Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-10-07
oENsuAL uAMtLroN's LErrEa.
LONDON, Sept Oh, 1872.
To the Honorab'e Jim {. CatisHg.

lone ffon the Justification which hnd IN the reeo-
!,ctons Of an Old and cherished friendship, but ICON
the fac, th,t desire to ni'rae, the public attention
80 ,s ohjeei, through IN. fundamentally Of name
i,r more inlue nal than my own. BE not surprise 4
~ YOU see IL fist in the newspapers. wish not only
10 think aloud, but speak aloud"
My purpose 10 writing you, is to pu, you in pos
e,s,on of knowledge oil the condition ofhc Ame-
ricin credit in Europe, with suggestion OF the in-
,,,pens,b.c necessity OF our doirg something at
home 10 meet the truly alarming crisis, which this
,iitc OF things presents.
am far ffom defending the ptofuse confidence,
with which European capitalists lent their money
,iarog period of years from 1884 To ls4o, TO our
countrymen, even on the faith Of variety Of
schemes, exceedingly visionary and unsound.-
They did this, however, out oi the excess OF vir-
tue which may have been pushed 10 the extent Of
rather an amilb'e than criminal weakness; for they
generally made these loans at less rate OF interest
lhln they could DC effected, If at all at home, and
apparently for objects OF great public utility. But
IN loans to the s ates stand different footing.
A. least in reference TO tho public sanctions with
which they are invested. They were made accord
ing to your reading and mine, Of the Consii,ut on,
sovere,ns under the Obligations of high public
faith; many Of the n were contracted terms great
IL advantageous under the agency Of houses OF The
n'st respecability, whose h6era,y and confidence
knew no bounds.
This conhjsncc was given to our young country,
because our resources I'm no degree eSasgeraiedl
were considered immense. and because it was thot
rs we are Of the Saxon family, we were essentially
debt paying people. Indeed, from an observation,
which larger residence ios the last ) yeats in Eu>
rope than in America enables me TO take, il is quite
obvious, if we had paid the interest our foreign
debt that the OF that interest would have fallen
gradually 10 the level Of that paid by some OF the
Oldest aud best established 5 ates in Europe, and
hat Tor objects of well founded public utility, and
sTen oil private entetpriz, our industry at home
might have been almost indefinitely invgorated out
oi tho large surplus capital Of this country. You
will say, am sure, that this facility OF borrowing
has beca great curne TO our own. This, admit,
IS true 10 certain extent; but converted mo
n curse by the action OF our government on the
rency of the United States. Under ludcious circu.
lationS and prudential guards state Of things more
propilious 10 the development Of tho resources OF
young Country like ours, borrowing OF old one
like this, its capital 10 invsorate its labor o. low
rate OF interest, cannot we'll be conceived. 1.-The
praas Of labor transcribed tho rate OF interest
was 10 create capital at home. From what other
source have sprung those miracles Of enterprise and
wealth that are 10 be found 10 our country ia the
midst Of a population OF Is millions but this con-
JOINT action OF our labor the capital OF others
The Pilgrims found no Bank of England planted on
the rock Of Plymouth, or the Hucgeno,s Of South
Carolina, the gems of SamaTcand on its thirsty
plains.
broad, my dear sir, as an evil, you may certainly
console yourself with the conviction that it no lon.
ger 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, end The consequences which have
followed IN fixing 90 severe stigma on the charuc.
TER of our country.
IL is absurd for US to talk in America that we do
want the capital OF Europe: a. the very MON,
when the General Government Of the States h..
