[LONDON, October 3, 1842. It is with your constant an i loyal assistance that I have | He will reside at Detroit, Michigan. He arrived at every demonstration of respect. To colonel Robinson, &c.: Dear sir:-It gives us pleasure to address a few Henry Clay returned to New Orleans from his visit lines to you on the subject of our late conversation. We greatly regret that you should return to AmeFINANCES. In the chamber of deputies on the 12th to Mobile, on the 7th instant, having been entertained rica without accomplishing the object of your misJan. the minister of finance presented an estimate of the with unbounded hospitality and kindness. receipts and expenditures for 1844, (the fiscal year end- NATIONAL PRESIDENTIAL CONVENTION. The anti-sion. It is frustrated by causes over which the caing in 1844, we presume,) the former amounting to 1247 whig members of the legislature of Maryland have pitalists of this country and Europe generally have millions of francs, and the latter to 1281 millions-recommended the first Monday in May, 1844, as the no control. showing an anticipated deficit of about 33 millions. day for the meeting of a national convention for the These for ordinary expenses. The extraordinaries nomination of candidates for the presinency and vice are expected to swell the deficit to about 77 millions. presidency. In making the financial statement, which was of con- WHIG PRESIDENTIAL CONVENTION. Proceedings of siderable length, the minister adduced arguments to a meeting of the whig members of congress. At a meetprove that the state of the country was most pros-ing of the whig members of the senate and house of which certain occurrences have given to confidence The obstacle, as you are aware, is in the shake perous, and declared there was every reason to be- representatives of the United States, held in the sen-in the securities of America, and feeling a sincere lieve that a further progressive improvement in the ate chamber on Saturday evening, the 18th February, interest in its restoration, we hope we may not be revenue would take place. 1843, for the purpose of considering the propriety of holding a national convention to nominate candidates thought presuming in submitting to your consideration and through yourself to the general government, to be supported by the whig party at the next elec-that no steps could accomplish this more effectually tion of president and vice president of the U. States, Bichard H. Bayard, of Delaware, was called to the than the withdrawal of the bonds which have been chair, and Alexander H. H. Stuart, of Virginia, and unhappily repudiated by some of the states, and by John C. Clark, of New York were appointed secreassisting others who really need it to meet their just taries. engagements. But we are persuaded you will return with an impression that no feeling prevails but that of the greatest cordiality; and it would give us and others much pleasure, if it were in our power to carry your wishes into effect. Mr. Tallmadge, of New York, on behalf of a joint suggestion which has been elsewhere made, viz: It seems to fall within our province to allude to a committee appointed at a previous meeting to consi-That the federal government should inscribe a suffider what measure should be adopted, made a report cient amount of three per cent. stock as would sawhich having been discussed and amended, was unanimously adopted. The report is in the following lands, distributing to each according to their proportisfy the interest of the several states in the public words, viz: tion, but reserving to itself the option to pay those states which have bonds out in their own bonds, so "Whereas the expediency of holding a national convention for the nomination of candidates for sident and vice president has been suggested by the whigs in various parts of the union; and it having been referred by them to the whig members of congress to designate the time and place of holding said as to give the holders of such bonds the option of change for their three per cent. stock. And we beg to surrendering them to the federal government in exremark upon it, that we have no doubt it would be ac cepted here as an honorable and welcome settlement. If such a design was thought too extensive, might not the federal government issue a three per cent. stock to the amount required, of the Mississippi, Michigan, Arkansas, Illinois, and Indiana bonds, and any other that require help-taking counter security from them? SUGAR. The minister of commerce also presented the sugar bill. It enacts that September 4, 1844, the manufacture of home-made sugar of every discription shall cease in France, and that a sum of forty millions shall be paid the manufacturers by way of indemnity, in proportion to the quantities they may have manufactured during the two last seasons The mode and period of payment are specified in the arti cles. [Galignani. In discussing the address to the king on the 31st Jan. upon a division on the Syrian question, the ministry were placed in a critical position by having been defeated by a majority of three votes; and at the latest accounts an amendment offered by M. Chastellous Laubat was pending which it was supposed would decide their fate. Mr. Guizot declared emphatically on the next day after his defeat, that he would not open any negotiations for the modification of the treaties of 1831 and 1833, until he saw fair prospects of obtaining that modification from Eng-convention: therefore land by a common accord, and with success. After alluding to the abandonment by the French government of the treaty of 1841, he said he thought the execution of the treaties of 1831 and 1833 should be maintained, and that this was a question of good faith. He said that the government would preserve its liberty of action and its responsibility. It would receive with respect the opinion of the chambers and the wishes of the nation. But if we are asked for more than the dignity of the country and the national interests demand, all we can do is to refuse. The debate had not concluded when the last express left Paris. DEBTS OF THE GOVERNMENTS, don loans. 