The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1842-10-27
GENERAL HAMILToN's LETTER TO
JOHN c. CALHOUN,
On the Financial Concerns Of tie Z. States.
LONDON, Sept. 0, 1872.

Nv Dear Sir-li have addressed this /
letter to you, it is not alone from the Justi- /
ticatIon which | find in the recolleciions
of an old aud cherished friendship, but
from the fact, that desire to attract the
public attention to lis object, through the
lnstrumentality Of name more influential I
Than my own. BE not surprised, if you .
see il in the newspapers. lwlsh not only
'io think aloud" bat speak aloud.
My purpose in writing to you, is TO put
YOU in possession OF a knowledge OF The
condition of the American credit IN Eu-
rope, with suggestion of the lndispensa-
bic necessity of cur doing something at
home, to meet the truly alarming crisis,
which this state OF things presents.
am far from defending the proiuse
confidence, with which European capltai-
lists lent their money during a period Of
six years from 1884 10 1910, 10 our coun-
tryInen, even on the faith OF variety oil
schemes, exceedingly visionary and un-
sound. They did this, however, out OF the
excess Of virtue, which may have been
pushed to the extent of rather an amlable
! than criminal weakness; for they general
Z w made these loans at n less rate oil inter-
est than they could be effected, II at all, al
home, and apparently for objects Of great
public utility. Blu, the loans OF the States
stand on a different footing. AT least, in
reference TO the public sanctions, with
which they are invested. They were
! made according to your reading and mine,
of the Constitution, TO sovereigns under
the obligations Of high public faith ma
ny of them were contracted on terms
greatly advantageous under the agency Of
houses OF the first responsibility, whose lib
crafty and confidence, knew no bounds.
This confidence was given 10 our young
country, because our resources I'm no de-
gree exaggcraiet) were considered i'm
mense, and because Ii was thought, as we
are OF the Saxon family, we were e-scn-
TALLY a debt-paying people. Indeed, from
an observation, winch larger residence
for the last five wears in Europe than in
America, enables me to make It is quite
{ obvious If We had paid the interest on our
, foreign debt, that the rate OF that interest
would have fallen gradually to the level OF
that paid BY some OF the Oldest and best
established States in Europe, and that for
! objects Of well founded public utility, and
oven OF private enterprise, our industry al
home might have been almost indefinitely
inyigoruled out of the large surplus capital
of the country. You will say, | am sure,
! that this facility of borrowing, has been a
, great curse to our own This, ! admit,
is true to a certain extent but It was con-
, yerted into a curse by the action Of our
government on the currency of the United
States. Under ludicious regulations and
prudential guards, u state OF things more
propitious 10 the deyeiopcmcn, OF the re.
i sources of a young country like ours, Dor.
rowing from an old one like this, It's capi.
tai 10 inyigofate IFS labor ut low rate Of
I interest, cannot well be conceived. 1.-THE
profits Of labor transcribed the rate Of IN
ierest It was to create capital at home. -
+ From what other source have sprung those
+ miracles Of enterprise and wealth, that are
TO be found IA our country, IN the midst Of
population Of eighteen millions, hnt this
eonioiut action Of our labor on tho caplnl
Of others. The Pilgrims found no Bank
Of England planted on the rock of Ply.
mouth, or the Hugeno's Of South Carolina,
ihegems Of Samarcaud On lis thirsty plains.
But if YOU consider this faculty Of Dor.
rowing abroad, my dear sir, a $ an evil, YOU
may certainly console yourself with the
conviction that il TO longer exists, although
am equally convinced that YOU regret the
cause which has produced this want of al
confidence in the good faith Of the people
Of the United States, and The consequences
which have followed IN fixing 50 severe 0
stigma on the character Of our country.
II is absurd for Us to talk il America
that We do not want the capital of Europe,
at the very momca, when the General
Government Of tie States has sent 40 a.
gent abroad to borrow Tor liz daily bread.
We do want their money aud they want the
results q our labor. And greatly then il
IS 70 be deplored thai this benc Gclal inter.
change has been suspended under clrcun.
stances so disastrous to both countries.
Let me now give you brie" statement,
OF the present condition Of American cred.
i IN Europe, and without presunng 10
suggest remedy, to enquire Of YOU beth.
e. the force Of public opinion, lr Congress
has not the constitutional competency 10
do any thing,) acting through the Icglsla.
lures of the detaulting States cannot be
made sufficiently potent to convince them
OF the truth and force OF the old adane that,
after all, IN the long run, $ honesty is the
best policy"
The first branch Of nv subject I can
discuss IN very few words. As orr old
friend Randolph used to say, American
credit is killed stone dead" John Jacob
Astor might obtain an uncovered credit for
a reasonable amount, where he was known
and Mr. Bates Of tho house of BARNES. bv
: wearing out pair Of shoes in walking from
: the Mansion House to the Minories. might
sell fifteen hundred pounds worth Of Mas.
sachnsotts stock, with large concessions 10
the buyer. The fact is no, the less 10 bc
H.