"Yes, unable—that is the precise word. Take Pennsylvania, for instance; that is one of the richest communities in the civilized world; its coal and iron alone would make any country affluent, and a portion of its agricultural population is one of the most affluent I know of. Nevertheless, Pennsylvania, owing to a concurrence of events, could not pay the interest on her debt for two years and a half, though she is doing it now, and will doubtless continue to do it. The sudden breaking down of that colossal moneyed institution, the soi-disant Bank of the United States, after it ceased to be in reality a bank of the government, brought about such a state of the circulation as rendered payment, by any of the ordinary means known to government, impossible. I know what I say, and repeat impossible. It is well known that many persons, accustomed to affluence, had to carry their plate to the mint, in order to obtain money to go to market. Then something may be attributed to the institutions, without disparaging a people's honesty. Our institutions are popular, just as those of France are the reverse; and the people, they who were on the spot—the home creditor, with his account unpaid, and with his friends and relatives in the legislature, and present to aid him, contended for his own money, before any should be sent abroad."
"Was that exactly right, sir?"
"Certainly not; it was exactly wrong, but very particularly natural. Do you suppose the king of France would not take the money for his civil list, if circumstances should compel the country to suspend on the debt for a year or two, or the ministers their salaries? My word for it, each and all of them would prefer themselves as creditors, and act accordingly. Every one of these countries has suspended in some form or other, and in many instances balanced the account with the sponge. Their clamor against us is altogether calculated with a view to political effect."
"Still, I wish Pennsylvania, for instance, had continued to pay, at every hazard."
"It is well enough to wish, Hugh: but it is wishing for an impossibility. Then you and I, as New Yorkers, have nothing to do with the debt of Pennsylvania, no more than London would have to do with the debt of Dublin or Quebec. We have always paid our interest, and, what is more, paid it more honestly, if honesty be the point, than even England has paid hers. When our banks suspended, the State paid its interest in as much paper as would buy the specie in open market; whereas England made paper legal tender, and paid the interest on her debt in it for something like five-and-twenty years, and that, too, when her paper was at a large discount. I knew of one American who held near a million of dollars in the English debt, on which he had to take unconvertible paper for the interest for a long series of years. No, no! this is all gammon, Hugh, and is not to be regarded as making us a whit worse than our neighbors. The equality of our laws is the fact in which I glory!"
"If the rich stood as fair a chance as the poor, Uncle Ro."
"There is a screw loose there, I must confess; but it amounts to no great matter."
"Then the late bankrupt law?"
"Ay, that was an infernal procedure—that much I will acknowledge, too. It was special legislation enacted to pay particular debts, and the law was repealed as soon as it had done its duty. That is a much darker spot in our history than what is called repudiation, though perfectly honest men voted for it."
"Did you ever hear of a farce they got up about it at New York, just after we sailed?"