The Sun.
London, England, 1857-12-26 00:00:00

LONDON, SATURDAY, DEC. 26, 1857.

That the recent financial disasters in America
will naturally affect the state of the Treasury
might easily have been anticipated even if the
President had alluded to it less forcibly in his
Message, or abstained from indicating the nature
of the measures which he had in contemplation.
The enormous amount of distress and ruin occa-
sioned to the people, and the numbers thrown out of
employment, must necessarily materially diminish
consumption, and, in a country where revenue is
mainly derived from Customs' duties, decrease
the national income. The report of the Secretary
to the Treasury—the head of the financial depart-
ment—was therefore anxiously looked for, so
that a reasonable estimate might be formed of the
probable results of the monetary convulsion.
The document is now before us, and like all
American State papers, it is of a very voluminous
character. In some respects it is satisfactory, in
others quite the reverse. It is in fact the carrying
out of views indicated by Mr. BUCHANA3.7 respect-
ing banks and taxation, and threatens the country
with a stringent monetary system, which, if
brought into operation, will, notwithstanding its
miraculous natural resources, speedily recluse the
general social prosperity so exceedingly displeasing
to the hard calculators in all parts of the world.
The declaration in favour of free trade, and against
anything like protection, is, on the other hand,
all that could be desired—the views, clear and
unequivocal ; and the arguments, sound and con-
vincing.

As to the condition of the treasury, it is as
follows :—On the Ist of July, 1856—the com-
mencement of the financial year—there was a
balance of 19,901,325 dole. (these dollars can be
reduced to pounds by dividing by 5), so that the
amount was in round terms nearly 4,000,000 .
The receipts of the year were 68,631,514 dols.,
of which 63,875,905 dole. flowed from import
duties under the head of customs. The other
items, viz., lands 3,829,486 dols., and miscella-
neous 926,123 dols., being comparatively trifling.
Against this income the outlay was 70,822,724
dole., leaving a balance in the treasury of
17,710,114 dols. This was not however all use-
leen outlay, inasmuch as nearly six millions of
dollars, or 1,200,0001. sterling was applied in the
reduction of the public debt which was reduced
to the comparatively trifling sum of less than five
millions atodi _
uw----a very pleasing condition for
the tax-Payers gen "alb% It is, however, more
4han probable that a smallad dition must be made
thereto, in order to provide for the anticipated
deficiency of receiptsdurinlgth
were some
more yemearthTinhge
Army and Navy apportionments
more than six millions sterling----not a very
large outlay when we consider the irnpottmt •
po-
sition occupied by America, and the avowed readi-
ners to enter on hostilities with. any State on
the smallest possible provocation. To make Up
the probable deficiency power is demanded to
issue Treasury notes to the extent of twenty mil-
lions of dollars, payable within a limited time, and
bearing interest. This is a movement in the
right direction, for, under judicious regulations, ,
these notes would constitute a sound currency
that would be acceptable in every State of the
17nion. They are not, however, made a legal
tender, and therefore opportunities will be afforded