The Sun.
London, England, 1862-01-21 00:00:00

AMERICAN FINANCES•

The commercial accounts from America show
that the progress of national bankruptcy is as rapid
as had been anticipated. Gold is now at nearly 5
premium, and the result of this is that the war ex-
penditure, already estimated at £100,000,000 per
annum, must be raised to £105,000,000. It is evi-
dent, however, that the mass of the American
people are as ignorant of financial as of political
principles, and that owing to the delusions put
forth by the press upon the subject, they are still
far from comprehending the prospect that awaits
them. No word is yet breathed of a reduction of
expenditure, and with regard to taxation the
simple announcement is that,
owing to the popu-
lation being unaccustomed to the European modes,
the subject will require lengthened consideration,
while :the exigencies of the Government are im-
mediate, and must therefore be provided for
without delay. Hence the grand step has already
commenced of an additional issue of £20,000,000 of
inconvertible notes—a total in itself equal to the
whole amount of the circulation of the Bank of
England in the hands of the public in this country,
but which, it is thought, will scarcely do more than
satisfy the arrears long overdue to clamorous con-
tractors and political agents of all kinds. The public
are told that the new notes are to be regarded as of
the nature of" Exchequer-bills issued by the British
Treasury," except that they " do not bear interest,'
but it is omitted to be remarked also that they are
forced upon the takers, instead of being sought for.
It is enough, however, in this as in the Trent case
to cover any wrong by assuring every one that it is
in accordance with British precedent. Nevertheless,
some few persons are plainly beginning to get
frightened, and, as the surveillance over the press
prevented any expression of opinion, placards had
been posted in the city of New York, with the words
" Peace at any price." The specie in the banks
during the final days of payment had experienced
a further reduction of more than a million sterling,
but would now be under control, since no one could
could obtain it. Some of the leading merchants
express an opinion that the premium on gold will
be at 10 per cent. before the lapse of a month, and
at 50 per cent. if the war goes on till Midsummer.
The North-western States, it is sail, are highly dis-
satisfied with the prospect of taxation. As an ex-
ample of the pressure experienced, it is remarked
" the Western farmers hitherto have exchanged in
value about one bushel of Indian corn for one pound
of coffee, but the additional duty on that article and
the increase in the cost of freight changes the pro-
portion, so that it requires three bushels of corn to
procure a pound of coffee." Opposition, however,
is kept down in the various Western cities by com-
mittees of native Americans, who denounce to
the military or other authorities those who are
suspected of " disloyalty." In fact, added to
the signs of universal bankruptcy, there is vir-
tually a reign of terror, the pri-
vate malicseoef dtihsetricsetsum
who act as spies being
sufficient to cause individuals to be arrested and
indefinitely confined in prison.! !Notwithstanding
the " great political triumph" asserted to have been
achieved by the surrender of Messrs. Mason and
Slidell, the desire for revenge among the worst
classes, o
f whothe
cnowoun overpowercountry,
snot concealed, and it was
the respectable senti-
mentsuggested that the most convenient course for the
moment would be the suicidal one of repealing the
reciprocity treaty with Canada, under which certain
articles of produce and manufactures are exchanged
between the two countries. The fact that the treaty
cannot legally be terminated for four years from
the present date, it having been made originally for
ten years, does not seem to have been thought
worthy of much attention.—Times' City Article.