Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1842-10-20
GENERAL HAMHLToN,s LETTER.
LONDON, Sept. 9th, 1912.
tn tLs HIM .LaLu @ CnlLann:

4 o the non JohH y. CGfh0NHs
MY DEAR SIR Elf have addressed
this letter TO you, it is not alone from til,
Justification which find in the recolIec,
lions of an old aud cherished friendship
bot from the fact that desire to attract
the public attention TO It's object, through
the instrumentaIity OF a name far more
influential than my own. BE not surprs.
ed, if you see it first 10 the newspapers.
wish not only TO think aloud" bat speak
aloud.
My purpose in writing you, is 10 pu'
you in posse ssion Of Knowledge Of the
condition Of the American credit in Ea.
rope, with a suggestion Of the indispenss-
bic necessity OF our doing something at
home to meet the truly alarming crisis,
which this state of things presents.
am FAR from defending the profase
confidence, with which European capital
lists lent tner money during period oil
SIX wears, from 1894 TO 1910, to our coun.
trymep, even on the faith Of variety oil
schemes, exceedingly visionary and un.
sound. They did this, however, OF: Of
the excess Of u virtue which may have
been pushed to the extent of rather an
anabIe than criminal weakness for
they generally made these loans ut less
rate Of interest than they could be effect.
ed, if at all al home, aud apparently for
objects Of great public utility. But the
loans to the States sland on different
footing. Al least 10 re ference to the pub
lie sanctions with which ihty are invest.
ed. They were made according TO your
rca ing aud mine, of the Constitution, to
sovereigns uuder the obligations Of a iigh
public tauh many Of them were con-
tractad on t rms greatly advantageous I'M
/ der the agency of houses of the first re.
spretab'ity, whose hberaliiy and conf
dence knew no bounds.
This confidence was given to our Young
country, because our resources Gin no de-
gree exaggerated) were considered I'm.
mense, and because il was thought, as we
are Of the Saxon family, we were essen
TALLY debt paying people. Indeed, from
an observation, which larger residence
for the last five years in Europe than in
America enables me TO make, it is quite
obvious, if we had paid the interest on
our foreign debt tina. the rate Of that in
terrst would have fallen gradually to the
level Of that paid by some Of the oIdes,
and best established States in Europe,
aud that for objects of we'll founded pub
he utility, and even Of private enterprise,
onr industry OF home might have been al
most indefinitely invlg ruied out Of the
large surplus capital Of this county
You viii say, am sure, that this facility
Of borrowing has been grea. curse to
our own. This, admit, is true IL a Ger.
tain extent; but il WAS converted into u
curse by the action Of our government on
the currency Of the Unued States. I'm,
der iudcious regulations and prudential
1 guards, a state Of things more propitious To
the development Of the resources of q
young country like ours, borrowing of an
old one like this, It's capital to inv'g1rate
lis labor, AT q low rate OF interest, cannot
be conceived. II the profits oflabor tran.
Seconded the rate of interest, it was 10 Gre
ate capital at home. From what other
source have sprung those miracles of en-.
terprise and wealth that are to be found
in our country in the midst OF popula-
ton of eighteen millions but this conioint
action of our labor on the capital Of 9th.
ers. The Pilgrims found no Bank OF
England planted on the rock Of Plymouth,
or the Iluguenots Of South Carolina the
gems Of Samarcaud on its thirsty plains.
But fyou consider this faculty of Dor.
rowing abroad, my Dear Sir, as an evil,
you may certainly console yourself with
the conviction that it no longer exists, al
though | am equally convinced that YOU
will regret the cause which has produce
this want Of all confidence 10 the good
faith Of the people Of the United States
and the consequences which have follow
ed IN fixing 50 severe a stigma on the char
actcr Of our country.
1t is absurd for US to talk in America
that we do not want the capital of Eu.
rope /: at the very moment when the Gen.
crNl Government Of the States has sent nm
Agent abroad to borrow for its daily
bread. We do want their money, and
they want the results Of our labor. And
greatly then is il TO be depored that thi,
beneficial interchange has been suspend
ed under circumstances so disastrous 10
both countries.
Let me now give you a brief statement
Of the present condition Of American cred
il in Europe, and without presuming to
suggest remedy, TO enquire Of you
whether the force Of public opinion, I'll
! Congress has not the constitutional com.
| potency TO do any thing acting through
the legislatures of the defauting States,
cannot be made sufficiently potent to con-
vince them of the truth and force of the
old adage that, after all, in the long lun,
"honesly is the best policy"
The first branch of my subject can
discuss in very few words. As our
friend Randolph used to say, American
credit is Killed "stone dead" J1hn Ja-
cob Astor might obtain an uncovered cred
it for "A reasonable amount, (where he was
known and Mr.. Bates, of the house OF
8arlngs, by wearing ont pair Of shoes
in walking from the Mansion House to
the Minories, might sell fifteen hundred
pounds worth Of Massachusetts stock, with
large concessions TO the buyer. The fact
! is not the less to be concealed that we be.