The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1842-10-13
GEN. HlMLToy's LISTER
TO IoHS cALHouS. on TAg Frs1xrIaL
CONDITION OF The uSsTxD sT1rgA

lsssdsn, sePtemseF 81. isla
To rRE Has. Joux q. cALHotx:
Nv Dear Sir III 4 have addressed shis
letter % you. IL i not alone from the JUS
ti6cation rhieh I find in The reeolleclions
OF an old and cherished friendship. bat
from sAs fset thzl 1 desire % attract the
public attention 10 It's Object. through the
inssrameatalily Of name Ear mare in1u-
ential Than nv own. BE not surprized.
IL you sre il FIRST in The newspapers. I
wish not only so think aloud" but
speak aloud.
aiy purpose in wiring 700, 10 10 pun
you ia possession Of knowledge of ihe
condition Of the American credit In En-
rore, with suggestion Of the indispen-
sable necessity Of our doing something 81
home. % meet the truly alarming. crisis,
which this state Of things presents.
an Gar from defending the profuse
confidence, with which European cspi-
talisls lent their money daring period of
SIX years from 1884 70 1870. 10 our
counirymsa, even on the faith Of varie-
~ Of schemes exceedingly visionary and
unsound. They did This, however. out
Of the excess Of virtue. which may have
been pushed 10 the extent Of rather an
aniable than criminal weakness: for they
generally made these loans al less rate
Of interest than they could be effected, il
at all al home. and apparently for objects
Of great public utility. But the loans 10
she states stand on different footing; al
least, in reference 10 the public sanctions,
with which ttsy are invested. They
wers mads according 70 your reading and
mine, Of the constitution, 70 soysreigns
under the obligations or high public
faith; many OF Them were contracted on
terms greatly advantageous uuder lhs
sgency Of houses OF the first respectable
~, whose liberaliiy and confidence, knew
no bounds.
This confidence was given TO our
young country, because our resources lin
no degree exsggerated) were considered
immense. aud because il was thought. as
we are Of lhe Saxon family, we were es-
senl.ally debt paying people. Indeed,
from an observation, which larger resi-
denee for the last Eve years in Europe
than in America, enables me 10 make, il
is quits Obvious, IL we had paid The inte-
resi- on our foreign debt, ibst Tie rate Of
that interest would have fallen gradually
10 the level Of hat paid by some OF the
oldest and best established states in Eu-
rope. and lhai foi objects Of web founded
public utility, and even Of private enter
prize. our industry al home might have
been indefinitely inYigorsted out Of the
large surplus capital or this country.
You win saw. ! am sure. that This facility
Of borrowing. has been a great curse to
our evn. This admit. is true TO ! Ger
tain extent; but it was converted into a
curse BY the action o. our government on
The currency Of the United States. Uu-
der judicieus regulations and prudential
guards, State Of things more propitious
10 the development Of the resources of a
young country Ike ours. Borrowing Of an
old oue like this, its capital 70 inyigorale
lis labor, ., low rate Of interest. cannot
well be conceived. II the profits Of labor
transeendsd The rate Of interest. il was 70
create capital at home. Prom what 9TH
or source have sprung those miracles Of
saserprise aud wealth, that are 10 be found
10 our country in the midst Of popula,
ton ofeighteea millions. bu. this conjoin,
action Of our labor on the capital Of 9th.
ers. The Pilgrims found no Bank Of
Eagland planted on the rock Of Plymouth.
or the Huguencts Of South Carolina. The
gems OF Sanareand on It's thirsty plains.
But il you consider this facility of bor-
rowing abroad, my dear sir, a. an evil,
YOU may certainly console yourself with
thu conviction that il no longer exists, al.
though ! am equally convinced that you
will regret the cause which has produced
this wait Of all confidence in the good
faith Of the people Of the United States
and the consequences which have follow
ed in hxiag 50 severe stigma on the
character Of our country.
1t is absurd for Us 10 talk in. America
chat We do not want the capital Of Europe;
at tie very moment when the General
Government Of The States has sent an
Agent abroad to borrow for lis daily bread.
We do want their money and they want
the results Of our labor. And greatly
then is il TO be deplored that this benef-
cial interchange has been suspended un-
der circumstances so disastrous TO both
countries. @.. s@
Let me now give you brief statement
Of The present condition OF American cre-
dir in Europe, and wi.hou. presuming 10
suggest remedy, to inquire Of you whe-
iher The force OF public opinion, nc Con-
gress has not the constitutional competen-
CO to do any thing.l acting through The
legislatures OF the defaulting states. can.
mol be made sufficiently potent TO con-
vince them Of the truth and force Of the
old adage that, after all. in the long run,
honesty is The best policy" .
The first branch Of my subject can
discass in very few words. As our old
friend Randolph used to say, American