The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-10-29

The states OF Eur0pe-f0r the unity 0f tneH
financial and political affairs places them IN
Ter the operation Of one law-comynence the
lew business year burdened by three oprrcs-
i've and formidable draw-backs--the war
with Russia, the deficiency of the grain crops,
and the union Of their political and financial
concerns. That all of these are heightened
by the enormous public debt which existed at
the commencement Of the war, and since in
creased to the extent of twelve hundred mil
lions sf dollars, is obvious.
The people of the United States are inter
esteG only in ascertaining all the facts bearing
upon public affairs on the other side ofthe
water. The war itself has been sufficiently dis
cussed: its effects upen commerce, trade and
business are already apparent. Every mail from
England brings tidings of the nervous and
-agitated state of public feeling, and the most
striking feature of the whole affair is the I'M
certainty and doebt in which their ablest men
treat the linancie, interests of their countries
The energy and aagacity of the London press
which up to the present time has probed every
movement of the hostile armies, and has brought
to light every secret of diplomacy, is confess
edly at fault in its efforts to solve the compli-
Gated problem Of the finances of England in
connection with the Continent. Twenty mil
lions of dollars in specie has been suddenly
drawn from the Bank of England to Paris and
elsewhere; and it is explained upon as many
hypothesis as there are writer's, and none of
them are at ell satisfactory. 1t has been
bought up by the Bank of France at an enor-
nous sacrifice to that institution; it has been
withdrawn to be sent to Russia to satisfy Sc
crct loan made to that government; it was the
work of continental operators, who sent to Lon
don long paper, had it discounted, and with
drew the proceeds, which must be returned in
due course of time. 1t was movement of the
French Emperor to fortify his capital with
specie to meet the extraordinary demands upon
his government consequent upon failure Of
are reasons thrust forward by as many papers
and writer's, who seem to overlook the great
fact that the war has withdrawn from the Or
binary channels Of trade directly and indirect
ly, more than hundred millions of dollars,
generating suspicion Of governments and their
financial agents alike, and rendering the latter
at any time liable to the withdrawal of large
deposits, which constitute an important item in
all banking institutions.
We regard the financial disturbances which
have created so much alarm as only the begin
ming of what the future is to unfold. In the
present condition of the belligerents, their ina
mense public debts, the enormous expenses Of
ba .vor tho critioo1 an1 ovc;to1 or IN IF bo
public mind, the history of the past, the short
crops, the union of the great banking institu-
tions of the Continent with the governments,
there is quite enough to account for the sudden
withdrawal of twenty millions Of dollars from
the money capital of the world. And there is evil
dence in this that the war itself will be protract
ed. 1t is made by the Allies upon Russian terri
tory and by Russia upon English and French
commerce, trade and industry. The with
drawal of the funds of the Imperial family
from England, the stubborn and unyieldng
s, writ Of the Russian people and government,
the character of their industry, the immensely
OF IL Neir resources, the economy Of their expen-
ditur, IS, fighting upon their own territories and
subsst ing upon their own productions, none of
which v ill he permitted to fall into the hands
IF their uemies, are enough to show what will
be the futu We course of events Upon the sub
ect of mon ey there is little sensitiveness in
Russia on that subject all history shows that
England is more sensitive.
When Russia, in violation of the treaty of
Vienna, in 1892 absorbed the kingdom of POI
and the very thought Of general war pro-
luced somarked an effect upon the Bank OF Eng
land that Lord Palmerston and Sir Robert Peel
came forward, in obedience to the
demands of commerce, and to avert the threat
ened calamity to the bank and announced the
submission of the government to the fall of
Poland. The crisis which then threatened the in
dustry of England is fully upon it nov. In
the present instance, the funds have been kept
up, and the finances Of the countries involved
in the war sustained, by the delusive hope that
Russia would yield and peace be restored. In
the forty years of general peacc--forty years of
unparalleled indnstry-England has only been
able to reduce her national debt S200,00o,000
ii has become manifest that the load she bears
is oil that she can sustain. France has gone
talsts rightly sets in at this very point Rus
STA knows this, and she knows full we'll that a
great financial crisis, which shall compel
of specie payments, and throw the
public securities into discredit, with no pros
pcct Of peace, will inhict upon the Allies
calamity far more serious and incurable than
that which she has suffered in the loss of Sc
bastopol and may suffer in the loss of the Cri-
mean peninsula.
The faiinrc Of the crops in England, France
aud Germany, is not less than lfty-dve million
bushels of wheat This is full as much as the
whole surplus ofthe United States, and cannot
he supplied with less than $4,000, 600. The
withdrawal OF this sum alone wiz be sufficient
to put the great banking institutions of the
Continent to a severe test q sum nearly
double that of the specie basis Of the Bank of
ENGLAND and prcator than thaf NJ TIM tu,n