The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-01-01
New YorE, Saturday, January 1, 1s4s.


State OF the Country-Past and Future.
The United States now in most extraor-
binary position. During the last year, the armies
of the republic have executed Two of the most
brilliant campaigns that the history of fifty GEN.
furies can show, considering the disparity of
forces and the inequality of position. The cam
paign from Pala Alto to Buena Vista, and that
from Vera Cruz to Mexico, cannot be paralleled,
except in that of Alexander the Great through
Persia, Hannibal from Spain to the gates
of Rome, or Napoleon over the Alps into
Italy. The military power of this republic, IN
addition to Its great commercial wealth, is now
acknowledged throughout the civilized world
instead of one Napoleon, we have them by the
dozen. The military genius of the nation is
proved to be equal, if not greater, than that of its
commercial capacity. We rank, at once, as one
of the most powerful nations in the world, and
this acknowledgment will soon be made by
every government in Europe.
But this progress of two hundred years, con-
densed into twelve months, has not been accom-
plished without losses, without expenditures,
without efforts that will be felt from this day for
ward, upon the financial the commercial, andthe
banking systems of the nation We have finish
ed the conquest of Mexico; but we are beginning
a revulsion and revolution in our currency and
commercial affairs that will land US we don't
know where. The public debt has been increas-
ed already TO fifty millions. The present Con-
gress has not been month in session, and four
millions of dollars have been called for to supply
deficiencies; besides ten new regiments, making
our standing army sixty thousand men, to be pro-
vided for during the ensuing year. We cannot
get rid of Mexico. She will not make peace.
She forces US to keep military possession of her
capital and Of her provinces. This involves ex-
penditures, and those expenditures Will lead to
results that must be felt in commercial affairs.
Accordingly, within the last few days, deep az
prehensions of disastrous results have begun to
pervade the minds of our banking aud commercial
men-a panic has been the consequence, first
reaching the i'll managed country banks run has
been made on their agents in this and other Allan
tic cities This is but the commencement OF the
downfall Of that portion of our system which is
founded on baseess principles. Specie still con
tinues to leave our banks IN the large cities by
large masses Nearly four hundred thousand
dollars will be taken IN the steamer which leaves
to-day During the last fortnight, probably
nearly as much has been drawn from our banks,
through reaction the paper currency, by the
people demanding specie for PIPER. Fifty mil
lions of dollars will be required during the en-
sung year, making four millions month This
will drain the treasury, and loans will be re-
ouired TO nearly twenty millions of dollars, all
of which will ultimately fall on the banks
There is no prospect that Congress can avoid
acting on this matter; we are, therefore. only IN
the commencement of that reaction which every
nation must feel that goes to war, and ia success
full, as we have been.
But we ought not to despair. The country Is
generally prosperous the sun shines as bright
as ever; the stars are still as sparkling; the
earth is as green; the dews OF heaven as rich as
ever and the whole republic is full of food and
raiment, with sum OF specie scattered among
the population equal, probably, to one hundred
millions Of dollars. All who have been trading
on borrowed capital, to great extent, will break
there is no salvation for them; but, fortunately
they are only small portion of the people OF thu
country. he great mass OF our merchants
traders, mechanics, and professional men, arr
safe, beyond the reach OF a rcvulsion IN the bank
ing eysteln The prices of our great staples are
low; but il is not probable that they will 60 any
lower. We are on the eve OF most exciting
Presidential election, aud there is no doubt W.
shall have President of some kind or other bu
il matters very little who he may be. Mr. Clay
and General Taylor seem to be the prom
nent men.
Thus, therefore, we are full OF glory, OF specie
Of food, OF clothing, of men, Of rich land; bu
vet the banks are in dangerous postion-may
possibly even suspend and break to pieces, anc
no body ptles them, and no body ought to pity
them. We are going through a great politica
and financial revolution, and we will rise vi
sosin better and more elastic than ever. TIL,
United States are now beginning the history o
greatness in the civilized world.
MAILS R1R TIE GUILE SQuApRoN. we are re