The Sun.
London, England, 1862-12-02 00:00:00

AMERICAN FINANCE.

(From Money Market Retnew.)
If the experiencethe
of the past did not teach us that war
can be carried on by a nation despite an embarrassed condi-
tion of its finances, the world might look for a speedy ter-
mination of the strife in America. We last week gave the
latest financial statements of both North and South. A re-
markable family likeness is displayed in their financial sys-
tems, which may be described as ono of borrowing much
and taxing little. We do not know what the taxes to be laid
will produce; we can see what taxation has hitherto
produced. The Federal jaccounts are made up to June,
1862. The receipts from taxation are composed of four
items

Customs 49,811,279
Direct Tax
Sale ofl Public Lands 30,441
Incidental 186,358

Total
£10,387,141
Raised by loans of various kinds 105,938,492

£116,325,636
Consequently, in round numbers, the revenue from taxa-
tion did not amount to one-tenth of the sums received from
loans for the year ending June 30, 1862, and after all this
enormous borrowing the balance remaining in hand was but
£2,608,709.

The Confederate accounts are made up to Aug. 1, 1862.
Their receipts from taxation were—
Customs
War tax
Miscellaneous

£2790,415
Raised by loans of various descriptions 57,,720,623

Total .. £60,511,038
Thus, their receipts from taxation were not 1-20th of those
derived from loans, and instead of a balance in hand there
was an excess of expenditure over receipts of £8,043,553.
So far, then, as the accounts show, the Confederate finances
were in a more desperate state than those of the Federala,
although the expenditure of the latter is nearly double that
of the former, the one being stated at £114,168,310, and the
other at £69,454,591.

As friends of peace, we would fain hope we may discern
in this state of the finances of both contending parties a pro-
spect of a termination of the war from the impossibility of
continuing it. The system pursued is really that of dis-
counting taxation for many years to come. Now, this may
be done for one year—and, very possibly, for two; but
then a collapse would become imminent. In a country so
rich in material resources as America, we can easily ima-
gine the producers, whether of corn, clothing, iron, lead,
leather, or other commodities, being willing to exchange
them, to a very large extent, for Government loans or bank
notes. We can also imagine banks and the moneyed inte-
rest doing the same with their surplus or unemployed funds,
but the process cannot go on for ever, inasmuch as these
very interests will themselves require hard money in order
to reproduce, and this accounts in part for the large pre-
mium which exists on gold.

The fact that the Federals and Confederates have been
able to raise in one year no less an aggregate sum than
£173,622,931, shows in a striking manner how rich America
had become in material resources, and how great an effort
both North and South have made to crush each other in a
single campaign; but it is becoming doubtful whether an.
equal effort can be repeated. Indeed, it is perfectly clear
that it cannot be repeated without additional taxation; and
it must be borne in mind that additional taxation in itself
lessens the power of lending. Yet the present amount of
taxation is not more than enough to cover the high rate of
interest which both Federals and Confederates have to pay
for the loans already raised.
It is reasonable to believe therefore that the reaction of
public feeling in America, clearly indicated by the elec-
tions, has been brought about by the conviction that if the
war is to be continued on its present scale; permanent taxa-
tion to an amount that would seriously affect all incomes
must be levied. War is always popular at first. With all
our bitter experience and all our sufferings from it, we know
how eager the multitude ever is to rush into it, without
counting the coat. It is the same in Europe as in America ;
but when the bill has to be paid, we know also how strong
the reaction is, and how fervently peace is sighed for. Is
this reaction now commencing in America ? is a very im-
portant question. Although the proposition of the French
Emperor seems to be yet premature, and it is satisfactory
to know that England declined to join in it, America,
both North and South, will seriously discuss it, and will,
perhaps, from financial exhaustion soon become more in-
clined to listen to pacific counsels. There is at least some
room to hope that when they hear the almost universal
opinion of Europe, and learn that there is no desire or ap-
pearance of coercion, the advocates of compromise may
find themselves better able to gain a hearing.

RED RIVER.

roofivi;sibonsirrahfnbd
--..------
We have received an account of tho plunder of a convoy
of goods on the road from Georgetown down to Fort
Garry. It appears that in consequence of the Sioux mas-
sacres in Minnesota, and of a warning sent from Fort
Abercrombie :to prepare for the worst, Mr. Kittson, who
was in charge at Georgetown, determined to remove the
property at that station, and all the party there, to Fort
Garry, and started in September, sending 16 or 20 tons of
cargo by barge, and taking about the same quantity with
him in waggons. At the Grand Forks, where the Red
Lake River empties itself into the Red River, about 2,000
with
that they
getting
snyeg arrivedbtwhaeec
ryke
Chippewai were encamped, waiting for the long-expected
treaty with the American Government respecting certain
tracts of land ; and fa number of half-breeds from the
neighbourhood of the boundary line were assembled. When
epdalefeoot
plea was
rtngacontent
getting
Indianswttiinht
the party from Georgetown approached they stopped for the
coolly drove off all the cattle. Mr. R.ittson followed and
atgdhtdetmhraeendmedilesp
oinebeflsciegssary for the waggons. But a de-
tataer appealedatl,e
and
d absolutelythh he was
acsh
de-
mand then arose for goods from the waggons. Mr. Kittson.
explained that they were not his to give, but belonged to
Red River merchants, with whom the Indians were wont
year by year to do business in the most friendly way. The
chiefs complained that they had been invited down by the
Governmc nt and kept waiting with no result ; their provi-
sions were gone, and they had lost time in which they
should have provided for the winter. Long harangues were
made of a characteristic description. Mr. Kittson said he
could not believe they would set themselves to barefaced
robbery. The chiefs said they would not do that; what
they wanted was, that ho should hand over the goods to
them, and their necessities compelled them to insist upon
it. lie replied that he could not give them the goods, but
he was in their power, and it was useless for him to offer
opposition. All this took place in the presence of 2,000 ex-
cited Indians, who began shouting that they were now at
liberty to help themselves. 'the chiefs still restrained them,
but represented that if Mr. Kittson did not give, a general
plunder might be the result, which would leave him no-
thing, and perhaps endanger life. At length, amidst the
general noise, wrangling, and confusion, Mr. Kittson, see-
ing his helplessness, and anxious for his party, which in,.
eluded both sexes, bade the Indians go forward in their
work. Then tea, sugar, tobacco, carpets, blankets
were flung hither and thither among the crowd, silks
torn into pieces to tie over their heads, and the finest
scarlet cloths rent into pieces and tossed about.
A few half-breeds, being Roman Catholics, exclaimed
against taking some priests' robes and holy vestments, but
the Red Lakers cried, " We don't care for priests, bring the
things here." When they had helped themselves, Mr.
Kittson found himself proceeding on his way, plundered to
linos: which itre will fall
half-breedshea-
-1 the extent of above 20,000 dols.—a
vily on the traders of Selkirk. So
the Red River settle..
some distance in the rear, and se
were from parishes actually within.
men t. The barge was
fiudlitYo
b stole past afterwards in the dead of the night, It
tm
and the chie
ef trader of thethe Hudson's Bay Co to pahat Mr. Yn'lttse
y who
iesesssa considered in settlement
was with him, acted with discretion, and tlat the lose
could not have been averted by any other course,