Records of Later Life

by Fanny Kemble

I read with attention the newspaper article you sent me about the corn laws and the currency, and, though I did not quite understand all the details given on the latter subject, yet the main question is one that I have been so familiar with lately as to have comprehended, I believe, the general sense of it. But I read it at Bowood, and though, as I assure you, with the greatest attention, I do not remember a single word of it now (the invariable practice of my memory with any subject that is entirely uncongenial to me).

THE CREDIT SYSTEM. The mischievous influence of the undue extension of the credit system is matter of daily discussion and daily illustration, I am sorry to say, in the United States, where, in spite of their easy institutions, boundless space, and inexhaustible real sources of credit (the wealth of the soil and its agricultural and universal products), and all the commercial advantages which their comparatively untrammelled conditions afford them, they are all but bankrupt now; distressed at home and disgraced abroad by the excess to which this pernicious system of trading upon fictitious capital has been carried by eager, grasping, hastening-to-be-rich people. Of course, the same causes must tend to produce the same effects everywhere, though different circumstances may partially modify the results; and in proportion as this vicious system has prevailed with us in England, its consequences must, at some time or other, culminate in sudden severe pressure upon the trading and manufacturing interests, and I suppose, of course, upon all classes of the industrial population of the country. The difficult details of finance, and their practical application to the currency question, have not often been understood, and therefore not often relished by me whenever I have attempted to master them; but I have heard them frequently and vehemently discussed by the advocates of both paper money and coin currency; I have read all the manifestoes upon the subject put forth by Mr. Nicholas Biddle, late President of the United States Bank, who is supposed to have understood finance well, though the unfortunate funds committed to his charge do not appear to have been the safer for that circumstance.... The failure of the United States Bank has been sometimes considered as a political catastrophe, the result of party animosity and personal enmity towards Mr. Biddle on the part of General Jackson, who, being then President of the United States, gave a fatal blow to the credit of the bank (which, though calling itself the United States Bank, was not a Government institution) by removing from its custody the Government deposits. My impression upon the subject (simple, as I have no doubt you would expect to find the result of any mental process of mine) is that paper money is a financial expedient, the substitution of an appearance or makeshift for a real thing, and likely, like all other such substitutes of whatever kind, to become a source of shame, trouble, and ruin whenever, after the appointed time of circulation, which every expedient has, there should be a demand for the real article; more especially if the shadow has imposed upon the world by being twice as big as the substance.

The papers and pamphlets you have sent me, dear Harriet, seem to me only to prove that excessive and unjust taxation, partial and unjust corn laws, and unwise financial ones (together with other causes, which seem to me ominous of evil results), have produced the distress, embarrassment, and discontent existing in this, the richest and most enlightened country in the world....

I have been interrupted half a dozen times while writing this letter, once by a long visit from Mrs. Jameson.... Lady M—— called too, with a pretty little widow, a Mrs. M——, a great friend of Adelaide's. Dearest Harriet, here my letter was broken off yesterday morning, Friday; it is now Saturday evening, and this morning arrived two long ones from America. Now, if I should get one to-morrow or the next day, from you, will it be very unjust to put yours under these, and answer them before I write any more to you? I think not, but I must make an end of this....

Good-bye, and God bless you.

I am ever yours,

Fanny.

Harley Street, Tuesday, January 4th, 1842.

Dearest Harriet,

... You say you wonder that those who love and worship Christ should be wanting in patience and the spirit of endurance. Do you not wonder, too, that they should fail in self-denial, charity, mercy, all the virtues of their Divine Model? But this is a terrible chapter, and sad subject of speculation for all of us, and I can't bear to speak upon it.