New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1854-05-08


rent expenditure Of the Government anu 70 %! '"e
interest on the public debt. To supply 'he ue0c''"''
the tax upon incomes was resor'e" TO- "''He''"
,ource reserved entirely tor war purposes anu '"e
deficit y.s thus made good. inc BUSINESS
California and Australia coming suddenly IN a." u
mi. new resource of the Government 'ne oli'''"
treasury for two years past has Tor wonder. oeen
6,yI IN overfewing The surPluspi the year enu'"s "
in 1873 was about two snd hall millions Pound'' ''u
thar ending the present year after making certain o.
oo,nees for extra payments at the last quarter
Aid not belong to the year was not TAR from three aN
millions This unusual state oil Things mas maue
the British treasury quite flush The surplus
and something more, has been applied to the
I.,on of the national debt so that the Government
h.. M more funds in hand than if its revenue had
h.-elv me. its expenditure. At the first instant OF
extraordinary payments for the war, therefore the
Government is compelled to double the Income tax
70 advertise for loan of six millions Of pounds, aud to
strain heavily on the Bank for its balances
Under these last noted circumstances the Bank has
become FESTIVE and doubtless little alarmed, aud
beoins TO snub the Government. The drafts OF the
Chancellor of the Exchequer come inconyenently ire
oueut and the Directors begin to cast about to see
how they are coming out with the Government, now
that il assumes the attitude of customer who wants
all his own money and good deal more besides. Some
transactions have happened between parties which
have led to warm public discussion Evidently good
deal offeeng has been aroused in the Bank paror aud
on the part of the Chancellor.
The question which really lies at the bottom ID 1t
undoubtedly is. how much money can the Bank adj
vance to the Government, aid it in borrowing with
cut running the risk Of having to suspend specie pay
ments II is the old and constantly recurring question
between Banks and their customers OF how much can
be safely loaned and to whom and on what time Ihe
Managers of the Bank of England, like prudent men,
do not wish to be brought into any scrape by getting
too large Government burden on their shoulders anu
Mr. Gladstone true to the instincts of every borrower
wishes TO pile as great load upon the Bank as he
can The interests Of the two parties are antagOnis
tic and hence comes the difficulty The Bank mas
been gradually losing its stock Of bullion tor year ana
more That stock has gone down from maximum Of
twenty millions to fourteen millions. and the Bank Is
NOW losing IL faster than ever The last week :
return showed diminutOn of over half million IN
that brief period What has begun will go on. Inc
Coyerumept has become large borrower, and Will
become larger: and if it borrcws OF Englishmen the
loans effected. The Bank being the principal depo'
STORY for coin in the country its resources uIti'
mately feel the drain occasioned by Government
loan. no matter who is the immediate creditor.
Its very natural therefore for the Bank to feel alarm
and to begin to tighten up, especially so Tar as MI
Bull ia concerned. The Times threatens the BANK
with being cut adrft from the Government altogether
if il doesn't behave itself and makes great parade oil
the advantages the Bank derives from the connection
But this is mere talk. The Bank can do without the
Government better than the Government can do
without the Bank, especially while the war lasts.
But as there is cOntrsriety of interest and Will be
so long as the Bank is compelled to maintain specie
payments il is not likely that their money affairs will
90 ON very tremendously. Mr. Gladstone very con-
sderately announces in view Of the tremor OF hnan-
cal circles that it is not his intention to ask for any
s,h.r loan nj this session. But it is hard telling at
ybamomept the Government may find itself IN straits
ana be compelled to become borrower again.
If tle war goes on, il will almost necessarily en-
force suspension of specie payments by the BANK
sooner or later The Bank and the commercial err
ces will not relish the prospect OF such condition Oh
things. and will struggle against it, Indeed, the DIM
Guilty already arisen grows out of feeling OF resistance
to any such possible future alternative On the other
hand. the Government will soon begin to md ana &C.
knowledge that only by suspension Ofpsyment' IN com
will be able to conduct protracted war without
great pressure upon its subjects If Nicholas proves
to be very refractory, therefore expect to see the
project of a suspension Of specie payments by 'ne
Bank of England topic Of earnest discussion al no
distant DAY in British commercial circles. ouch
measure could not fail to have extensive and lm'
portant influence upon commercial affairs throughout
the world. and it is wise to contemplate the event as
one of the most probable contingencies the future has
in store unless the war now commencing should be
brought to speedy termination