seu, an Agent abroad 10 borrow for lis daily bread
We do want their money, and they want the results
of our labor And greatly then Is il 10 be deplored
that this beneficial Interchange has been suspended
under circumstances so disastrous TO both countries
Let me now give you a brief statement of the
present condition Of American credit in Europe and
without presuIning TO sugges! remedy, 10 inquire
OF you whether the force Of public opinion, IL Con
gress has not the constitutional competency 10 do
any thng,) acting through the legislatures OF the
deiaulting States, cannot be made sufficiently pc
tent 10 convince them Of the truth and force Of the
Old stase that, after ALL IN the long run, honesty
is the best policy"
The frst branch Of my Jet | can discuss in
very few words. AS our Cd friend Randolph used
10 say American credit is killed "s.one dead" John
Jacob Astor might obtain an uncovered credi; for
reasonable amount, (where be was known,) and
MIR Baes, of the house Of Birings, by wearing on,
pair OF shoes IN walking from tho Mansion House
TO the Minories, might sell fifteen hundred pounds
worth OF Massachusetts stock, with large conees
sions TO the buyer. The fac. is not the less TO be
concealed that we begin TO be regarded a nation
Of sharpers and swind'eSs, with whom, If the day
OF Judgment should happen 10 be Monday, our pay
day will not be until the Tuesday following. TINS
revision of confidence does not arise so much from
q discreiIi which attaches 10 our resources or in
other words, our ability 10 pay, us our sesning in
opposition 10 pay. The former is still considered
~ most cases rs undoubiej, whilst sckenug els
fcus, has fli!en upon ,h- I-t'~- Hence II l. that
whilst the rate Of interest has f5len this day 10
anl half per cent in the London market II IS not,
probable that If the Commissioners Of the United
states six per cent loan, TO ole. price which
would secure interest Of ten per cent ten pounds
OF the stock could be sold, without from consdera
tons OF policy, under the advice Of Lord Ashbur.
ton, on his return TO England the B.rings should
De induced to take Ire loan.
When We contrast this dscredii OF our ovn coun.
Try, ieemng with such gigantic resources with The
pamy credit of other States that have little else but
good faith, nnd high taxation TO Offer il is imposs
bic 10 refer it TO any other but deep moral
Gls,rust in us-The most .gnominous curse that can
fall on people who O7pire 10 be civilized and FREE,
OF the truth OF this fact, cannot give you a better
lroof than that Wills; no ore will took to- and cspi,
talsis turn with aversion f,om, the United States
ioar, the comparatively Insignificant town Of Ham.
Uurs, with its population Of 200 900 inhs bitabts 10
enable Il to rise out Of its ashes, has borrowed 4,
y per cent precisely double the amount of our bro
posed oan one fIrhing Of which the u. s. Comris-
sioner will probably not be able to negotiate. Dem
mark and Belgium, neither Of which would be
tcafcely a breakfast for the hungry stomach Of
Brother Jonathan on a frosty morning, can borrow
q, four per cent what they want, and England and
Holland, with the principal Of public debt, the
payment Of which IS Likely 10 be eontemro-nneous
with the discovery Of perpetual motion, can borrow
just what they want at an1 under pr cent. be
cause they p y their intefc5s and tax tbernselye,
20 paY their intcresfs.
As Scotsman ard Parioi, an sure. nv dear
fir you viii say ihlt this sts,o Of things mus, rot
Ce permitted 10 as'. No country can continue m
the wort species 0f inso vencv, bankruptcy in is
rspu.e, wthon, losing thar s. respect which is the
salient spring Of oil that gives vgor and tenoy7n 10
national character. IL my be SAID that rs nation
We are IN no degree responsible for this decadeBce
~ the credit Of the States. Ths may be true 10 a
ttuain extent. Our national and political sggrs
eaiioa, however, " may 50 speak, 10 made up Of
this family Of Safes, and you may depend upon n
that ether nations and posiery will hold The 20.
ssrnmeni Of the Union morally respon.b c for The
Character OF rs membsrs although The forms Of on,
iecefstve system nay Jhcharge u from a lspnI I'm.
billy Tor their engagemenu.
Admitting mo potency, and the e1,-r, of the !
eyi. you vii eek Whist IS The remedy TFis mo
good sr, 70 precisely the question I am abo.t 10 /
ask you, and ak you nnS, ~ the tofra o. n snr.
enc inquiry, whether public opno7, throughout
Tie Union, may not rec i've ouch un org1r , ttt,r
~ inc action Of Congress, popular rnte.icgs ,,d
the cas-. rs 10 induce the dtfiuunk S,tet 10 nod
c1nyentOfs this winter, eomprehtndlng tLoe ,sbo
hove negotiated foreign loans who neyerthe b,v,
met puneiUally lheic dividends that by un,ted a.
u1n they may induce the legislatures Of the ssvero
indebted Sta'es 10 impose, ard the people 10 bear
C ic taxes shall provide the means Of payne 49,
int .es', and establishing a sinking fund for A.,
gradual sxtnguishment olthe primo pal Of n cir oui
nc debit j cannot believe that these nppcais 4,
S,ae PRIDE, und National honour, would bs po,
vaiiins. You sec that ! 10y out Of account M,
assumption oil the stare debts by the Fe4e,oI 80.