The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-06-02

declined an opportunity TO make money reasonably en-
HANGED risks.
The War Rovuision La European Finance
First Emects Of the Storm.
The monetary disasters that are likely to fol-
low from the effects of the present war in Eu-
rope, and the necessary destruction it will entail
upon the financial and banking systems of seve-
al Of the most powerful ofthe European govern
ments, are so entirely different in their character
and in the laws that govern them from the revul-
sions known to the present generation, that few
persons now engaged in the active transactions
Of life comprehend or consider them
The experience Of the present age is limited to
small number of commercial revulsions which
have grown out of the exaggTation of the
healthy elements of trade. Few recollett the
ruin that swept through the commercial world
on the commencement Of Pitts war. and the con-
sequent suspension Of specie payments by the
Bank Of England, or the vast fortunes made by
horde of army contractors during its twenty
one years continuance, while commerce tagged,
looms were stopped, ships rotted at the wharves,
merchants went into bankruptcy or prison, and
the army was the only refuge Of the people
from starvation. The beginning of great
war, and the short continuance of any
strictly local conflict, acts as a stimulus upon
trade and industry because its effects are as yet
felt only in their demand for the elements Of de-
struction. But when its true work comes to
bear-when the circulating medium is turned
from its wonted channels, and the force of de-
struction without production and exchange be-
gins to be feltthe longing for peace sets in, and
continues to increase in intensity till its arrival
is celebrated with bonfires and enthusiastic
shouts that far exceed any manifestations of joy
at the declaration of war. This simple truth
marks the real effect of war upon the common
veal. Let US now group together few of the
facts that have marked the progress of the pre-
sent contest
In the foreground stands the fact that the
several governments Of Europe, since the LIST of
January, have either come into the market, or
are preparing to come in, for loans to the
amount of three hundred and fifty millions of
dollars. England raised thirty-fve millions for
her Indian wants, and Immediately sent one half
of it in silver to Calcutta. Austria asked for
hundred millions; but all the power and credit of
the Rothschilds could not raise it for her. and
she seized the metallic reserve of the Bank of
Vienna, suspended specie payments, borrowed
two-thirds of the sum in paper, and assessed
forced loan Of fifteen millions more
on Lombardo- venetia. Russia sought for
sixty millions; but she, too, failed to obtain it.
and has adopted system of financial expedients
at home Sardinia asked for six millions, failed
TO get it, and suspended specie payments also,
borrowing the amount in paper from the National
Bank of Turin. France has called upon her
people to contribute one hundred millions of dol
lars, and they offer five hundred millions Turkey
Prussia, Holland, Belgium and the German Con-
federation, are now preparing to come into the
money market for large amounts
The first effect Of these extraordinary borrow
ings ia to cause people to look at the financial
condition of the several governments. They find
that for years past all have exhibited deficits in
their budgets. Since 1851 France has borrowed
and spent six hundred millions of dollars more
than her revenue. Austria has done the same to
the extent Of four hundred millions. England
had to borrow nearly one hundred millions to
prosecute the Crimean war; and if she goes into
the present one there is no possibility of est.
mating how much she must borrow. Russia,
Sardinia Spain, Germany, Prtssia-all have
exhibited deficits for some time past; and the re-
volution that threatens now TO sweep over COM
merce gives no hope for a different state of
things.
AS result Of these movements we find specie
disappearing from the vaults of trade, and seek
ing the boards of fear or the war chests of the
army. In fifteen days New York has sent off ten
millions of dollars. The last returns of the
Banks Of England and France show that in one
month they had lost also ten millions of bullion.
In the two months preceding the declaration of
war in 1854 the bullion in the Bank of England
alone ran down eight millions, and in the two
succeeding months ten millions more. To en-
deavor to stop this drain the rate Of interest has
already been raised in London one per cent, on
the 9th Of May, and will no doubt be still fur
Their advanced This stops commerce from using
money But war does not care for per centages its
first step is to suspend specie payments, which,
when taken by government, is nothing more
nor less than direct robbery Of its own subjects.
Already the consequences Of these extraor-
binary movements are beginning to be felt AL
though the promised rate of interest has not
been refused, an immense depreciation has been
caused in the value of government securities and
public stocks 1t is calculated that the deprecia
ton in British consols is already equal to three
hundred and fifty millions of dollars, and
that of the stocks Of public companies
three hundred and fifty millions more
On the Continent the effect has been
much greater, and we may safely estimate the
fall in the value of funded property in Europe
at four thousand millions of dollars. From
these causes will follow the ruin Of the bankers:
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