each, payable to bearer, or in stock which is inscribed in the name of the proprietor in America; the former pass from hand to hand, as other floating obligations; but in the transfer of the latter, it is necessary that the seller should execute a power of attorney, which must be delivered to the purchaser, with the original certificate of the stock issued by the state, together with a guarantee for the regular payment of the dividends for twelve months, which guarantee must be produced at the time the dividends are claimed of the seller, to whom they are, of course, remitted so long as the stock remains in his name. It is usual for a pur chaser of these stocks, to have the same transferred into his own name in the books of the state; for this purpose the certificate and power of attorney must be sent to America, and the transfer will be made by agents there; the expense of the transfer in America is paid by the purchaser, but the seller defrays all charges incurred in this country, by the necessary power of attorney, guarantee, &c.; these documents are usually prepared by a public notary. The dividends payable in America must be received by an agent there, who remits them to this country at the exchange of the day, after a trifling deduction for commission, postage, &c. Table No. 1 exhibits the value of a dollar (excluding fractions) at several rates of exchange. All transactions in these securities take place (in London) at a fixed rate of 4s. 6d. per dollar. although the intrinsic value of the same is only 4s. 14d., (the value of the pound sterling being $4 83c.) and the usual course of the exchange between England and America, still further reduces its value in this country. Table No. 2 gives the value of $1,000 at various prices, the exchange being 4s. 6d. per dollar. Table No. I. Exhibiting the value of a dollar, in English money, at various rates of exchange. The par of exchange between England and America is 109 23-40ths per cent. |