The Madisonian., 1840-02-04

by American capital and the change has been oy
nothing more facilitated than by banks,
But as proof OF this assumed dependence OF the
banks Of the United States the banks Of London,
you say ii, s 40, denied ,ha, the suspension Of The
New York banks in 1897" followed by the applica-
iion Of the money power in Great Britain" know
not what pleas may have been urged by the banks Of
New York IN juslifyng themselves before the public,
but will take the liberty Of asserting that no man
competent to give unbiased opinion the subject,
has ever ascribed the suspension Of the New York
banks, either wholly principally. to any action Of the
bank Of England Ths. suspension owing to
singular concurrence Of causes One was, the unusu-
ally heavy mportations in 1885. followed by sudden
and considerable fall in the price Of cotton another
cause the unexpected distribution Of The large sur
pos the Treasury, which Of your friends wish
cd to remain there for the purpose Of speculation and
others for the purpose Of electonecrng, and which had
remained there but for the critical ntepos,ion oil Gen.
eral Tallrnadge aud Mr.. Rvcs, and who thus atoned
for the sin Of expungng third, was the arbitrary
exacon Of specie for the public lands, begun ny Gen-
ers Jackson and continued by yourself by which coin
was taken from the Atlantic States at the time II was
most wanted, and the west, where there was at
that time redundancy. The last and least cause Of
all the fact. that two or three London merchants,
who had obtained large credits from the Bank Of Eng
land and had given corresponding credits in the United
States having had their accommodations stopped at the
Bank were compelled 10 press their debtors in Amer
who in the existing state Of exchange, found specie
the best remittance When so many things concurcd
to increase the demand the banks for specie and TO
lessen the supply they saw and every body that
-E.A- -...LA s..t ~.
after it exhausted. They chose the former al
err alive, and their choice was ratified by the public.
As further proof that the suspension could not be
fairly attributed to the money power Of Great Britain
may refer to your own Message to both Houses Of
Congress- in September 1887, in which. while you no.
ce the Of the suspension fully as to descend
TO the great FIRE OF New York, which had taken place
nearly eighteen months before, you make no mention
whatever of this dependence Of banks the banks
OF Great Britain.
The influence Of capital the relation Of debtor and
creditor, is unavoidable. The richer nation will ad-
vance its capital TO the poorer one and profit BY such
advances. No policy Of ours put end to these
loans and accommodations without at the same ,imo
destroying commerce; but they diminished by "a
well-dgested system Of banking, and domestic credit
The remarks apply TO the influence Of capital, as a
source Of national profit but the dangerous po,i-
cal Influence Of foreign capital to which you advert the
argument, 1t to me- might be used with much
more effect in England. than in this country. On the
great question Of peace or war, for example, who
doubt that the relation Of debtor and creditor would OPP
crate with most force the creditor nation In the
debtor nation, the honest portion Of the debtors might
feel interest in the question, but the dishonest
lanly would, if from other account, from the hope
Of postponing the day Of payment. The creditors. on
the other hand, would all feel apprehensons from the
delay Of payment, and the risk Of eventual loss Your
illus,rious predecessor also took dwell
the danger Of allowing foreigners their capital
in this country and in doing so, he seemed to have
adopted the course Of reasoning that which,
according to Miss Edgeworth, once induced an Irish
mob, by way Of running an unpopular banker to burn
all the notes Of his bank whenever They across
them. Your assumption, them of national dependence,
being founded as conceive, mistaken view both
Of facts and principles, falls TO the ground
As the sentiments and views here expressed are, l
have reason to believe, shared with me by large por
ton of the American People, in taking my leave Of you
for the present, shall subscribe myself
ONE OF MANY.
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