University of Virginia Library

1823-24.

Lack of funds still embarrassed the University, and payment of
interest on loans to it from the Literary Fund, and relief was sought.
Chapter 7, entitled, "An act concerning the University of Virginia",
was passed January 27th, 1824. It follows:

"Whereas it is represented to this General Assembly, by the rector
and visitors of the University of Virginia, that, were its funds
liberated from their present incumbrances, the institution might go
into operation at the close of the year eighteen hundred and twenty-four;
and it is deemed expedient to adopt the necessary measures
for effecting so desirable an object:

1. Be it therefore enacted, That the annual appropriation of

fifteen thousand dollars, made by law to the said university, shall
be, and the same is hereby discharged from the payment of interest
on the several loans made by virtue of the several acts following,
to-wit; one act, passed February the twenty-fourth, eighteen hundred
and twenty, entitled, "an act authorizing the visitors of the
University of Virginia to borrow money for finishing the buildings
thereof"; one other act, passed February the twenty-fourth, eighteen
hundred and twenty-one, entitled, "an act concerning the University
of Virginia"; and one other act, passed February the fifth,
1823, entitled, "an act concerning the University of Virginia, and
for other purposes"; and, also, from all liability for the redemption
of the pledge or pledges contained in all or any of the acts aforesaid:
Provided always, That nothing in this act contained, shall
be so construed as to prevent the General Assembly of this commonwealth,
at any further session thereof, from directing the funds
hereby liberated, to be again applied to the payment of the debts
created by authority of the several acts herein referred to, if, in
their discretion, such a measure shall be deemed proper.

2. Be it further enacted, That the aforesaid interest upon the
said loans shall be paid, in conformity to the terms thereof, out of
any surplus revenue, or uninvested income, belonging to the Literary
Fund: Provided always, That, if any portion of the income
of the Literary Fund, derived, or to be derived, from escheats,
confiscations, forfeitures, derelict personal property, fines, and
pecuniary penalties, shall be used by virtue of the provisions in this
act contained, and the calamities of war should at any future time
render it proper for the Legislature to withdraw from the Literary
Fund any part of the capital thereof, remaining vested therein under
the authority of the tenth section of the act passed March the
third, 1819, entitled, "an act to reduce into one act the several acts
concerning the Literary Fund", such portion of the said capital
shall be exempted from the operation of the act authorizing the
same to be withdrawn, as may be sufficient to leave in the said fund
a sum equal to the amount, with interest, arising from escheats,
confiscations, forfeitures, derelict personal property, fines, and pecuniary
penalties, which may have been used as aforesaid, by virtue
of the provisions of this act: And provided, also, That nothing in
this act contained shall be so construed as to affect the appropriation
made for the support of the primary schools.

3. This act shall commence and be in force from and after
the passage thereof." Acts 1823-4. pp. 9, 10. Also appears as
Chap. 33 of Supt. to Rev. Code 1819, p. 461.

Some of the sections of Chapter 8 also look towards providing
funds for the University, although entitled "an act for extending
the charter of the Farmers' Bank of Virginia", passed March 6th.,
1824. Sec. 1 extends said charter for fifteen years longer.

Sec. 2 provides that the said bank shall, on May 1, 1824 (in
consideration of said renewal and extension), or as soon thereafter
as application shall be made for the purpose, on behalf of the
ex officio members of the Board of Public Works, "pay into the
fund for internal improvement, the sum of fifty thousand dollars,
to be reimbursed to the bank out of the profits of their stock, other
than that now held by the Commonwealth, or by the Board of
Public Works, or by the Literary Fund.

3. The aforesaid sum of fifty thousand dollars, or such part
thereof as shall be required, shall be loaned by the president and
directors of the Board of Public Works, if the said board think it
expedient, to the rector and visitors of the University of Virginia,
(for the purposes hereinafter mentioned,) for a period not exceeding
one year: Provided, That satisfactory assurance can be
given to the Board of Public Works, that the sum so loaned can be
reimbursed to them, with lawful interest, out of the fund herein
appropriated to that purpose.

4. Be it further enacted, That the rector and visitors shall be
entitled to receive, out of the first monies which shall be paid by
the government of the United States, for the balance of the debt
due to this commonwealth, on account of advances and expenditures
during the late war, a sum not exceeding fifty thousand dollars,
and so much more as will be sufficient to pay the interest on
the loan aforesaid; and the monies so received by the rector and
visitors, out of the debt due from the government of the United
States, are hereby pledged for the re-payment of the money so to
be loaned by the Board of Public Works.

5. The money so borrowed by the rector and visitors, or, if
none be borrowed by them, the money so received from the government
of the United States, shall be applied to the purchase of
such books and apparatus for the University, as the said rector and

visitors shall think proper. (See Chap. 34 of Supt. to Rev. Code
1819, p. 47.)

6. (Provides for office of discount and deposit at Danville, Va.,
etc.)

7. This act shall commence and be in force from and after
the time when its provisions shall have been approved by the stockholders
in the said bank, at a general meeting to be convened therefor,
on or before the first day of May next, and such approval shall
have been made, duly certified to the Executive of this Commonwealth.
At such meeting, no stockholder shall vote by proxy, unless
such proxy be appointed after the 31st. of March next." pp. 11 &
12. Acts 1823-4.