1832 don. 1822-5 Austria Cuba France Holland 500,000 2 500,000 3,800,000 3,500,000 Total continuing to pay £27,750.450 Naples Russia STATE DEBTS. We subscribe ourselves, with much respect, Dear sir, your sincere friends, OVEREND, GURNEY & Co.] Nor were they apparently quite satisfied with this measure of injustice towards our republic. To the failure of some of the states to meet immediately their engagements, was added, at least by the public 20,000,000 In the Register of the 11th, page 370, we introduc-presses of Europe, all the odium that could be thrown 29,000,000 ed some reflections on the subject of "American upon the misfortune as well as in some cases the fol50,000,000 credit." A consideration of the same theme has led lies, of sundry corporations and joint stock associof course to the topic which at this moment engages whole country down at once from an inflated paper ations, which in the sudden revolution of bringing a £506,843,503 more of public attention in this country than any other, and on which we claim a brief space in this currency, to a hard money basis, became inevitable. Banks had failed,-British capitalists had suffered to 5,000,000 number. 6,000,000 We maintain that the credit of the general govern- some extent as well as ourselves, by their failure,— 8,100,000 ment could not reasonably be, that it in fact was not "Brother Jonathan's honesty," was broadly impli5,143,750 and is not, questioned, notwithstanding the recent fai-cated, and something said too about holding the 609,000 lure of its agent in Europe to obtain a single bid American government accountable for their unfortu867,000 for a trifling loan. Its resources were well known nate speculations, in our bank stocks, as well as state 16,400,000 to be ample to command the money for any amount stocks. The extent to which this may hereafter be 5,000,000 of expenditures which, either in peace or war, it pressed by them, may possibly depend upon their suc19,086,122 had thought proper to incur. Those resources had cess in the attempt to make it responsible for the 200 000 been repeatedly tested, and never failed. That they states. They will probably be content to try the latter 89,600,000 could now fail, in a time of perfect peace,of abund-first. 202,030,000 ance at home, and of open trade with all the world, The idea that Europeans cannot, as they profess, and will not, as they assert, distinguish between our general and our state governments, is sheer affectation. Republican institutions are not quite so intricate that they cannot be made to comprehend them, however reluctant they are to be schooled. If they revolt at learning of us, they might find something at home parallel in all essential particulars to the case in question. If the Canton of Bern, for instance, were to contract a debt in England, would the capitalists who advanced it, dream of holding the Swiss no man can believe. That there was a combination of the capitalists of diet responsible for the amount? Some of the memEurope disposed, through the means of thus identify-bers of the German confederation owe considerable ing the general with the state governments, to co-debts;-do the folks on 'change talk of making the erce the latter into an assumption or at least an en- whole confederation responsible? Nay, let us go nearPRESIDENTIAL. General Cass, has met with dorsement of the debts of the states, hardly admits er home with the analagy; and appeal to more favery cordial reception from persons of all political of a doubt. The fact of the failure to obtain a pet-miliar facts. Time was when Scotland and Ireland parties in the west, on his return from his mission in ty loan in any money market in Europe, was strong each of them possessed its own legislative authoriEurope, especially in Cincinnati. The report of his presumptive proof. But letters have recently been ties, qualified to enter into financial engagements for having intended to remove to that city, is untrue.published, from capitalists, almost avowing the fact. themselves; and it is at least within the range of a 1831 1824 1820 1822 Buenos Ayres 1824-7 Chili 1833 Columbia Greece Mexico Peru 1,000,000 1,816,000 9,835,300 Guadalaxara 1825 Guatemala 1825 1824-5 Portugal 1823$36 1822 66 not acknowledged Total debt. £80,000,000 4,000,000 15.500,000 450,450 16,000,000 191,893,053 100 000,000 Total bankrupt "Resolved, The the whig members of congress, concurring in the expediency of the proposed convention, and yielding to the wishes expressed that they should designate the time and place, do respectfully recommend that a whig national convention for the nomination of candidates for president and vice president of the United States be held at the city of Baltimore on Wednesday, the 3d day of May, 1844; and that the said convention be composed of delegates from the respective states equal to the number of senators and representatives of each state in the congress of the United States. On motion of Mr. Underwood, of Kentucky, it was APPOINTMENT BY THE PRESIDENT. By and with the advice and consent of the senate. John McElvain, to be marshal of the U. States for the district of Ohio. The amount required would be small, but it would accomplish the greatest good to America generallyto the states which would thus convert their debt from five into three per cents., and to the bond-holders. the same thing for Canada, by assisting with our One of the last acts of our legislature was to do credit to enable them to reduce their interest from five to four per cent. We shall hail with great pleasure any movements RICHARD H. BAYARD, chairman. ALEX. H. H. STUART,} JOHN C. CLARK, £157,996,872 It was the embarassments into which the finances So much for the question as between the Europeans and Americans, on this subject. Let us now view it as a question of our own, in which Europe has nothing to say. possibilities, if not of probabilities, that one of them was really just cause for its sinking to, is beyond | We are aware that the panic which both domes may again have. Suppose O'Connell should succeed question. In fact, the failure of some of the states tic and foreign enemies of American credit and state in carrying his favorite measure for a repeal of the to meet on the instant the payment of the interest credit have contrived to spread, added to the hostiunion, and an Irish parliament were again installed. due upon their bonds, added to the dispute