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GEORGE PEABODY AND THE STATE DEBT. 209
ities. 'I hey therefore hypothecated the stock with banks and brokers, who
sold it for whatever it would bring, thus discrediting the State, and diminishing the resources of the company. In 1839, the State made a further appropriation to this company of $1,375,000, in five per cent, sterling stock, which
was squandered in the same manner as the previous emissions, leaving the
company heavily involved, without credit at home or abroad, and general
insolvency.
As most of these loans were negotiated by Mr. Peabody in London, the
following interesting letter fully illustrates the condition of Maryland's
securities at that time, and the deep interest he felt in the welfare of his
adopted State:
" British Queen—London, Sth March, 1841.
" General Thomas Emory :
" My Dear Sir: . . . Your remarks regarding the Presidential Election agree
with my own, and most fervently do I pray that the New Administration may be able in
some measure, to give relief to our country, which is so severely suffering from the acts
of an unprincipled and selfish party, who have governed it for the last twelve years.
Since the days of Washington, no President has entered upon the duties of his office at
a period so momentous for the state of his country as General Harrison, and it will
require all the wisdom, good sense and talent which are combined in himself and his able
Cabinet, to arrange amicably the difficulties with this country—to bring back the finances
of the United States to a wholesome and sound state, and once more to bring back the
general prosperity which prevailed under the good administrations of Monroe and
Adams. General Harrison was probably not two days in office before he received a communication from the British Minister on the subject of McLeod, which here is believed
to be a peremptory demand for his immediate release, and in the event of a refusal requiring Mr. Fox to demand his passports. The greatest excitement exists in this country on
the subject and the fear of war—the want of confidence in the good faith and ability of
many of our States to meet their engagements, added to the recent news of the absolute
failure of the Bank of the United States, and consequent suspension for the third time, of
the Banks to the south of New York, has produced a greater alarm among the holders
of American securities than I have ever before known, and purchasers can hardly be
found at any price. When, in 1839, the bills of the Chesapeake and Ohio Canal Company
obliged me to make a forced sale of Maryland bonds, I thought the market in a bad state,
but had I now to raise £200,000 on that stock, I doubt whether 10 shillings in the £
could be obtained. As most of the bonds have been sold by me, I am called upon by the
holders almost every day for my opinion in relation to their safety, and whether the
Legislature will pass a tax bill, etc. Of course, 1 speak most strongly of the disposition
and ability of the State to meet all engagements, but many timid holders have seen in the
Times and other papers, that the Legislature was about to make new loans instead of
providing taxes to meet the dividends and have been unsuccessfully endeavoring to sell
their sterling stock at about 70. I have circulated, as much as possible, among parties
interested, the excellent report of Mr. Bowie, Chairman of the Committee of Ways and
Means in the House of Delegates; and among many large holders, his praiseworthy
sentiments have inspired much confidence, but the Legislature must promptly carry out
his views, or, be assured, the credit of Maryland will so suffer that her stock in European
markets will have but a nominal value. Messrs. Baring, Brothers & Co., the agents of
the State, show much anxiety on the subject, and having myself taken so large a share in
negotiating the bonds and always spoken in the most confident manner of the high
honor of her citizens to sustain, under all circumstances, the good faith of the State, I
14—v. iii.
| Title | History of Maryland - 3 |
| Creator | Scharf, J. Thomas (John Thomas) |
| Publisher | J. B. Piet |
| Place of Publication | Baltimore |
| Date | 1879 |
| Language | eng |
| Type | Books/Pamphlets |
| Title | 00000240 |
| Type | Books/Pamphlets |
| Transcript | GEORGE PEABODY AND THE STATE DEBT. 209 ities. 'I hey therefore hypothecated the stock with banks and brokers, who sold it for whatever it would bring, thus discrediting the State, and diminishing the resources of the company. In 1839, the State made a further appropriation to this company of $1,375,000, in five per cent, sterling stock, which was squandered in the same manner as the previous emissions, leaving the company heavily involved, without credit at home or abroad, and general insolvency. As most of these loans were negotiated by Mr. Peabody in London, the following interesting letter fully illustrates the condition of Maryland's securities at that time, and the deep interest he felt in the welfare of his adopted State: " British Queen—London, Sth March, 1841. " General Thomas Emory : " My Dear Sir: . . . Your remarks regarding the Presidential Election agree with my own, and most fervently do I pray that the New Administration may be able in some measure, to give relief to our country, which is so severely suffering from the acts of an unprincipled and selfish party, who have governed it for the last twelve years. Since the days of Washington, no President has entered upon the duties of his office at a period so momentous for the state of his country as General Harrison, and it will require all the wisdom, good sense and talent which are combined in himself and his able Cabinet, to arrange amicably the difficulties with this country—to bring back the finances of the United States to a wholesome and sound state, and once more to bring back the general prosperity which prevailed under the good administrations of Monroe and Adams. General Harrison was probably not two days in office before he received a communication from the British Minister on the subject of McLeod, which here is believed to be a peremptory demand for his immediate release, and in the event of a refusal requiring Mr. Fox to demand his passports. The greatest excitement exists in this country on the subject and the fear of war—the want of confidence in the good faith and ability of many of our States to meet their engagements, added to the recent news of the absolute failure of the Bank of the United States, and consequent suspension for the third time, of the Banks to the south of New York, has produced a greater alarm among the holders of American securities than I have ever before known, and purchasers can hardly be found at any price. When, in 1839, the bills of the Chesapeake and Ohio Canal Company obliged me to make a forced sale of Maryland bonds, I thought the market in a bad state, but had I now to raise £200,000 on that stock, I doubt whether 10 shillings in the £ could be obtained. As most of the bonds have been sold by me, I am called upon by the holders almost every day for my opinion in relation to their safety, and whether the Legislature will pass a tax bill, etc. Of course, 1 speak most strongly of the disposition and ability of the State to meet all engagements, but many timid holders have seen in the Times and other papers, that the Legislature was about to make new loans instead of providing taxes to meet the dividends and have been unsuccessfully endeavoring to sell their sterling stock at about 70. I have circulated, as much as possible, among parties interested, the excellent report of Mr. Bowie, Chairman of the Committee of Ways and Means in the House of Delegates; and among many large holders, his praiseworthy sentiments have inspired much confidence, but the Legislature must promptly carry out his views, or, be assured, the credit of Maryland will so suffer that her stock in European markets will have but a nominal value. Messrs. Baring, Brothers & Co., the agents of the State, show much anxiety on the subject, and having myself taken so large a share in negotiating the bonds and always spoken in the most confident manner of the high honor of her citizens to sustain, under all circumstances, the good faith of the State, I 14—v. iii. |
