The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-01-31

Financial AMAirs as Rsns and Abroad.
The Bank Of England, say Messrs. Brown,
Shipley Co., may shortly be expected to
raise the rate Of interest again. Specie flows
with freshened tide to the Continent; unless
money be made dearer in London, the Bank
will be in danger. simultaneously with this
chronic disorder, the chronic disappearance Of
gold and silver il likewise renewed. The
Bank of England loses over quarter Of Q mil
lion sterling in week, that of France three
quarters Of million in month. Where the mo-
ney goes to no man tells but old men have not
forgotten the boards where their fathers used
to hide their napoleons and their sovereigns
in the dreadful time Of the old war, and if
the truth were known, the dust of forty years
has lately been brushed from their cover.
Some months ago, when this phenomenon
fret occurred, the financial community took
the alarm both in England and here. It was
shown that if the flow of bullion to the Cont
nent continued and the battle of the banks
went on, q suspension Of specie payments both
in London and Paris would be the inevitable
result Anticipating this event prematurely,
a commercial revulsion-of limited extent,
but decided character-took place both here
and abroad. In course of time, by dint Of I'M
heard of expcdients, the government of France
overcame the difficulty, and emerged from
the straits into which it had been plunged.
calm ensued at London; aud, as usual, the
calm assumed here the magnifed proportions
Of period of remarkable buoyancy. The
banks being as full as usual at this season of
the year-perhaps little fuller; and the gen.
eral condition of the country being undoubt-
eddy prosperous-goOd times revived, and
feeling of general confidence spread through
ont the country.
The recovery was as precipitate, perhaps
more ill,judged than the alarm. The real diff
Guilty has never been surmounted. Itnever can
be, 30 long as the war continues. The tempo
rary relief Of October has done it's work; it is
now spent, and the old situation returns upon
US with increased violence. The outflow OF
specie reported by the Baltic is larger than
any similar operation reported by single
steamer during the year 1855. At the present
rate of decrease, the two banks Of England
and France, holding together about eighteen
million pounds of specie, are losing some two
millions month, in spite of large arrivals from
Australia They may derive temporary re-
lief from us. No doubt they will. We have in
bank in this city nearly fourteen million
dollars, and could perhaps, by straiuing
our exchanges draw some four or five
more from the country. But one month";
our shipments assumed the proportions they
bore during the last commercial revulsion--
would exhaust our surplus supply, compel our
banks to curtail their accommodation, and
place them on footing Of strict defence.
We are just at the beginning of year--a
year which, whatever politicians may surmise
must be a year Of war. The two chief COM
batants on the Allied side cannot we'll spend
less than five hundred millions between them
before the year is out The French estimates
are not yet before US; but those of the British
government call for sum not less than Co.,
0l3,172, including ordinary expenses Of gov
eminent and interest on debt. Enormous sums
of this kind cannot be paid by direct taxation
Even by raising the income tax to ten per cent
"a tax SO heavy that it is questionable whe-
ther the people would bear it--only 100000
can be raised. The governments must fall
back, therefore, on the old plan of loans. We
hear OF them already. Heed not the con-
fdent denials of the bulls who will assure
you that the loan which the English gov
eminent is going to put out is less
than 930,000,000, and that the French
will manage without any loan at all.
Money must be had: money for the Crimea,
money for the Baltic, money for Asia Minor,
money for Turkey, money for Sardinia, per-
haps, money for Germany. Where is this
money to come from? Not from the voluntary
contributions of the citizens, for the clumsy
failure Of the last financial trick at Paris will
deter second attempt of the same kind. Nor
from the legitimate produce Of the taxes, for on
referring to the last revenue returns in England
we find that under increased taxes, the revenue
fell off last quarter G32l ,475, and under higher
duties the customs returns declined g3l5,5OO
In fac$, whatever may be said by ardent apollo
gists of the war about its not being felt in
France and England there can be no doubt but
it is felt, and very seriously too by. all who are
in trade on the enc side, and by al
consumers Of commodities in common demand
on the other. 1t is much less felt than form er
wars. Engl snd's ships still plough the seas,
and Frances loom is not idle, nor are her vine
yards laid waste. But bread is dear, and sugar
is dear; cotton is high, and the demand for
labor other than as food for cannon--is less;
there is no spirit of enterprise in London or
Paris; men Of money take care of it, all look
tremblingly to the future. This is feeling the
war, certainly; and if signs belle not the
coming months, 1t will be better felt still,
soon and we shall feel ii too.
THE Sort SHELL CENTRAL. ORGAN AND THE
ADMINISTRATIONS on TIE KANSAS QUESTION:
The Albany atlas, since the late Van Buren,
Soft Shell Convention endorsing the Kansas