about the lity always evinced by a considerable portion of our would the London capitalists think of holding the Mississippi bonds, constituted the main objection to community against undertaking internal improveBritish crown responsible for every pecuniary en-American credit as well as to state credit in whate-ments, and the fact of the resort to taxation lately by gagement that parliament might enter into under his ver market. the states, all united, availing of the general depres influence? Let them answer, and we will then ans- It is true that some of the states have very im- sion of business, reduction of prices, and withdrawal wer for the states of the American union,-aye, prudently extended their obligations beyond their of credit, have almost destroyed all confidence in the every one of them. present means, and involved themselves to an extent productiveness of the public improvements. There that will take time to emancipate them from.- are at this time, perhaps, few, who believe they will That however, is the "head and front of their offend- ever be productive. We are of those few however. ing." Honest men, and creditable states have often Some, of course, we know will never be productive; gone that far, or the world's history tells us false.--but generally they will more than compensate the There seems to have been a strange fatality and The fact is, that an inveterate war against the credit investments made. falling into error at home in relation to the true fea- of the states especially, has been carried on, partly That confidence should be lost in those works. betures of this question, the effects of which are far more by those who wanted to arrest the progress of state cause they have not been productive, is precipitate serious to us, than any fallacy that foreigners may enterprize and state expenditures,-partly by those folly. The line of trade with which they are intendhave imbibed about it. That there is design in spread- who wanted to avail themselves of a deep depression ed ultimately to be connected as a whole, is hardly ing some of these errors, to a given extent, we strong-in the stock market, in order that they might specu- in a single instance as yet completed. Some of the ly suspect. It would be difficult otherwise to ac- late upon the public,-and partly by a thoughtless roads, and some of the canals are partially in operacount for the unremitted efforts of a certain widely body, who, in all communities join in giving any unfor- tion.-hurriedly put in operation, long before they distributed publication, issued from New York, and, tunate and falling interest, a passing kick down the hill. were nearly completed, even to the extent they did we have reason to suppose, solely devoted to foreign All these, we should presume, have had ample operate,-and hence the enormous amount charged influence, as it is conducted entirely by foreigners room to gratify their propensities. State stock has for "repairs."—which should in fact have been put who profess no design of becoming citizens, we say fallen low enough in all conscience. It is time to to the account of "construction." This we know to it would be difficult to account for such a publication's look deliberately at the scene, and enquire, whether be true of the works in our own state, and have no unceasingly discouraging the idea of the states being the depreciation has not been out of all proportion doubt, that it is equally true of similar works else. ever capable of redeeming themselves from their | to the real causes for it?-whether factitious circum- where. It takes years to adjust new constructions debts, if it were not that they wish, by representing stances have not been brought to aid the real occa- of such magnitude, to the old terra firma. repudiation as enevitable, to force the general govern- sions for apprehension,-and whether the imagiment to interfere. nary has not far exceeded any true ground for the panic? The real state of the case ought to be ascertained and understood by all,-by debtors and creditors especially. We have just turned to a proof in point on this subject. In all the public debates lately, the round sum of $200,000,000 is assumed as being about the amount of state indebtedness. This we think considerably above the actual sum. An official statement of the total revenue and expenditures, for eleven years, of the several finished lines on the Pennsylvania canals and rail-roads, 710 miles in length, costing the state $20,653,791 64, for construction shows, in that period, expenditures Receipts, As a specimen of the assurance with which the conductors of the publication alluded to attempt to pervert the truth and decieve the American people, one of their late numbers contains a table shewing the indebtedness of sundry of the European powers, and distinguishing how much of each debt is due in London,-(made out in pounds sterling, observe, with which the writer of it is evidently much more familiar than with our dollars,)—and which table, as it may be useful to our readers, we insert under the foreign head in this number of the Register. On introducing it, and it would appear that that is the object for inserting it, it is paraded as proof positive of the writer's assertion, that "No nation has ever yet been able to pay a large debt contracted abroad, and Many details might be adduced to show and prove that this general estimate carries the real amount much beyond the maximum, and far beyond the immediately pressing maximum of state debts. Expenses exceed receipts by none ever will be." $0.512 591 99 This presents a discouraging view of affairs. But We cannot command the time at this moment to why? That a very large portion of the item of "exhunt up, and probably would not be able to find the penditures" was incurred in remedying defects, and data where from to show the amount that falls due should have been charged to the amount for conannually, of the state debts. It would be an exceed-struction in this case, we think obvious from the reingly useful table, and would undeceive thousands in ceeding the termination of the above period, the sult of the operations of the year immediately suc This assertion is made in the face of the Ameri- relation to the actual difficulties they had supposed