The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-12-18
Fr0m The National Gazette.
LETTER FROM NICHOLAS BIDDLE, Esq.
To THE Hon. JOHN QUINCY ADAMS.
To the Hon. John Quincy adams.

/ THidutiPuidb bccculucI lutuJ loo.
| My DEAR SIN
The general resumption OF specie payments
presents fit occasion TO close correspondence
with explanation Of The course Of the Bank of The
United States In regard 10 that subject This shall
| be done briefly and finally.
| On the 10Th OF May, 1897, the Banks Of New
| York suspended specie payments, and their example
was Immediately and necessarily followed by The
other Banks In The United States The country was
thus placed in situation of extreme difficulty, from
which II could be extricated only by instant and Wig
orous measures Tor its protection. The dangers
were--lhe total prosraon of its credit and charac-
ter abroad-the depreciation in prices Of all its pub
lie securities and its staple produclions-and, last
and worst that the defensive remedy Of suspension
might bt proracted until il became itself disease.
Il was manifest too that the calamity had ougrown
| the capacity OF mere politicans-hat the country
must take care Of itself and rely only upon itself
and as in times OF peril, the voice of the humblest
citizen may sometimes be heard above the tumult,
my own personal position seemed TO justify the
| sumption Of instant and deep responsibility. Ac-
cordingy, at the very moment when this national
misfortune occurred, immediate measures were
adopted 10 mitigate and repair it, or these in their
order
l. Aware that the first intelligence Of the suspen-
sion would degrade the character Of the country,
aud subject the reproach of bad faith and in
solvency, addressed 10 you a published letter,
which went TO Europe at the same time with the
news Of the suspension in which venured to pledge
myself for the fidelity of our counlrymen. In that
letter, Of the 18th Of May, 1887, said -" In the
meantime two great duties devolve on the Bank and
the country. The first regards foreign nations
the second, our own. We owe debt 10 foreigners,
by no means large for our resources, but dispropor
! tonae TO our present means OF payment We must
take care that this late measure shall not seem 10 be
an effort to avoid the payment of our honest debts TO
them We have worn and eaten and drunk the pro-
duce Of their industry too much of all perhaps
but that is our faut-not theirs. We may take less
herealter,-but the country is dshonored unless we
| discharge that debt to the uermost farthing"
For this purpose-the early and total discharge of
ah k,xIA ,ft ~
of the United States was devoted. In such a crisis
il was evident that il resort had to rigid
tailments, the ability to pay would be proportionably
| diminished while the only true system was, to
keep the country so much at ease as consisted with
its safety, 10 enable the debtors 10 collect their
resources for The discharge Of their debts For the
same purpose the Bank, though entirely out Of its
course of business, and in degree Of collision
with its own exclusive Interests, assumed an active
agency in collecting the debts Of the Bank Of Eng
and,-gave every facility for the recovery Of all
debts and stimulated our countrymen TO this duty by
earnest and constant appeals TO their honor and their
true interest. With what generous emulation that
| appeal was answered you well know-for il touched
| chord which lies deep in all American hearts. If
the universal distress which pervaded the community
could not be witnessed without painful sympathy
| its melancholy was redeemed by the high and manly
spirit which il reused throughout the country For
never on its most glorious fields of battle was there
| displayed more lofty sentiment of honor and cour-
| age than was there exhibited.
The honest payment of debt,-the homely duty
of private lite-was elevated by its universally in
to sentiment OF national HONOR the whole
country en- masse pressed forward to its performance,
as to some sacred and patriotic obligation. What
ever could be paid was paid instantly and cheerful
| ly; what it was impossible 10 pay at once,
cured with ample interest for the delay, with an ut
ter abandonment of mere seishnesS, and disregard
OF any pecuniary sacrifice necessary TO fulfil their
| engagements. Accordingly the manner in which
States aTeps ss IS as5 of
ts egrd n,v Ne v sn"G 2, b sed nSs.
prosperity such settlement could scarcely be ina
gined was accomplished amidst the general wreck
and confusion of all its great interests with which
the country was afflicted. The consequence is that
the general credit of the country stood higher
than at this moment for it has now earned dis
tnction entirely exclusive and characteristic-that
while the Government OF the United States is the
only Government on earth that has ever paid to the
last cent its national debt the people of the United
States have discharged their private engagements
with an unexampled fdelity;-a civil glory this,
worth thousand victories.
In the midst of these troubles the character Of our
institutions was threatened by combination of poll
| lcians in Pennsylvania, endeavorng TO establish,
| the basis of American legislation that charter
| other engagement made by any State Legislature
was liable TO be annued by any subsequent legsla-
! ture--and still more effectualy by any political
| meeting called Convention-which is only another
form OF extraordinary legislation and an attempt
was announced TO carry that dogma into effect at
Convention then approaching. The assertion OF
such right BY the State Government, to annul all its
| engagements to foreigners, put forth at moment
| when the country was aboring under temporary
inability TO pay its debts calculated 10 destroy all
confidence in the integrity of American insiitu-
| uons,-and | therefore said TO you in my letter
"This must not be- 1t must be decided whether
| this Pennsylvania of ours is virtuous community
| or mere society of punderers-nor will the honor
of the state be relieved either al home abroad from
the stain which few small politicians wish to fix
! upon her, until the Convention adopts some solemn
declaration that there is no power in this nation ca
! pable OF violating the sacred engagements OF the
State authorities That should be done, and il any
efforts of mine may avail that shall be done, for the
honor of this State, for the character of her sister
4 States, and for the stability of our popular institu-
| tons"
its most decided acts the following resolution,
passed on the 9th of November, 1887.
Resolved, That 1t is the sense OF this Convention
that charter duly granted under an act Of Assem-
bly, to Bank other private corporation, is, when
accepted contract with the parties TO whom the
grant is made and IL such charter be unduly granted
or subsequently misused it may be avoided by the
Judgment OF Court OF Justice in due course of law,
| and not otherwise, unless in pursuance of power
expressly reserved in the charter.
I The obligation of the State Legislature to fulfil all
| their engagements made with foregners-and the
anxiety Of individuals TO pay their foreign debts be-
ing thus established the next care was 10 enable both
to comply with their contracts at as little sacrifice as
possible. 1t was due to foreigners that every debt
| should be paid il was due to themselves TO make
the most OF their resources in the settlement Now
| these resources consisted mainly in the public secu-
rites, and the staple productions of the county
The shock Of suspension would of course sink both
to the lowest point OF depression, and 1t seemed ex
pedient 10 them from sacrifice by two measures
applicable to each.
There can scarcely be any form of security more
safe than the pecunary engagements OF the states-
\ SDl--V1IuAble prOductS