Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1838-12-20

have discharged their private engagements |
with an unexamplcd fidelity-a civil glory
this, worth q thousand victories.
In the midst ofthcse troubles the character
Of our institutions was threatened by a com
binstion of politicians in Pennsylvania, who
endeavored to establish, as the basis of
American legislation, that charter or other
engagement made BY any state Legislature
was liable to be annulled by any subsequent
legisature-und still more efiectually by any
political meeting called a convcntion-which
is only another form Of extraordinary lcgisla-
tion--snd an attemp 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 en-
gagements to foreigners, pu, forth at mo.
ment when the country was laborng under
temporary inability to pay its debts, was cal
culated 20 destroy all confidence in the in
tegrlty OF our American insiitutons-and
therefore said to you in my letter, This must
not DO. II 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 at home
or abroad from the stain which few small
politicians wish TO fix upon her, until the
convention adopts some socmn declaration
pdt tuStC 10 UO pO"Cf nI udtipH NupuuPs
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 states, and for the
stability of our popular institutions
Accordingly, when the convention met,
one OF It's most decided acts was the follow
ing resolution, passed on the 2lst Of No.
vembcr, 1887.
RESOLVED "Thnt 1t is the sense of this convention.
thats charter duly granted under oi Assembly to
bank or other private corpoBlion H., when accepted,
contract with the par,c. To whom the grant IL made
and II such chartcr c uduy granted subsequently
msused, II may be- avoided hy the Judgment of a court
oJusiice In due course ~ law, aud not Otherwise M
charter"
The obligation Of the state legislatures to
fulfil all their engagements made with for.
elgners, aud the anxiety Of individuals to pay
their foseign debts, being thus established,
the next care was 10 enable both 10 comply
with their contracts at as little sacrifice as
possible. II was due to foreigners that every
debt should be paid-it was due to ourselves
10 make the most of our resources in the set
t!cment. Now these resources consisted
mainly in the public securities, and the staple
productions OF the county. The shock OF
Suspension would OF course sink both to the
lowest point Of depression, und il seemed ex
pedent to save them from sacrifice by two
measures applicable to each.
There can scarcely be any form ofsccurity
more safe than the pecuniary engagements
of the states. They have most luxuriant
soIl-valuablc products-infnite natural nd
vantagcs-untlring industry in developing
them. They have every thing but money
and for that they are able to pay, and willing
Ia pay, much more than the less productive
industry Of Europe can afford To pay. Their
loans too, instead OF being wasted in wars or
extravaganza, go to the direct improvement
al the borrowing states $50 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 re-
quirc knowledgc--local inlormaion-.thc
p,eans of exciting confidence and 1t was
thought most eXpcdicnt to establish an a
mcrican agency IN London, rs the common
centre and the general support of all Amerl-
can ccurities,-wherc, in addition to the ap-
propriatc business of the Bank ITSELF oil the
public aud corporate stocks Of the states,
might find shelter and protection.
In like manner the arrangement Of the
currency placed the staples Of tho South en-
trcly at the mercy Of the foreign purchaser,
who could have dictated the terms of sale to
the prostrated planter. 1t was thought proper
to avert that evil by employing a large por-
tion OF the capital OF the Bank in making ad-
vances on Southern produce. This had two
cflccts-thc first was TO provide rcmittnnces
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
purchase these staples, it made advances
upon them in the South, receiving in cx-
change bulls on Europe. The second effect
was to introduce into the market n new com
petition, and thus prevent the unconditional
subjcctlon Of the planter TO the foreign
purchaser. These advances were made, not
rs in past years. on the mere personal sccu-
rty of the merchants, which the confusion
Of all private credit would have rendered too
hazardons-but on the actual Shipment of the
produce To an American house III England,
willing and able To protect American property
from the reckless waste with which it has
been too often thrown into the market, with
nn entire disregard of all American interests.
The combination Of these causcs-tlIc APP
plcation of capital on this sidc.and the prn-
dent reserve Oh the oihcr-have saved To the
planting interest an amount which IL is diff.
ticult To estimate below ten or fifteen millions
Of dollars. ] believe, too, that nearly one
half of the commercial debt Of this country
TO Europe has been paid by the mere diff
ference between The actual sales o! the Sc
curiies aud staplcs-and the prices they
wonld have realized had they been thrown
unprotected into the hands OF Europeans
These measures were essentially OF tempo.
rary naturc-they were measures OF emcr-
eency adopted in the midst of public ca
lamity, and to be discontinued with the ne.
cessi,y which caused them. AS soon there
fore as the capital and industry of the country
had time to subsdc into their accustomed
channels, these operations were rcllnqulshed,
and now they have totally and finally ceased.
III. During these movements II became
important to understand distinctly the course
Of the Government. In my letter 10 you of
tho 9th Of April last, ! stated my conviction
that there could be no safe or permanent re-
sumption Of specie payments by the banks
until the policy of the Government toward
them was changed" This change was soon
and happily made. On the goth Of May, the
specie circular, requiring payments in coin
intke land Offices, was repealed by Congress.
On the 25th Of June the bill called the sub.
Treasury, requiring coin in all payments TO
the Government, was negatived. In the
month Of July the Government agreed to re-
.ccivc az anticipated payment Of the bonds OF
A. Al. kaI. Il