The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-06-20


Wehavc for than two years, repeatedly cautioned
readers that project for assuming the State debts by
the federal government emanang fromlhe holders of
the deprecated stock in London foot and that the
attempt to orcs upon the people of this country would
be male That time has arrived and two mem
bers OF American Congress have been found fool hardy
enough TO bring forward the scheme which is to oblge
the Industrious and frugal in part of the country to
pay the debts Of the dssoute ana in another
section a scheme which holds out a bounty to spend
thrift speculation and imposes upon the economic tax
which increases oppression in proportion to their thrift
Before pointing out the wckedness and monsrous alb
urdty Of this proposition and its disastrous influence
upon the finance and of the United States
trace it back to its origin In January 1899 the dif
iculties in relation to the boundary question: gave the
first blow to the sale Of American stock in London The
position OF affairs then caused foreigners investigate the
and debts of the States and sales of stocks nearly
ceased. The consequence that the United States
Bank failed in October. 1892 with 600 of State
stocks hand. At that moment the house Of Barring
Brothers Co. Of London, filled cities with circulars
containing the following paragraph -
But If the whole scheme OF internal Improvement in
the Union to be carried into effect the SCALE and
with the rapdy lately projected and by of foreign
capital more comprehensive guarantee than that Of the
individual States will be required. national pledge
would undoubtedly collect capital together from all
of Europe but the forced sales of separately
by all the individual States in reckless competition
|
more onerous for ALL lower the reputation Of American
credit and reliance almost exclusively placed the
London marke produce temporary mischief here by alb
sorbng the floating capital dverting money from regular
business derangny banking operations and producing
unnatural balance OF trade against this country would
therefore, if most OF the States either
in the execution Of their works Of improvement
general system Of combination must be adopted All
poation stocks hear of any trans
actions in bank shares except in those Of the United
States Bank.
We have the honor to be,
Won atAali. ranic
Barring BROTHERS & co.
Simultaneous with the appearance OF this circular the
New York American, which is owned by the agents Of
the house here, and edited by brother of OF the
agents. contained the details Of scheme the leading ea
ture of which was for the United States issue $780,
of four per cent stock to be submitted for the
5000 900 outstanding stock bearing average
oi5t per cent II was argued that the per cent nation
al stock being per cent than British consols
which were at co. could be readily exchanged % per
cent premium FOR the state stocks This was the impu
scheme proposed by these men, through the
of New York paper, and concoc,cd about the time
that the Hon. Daniel Wcbsters letter to the Earrings
State Stock appeared IN the London prints. Since then
the federal government has changed and these men have
into power Their first to call an extra
SION and the ncSt steamer from England after the recent
there of the proclamation of the President brought Mr.
Bates the partner Of the house to this country He
accompanied by five six members Of other London
houses. Mr.. Bates and the other gentlemen delivered let
the Executive praying Tor the interference of the
goveinmcntin compelling the delinquent to settle
signed by the following London Houses
Ovcrend, Quincy s. Co. Thomas Yates,
Jones, Lloyd & 60. J. Hutchinson Son,
Prescott, Grole, Anes Co. James Capel, Nofbury,
Drew ct ler Troter & Co.
J. & s. Ricardo * Co. Gowan Marx
ID. Bevan, Thomas Moxon, Jr.
Thomas Cotter, Richard Milne,
Ewart, Taylor X Co. A. Service,
J. A. Droof, John Alliard,
Thomas Hankey Co. Caul,s Co. for others,
VIM. Jilton, Lieut. Col Clark,
Fletcher Alexander, N. VI. Rothschld Co.
Reid, Irving Co. Denison X Co.
Freder OK Heh & Co. Twenty other firms
Each Of these firms signed 'ior divers holders Mr..
Bates the bearer Of the letters continued Washington
weeks, and during the first six weeks the session
he only measures which passed the lower House pre-
tseIy that advised in the above letter, viz ;"Naonal
peSge" some general system Of combination" This