The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-10-24

kVl0on F0Wer1s
lFrom the London FINES, Oct IL
There can be no stronger proof of tho exceptional
and precar0us state of Europe than the almost uni
versal financial embarrassments of the csntinenth
powers. With the exception of Holland, whose
budget for 1852 displays a surplus of upwards of
three milAon horins over the actual expenditure,
and hiscountry. where the pqblic revenue has I'M
~dergone the largest amount of reductions without
diminishing the resources Of the State, it May be
doubted whether there he any government in Eu-
rope not living beyond its means; and although the
world is at peace, with extraordinary causes to
exhaustive public purse, except tee dread Oh revo'
luton or the passion for vast industrial spe-
culations, the revenues of foreign nations
are everywhere strained to the highest pitch
81 Of taxation, and continual appeals are male
to credit 70 support a structure wnscn rests upon
mon to the most opposite forms of government and
the most distinct interests If We remember right
ly, it was the French republic that began the
series of loans which have followed each other with
a rapidity only known before in the height of war,
and then only known to the people of this country,
who backed the bills OF every class of their allies
The Revolution of 1913 found France in a position
of financial tension, relying on the continuance of
the prosperity she had enjoyed for the preceding
ten years. When that prosee rity was abruptly in
terrupted the liquidation OF her outstanding en-
gagements could emily be met, and was met only in
part, by an enormous Aord mary contribution,
q loan as soon as the credit of the republic was
some what restored, and cons ant augm entston of
the floating debt, which is still going on. France
was followed by Russia and, in spite of MIR. Cob
den, the Russian loan has proved the only one
of these resent specuatons which found much
favor with the capitalists OF This country, bee
its object was definite, and s amount small in co
parison to the resources of the empire. The me-
gotiation of that loan was i'll fact, to the Russian
government, more an object of convenience than
of necessity. The lesser states, which had been
actively engaged in war, Sardinia by her own
folly, and Denmark by the folly OF her assailants,
were the next candidates for relief and their wants
were likewise supplied Oh not uafavoraole terms.
The Pope was compelled, nis return to Rome, to
throw himself on the mercy of the Jews, and OBJ
tanned with difficulty Sufficient to buy up the
spurious notes of the Roman republic, and to put
few bqiocch, in circulation in The Holy City. Prus-
sia had flung away thirty millions Of dollars an
absurd bravado; and though her finances still in
better condition than those OF many Of her neigh
bors, from the with which they had been ad-
ministered in former years the efficiency of her
army, the value of her paper currency, and the
tinaance of her public works depend mainly on the
credit she may find either a. home or abroad. Aus
tris had been lsboring through out the present
fury with all the evils OF hnaucial embarrassment
an inadequate revenue, vicious and deprecated
currency, and system OF taxation at once opPres-
sive to the people and unproductive to the State
The cenvusion of 1913, which imposed upon her the
necessity of enormous military efforts in Italy,
Hungary, and at home, found her in this state. 1t
is surprising that means wore found at all to per-
form all that has been required OF her or that her
ministers have chosen to undertake. But somehow
other the thing was done, and the consequence is
that eight millions sterling are now urgently re-
qured to carry on the service OF the Empire, though
IL spite of the exertions of tue Finance Department
and the Vienna bankers, not much more than half
this money is at pre- sent forthcoming.
Many circumstances have conspred to facilitate
these financial operations, which would have ap-
peared impossible at any former period Money
has been abundant during he greater part of the
time, at least since the continent recovered from
the first shock of the revolution, and the frs. dread
OF general war. The monied interest is so closely
I'd ortn hst ka ,ntAr nnf
a long peace, that although the borrowers consist
Of every race and government the continent,
they may be said to bank with the same firm; and
the amount of capital engaged in this manner is
already SO large, that the leading houses by whom
these advances have been made, compelled 10
self defence, to make further sacrifices to avoid
catastrophe by which they would be the chief suf-
ferers The same machinery rs, In tact, applied to
the cause OF liberty and the cause OF absolutism-
20 dethrone sovereign in place, or to restore
him in another; and pecunlary resources are the
indispensable conditions of all these undertakings
the political operations We are called upon to wit
ness, rest, in great measure, on means OF action
foreign to the country in whl; ID they occur-a cir
. cumstance which tends TO make gosernments indie
pendent Of public opinion III The countries they
govern, as long as they retain any credit abroad.
But though governments may borrow money,
and capitalists may advance it, If these operations
are anything more than dcti siouS contracts or
stock-job birg bargains the nation ITSELF in whose
name they are made, finds itself permanently en-
the evil OF the day Nothing is ordinarily done
with more levity by minister, even voted with
more carelessness by publ; assembly, than the
issue OF n loan, viii ia enables men TO provide
against their difficulties by assigning the chief
burden Of them to posterty. and either cheatin
their creditors encum boring their heirs. Bat
the facility with which such transactions may be
conducted in our times, is OF the most alarming
features In the case, both because IL enables and
encourages governments TO d. what they have
no means OF doing FROM their positive resources,
ard because 1t places large amounts OF private pro-
r,c-ty In jeopardy Under circumstances OF far less
gravity than those now impending over Enrope,
what incalculable sums have been lost by British
bondholders, from the rsshnes and misplaced hoe-
rality with viii III losns we're advanced few years
back to every State then struggling tor independ,
snee or constitutional government. The reiterated
demands OF the more absolute powers Tor money 10
keep up their system OF military defence against
the revolution, arc the face OF them less worthy
Of confidence, since they 6nd the nselves engaged
in this struggle at d ne when their ordinary re.
venues were alre ady completely appropriated, and
they have found no means 10 improve their bona
fde resources.
IL is impossible to witness this state Of things,
which exists but too extensively over the continent
without arriving st the conclusion tina. govern
ments rslying for their existence such extrnsiC
support, contain within themselves principle o.
destruction. During var -ucn efforts and sacrifices
may be, and, indeed, must be made; but every war
Ia cnrried on with the hope that each campaign
will be the last that cash successive loan will ena
BILE tho belligerents to bros the contest to close
and that the balance o. me public finances vii
again be restored II is not so when war Is smoth
cred In the heart Of the people, and government
are in arms against die OF their own subjects
Nay, the very causes of that hostility, aud the ele
menn of popular dIsccnt eat. are continually agsra
waited by the means thus employed TO repress them
and this avalanche Of debt must one day crust
those who roll II along IL probable, indeed, AM
this IL one Of the most curious features in the case
that fresh popular revolutions, even If they wer
successful would not Al once be followed by greater
economy In government, or ny a judicioss limits
tion ofpubli, expeHd ture. On the contrary, VI
have seen that the ambition or inexperience o
democratic government in Europe leads to an enor
nous amount ofprodiEah,y But whether by alb
solutism or by oemocrsol. these excosses are con
slant cause Of insta olty - eNistng government Is
and of danger to those which are to u,ceed them
They are an embarrn.sm3 n, now, they Will be Al
hereafter; and no form If government can discharg
its primary duties 20 nation which fails TO pre-