Year: 1862

American Public Credit. ~


Europe is astonished at the energy, power
and resources of the United States govern
ment and people; but more especially the
financial lords and bankers of Threadneedle
cial action and success. They had no idea that
we could do without them. Accustomed to
see the agents and ENJOYS of France, Russia,
Spain, Austria, Turkey and other States Of
Europe, with many Of the inferior republics of
the New World crowding their counting rooms,
exhibiting their powers and begging for loans
and money, they naturally expected to see
some official persons bowing at their levees
from the United States, anxious to negotiate
loans to carry on the fierce war in which we are
engaged. But what disappointment! They have
found out by this time that the United States
are not simply great Independent political,
but also great Independent financial, Power.


How is this mystery to be explained which
has SO much puzzled the London Times and the
magnates of Capel court? They seem to have
imagined that there existed no great CONNER
cal nation in the world like themselves, and
no money market and no inanciers able to do
without them. They have perhaps seen their
mistake. At this present moment the United
States, with New York city for its commercial
metropolis, is superior, both in commercial and
financial capacity, to what England was at the
time of the great war against France and
against the principles of the French Revolution.
At that time England got through all her
financial difficulties without any foreign aid.
and those difficulties and her condition were
own. Is it not, therefore, somewhat strange
that England should imagine that we must
break down, with the example before her Of
her own success in more difficult circum-
stances? As commercial nation we surpass
what England was at that critical period when
William Pitt, by his famous order in council
authorized in 1867 the suspension of specie
payments by the Bank Of England, which lasted
for twenty-five years or more. Our commercial
tonnage at the present day amounts to not
less than FIVE hundred millions Of tons, which
greatly exceeds the tonnage of English COM
merce at the period referred to, and is
nearly equal to her tonnage of the present
day. We are, therefore, equal if not supe-
rior in commercial sense to what England
was, and, by parity Of reasoning, we are equal in
financial resources to all that was accomplished
by her. For a period of more than twenty
years England carried on that gigantic war
against France She raised and paid large
foreign armies; she subsidized literally several
foreign princes to keep them in the coa-
lition against France; and she did oil this
on the basis of what might strictly be called
an irredeemable, inconvertible paper currency
The bank notes of the Bank Of England stood
mainly for support and confidence upon cor
poration Of merchants constituting the "Go-
vernon and Company Of the Bank of England;"
and yet during all that time English commerce
and industry not only fourished more than
they ever had done before, but expanded and
augmented to an unprecedented and uncx-
pectel extent. During the whole period Of
suspension, the currency, such as it was,
though far inferior to our own national curren-
cy in solidity, authority and security, enabled
the people interiorly to carry on the most ex-
tensive commercial and industrial enterprises,
and externally, with respect to foreign ex
changes, never fell lower than fifteen to twenty
per cent on the pound sterling, at the close of
a war of fifteen years


Unlike our national currency, the English
bank notes were not convertible into govern
ment securities with the interest payable in
specie, nor did they, as our currency, stand
upon the pledged faith of the government for
their security.


In this brief view of the case we find that
great commercial country was able to meet
crisis such as none but a high state Of com
merce is capable of doing. Therefore, a tortiori,
greater commercial country such as the
United States now are is well able to meet
less formidable and less exhaustive crisis. by
means less Objectionable than those resorted to
by England. The oroaking, therefore, Of the
London Times and some of our own journals in
this city is wholly invdious and gratutous.


We are ready to admit that none but a great
commercial people could safely venture upon
the doubtful measures which England resorted
to, or even upon the more solid measures which
Mr.. Chase has adopted and now proposes in
respect TO the currency. An overflow Of cur
rency is undoubtcd ruin to non-commercial
countries; but to highly commercial and in
dus!rious people, such as the English and such
as the Americans, an abundant currency is q
matter Of prime necessity, and is one Of the
greatest elements Of prosperity. There was
no limit imposed upon the issues Of the Bank
of England during the French war, the conse-
quence Of which was certain degree Of inHa-
tion frequently occurring; yet, notwithstand
ing this, trade, commerce and manufactures
Aourished to an extraordinary degree during all
that time. Our national currency sand will be
limited by Congress- Five hundred millions
may be considered the limit which it would be
imprudent to pass; but up to that amount, we
may securely affirm, is absolutely necessary to
carry on the extended trade, commerce and