particulars of which will be found in a preceeding can people,-made to the American people,—the vethe states to be laboring under. The mountain would ry people who, since the termination of the late war not, to be sure, be reduced to a mole hill, but its as-number of the Register, under the "states of the with Great Britain as the writer and publisher of pect would look far less formidable and no longer discouraging as business was in that state particuunion," where it is shown that for the last year,— that article well knew, have themselves paid off the whole of their national debt, most of it contracted larly, the receipts of their public works now in operation, yielded $530,452 00 revenue, over the amount of their expenditures. This begins to alter the face of affairs, handsomely. $6 694,206 80 6,181,624 81 frightful. Let us consider for a few moments, the nature abroad, amounting, principal and interest, to two of those state debts,-for in that particular too, there hundred and fifty millions of dollars. The foreigner, is something worthy of notice. who will come here and publish such assertions, in National debts,-synonimous to a certain extent the face of the very people, who, he knows, have ac-with state debts, have usually heen contracted in car- Ohio, for instance, has constructed public improve complished, easily, the very thing which he denies rying on or averting war, or under some similar cir-ments, which cost in the aggregate, according to a has ever been, or ever can be accomplished, depend cumstances which rendered them irredeemable ex- recent report of their board of public works, $14,upon it, has some other object in view, than the difpenditures,-expenditures without the hope of remu- 627,549, the interest of which, at 6 per cent. is $577,fusion of truth, or the welfare of the states and of neration to the people, who are called upon to pay 000. the people that he is laboring to deceive. the debt or provide for the interest thereon. For this, at the commencement of the next seaSuch is the debt, probably, of every European pow-son's business, the following works will be finished er at present. Such was our national debt of the re- and navigable, viz:volution,-and such was our debt of the war of 1812. Once expended, the money was gone forever, and the people had to be taxed to pay the whole amount, principal and interest. Ohio canal and its navigable side cuts, Wabash and Erie canal and side cuts, Making the aggregate length of navi- · 767 do owe, For the coming year the board estimates the aggre gate receipts for tolls aad water rents at $600,000, which, after deducting expenses of management, &c., will leave a net revenue applicable to interest of Whatever effect such and other similar publications, repeated in thousands of insidious forms, and widely diffused over the country, may have had in actually deceiving the American people as to their capability to discharge the debts they have since contracted, as of the states of the union, we will not undertake to say; however it may have occurred, Not so with the state debts, which we are conthat a prevalent error of opinion is abroad, very sidering. Hardly a single state debt is in existence much to the disadvantage of the credit of the states, of any material amount, but which, instead of being we think can be demonstrated to the satisfaction of an utter expenditure, is actually invested, and most of any unprejudiced person that will examine the sub-it profitably invested, in improvements; which, besides ject. conferring incalculable benefits upon the community, We maintain, that the idea is abroad that the states opening facilities for them to markets, enhancing the are indebted to a much larger amount than they are value of their products, and consequently of their in fact. By a great many it is supposed that they are possessions, also, by the revenue which they will called upon forthwith to pay up the amount that they bring when completed and fairly in operation, will whereas, the amount that can be demanded pay the principal and interest of all the money that within ten years, is comparatively but a small por- they have cost. tion of the amount due. This brings us to a consideration of the resour$400,000. The deficiency of $477,000, to be suppli A still more numerous class have formed the ces which the states have, wherewith to pay what ed from other sources, the board say will be dimin opinion that the states have not,-and the class is they owe. The capacities of the states to meet their ishing from year to year, "and the time is not far dis not small even that believe that they never will have, own obligations, have not been duly weighed and tant, as the board verily believe, when the revenne the means to pay off what they owe; whereas, there placed as they should be, to the credit of the states. from these works will be fully equal to, and even is not one of the states but which has inherent re- In fact, so inveterate a war has been waged at home exceed the interest on the cost." sources competent to meet every existing obligation, against the credit of the states, that we should cease -and it only requires judicious and energetic efforts to wonder at the doubts of foreigners. It would realto bring those resources into effectual operation. ly seem to be a question with many, whether the Some slight shadowings forth of the expense to states have inherently, any resources of their own, the American people, of the sudden transition from or credit of their own, that may be relied upon. If an inflated paper currency, to an actual hard money the true character of our republican system is forcurrency, was attempted in a late number of the Re- gotten by our own citizens, Europeans have some ex gister. That in this process, such of the states of cuse for pretending that they cannot understand, and the union as had incurred considerable debts, would will not learn the refined distinction between our severely feel the collapse, was a matter of course.state and national governments. But that the credit of the states have sunk, and for And first of the legitimate resources to be derived the same causes which were assigned for American from the public improvements in constructing which, credit having sunk, far below the point that there the debts have, in large proportion, been incurred. So also with respect to the Maryland improve ments. Two-thirds of the actual amount of her debt has been incurred in constructing the Chesa peake and Ohio canal,-which is in a manner use less, until it shall be completed to the coal and ire region. Then, or so soon after as its markets are fairly found, it will pay as well as any extensive public work in this country, and remunerate the state for all her investments therein. The investments which she has made in her princi cipal rail-roads, the Baltimore and Ohio, and the Baltimore and Washington, have cost the state, fact, nothing; for those companies have regularly 334 miles. 