In the 1840s, the state of Maryland defaulted on its debt and Peabody, having marketed about half of Maryland's securities to individual investors in Europe, became persona non grata around London. "The Times" of London noted that while Peabody was an "American gentleman of the most unblemished character", the Reform Club had blackballed him for being a citizen of a country that reneged on its debts. At first, Peabody sent letters to scold Baltimore friends about the need for the state to resume interest payment and rewarded reporters with small gratuities for favourable articles about the state.