The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-12-31

better dDle 10 d II down all OppOsltiOh
The WAR ExpENpTuREs-THE DANGER TO
THE BANKING SYsrEM.-Every intelligent jour
nalist, whatever may be his particular wishes,
or private speculations in Wall street, Is aware
of the danger of the banking system in this
country under the operation OF the vast ex-
penditures called for by the Mexican war, as
well as by the continued drain of specie from
the United States to Europe. Our intelligent
contemporary, the Ne,o York Express, though
not always clear-headed, has among its CORES
pondence the following very pregnant para
graph
Correspondence Of the Expressl
WASHINGTON, Dec 20, ls47.
Specie to Europe-Erroneous Estimates
The fact appears to have escaped much Of public at
vsrnment are mi urousy to thu
money market The million Of dollars which last week
was appropriated in bill which passed the House OF
Representatives to meet two drafts drawn by the
army in Mexico upon the government OF Washington
The brokers and bankers in Mexico in the English In.
teres parties to the Transaction and by means OF
these bills they continue get the value Of their Msx
can specie to Europe, without tho risk OF Mexican
transportation and without the OF the
foreign bills Of exchange however no sooner reacn tue
United States than they converted into specie ana
sent Euglaud-and thus nearly the whols amount OF
army expenditures in Mexico finds its way to England
The two drafts of half million each now on their
from Mexico, DuL preluuo 20 30 OeuoI
drafts which will have to be paid In the coin, and
which will take the course across the Atlantic IL
TO be drained of the precious metals, and
this for also the Uar contributes TO the great eMo@T
rassment Of the country.
This is only an explanation in detail OF the
same financial movement which we have de-
scrbed in general terms. 1t ID correct through
out, and clearly shows that some intelligent
writer for the Express entertains right notions
of the crisis into which this country is driving.
Yet this crisis cannot be regretted nor avoided.
developement of power always costs money.
Military glory is not cheap and nasty-it is a
costly article The name which this country
has achieved within the last two years, could
only be reached in the ordinary way by the slow
progress of centuries The rapid movement, how
ever, will cost few hundred millions. But what
ofthat! Every great nation must pay for Its great
ness and glory. The assignats and mandats 49,
sued at the time of the French revolution, became
worthless during the progress of the war IN
Italy. The war which England waged~wlth
France, caused, in 1897, the suspension Of the
Bank of England-a suspension which lasted a
quarter of century. No commercial nation
can carry on war of any magnitude without
producing revulsion in the currency, if that
currency is one OF bank paper, in particular.
There is no use in closing our eyes upon the
future. The great mass Of the business people
throughout this country, who conduct their opera
tions upon cash principles, will rather be benefit
ted than injured by the breaking up OF the banking
system, which must take place, in consequence of
carrying on, for years yet, the war with Mexico.
In short time, the war continues, all the banks
must suspend. But what of that! Seed time
and harvest will go on without SUSPENSION
Gold and silver will still continue to be in the
hands of the people-industry will still continue
to be valuable. Most of the rotten banks round
about the country are already exploding. Who
cares for that! 1t is only the beginning of the
end.