64 65 80 22 13 91 56 66 of € t 1 1 met the pavient of the interest thereon as it feil d'ne, and there is now no doubt of their continuing to do so. The Washington line is a handsome source of revenue to the state. The chain of internal improvements might be pursued through most of the states that have become much indebted, and with results slightly differing from those already noticed. The wheat or floraised in the state, beyond ces were al resorted to.—an income tax, for in- The corn raised in the state beyond what is requir Some of the states, as Louisiana, Alabama, and produce from this amount, an ample snpply of These are but three of the many items which are To establish that the states can pay their own But, suppose the worst that can well happen,suppose that the states derive nothing whatever Can there be any doubt as to the capability of the from their investments,-that they have to rely sole-state to meet her obligations if she please to exert ly upon taxes and such resources as states must rethose capabilities? sort to in cases of difficulty; suppose they had each of them incurred their debts in self-defence, and expected no returns in form of revenue from them and had no ultimate securities to recur to,-nothing but the current resources of the people; could they not pay their debts, even in that case? Yes they could, and what is more, they would too; notwithstanding the hesitation which we are obliged to notice, expressed in various directions. The American people, notwithstanding they have some amongst them that would be glad to get rid of their responsibilities on any terms, are in the main, quite as honest as any other people, and if they can pay, they will pay what they owe. That they could pay.-any,-that the most severely indebted of the states, can themselves, pay off their debt in time, and whatever may by some be apprehended of repudiation, that they will pay, we have full faith, even if their improvements were to turn out utterly unproductive. The effort would be severe, for any thing that Americans have been heretofore accustomed to, we admit. But they are capable of exertion when it becomes necessary to their character. The people of these United States are little accustomed to taxation, in the style in which it is imposed by most other governments. For instance, the people of Great Britain and France, we observe by returns furnished by the last arrival, have had to pay to their governments, in taxes in one form or other, each of them, for the last year alone, far more than the total amount of all debts of all the states of our union, with debt of the federal government added thereto. Great Britain has half as many more inhabitants, and France twice the number of inhabitants that the United States have. The people of neither of them are better able to pay taxes than are the people of the United States, yet in a single year, they have each of them had to pay more than the whole of our debts,-state and national. If they are capable of enduring such an exaction, could not the people of our states endure all that would be required to relieve themsevles of the debts they owe, in the process of a number of years? We will take our own state as an example, to show that she could, and we verily believe she would, even if her works were never to pay her one cent, meet the payment of her obligations in good faith, notwithstanding. Maryland found herself involved in a debt, according to the manner in which it is estimated, of over fifteen millions, but in fact, of some ten millions of dollars. This furnishes a fair criterion, for if she is to derive no revenue from her public works,-(we are now arguing under that supposition,)-if she is to derive nothing from her public works, her debt to her, is as heavy as the debt of any other state in the union, if compared with the resources of any other state that owes a debt. If Maryland could pay her debt in such a case, so could every other state pay theirs. Yet there are many of our own people who insist Whether Europeans choose to understand our re- It is true, that two or three of the counties of the " This prohibition to the states, was one of the very few unwise provisions contained in the federal constitution; unwise, because totally incompatable with the operations of the systems of government that were adopted. That any constitutional prohibition can be framed by the sagacity of man, sufficient to prevent the exercise, either by the states, so long as they retain the shadow of independent sovereignty, or by the general government, so long as it depends upon constituent powers for existence, of the use of their own We are admonished by the length to which these remarks have extended, that the example of this single state must suffice as proof upon the point in queston, that is, that the states can pay if they will We doubt if there is one state in the union, their acMaryland, we have little doubt, will soon demon- tual resources fairly estimated, and their public imstrate that she can and will pay her debt. After ful-provements out of the question, that is less able ully ascertaining that taxes, which she wished if pos-timately to discharge their existing obligations, than sible to avoid, were inevitable, her statesmen set se- the state of Maryland. riously to work, and though it takes some time to get One other glance at capabilities If it be true that laws of that kind into operation, sufficient has been the amount of property subject to taxation in a state, done to establish beyond doubt that she is in earnest furnishes a less certain