The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-08-26


in Albany and ready to be sold in q lump to the
highest bidder.
Power OF the Money Centres In Europe and
Americs-WaM Street Becoming the Arbi-
ter Of tho Continent.
We learn by the America, which arrived at
Halifax yesterday, that Russia had again come
into the market for a loan Of sixty millions, and
England for an India loan of twenty-five millions
of dollars. The United States and England, New
York and London, through their industrial and
commercial enterprise, have become the great
money centres of America and Europe. Money
constitutes the sinews of war; for without it war
cannot be carried on; the money centres, there
fore, are the true arbiters Of the question of
peace or war in Europe and America
This great fact has been clearly proved by re.
cent events in Europe. Public opinion there is
divided as to the true system of raising the
money necessary to carry on war. The old me-
thod is to draw drafts upon posterity, and saddle
future generations with the cost of present quar-.
rels. This was the system of George ILL.,, who in
twenty years added twenty five hundred millions
of dollars to the debt England now labors under.
It is the system Louis Napoleon has pursued,
and in the two wars he has made he has fastened
upon the future generations of France a debt of
three hundred millions Of dollars. 1t is capital
system for arbitrary monarchs to pursue if there
was no end to 1t. But there is an end, which
is under the control of public opinion.
In order to raise money by drafts on posterity,
present purchasers for these must be found. Aud
therein lies the control Of public opinion, and
not only Of that, but of public opinion at the
great money centres. This was felt by Austria
when, before the breaking out Of the late hostili
ties she asked for thirty millions Of dollars from
the London bankers. When it was refused she
resort ted to forced loans at home the issue of ir
redeemable paper, and sundry other subterfuges,
none of which succeeded in giving her the money.
Sardinia tried the borrowing plan in Paris, and
failed too, for no one would take her drafts on
future generations of Sardinians. Russia, Prus-
sia, Bavaria and Wurtemburg all tried the bor-
rowing plan, and all failed. They failed because
the London bankers would not buy their drafts
upon parties who could not be consulted in re-
gard to the acceptance and payment of them.
money, and feeling severely the burthen of the
debts Of their ancestors, the English people
have come to the conclusion that money
for present purposes, whether they be
war or peace, should be raised by
immediate impositions upon the present &c.
neration. The more this doctrine prevails in the
public mind of England and the United States
oforx ho fho hose froa
will exercise over the movements of kings and
rulers in other parts of the world. None but
eminently commercial nations can raise money
by increased imposts in time of war. Louis
Napoleon could not do it in France during his
recent wars, and it is very doubtful if he could
have again raised large loan out of the hoard.
ed savings Of the people. The new method,
which, discarding the drafts on future genera.
tons, loans money to the governments to be
repaid out Of taxes Immediately laid, is the one
that now prevails in the world, and it makes the
bankers Of New York and London respectively
the arbiters of the peace of America and Eu-
rope.
The latter have had much greater influence
in stopping the Italian war than diplomatists
and rulers have been willing to acknowledge.
On the former depends now the re-establish
ment of order in Mexico and the future peace
Of the Spanish-American republics. London,
that has 90 long been the centre of
Spanish American finances, now recognises the
necessity of the preponderance of the political in
fuence of the United States on this continent,
and is at this moment looking to Wall street to
utter its fiat in Mexican affairs. There is vast
field for financial intelligence to exercise its skill
with great profit and small risk, and we shall no
doubt soon see the fruits of their combinations
The Secretary of the Treasury for Mexico is al
ready in communication with them, and with the
government, and Wall street will soon become
the centre of operations in Spanish.American
loans, backed by the powers at Washington, and
the popular support which American enterprise
is ready to give to the stability of government
and order in those countries.
Among the subjects that are already under ex-
animation by our bankers, we may cite the fol-
lowing:-A loan to Mexico, based on banking
privilege, and the entire reorganization of the
finances and debt of Mexico; negotiation with
New Granada for the consolidation of her
public debt and the extinction of her pros
pective claims on the Panama Railroad; line
of steamships under Peruvian interests, looking
to the increase of our commerce with that coun-
try and the ultimate control of the Peruvian
guano trade; another combination between New
York and Chilean capitalists which will make
this the centre of Chilean financial interests All
Of these schemes present large margins to our
Wall street bankers, and in time will be
managed by them. They will exercise the same
great influence In the affairs of the American
republics that the London bankers exercise in
the concerns of Europe, and carry to still
higher point the old adage, that Commerce is
King.
A SENSIBLE MAGIsTRATE-HEAITH BEFORE
PpupERy-We find in one of the London iour-