Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1842-11-03
pOMEWI0Mlno
GENERAL HAMIIrON,S I.wI~rrr
LONDON, September 9th, 1912.

MY DEAR SiR:-If ] have aldres st,l mi
letter To you, 1t is not alone from the iustifico
aon when ! find IN the recolections of M
OLD and cherished friendship, but from the fac
tiiat desire 10 attract the public attention I,
Its object through the instrumen,ality of
name lar more influential than nv own II,
not surprised if you see il frs, IN the newsn,
pers. ] wish not only ",o think aloud.n bn
speak aloud.
MY purpose in writing you is to put Won i,
possession oil knowledge of the condition O
tho American credit in Europe, with a suyges
uoh oil the Indispensable necessity of our do.
ing something at home TO meet The truly n.
farming crisis, which this state of thprs nrc.
sents. nv
I am lar from defending the profuse conf
dence with which European capitalists len,
! thelr money during period of six wears from
ioo4 TO IS4O,to our countrymen, even on the
iaith OF variety Of schemes exceedingly
visionary and unsound. They did this. on,
OF The excess OF virtue which may have been
pushed to the extent of rather an amiabI,
than criminal weakness for they generally
mace these loans at less rate of interest than
'hey could oc effected, if at all, at home. and
apparently for objects of great public utility.
out the loans TO the States stand on n differ
eht iootlng,at least in reference TO the public
sanctions with which they are invested. They
were made according to your rcadingand mine.
VI ,he constitution, to sovereigns, under the
obligations of a high public faith; manv of
'hem were contracted on terms greatly advan-
lascous under the agency of houses of the
nrst responsibility, whose liberality ard conf
dence knew no bounds
ms confidence was given to our young
country, because our resources On no degree
eSaggera'ed) were considered immense and be-
cause II was thought, as we are of the Saxon
'ahiiy, we were essentially debt paying peo-
Pie' indeed, from an observation, which a
larger residence for the last five years in En-
rope than IN America enables me to make. il
is quite obvious, If we had paid the interest on
our ioreign debt, that the rate of that interest
would have fallen gradually to the level of
..'at pald by some o! the oldest and bes, estab-
ished States in Europe, and tina; for objects of
wei founded public utility, andeven of private
enterprise, our industry at home might have
been almost indefinitely invigorated out of tho
large surplus capital of this country. You
will say, am sure, that this facility of borrow
ing has been great curse TO our own. This.
Iadmlt, Is true TO certain extent; but il was
converted into curse by the action of our
dental! guards, ete,o Of .,.;..-'"''o and pru-
tious 10 the development of the resources of
young country like ours, borrowing of an old
one like this, its capital to invigorate its la
Dor, at a low rate of interest, cannot well be
conceived. If the profits of labor transcend
cd the rate of interest, it was to create capital
at home. From what other source have
sprung those miracles of enterprise and wealth
that are TO be found in our country in the
midst Of population of eighteen millions, but
this conjoint action Of our labour on the CAPT
tai OF others? The Pilgrims found no Bank
of England planted on the rock Of Plymouth,
or the Hucgenots OF South Carolina the gems
of Samarcand on ITS thirsty plains.
But II you consider this faculty Of borrow
ing abroad, my dear Sir as an evil, YOU NAV
certainly console yourself with Tie conviction
that II no longer exists, although am equally
convinced that you will regret the cause which
has produced this want of all confidence in
the good faith OF the people of the United
States, and the consequences which have fol-
lowed in fixing so severe 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 Europe, at the
very moment when the Genera. Government
OF the States has sent an Agent abroad to bor-
row for its daily bread. We DO want their
money, and they want the results of our labor.
And greatly then is it TO be deplored that this
beneficial interchange has been suspended I'M
der circumstances SO disastrous TO both coun-
tries.
Let me row give you brief statement OF
the present condition of American credit in
Europe and without presuming 10 suggest a
remedy, 20 enquire of you whether the force
oiPublic opinion, Gf Congress has not the
constitutional competency TO Go any thing,
acting through the legislatures of the default
ing States, cannot be made sufficiently poten
TO convince them of the truth and force Of thu
old adage that, after all, in the long run, .hon
esty is the best policy
! The first branch Of my subject ] can dis
cuSs in very few words. As our old frient
Randolph used to say. American credit is Kill
! ed stone dead.' John Jacob As;or might oh
tam an uncovered credit for reasonable a
mount, (where he was hnown,) and Mr. Bates
Of the House of Earrings, by wearing out
pair OF shoes by walking from the Mauso
House to the Nlinories, might sell fifteen hun
dred pounds worth of Massachusetts stool
with large concessions TO the buyer TIL
fact is not the less to be concealed that w
begin to he regarded as nation of shaYrel
and swjndlcrs, with whom, if the day Of iuG.
mcnt should happen TO be Monday our pa
day will not be until the Tuesday foiIowin
This revulsion Of confidence does rot arise s
much from discredit, which attaches to- o,
resources, or, in other words, our ability
pay, as our seeming indisposition to pa
The Former is still considered in most cases
gndoubted, whilst sickening disirust h;
e i Al IL