Richmond palladium. [volume] (Richmond, IA [i.e. Ind.]) 1839-1854, 1842-10-22
GENERAL mAMILToN's LETTER.
= rur Uou JouN C.. CALHOUN

20 you il is not alone from the Justification which
find IN the recoec,ions of an old and cherished
friendship, bat from the fact that desire to at
tract the public attention TO ITS object, 'hro1gh
the insirumentalty Of a name far more ini1ueh-
iiaI than my own. BE not surprised yoi see
II first in the newspapers. ! wish not only ut"
think aloud" but speak aloud.
Nv purpose Of writing to you, is to put you IN
,ossession of a know ledge OF the condition OF the
American credit 10 Europe, with suggestion oil
tho indispensable necessity OF our doIAg some
,bioo nj home 10 meet tho truly alarming Crisis,
which this state Of things presents
lam far from defending tho profuse conf lence,
with which European capitalists lent the'r mon
ey during a period Of SIX years from 1851 to 10
40 10 our counirymen, even on the fiiih OF va
,,e,v az schemes exceedingly visionary and I'M
sound They did this, however. out OF the ex-
cess Of a virtue which may have been pushed TO
tho extent OF rather an,abe than Criminal
weakness; for they generally made thesc Ioahs
nj "a less rate of interest than they could be et-
fected If at all al home, and apparently Tor OBJ
FACTS of great public utility. Bat tho lo1ns to
the States stand q different footing. At least
in reference the public sanctions WIN which
they are invested. They were made according
to your reading and mine, OF the Constitution, 10
soyerepns under the obligations OF high pubic
faith; many of them were contracted on terms
greatly advantageous under the agency OF houses
Or the first responsibility, whose hberalIty and
confidence, knew no bounds
This confidence was gwen 10 our young couh-
try because our resources TN no degree exagera-
,edi were considered immense, and because 1t was
,bouph, as we are Of the S ixon family, we were
essentially debt paying people Indeed, from
an observ ation which a larger residence tor the
last five wears Europe than ~ American ena-
bIes TO make, II Is quite obvious, II We mao
oaid the interest our foreign debt that the rate
of that interest would have fallen gradually 10
the level Of that paid by some OF the Oldest and
best established States in Erope, and that Tor Oh
;ects Of we'll founded public uiiiIty, ana even OF
private enterprise, our industry at home might
nave been almost indefinitely invigorated out OF
,he lorpe surplus capital of :ais country. You
will saw am sure, that this facility OF borrowing
has been a great curse TO our own ms h"'
nit, is true to n certain extent; but II was con
verted into a curse by tho action OF our govern
men, on the currency OF the United States. Un-
der iuI,cious regulations and prudential gIards,a
c,,,e of ;hnos moro propiiious 10 the develop |
n,ent Of tho resources OF young country IKE
ours borrowing Of an old one Ike ihis, lis capi-
tai 10 invigorato its labor at low rate OF inter
est cannot we'll be conceived II the Prohs OF
labor transcribed tho rate Of interest, u was TO
croate capital at home. From what other source
haye sprung those miracles Of enterprise and
wealth that to be found IN our country IN the
,nidst Of population OF eighteen millions nut 'hls
:onoint action Of our labor on the caPi'nl o. oth-
orc Tho P,lprims found Bank of England
p,an,cd on tho rock of Plymouth. or tho iuege-
uo,s of South Carolinn, the gems OF Samarcand
on its thirsty plains
But If you consider this faculty OF borrowing
abroad my Dear Sir, an evil. you may certain
~ console Yourself with the conviction that it no
longer exists, although ! am equally WINGED
thai you will regret the cause which has produced
,h;s want of all confidence IN the good faith OF the
people OF the United States, and the consequen>
ces which have followed IN fixing so severe
s,ipma on the character Of our country.
II is absurd for us to talk IN America that we
,h, ttal Of!
momeut when the General Government OF the
States has scot ar agent abroad TO borrow Tor Ms
daily broad We do want their money, and they
want the results f our labor. And greatly then
is il TO be pored that this beneficial interchange
has been suspended under circumstances SO dis
ustrous to both counties.
Let me now give a brief statement OF the
present condition of American credit IN Europe
and without presuming to suggest remeoy' TO
enquire Of you whether the torce OF puo'ic opih-
ION az Congress has not the constitutions com
petency TO do any thlng,) acting through the le-
oisa,ures of the detauiting States, cannot be
made sufficiently potent to convince them oil The
truth and force of the old ndage that. after oil, IN
tho long run, "hones,y is the best policy
The first branch of my subject can discuss IN
n yery few words As old friend Randolph
used 10 saw American credit is killed "s'onc dead
John jacob As,or might obtain an uncovered cred
il for a reasonable amount, (where he was known)
and Mr.. Bates of the house OF Birngs, by wear
inc out pair Of shoes in walking from The Man
sion House to the Minor,es, might sell fifteen hum
dred pounds worth Of Massachusetts, stock, with
large concessions to the buyer. The fac, is not
tho less TO be concealed that we begin to be
garded as n nation of sharpers and swindiers,
with whom. in the day of jndgmen, should hap
pom to be Monday our dav will not he unit, the
Tuesday following. This revulson of confidence
does not arise SO much from diScredt, which at
tached to resources, or, III other words our u
biitv 70 paw, our seeming ndisposiiion 20 pay.
The former is still considered in most cases an
undoubted, whilst sckening distrusi has fallen
upon the latter. Hence il Is. that whilst the
rate Of interest has fallen this day TO two and
half per cent. in the London market. il is not
probable that If the Commissioners Of the Uni. i
ted States six per cent loan, were TO oiler o d
prica which would secure interest Of ten per 5