criterion for judging of the in providing ways and means to meet the exigency. ability of the people thereof to pay, than a stateAs there had been no state tax levied since the last ment showing the amount of surplus commodities war, it was necessary to have a general assessment of which they can send to market, a measurement of all the property in the state, in order to fix a tax there their means by that rule, will be quite as concluThis was of course a work of time, and diffi-sive. Take a single article; and that not selected as culties occurred, which have prevented it from being the first staple of the state; but because we happen fully carried into operation; but the failures are ex- to have the data of that item at hand;-the tobacco ceptions which the present session of the legislature alone, raised in Maryland and exported, as a surplus will take care to provide ways and means to obviate. commodity, would in five years pay off the whole of They are now occupied in so doing. Other resour- the debts of the state. on. possibilities, if not of probabilities, that one of them may again have. Suppose O'Connell should succeed in carrying his favorite measure for a repeal of the union, and an Irish parliament were again installed. would the London capitalists think of holding the British crown responsible for every pecuniary engagement that parliament might enter into under his influence? Let them answer, and re will then answer for the states of the American union,-aye, every one of them. So much for the question as between the Europeans and Americans, on this subject. Let us now view it as a question of our own, in which Europe has nothing to say. There seems to have been a strange fatality and falling into error at home in relation to the true features of this question, the effects of which are far more serious to us, than any fallacy that foreigners may have imbibed about it. That there is design in spreading some of these errors, to a given extent, we strongly suspect. It would be difficult otherwise to account for the unremitted efforts of a certain widely distributed publication, issued from New York, and, we have reason to suppose, solely devoted to foreign influence, as it is conducted entirely by foreigners who profess no design of becoming citizens,-we say it would be difficult to account for such a publication's unceasingly discouraging the idea of the states being ever capable of redeeming themselves from their debts, if it were not that they wish, by representing repudiation as enevitable, to force the general government to interfere. As a specimen of the assurance with which the conductors of the publication alluded to attempt to pervert the truth and decieve the American people, one of their late numbers contains a table shewing the indebtedness of sundry of the European powers, and distinguishing how much of each debt is due in London,-(made out in pounds sterling, observe, with which the writer of it is evidently much more familiar than with our dollars,)-and which table, as it may be useful to our readers, we insert under the foreign head in this number of the Register. On introducing it, and it would appear that that is the object for inserting it, it is paraded as proof positive of the writer's assertion, that "No nation has ever yet been able to pay a large debt contracted abroad, and none ever will be." This assertion is made in the face of the American people,-made to the American people, the very people who, since the termination of the late war with Great Britain as the writer and publisher of that article well knew, have themselves paid off the whole of their national debt, most of it contracted We are aware that the panic which both d was really just cause for its sinking to, is beyond We have just turned to a proof in point on this subject. In all the public debates lately, the round sum of $200,000,000 is assumed as being about the amount of state indebtedness. This we think considerably above the actual sum. An official statement of the total re penditures, for eleven years, of the several frised lines on the Pennsylvania canals and rail-reds miles in length, costing the state $263,791 64 ir construction shows, in that period, expenditures Receipts, · Let us consider for a few moments, the nature of those state debts.-for in that particular too, there Many details might be adduced to show and prove that this general estimate carries the real amount much beyond the maximum, and far beyond the immediately pressing maximum of state debts. Expenses exceed receipts by This presents a discouraging view offs. But We cannot command the time at this moment to why? That a very large portion of the t hunt up, and probably would not be able to find the penditures" was incurred in remedying defect, and data where from to show the amount that falls due should have been charged to the amount annually, of the state debts. It would be an exceed-struction in this case, we think obvious from the re ingly useful table, and would undeceive thousands insult of the operations of the year immediately su relation to the actual dificulties they had supposed ceeding the termination of the above period, t the states to be laboring under. The mountain would particulars of which will be found in a precedin not, to be sure, be reduced to a mole hill, but its as- union," where it is shown that for the last year,— number of the Register, under the "states of the pect would look far less formidable and no longer discouraging as business was in that state particu frightful. larly, the receipts of their public works now in operation, yielded $530,452 00 revenge, over the theat of their expenditures. This begins to aller the face of affairs, handsomely. abroad, amounting, principal and interest, to two the debt or for the interest · For this, at the commencement of t Whatever effect such and other similar publica- Such is the debt, probably, of every European pow-son's business, the following works with tions, repeated in thousands of insidious forms, and er at present. Such was our national debt of the re- and navigable, viz:widely diffused over the country, may have had in volution,-and such was our debt of the war of 1812. actually deceiving the American people as to their Once expended, the