Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1868-02-14
PENNSYLVANIA FINANCES.

Her Old Reputation RaE ed UP-saIIy
Correspondence Between August
Belmont and the Radical State Urea
sureF.
The following correspondence explains
itself:
J NEW YoRK, Jan. %, 1868.--T5 ths Trsa-
I SureT Of the State Of Pennsylvania: We have
received from Messrs n. NJ Rosihchild 4
Sons, Of London, Sl90,S86 10 Pennsylsa-
MIA State FIVE per cent stock, which We
send to Philadelphia for redemption, TO be
| followed in few days by further lot of
! 100000.
Besides these, Messrs Rothsehild hold
| about $500, 500 more Of stock already over
due and becoming due this year. These
| gentlemen again complain of the injustice
of the action of the State Of Pennsylvania,
| in forcing its creditors 10 accept payment
in deprecated currency, and have in
structed us TO receive payment only under
| protest, "a heretofore.
They would, however, prefer to hold the
stock, il an arrangement could be made
with your State for a continuation OF the
loan, and will only accept payment now il
compelled TO do so by a discOniinnance of
| Farmers and Mechanics National Bank Of
Philadelphia to confer with you on the sub
ject before accepting payment, and We beg
| You will give this matter your serious con-
| sideration, and let us know whether an
| extension, "a desired by Messrs. ROths-
child, is possible. Hoping soon to hear
from you, we remain yours, respectfully,
AUGUST BELMONT 4 Co.
HARRIsBURG, Jan. 30, lS6S-Messrs.
| august Belmont & Co., Nelg YOrk-GEN-
TLEMEN: In reply TO your note of the
28th, beg to say that nc arrangements can
be made by which the Messrs. Rothschild
| can retain the old loan (now overdue,) and
| continue to draw interest on it.
You state that should no arrangement be
made, you will be compelled to accept pay
ment under protest. To this we have
not the slightest objection. Your COM
! plants about the injustice of our not pay
ing you in gold may seem Just to you, but
to us it seems ridiculous.
| have no doubt Messrs August Belmont
| q Co. had many liabilities ont when the
| legalstender act was passed, which became
due after gold had risen to a premium Of
| eighty. / have not yet heard of their con-
science compelling them to pay in gold in
stead of the legal tender. We are willing
| 10 give you the pound Of flesh, but not one
drop of Christian blood.
W. II. KEMBLE State Treasurer.
New YORK, Feb. 4, lS6S.-SIR: have
to acknowledge the receipt of your letter
of the 30th ult., addressed TO my house, in
reply to the application on behalf of Messrs.
| n. M. RothsChilds a Sons, at London, who
had instructed us to receive payment of the
| Pennsylvania State stock now due, under
protest in case the State should not pay the
principal in coin, and in case no arrange
ment could be effected having in view
| continuation of the interest and an extern
sion of the time of redemption of the
capital
Messrs. Rothschild act in this matter as
trustees Of the holders of the debentures of
the late United States Bank of Pennsylva-
MIA, residing in England and on the Conti-
nent of Europe. You seem so well acquaint
ed with the financial transactions of States
and individuals that You must know that
by these debentures hundreds of widows
and orphans have been reduced to beggary.
Messrs. Rothschiid, in trying TO cave for
their constituents all they can out of the
wreck, have made, through my house, an
application, which they, as well az |, deem
Just and equitable, and this application
was made in a courteous and respectful
manner In 80 doing, Messrs. Rothschild
have evinced a new proof if any was
wanted, of their strict aud honorable appre
citation of the obligations assumed by them
az trustees for the innocent holders of the
most disastrous security ever negotiated By
their bOuse-a negotiation based princi-
pally upon the faith of the State Of Pennsyl-
vaDia and its great banking institution.
Your reference to the liabilities of my
house, contracted in coin and assumed by
You to have been paid in currency, is as
impertinent as it is untrue in point of fact.
August Belmont q Co. have never declined
to meet any demand for the payment in
coin of any liability contracted by them in
coin, before or since the legal tender act.
If they had adopted the course toward
their creditors which you propose TO take
on behalf Of the State of Pennsylvania
toward her unfortunate creditors repre-
! scented by the Messrs. Rothschild, there
might have been some excuse for the lack
of courtesy which you have exhibited in
your letter to them.
In conclusion, l take this opportunity to
express my regret that the State OF Penn.
syivania should have for its Treasurer a
person who could 10 far disgrace the State
he assumes to represent, and forget the
dignity of the Office he holds, as to reply
to a simple business communication in a
manner which must raise the blush OF
shame on the cheek of every citizen of that
- great and honored State.
am your obedient servant,
AUGUST BELMONT.
William II. Kemble, Esq, State Treas
b urer ofthe State of Pennsylvania, Harris
: | burg.