New-York daily tribune., 1842-11-12
GEN. HAMILToN's LETTER.

LONDON, sept y, Iet<-
To tie Hor, JOHN c. CALHOUN
Ny DEAR SiR:-If have addressed tins let
ter to you, it is not aloae from the Justihcauonn n
which find in the recollections OF an ola ano
cherished friendship, but from the tact thae l ue-
sire to attract the public attention % ''e opjeo''
through the instrumentality of name lar more
influential than rny own. Be not surprised, II you
see it first in the newspapers wish not only
&c 10 think aloud, but speak aloud.
Nv purpose in writing you, Is to put you in
posse sion of knowledge Of the condition OF
The American credit in Europe, with suggestion
of the Indispensable necessity of our doing some
,hipg at home 10 meet the alarming crisis which
this state of things presents
am far from defending the profuse confidence
with which European capitalists lent their money
during period of six years from 1884 to 1910,
10 our countymen, even on the faith of variety
of schemes, exceedingly visionary and unsound.-
They did this, however, cut OF the excess of vir
rue which may have been pushed to the extent of
rather an emiabe than criminal weakness for
they generally made these loans at q less rate Of
interest thsa they could be effected, if at ALL at
home, and apparently for objects of great public
utility. But the loans to the States stand diff
ferent footing At least in reference to the public
sanctions with which they arc invested. They
were made according to your reading and mine, Of
the Constitution, to soyereigns under the obliga-
tions OF high public faith many of them were
contracted terms greatly advantageous under
the agency Of houses Of the FIRST responsibility,
whose libera,y and confidence knew no bounds.
This confidence given our young coun-
try because her resources Gin no degree exaggera
red,) were considered IMMENSE and because il
was thought, as of The Saxon family, we
were essentially debt-paying people. Indeed,
from an Observations which larger residence for
the last FIVE years in Europe than in America ena-
bles me to make, it is Sste obvious, if we had
paid the interest 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 of private
enterprise, industry at home n4ight have been
almost indefinitely iuvigorated out of the large
surplus capital of this country You will say, |
am sure, that this facility of borrowing has been
great curse to our own. This admit is true
10 certain extent; but it was converted into
curse by the action of our government on the cur
rency of the United States. Under .iudicous re-
gulations and prudential guards, state Of things
more proptious to the developement Of the resour-
ces Of young country like ours, borrowing of an
old like this its capital to inyigorate its labor
at low rate of interest, cannot we'll be concev-
ed. If the profits of labor transcribed the rate
of interest, it was to create q capital at home
From what other source have sprung those mira
cles of enterprise and wealth that are to be found
In country in the midst of population OF
eighteen millions, but this con Joint action of our
labor with the capital Of others7 The Pilgrims
found no Bank of England planted on the rock of
Plymouth, or the Huguenots of South Carolina,
tho warn, Of n, ,,In;p,
But if you consider this facility of borrowing
abroad, my Dear Sir, an evil, you may certainly
console yourself with the conviction that it no
longer exists, although nm equally convinced
that you will regret the cause which has produced
this of all confidence in the good faith of the
people of the United States, and the consequence
which would have followed, in fixing go severe
stigma on the character of our country.
1t is absurd for US to talk in America that we
do not want the capital of Europe, at the very
when the General Government has sent
an Agent abroad to borrow for Its daily bread
We do want their money, and they want the re-
suits of our labor. Aud greatly then is it to be
deplored that this beneficial exchange has been
suspended under circumstances 30 disastrous to
both countries.
Let me now give you brief statement of the
present condition Of American credit in Europe,
and without presuming to suggest remedy, to
inquire of you whether the force of public opin-
ion, (if Congress has not the constitutional COM
potency to do any thing,) acting Though the Lee
gislatures OF the defauting States cannot be made
sufficiently potent to convince them of the truth
and force of the old adage that, after all, in the
long run, g honesty is the beat policy"
The first branch of my subject can discuss in
very few words. AS our old friend Randolph
IL ,o
dead John Jacob Astor might obtain m uncov-
cred credit for reasonable amount, (where he
was known,) and Mr.. Bates, of the house of Ba-
rings, By wearing out pair of shoes in walking
from the Mansion House to the Minories, might
sell fifteen hundred pounds worth of Massachu-
sets stock, with large concessions to the buyer.-
The fact is not the less to be concealed that we be-
gin to be regarded as nation of sharpers and
swindlers, with whom, it tie day of judgement
should happen TO be on Monday, cur pay day viii
not be until the tuesday following. This revul-
sion OF confidence does not arise so much from
discredit which attaches to our resources or. in
other words, our ability te pay, as our seeming n
disposition TO pay, The former is still considered
IN most cases as undoubted, while sickening dis
trust has fallen upon the latter. Hence it Is, tba,
while the rate of interest has fallen TO two md a
half per in the London market, it is not prob
sbie that if the Commissioners Of the United States
six per ceEs. loan, were to offer price which
would secure interest of ten per cent. ten
pounds of the stock could be sold, without, from
considerations Of policy under the advice Of Lord
Ashburson, on his return to England the Barings
should be induced to make the loan.
When we contrast this discredit of our own
country, seeming with such. gigantic resources,
with the palmy credit of other States that have
little else but good faith and high taxation to offer
10 impossible to refer it to any other cause but
deep moral dis.tust in US, the most ignomipous
curse that can fall on people who aspire 20 be-
elv'iisea and free. OF the truth of this fact, |