money was gone forever, and capability to discharge the debts they have since the people had to be taxed to pay the whole amount, contracted, as of the states of the union, we will not principal and interest. undertake to say; however it may have occurred, Not so with the state debts, which we are conthat a prevalent error of opinion is abroad, very sidering. Hardly a single state debt is in existence much to the disadvantage of the credit of the states, of any material amount, but which, instead of being we think can be demonstrated to the satisfaction of an utter expenditure, is actually invested, and most of any unprejudiced person that will examine the sub-it profitably invested, in improvements; which, besides ject. incalculable benefits the We maintain, that the idea is abroad that the states | opening facilities for them to markets, enhancing the are indebted to a much amount than are value of their and in fact. By a great many it is supposed that they are possessions, also, by the revenue which they will called upon forthwith to pay up the amount that they bring when completed and fairly in operation, will do owe,-whereas, the amount that can be demanded pay the principal and interest of all the money that within ten years, is comparatively but a small por- they have cost. tion of the amount due. Ohio canal and its navigable side cuts, Ohio, for instance. has constructed public impr ments, which cost in the aggregate, according recent report of their board of public sark 627,549, the interest of which, at 6 per capi Making the aggregate length of navi For the coming year the board estimates the This brings us to a consideration of the resour A still more numerous class have formed the ces which the states have, wherewith to pay what opinion that the states have not,--and the class is they owe. The capacities of the states to meet their not small even that believe that they never will have, own obligations, have not been duly weighed and the means to pay off what they owe; whereas, there placed as they should be, to the credit of the states. is not one of the states but which has inherent re-In fact, so inveterate a war has been waged at home exceed the intereste sources competent to meet every existing obligation, against the credit of the states, that we should cease So also -and it only requires judicious and energetic efforts to wonder at the doubts of foreigners. It would real-ments. to bring those resources into effectual operation. ly seem to be a question with many, whether the debt Some slight shadowings forth of the expense to states have inherently, any resources of their own, peal the American people, of the sudden transition from or credit of their own, that may be relied upon. If les an inflated paper currency, to an actual hard money the true character of our republican system is forcurrency, was attempted in a late number of the Re-gotten by our own citizens, Europeans have some ex gister. That in this process, such of the states of cuse for pretending that they cannot understand, an the union as had incurred considerable debts, would will not learn the refined distinction between severely feel the collapse, was a matter of course.-state and national governments. But that the credit of the states have sunk, and for And first of the legitimate resources to be d the same causes which were assigned for American from the public improvements in constructio credit having sunk, far below the point that there the debts have, in large proportion, been the ly the $6694.2063 6.1316348 pr ful P F tha on NILES' NATIONAL REGISTER-FEB. 25, 1843--STATE DEBTS. tic and foreign enemies of And there is now no doubt of their continuing to do stance, which also, as a new measure here, was diffi- what is required for onsumption in the state, and We are aware that the pet the payment of the interest thereon as it feil dne, ces were a resorted to,-an income tax, for in- The wheat or flour.aised in the state, beyend t credit have contrived to spre elity always evinced by a venue to the state. The Washington line is a handsome source of cult to be carried into operation, and new enactments therefore exported, would of itself, in a few years pay off the whole of the state debt. o community against under The chain of internal improvements might be pur- doubt, be also supplied. were found necessary to the object. They will, no 1-1sion of business, reduction from those already noticed. irl of credit, have almost destre Some of the states, as Louisiana, Alabama, and produce from this amount, an ample snpply of at productiveness of the public ississippi, instead of carrying on extensive inter- revenue? H-ever be productive. We are rnishing the banks of their states with capital to of that, when the expenses of collection are deduct-proof that Maryland can pay her state debt. If each ever be promet, perhaps it, I works, incurred their debis for the purpose ofed to yield $600,00. It will fall something short theme examined in this aspect, furnishes conclusive lars. What is the rate of taxation that would annual interest accruing upon the debt of the state. These are but three of the many items which are The present tax imposed, was intend- sent to market from the state of Maryland. The T generally they will a it investments made. but geneourse, we Iv y. That confidence should be cause they have not been pr se folly. The line of trade w on ed ultimately to be connec u-in a single instance as yet ec ssroads, and some of the caras s te eir lands for the ultimate repayment of the mo- brought into operation, will more than supply the Yet there are many of our own people w that the general government should *** A mere statement of these 'ways and means,' would ortion.