Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1842-10-13
3)oltttcal.
GENERAL HAAIlLToN'S LETTER.

To THE Hon JonN G. CALHOUN
My Dear SIR III have addressed this letter oyou II is
notalone tromthc justification which find in the recolec
tons OF anod aud cherished friendship. but from the fact
that desire 10 attract the public attention To Its object
through the inslrumcnlaty OF a name far more inlu
entail than my own. BE not surprised If you see IL first
in the newspapers. | wish not only to think aloud,
but speak aloud.
My purpose in writing YOU is put You in possession
of knowledge OF the condition Of the American credit in
Europe, with suggestion OF the Indispensable necessity
Of our doing something home to meet the truly alarm
ing crsis which this state Of things presents.
am far from defending the proIuse confidence, with
which European capitalists lent their money during n
period of six years from s24 1910, to counirymen
even on the faith Of variety of schemes. exceedingly
visionary aud nnsound They did this. out OF the excess
Of virtue which may have been pushed TO the extent OF
rather amiabc than criminal weakness; Tor they gen
orally made these loans at less rate Of interest than
they could be effected il at all n home. and apparently
for objects of great public utility. But the loans to the
States stand different footing, at least IN refer
cnce 10 the public sanctions with which they are invest
ed They were made according TO your reading and
nine, Of the constitution, soverogns, under the obi
cations of high public faith many oi them were con
accd ON terms greatly advantageous under the agency
Of houses of the fins, responsibility, whose bcrahiy and
confidence knew nObuuuds.
This confidence given 10 our young country, DO
On degree eNaggeraled were con-
sdered immense, and because it thought, we are
OF the Saxon family, We were essentially debt paying
people. Indeed from an observation, which larger
residence for the last five years III Europe than IN Amer
lea enables me TO make il is quite Obvious, II We had
paid the interest foreign debt that the rate If that
interest would have fallen gradually to the level Of that
paid by Of the oldest and best tabshcd States in
Europe and that for Objects Of well founded public nt
~, and even OF private enterprise industry al home
might have been almost indefinitely mvguracd out Of.
the large surplus capital olhs country You will say
,ln sure, that this facility Of borrowing has been great
curse to our own. This | admit, is true to certain
extent; but was converted into curse by the action Of
our government on the currency of til. United States
Under Judlcons regulations and prudential guards, a
state of things popous 10 the development Of the
resources of young country like ours, borrowing OF an old
one like ihis It's capital 10 lnvgorae It's labor. at low
rate of interest, cannot well be conceived II the profits
of labor transcribed the rate of interest 1t was 10 create
capital Al home. From what other have sprung
those miracles Of enterprise and wealth tia, arc to be
found IN our country in the midst Of population of cgh
teen millions. but this conoin action OF our labor on
the capital Of ohcrsl The Pilgrims found Bank OF
England planted the rock Of Plymouth, the Hue
gonots 81 South Carolina the gems OF Samacand on lis
thirsty plains.
But il you consider this faculty Of borrowing abroad
my Dear Sir asian evil you may certainly console your
self with the conviction tina, 1t no longer exists although
am equally convinced that you will rcgrei the caust
which has Produced this Of conidence in llrgoot
faith of the people Of the United States, aud the
quenccs which have followed in fixing Il siign;
on the character Of our country.
Is Is absurd for rs to talk in America that do
the capital of Europe. the very when the
General Government of the States has sent Agent
broad to borrow for lis daily bread We do want THEN
money, and they want the results Of our labor And
greatly then is be deplorcd that this beneficial inter
change has been suspended under circumstances dis
as.rous To both countries
Let me now give you brief statement Of tho present
condition OF American credit in Europe; and whou, pro-
Stunning To suggest remedy, TO enquire Of you whether
the force Of public opinion (f Congress has not the
slilutlonal competency to do any thing acting through
the legislatures Of the doiaultng States be made
sufficiently potent to convince them Of the truth and
force Of the old adage that, after all, in the long run
"honcsty is the best policy"
The first branch Of my subject can discuss in very
few words. As our old friend Randolph used to say
American credit is killed ''stonc dead" John Jacob
Asor might Obtain All u'cototod credit for reasonable
amount, (where he known and Mr.. Bates, of the
House ot Earrings, by wearing out pair Of shoes by
walking from the Mansion House to the Minorcs might
sell fifteen hundred pounds worth of Massachusetts stock
with large concessions TO the buyer. The fact is not
the less be concealed that begin be regarded as
nation of sharpcrs and swndlers, with whom, if the
day ofiudgment shond happen To be Monday, our pay
day will not be until the Tuesday following This re-
vulson OF confidence does not arise much from dis
credit, wach attaches to resources, or, in other
words, our ability TO pay, as seeming ndispo.lion
topay. The former Is still considered in most cases as
undoubcd, whilst s'tkeniig disrust has fallen upon
the latter Hence it is, that whilst the of interest,
has fallen this day TO Two and halt per cent in the or-
don market II is not probable that if the Commissioners
OF the United States SIX per cent loan, To offer
price which would interest Of ten per cent ten
pounds of the stock could be sold, whou from consds
raicns OF policy under the advice of Lord Ashbur-
ton, on his return 10 England the Barngs should be
induced to take the loan.
When contrast this dscredt of our own country
eemlng with such gigantic resources, with the pamg
credit Of other States that have little else but good faith
and high taxation to offer, it is impossible to refer
any other but deep moral dsirust of US the
most gnonlnous that can fall people who as
plre to be civilized and free. OF the truth Of this fact
cannot give you better proof than that whilst no one
will look to, and capitalists turn with aversion FROM
the Cncd States loan, the comparatively insignificant
town of Hamburg, with its population of 200 90 hhab-
ants TO enable of its ashes has borrowed at
81 per cent precis,y double the Of our proposed
loan, one tarng ol which the u. 5. Commissioner will
probably not be able to negotiate. Denmark and Belgium
neither of which would be scarcely breakfast for the
hungry stomach Of Brother Jonathan on frosty morn
ing, borrow at four per cent what they want aud
England and Holland, with principal Of the public
debt the payment of which is likely to be cotempirano
with The discovery Of perpetual motior can borrow
just what they want, at and under per cent because
they pay their interests and tax themselves to pay their
interests.
As Statesman and Patriot | am sure nv dear sir
you will say that this state Of things be permit
ted to last Nocountry can continue in the spe-
ces o. Insolvency bankruptcy in IFS fepue, without
losing that self respect %hIch is the salient spfng Of all
that gives ygOr and rcnown To national character 1t may
be said that nation in no degree responsible
for this decadence in the credit Of the States This
be true to certain extent. Our national and political
aggregation, however, i'll may speak, is made uy OF