The Sun.
London, England, 1839-12-13 00:00:00

THE NEW YORK LOANS-

From a Letter on the Commercial Relations of Greai
Britain with the United States.
BY A CITIZEN OF NEW YORK.

The State of New York commenced her system
of " internal improvement " in 1817, and her loan
system at the same time. To meet the interest on her
debt about to be contracted, she pledged her revenues
then derivable from her salt springs and auction duties,
and some other minor sources, and the same funds and
her then untried faith, for the redemption of the princi-
pal at stated periods. She was, I believe the first State
of the Union that appeared in the markets of Europe as
a borrower ; and then, as now, attempts were made to
cast doubts upon her integrity and ability ; and then, as
now, the objects for which the money was to be expended
were vehemently opposed by a powerful party at home,
who predicted bankruptcy and ruin to the State, and
loss to the hapless lender who should hazard his money
in schemes so wild and visionary. The statesmen of that
day, however, were not deterred by the difficulties that
beset them—they persevered, and mark the result. To
guard against the most remote chance of any violation
of the public faith from any sudden change of popular
opinion, they incorporated into the amended constitution,
adopted soon after the works were commenced, a provi-
sion, by which the tolls of 'the canal, at their then high
rates, were irrevocably and unchangeably pledged, for
the interest and principal of the debt, until the whole
should be paid or provided for.

The canals were commenced in 1817, and completely
finished and in full operation in 1825. Their effect up-
on the general prosperity of the whole State was like
magic. Their most sanguine friends found all their esti-
mates of benefit outstripped by the reality, and a diffi-
culty of an unlooked-for character soon arose. The
provision in the constitution just alluded to prevented
any application of what is called the " Canal Fund,"
(the surplus of these various sources of revenue over
—exptodii urea), except to The payment of thealabt,That
r:-debt was not yet due, and could not be paid wittour
the consent of the holder. The means of payment
were accumulating so rapidly that it was foreseen the
whole sum would be r,!ady long be'ore it could be le-
gally tendered to the creditors, unless the revenue
could be diminished by reducing the tolls, or appropria-
ting the funds to other objects, and this the constitution
forbad. On the one hand it was desirable to relive
agriculture and internal trade by reducing the cbarges
on transportation, as it was evident that it could be
done with safety to all parties; while on the other, any
departure from the, strictest letter of the contract with
the public creditors. (known to be almost all foreigners)
was not to be thought of. It was resolved to offer
them their principal before it was due. Notice to that
effect was given, but few or none availed themselves o
it. The difficulty still remained, and to relieve them-
selves from it, resort was had to an expedient which,
as it had no example, so it will probably have few imi-
tators elsewhere. The public creditors were informed
that if they would condescend to receive their money
before it was due, they should have a premium for so
doing, and those who chose to accept the terms, re-
ceived their principal and interest, and a bonus of, I be-
lieve, five per cent.
The fund still went on accumulating, and when it
had attained a sum that insured the punctual discharge
of what remained of the debt for which it was pledged,
and not before, the tolls were reduced ; nor would the
people, upon whom all this depended, relieve themselves
from burthens acknowledged to be unnecessary, until all
the obligations of honour and good faith bad first been
effectually discharged.

During the progress ot' the preceding events, political
power had passed from the party who had originated
the canals, and were the authors of the system of
finance which had proved so successful, into the hands o
their opponents, who had deprecated the whole scheme
and predicted the most disastrous consequences from
its 4i.ipption, They, however, never for a moment en-
tertained the thought of violating the plighted faith of
the State or of changing the disposition which has
beau made of the public funds, but carried out and
fulfilled to their utmost obligation all the engagements
of their predecessors.

Whorf 111 1837 the banks, pressed by an overpower-
ing heeessity, liuspended specie payments, (became
bankrupt, if the plainer phrase be preferred) and
when, moved by their conviction of what was the true
character of that necessity, the Legislature so far lega-
liAed the Act as to allow then to retain their charters,
did the Mate attempt to evade her obligations and ten-
der in payment of the State debts the same paper in
which the necmities of the times compelled her to col-
lect her own revenues? Far from it ; the public cre-
ditor received specie or its equivalent at his own option,
and the im ?PO borne by the debtor State.*
So much, then, for the past. It is thus that New
York has redeemed her faith ; and in the absence of all
evidence to the contrary, it is but common justice to
believe that she will continue to ho governed by the
same PrinciPle4 Nture.

•In the year above.mentioncsd, one million of the prin_
einal of the debt became duo, which was paid in New
fork pity bank notes, at one hundred and nine for every
hundred .dolhiaz pr atoa, and these notes in a Of months
after were equivalent 0 irt4o,

RURAL POLICE.—The following comparison
of the number of men and their gat/ries,
adopted in
three counties, may not prove uninteresting :-.-Essex,
population 317,237-1 fthiplgonstable 4001, 15 super-
:ntendents 80/., or if keeping Pr horse 100/., 100 con-
' 4,11,40,3 a ; total officers 110 ; total salaries 632/.
population 479,155-1 chief constable 000 j.,
1 deputy ditto ON., 11 superintendents 751., 85 con-
stables 52/. ; total offleers p 8 : total salaries 522/.
Norfolk, population 390,054-,1 chief constable 500/.,
12 superintendents 1001., 120 constables ;74/. total
~fficers 133: total salaries 652/, The decision with re-
:ard to Kent took place at a very numerous meeting
‘.f the Magistratei for that county at Maidstone, on
he 26th ult. Col. A usten moved the adoption of the
.orce for the division of uMop-at-Hone, and Mr.
3erens moved an amendment for the establishing the
,Istem throughout the county upon the Scale above
,jiottit) ; 28 voted for the amendment and 24 against it.
the speakers in favour of the system were the Hight
Hon. J. C. Herries, Mr. kiewin, Mr. T. L. Hodges,
Mr. E. Rice, M.P., Mr. T. Bentley Mr, W. M. Smith,
' Viscount Marsham, and Mr. J. T. bridges. A sinst it,
Sir E. Knatchbull, the Rev. G. Davies, and Mr.
Deedes. A Committee was appointed. A memorial
was presented from Tunbridge Wells, praying exemp-
tion limn the operation of the Act,
in the garden of Mr. John Daniel Vauer, in
the parish of Llanidan, there are at present three goose-
berry trees having fruit of the size of peas, and flowers
upon them.-117elsk Paper.