-hurriedly put in opt to in cases of difficulty; suppose they had each le ten association, not a formal legs to to the account of "constructin ject themselves to exactions to that amount, may be er be true of the works in their debts, even in that case? Yes they could, disputed, and by some, disbelieved,-but no one with tacit understanding, introd current resources of the people; could they not to the due -ed ture ere ex n-where. It takes equaly to of such magnitude, to the ossed in The American to a pay if they would. gi- of Europe, not to purchase er VI on Pennsylvania y owe. of miles in length, costing the construction shows, in Receipts, hat they could pay,-any,-that the most severeindebted of the states, can themselves, pay off ir debt in time, and whatever may by some be aphended of repudiation, that they will pay, we have 1 faith, even if their improvements were to turn t utterly unproductive. Ove unt in Expenses exceed receipts it 77% s in sed uld state of affairs, however, arose from peculiarly unobtained collectors to attempt the collection. This governments. Whether Expe fortunate circumstances, such as occasionally visit publican inst communities and deprive them of their usual capa- allow them to cities. For three successive years, a section of coun-stitutions. W try, including the counties alluded to, have been known to them visited with such unpropitious seasons for their crops, they may This presents a discounericans have been heretofore accustomed to, we extent of the failure, and the last season, which to them. The effort would be severe, for any thing that that they have been exceedingly distressed by the are curs *** why? That a very large mit. But they are capable of exertion when all the rest of the United States was so abundant, penditures" was incurred Acc comes necessary to their character. should have been char The people of these United States are little ac- serted by most respectable men from there, that the the failure there was so entire, that it has been as-unio struction in this case, wetstomed to taxation, in the style in which it is im- whole surplus crop, which could be spared for marsult of the operations of sed by most other governments. For instance, the ket, would not sell for enough to pay the taxes ceeding the termination ople of Great Britain and France, we observe by and a large proportion of the farmers would have to particulars of which wilturns furnished by the last arrival, have had to pay go elsewhere for corn (which is their usual staple number of the Register, their governments, in taxes in one form or other, to subsist upon. That people suffering under such union," where it is shech of them, for the last year alone, far more than visitation, should be enabled to meet new and bears ger discouraging as business e total amount of all debts of all the states of our exactions in addition to what they had been accus larly, the receipts of the ion, with debt of the federal government added tomed to, is no proof that these same people cannot ration, yielded $530,452 ereto. Great Britain has half as many more in- or will not cheerfully contribute their proportion of their expenditures. bitants, and France twice the number of inhabi- the public treasury, under other and more fav of affairs, handsomely. ts that the United States have. The people of circumstances, or seasons. A dearth, a famine Ohio, for instance. has ither of them are better able to pay taxes than are fire, or other misfortunes, may fall upon partic Ciments, which cost in the people of the United States, yet in a single year, localities, but it would be unfair to make up ag recent report of their by have each of them had to pay more than the ral account of capabilities from what can only 627,549, the interest of sole of our debts,-state and national. If they are obtained of such spots. The other parts of the pable of enduring such an exaction, could not the have paid as promptly as taxes are usually ople of our states endure all that would be requir- they will continue to do so, and our w For this, at the comme to relieve themsevles of the debts they owe, in delinquent sections will soon march a son's business, the followi e of a number of and navigable, viz:the foremost of those that have pail true Marylanders, as any that 1812. Ohio canal and its navigal as tent 000. pay on.- We will take our own state as an example, to serve in their misfortunes, forber and Miami canal, - en if her works were never to pay her one cent, agement, rather than reproach, ale stence Warren county canal, withstanding. ey that which, after deducing , will gate receipts for tolls and te that owes a debt. If Maryland could pay her gle state mass will a net revenue $400,000. The deficiency Maryland, we have little doubt, will soon demon is such a case, so could every other state pay tron W resour y what ed from other sources, the bate that she can and will pay her debt. After fu et their ishing from year to year, "and ascertaining that taxes, which she wished if ed and tapt, as the board verily be le to avoid, were inevitable, her statesmen states. from these works will beusly to work, and though it takes some at home exceed the interest on the cors of that kind into operati ld cease ld real-ments. Two-thirds of the providing ways and So also with respect to thee to establish beyond 307 there had be her the debt has been incurred in ce own, peake and Ohio caual-whir, it was pon. If less, until it shall be completed the pr Th m is for- region. Then, or so son ste some ex fairly found, it will parties tand, and public work in this country, my ween our for all her investments there The investments which s derived cipal rail-roads, the Balt ng which, Baltimore and Washi incurred. fact, nothing for th er suon puw ; and, in such case, the yeas and nays same rule, every one of them, it is likely, wo To establish that the states can pay the debts, would seem to be a sufficient reply quiry. If they can, they ought to pay debts. W 24 . 40755 405 AR JO 10the ery give k al5 upon fourth ent of y morter would e stock;) the bank severally the state f the capi ne the se 1 being ale bank, the ctors, and a 00; and the xecute to the amount prosecured to the whole amount rter you will at ition whatever. length of time ; but still it was great question ing legislature, e law came up Il pending, and it, a joint comepresentatives, a nighest responsi-was appointed, the said bill can be practicable to vely.' From the ee, permit me to g extract: 'But Mer which relates o the said instion on which the and as such conve no power to be again submitted which would have east two years its r committee believe e wishes of our con unanimously adopt ne, while the charcourse to all amendastitution, it is the parts of the bill resubmission of the ently the original |
