Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1838-12-26

and still more effectually by any political
meeting called a Convenhon--which is
only another form of extraordinary legis-
tation, and an attempt was announced
to carry that dogma into effect at a Con.
vention then approaching. The assertion
ofsuch right by the State Government,
to annul all It's engagements to foreigners,
! put forth at a moment when the country
was laboring under temporary inability
TO pay its debts, was calculated to destroy
all confidence in the integrity ofoui Amer.
lean institutions, and therefore said to
you in my letter I" This mus, not be. II,
must be decided whether this Pennsylva-
MIA of ours is virtuous community or n
mere society of plunderers--nor will the
honor of the State be relieved either at
home or abroad from the stain which n
few small politicians wish TO fix upon her,
until the Convention adopts some solemn
declaration that there is no power in this
nation capable Of violating the sacred en-
gagements Of the State authorities. That
should DO done, and ii any efforts of mine
may avail, that shall be done, for the hon
or of this State, for the character Of her
sister States, aud for the stability OF our
popular institutions"
Accordingly, when the Convention
met, one OF its most decided acts was the
following resolution, passed on the 2 LIST OF
November, 1887.
Resoiced, That II is the sense Of this
Convention that charter duly granted
under an act Of Assembly, to a Bank or
other private corporation, is when accep-
ted, contract with the parties to whom
the grant is made, and if such charter be
unduly granted or subsequently misused,
it may be avoided by the judgment OF
Count Of Justice in due course OF law, and
not otherwise, unless in pursuance of
a power expressly reserved in the char
ter"
The obligation ofthe State Legislatures
to fulfil all their engagements made with
foreignels--and the anxiety oil individuals
to pay their foreign debts, being thus es
tablished, the next care was to enable
both to comply with their contracts at as
little sucrifce as possible. Ii was due to
foreigners that every debt should be paid
lit was due to ourselves to make the
most Of our resources in the settlement.
Now these resources consisted mainly in
the public securities, and the staple pro-
ductions of the country. The shock oil
suspension would of course sink both to
the lowest poin, of depression, and 1t see.
med expedent to save them from sacrifice
by two measures applicable 10 each.
| There can scarcely be any form OF Sc.
curity more safe than the pecuniary en-
gagements of the States. They have a
most luxuriant soil--valuabIe products -
infinite natural MISUNDERSTANDING III
dustry in developing them. They have
every thing but money, and for that
they are able to pay, and willing to pay
much more than the less productive indus.
try of Europe can afford to pay. Their
loans, too, instead Of being wasted IN
wars or extravaganza, go TO The dlreci
Improvement of the borrowing States -
so that there can be no better application
of the means OF any European capitalist
than to double his income by American
Investments. Yet all these require knowl-
edge--local Information the means of
exciting confidence ;-and il was thought
most expedient to establish an American
agency in London, as the common centre
and the general support of all American
securities-where, in addition to the ap.
propriate business of the Bank itself, all
the public and corporate stocks OF the
States might find shelter and protec-
ton.
In like manner the arrangement of the
currency placed the staples of the South
entirely at the mercy of the foreign pur.
chaser, who could have dictated the terms
of sale to the Frustrated planter. II was
thought proper TO avert that evil by EN-
ploying a portion of the capital OF the
Bank in making advances on Southern
produce. This had two efiects-the first
was to provide remIttances to pay ITS
own bonds in England, issued to the New
York merchants in their extreme distress,
for as the Bank could not Of course pur-
chase these staples, It made advances up
on them in the South, receiving IN ex-
change bills on Europe. The second Ell
feet was 10 introduce into the market u
new competition, and thus prevent the I'M
conditional subsection Of the planter to
the foreign purchaser. These advances
| we're made, not as in past years on the
mere personal security of the merchants,
which the confusion of all private cre-
dit would have rendered toe hazardous,
| but on the actual shipment of the produce
to an American house in England, will
ing to protect American property from
the reckless waste with which i, has been
too often thrown into the market, with an
entire disregard of all American interests.
The combination Of these cause.-the APP
plication of capital on this side and the