The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-10-20

The first year Of the war passes over. ut is
found that it has cost in round numbers ST.
100000, 900, divided in the proportion Of one
third each to Russia and France, and the re-
manning third divided between England, Tur-
key, and Sardinia. The loans have been as
follows -
England
Russia must have been. NEUTRALITY-SUSPICIOUS.. COZ, 900
Now it may be question whether any one
Of these three nations can stand an expenditure
of this amount or maintain its credit wkile
using,it at this rate. OF the three Russia would
of course stand it best, because it has least
commerce, its money is in fewest hands, and
the government is OF that paternal character
that measures of gentle coercion can he adopted
with regard to property owners without any
difficulty. But without entering into dis
cussion of the effects of the continuance of
such drain on the national resources Of the
belligerents, two collateral facts of present
significance afford quite ample food for rehec-
ton.
A few months ago, two alarming phenome-
ma were noticed by the French government
the first was,the gradual disappearance of
crops. The former could only be accounted
for by the supposition that the bOurgeoisie of
France, who had cozae forward in such spe-
cu,ative spirit to &ahscrbe for the imperial
loans had repented, lest confidence in the gov
ernnent and were boarding money which was
the fact Half o dozen French statutes, de-
clariIg it capital offence to secrete or export
gold, prove how prone the French have been to
deal tnus with their specie, whenever alarm
seized .ahem. The second phenomenon was
equally 1npromsing. Ignorant as the French
are of political economy, they invariably fly to
the government when famine breaks out, and
demand the passage of law tx the price Of
bread and other necessaries; theState having,
on many occasions, foolishly yielded to cla-
Eor, passed tie law and made up the differ
ence to the producers itself. The forced con-
sequence therefore Of the failure of the crops
and 4he generaldearness of provisions was the
promua cation by the Emperor oftwo ordinances,
the one regulating the price of corn, tbe other
the price of butchers meat Needless to ex-
plain that these ordinances involve the govern
ment in Eew expenditure, which cannot be
less than several hundred thousand dollars q
week Coming at the very time when the
drain on the Bank had already embarrassed it,
panic was inevitable. One false step leads
to another. After paying to give cheap bread
and cheap beef to the Parisianp, the Emperor
was next forced to pay to give them cheap
gold. In other words, the Bank of France, to
avoid a suspension, resorted to the Departing
experiment of sending to London, buying gold
there at premium, and selling it to Its custo-
mers at par. OF course, this resource could
not be expected to last long. The Bank Of
England, already fearfnlly weakened by the
secret drafts made by the Russian fund
holders, retaliated on its neighbor by raising
the rate Of interest to IL; and if the drain
continued, it was well understood that il would
be raised to 6, or to whatever figure might be
necessary to keep the gold at home. What is
Napoleon to do? Rumor says that he is about
to permit the Bank to suspend specie payments
and at the same time to double the capital of
the Bank. When the like measure was pro-
posed in 1906 to his uncle, he answered "That
would be for the Bank to be coming false money.
So clearly do ] see the dangers of such course
that ii necessary would stop the payment of
my soldiers rather than persevere in it,"
The other point which fnanciers would do
we'll TO mediate at the present time is the diff
ference between the position Of the bclligercnts
arising out of the difference between their res
pectiye currencics. The Western Powers. it
| must be remembered, work on specie curren-
cy; Russia wholly on q currency of paper,
which is made legal tender. This makes all
the difference in the world Russia only needs
to pay paper maker and an engraver to pay
for all the corn, provisions, arms, transporta-
ion, and soldiers pay she needs. For what
saltpetre and other military stores she requires
from abroad, she con pay with the gold she
draws from Great Britain by selling out the
ten or more millions the Imperial family have
long held in the funds. Whereas the moment
France and England cannot pay their debts on
demand, their own subjects turn round upon
their governments, and suspension Of specie
payments becomes inevitable. The very rea-
diness with which the people Of France sub
scrihed for the Imperial loans, may be fatal TO
the Emperor in the end; for among 30 many
people some are sure TO take fright, sell their
rtntes and demand specie, and spread panic
through the market. As to England, the case
is still clearer. The amount Of specie in the
bank IL now q trfe over twelve millions. RI
was nearly twenty in January; about half
the difference has gone to France and