The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-10-02
ISLANDER REFUTED.


ZION party had proposed and advocated the as
sumption of the debts Of the States by the
Federal Government. This pitiul humbug,
which, for the mischievous purpose OF assalllng
the institutions and the credit OF the several
States was endorsed by Mr.. Grundy's select
committee, commonly known by the very proper
designation Of s'Commttee for the Destruction
Of State Credit" has long agobeen reiuted. No
man of common information and candor will
hazard his character by saying he believes
SYLLABLE of the story. Mr.. Webster took occa-
sion. in the course of his speech TO the New
York Merchants TO notice, and put down for
ever the charge which the Governments corps
of caumniators falsely brought against him OF
having taken part in certain operations IN Eng
land intended TO induce Congress TO assume the
State obligations. We copy this portion OF his
speech, as reported in the New York Express.
For the declaration that the Wings in Congress
in favor of the assumption of Stale debts by tine Gene
raj Government there exists not one particle OF proof
or the least possible oundation do not myself know
single man in Congress who holds the opinion that
the General Government has any more right to pay
the debts OF State than il has TO pay the debts Of
private individual Congress might as Wen undertake
of New York | exempt, however, from these re
marks the distribution among the States OF the pro-
ceeds of the public lands and their application to pay
the debts OF the States should the States choose 80 10
apply the money. But say there is no foundation
whatever for such plan of assumption Mr. Benton
and Mr. Grundy have zealously declared against IN
the u. s. Senate
You have all heard in the public papers (and il is
of the despicable of all the inventions OF the
enemy that Of transactions took place in which
had part the object of which was TO persuade Con
gress the State obligations, and that went
to England for the worthy purpose of furhering such
design. Laughter and shouting) Now as ! am
among YOU this day among my friends, will tell
you all abou, it. ! left this country in May, 1889
AT that time had neither read heard from living
man OF any such design | went to England, and
must be permitted To say, that 1t most gloomy
time, SO far American securities, in general, and
the State debts in particular were concerned But
declare TO you, my honor that no European banker
holder of State securities ever suggested to me, IN
the remotest manner the least notion of the assump
ton of State debts by the General Government.
Once, indeed did hear the idea started by an Anne
rican citizen, hut Immediately told him II was uncon-
stitutional, and never could be effected unless the
States should adopt new constitution. II was quite
natural that should be applied TO in reference to the
State debts The State to which belonged had sent
out stock to England; and So believe had the
State of New York.
| We heard continually the most gloomy accounts
from the United States and in fact this very thing
was to use a common expression, damper to my en-
joyment while abroad. People frequently applied To
me to know what security there was that the Ameri
debts would be finally paid, and the interest IN
the meantime regularly discharged told them they
rely the plghted faith of the States and their
ability TO redeem their obligations Nobody asked
me whether there could be United States guaranty
to that effect did suggest such an Idea 10 any
one Gentlemen came to me to ask about the Massa-
chusetts bonds. They liked the offer of five per cent
interest very much this high for an English
capitalist, but they wanted to know what assurance
could give that the investment would be safe one.
my trunk and took out abstract OF the ofh
cal Of the Of the productive labour of
Massachusetts,. | put this into the hand of one OF
those inqurng, and told him to take it home and study
it, He did So and in two days returned, and invested
| forty thousand pounds sterling in Massachusetts,
stock.
! Others and made similar inquiries as to New
York securities. gave them copy OF the very able
| and admirable report made by your townsman, Mr.
| Ruggles in 1888, and they came back satisfied But
to did suggest, in the remotest manner hint
that they could look to the United States TO secure
the debt endeavored TO uphold the credit Of all the
states ] remembered that they all my
rymen, and stated facts In relation TO each as favor
ably truth would allow. And what happened
them Gentlemen, it is fit that you should know,
that there exists certain clique in London, who are
| animated by an inextinguishable hate to American
credit. fou may set 1t down as fact that 1t is their
daily, their vocation to endeavor to impair
the credit of every of the states and represent
the purchase of these bonds as an unwisc and dan
gerous investment of money. On this subject their
ferocity knows no mitigation. 1t is deaf to all JUS
tice, and proof against all The you
show them it is .ong, the tenacity Of purpose
do they exhibit.
| That part of the public press which they have
control is furnished am ashamed to say with mat
ter drawn from publications which originated in
this city and the object of which is prove that
state bonds SO much waste paper, the state hav
! ing right to issue such obligation and their hold
ers being therefore utterly destitute of any security
1 IL.
put into the papers of the largest circulation in
Europe, and forced by all the aid they derive from
editorial sanction. 1t under circumstances like
these that a large banking house in London put TO
| me as lawyer the professional question, whether
the states empowered to issue evidences of debt
payable by the state. i answered that they
completely sovereign any state in Europe, that
they had public faith to pledge and did pledge it
| This entire correspondence published-( Though
you might well get any Administration editor in
this country take hold of pair of hot longs
sert it in his columns i'm the face of those who have
been shouting in all quarters, that | had personal
agency in bringing about assumption of state debts
| by the General Government.
II happened that in the latter part of October the
house of Barngs issued circular TO certain foreign
houses the continent on this subject, which circular
never till | arrived in America In this paper
they do speak of such assumption guarantee, but
as it went to foreign houses saw, did
hear of it till last December, when heard at the same
| time of the proceedings of Mr.. Benton. But here
wish again TO repeat that during the whole time was
in Europe English banker foreign bond holder
ever suggested idea of such assumption The
first heard of 1t from American citizen there
and not again till my return to this country have
said that owing to the bad news, which constantly
received from this country the pleasure of my. visit
was much diminished. ! will now say, that during
the whole time of my absence had the lowest hopes
as to the political state of the country which ever in
duged.
saw the fatal working of the experiment and !
n that nothing q better vas n the mind q