, 1859-06-06
The war Bevu1n1on in EuroR~an FL.
nA0ee-F1Fsx &4eeta OF the A&oFms

nance--F1Fsx E1eets Of 1he AsoFm.
lFlpa The New York HeraAl~
The monetary disasse.s which ain liksly 10
to'lor % a9sn thu s1tct. otthe pFssapt ws4 il fn:
upon The financial and banking sys&an pf sever-
u Of the most powerful 1t tke Esropsan xov-
! ernments, are 50 entirely &6kfent Ia fAetf
eharae4sE and in the laws that eoyasn them
from The revulaions known to tho present gen.
sratsou, that few persona now epgaael In the
| active transactions Of lia comprehend or cuas;d-
| er them.
The experience Of the present age is limited
| to q small number of commercial revulsious.
WHICH hare grown out Of the exaggerAtion of the
healthy elements Of trade. Few rscolieet the
ruin that swept through the commercial world
on the commencement Of Pitts, war, and the
consequent suspension Of specie payments by
the Bank Of England, or the vast fortunes made
oy hofde of army contractors durirgits ewen-
ty-one years. continuance, while commerce flag
| geo, looms were stopped, ships rotted at tie
"harTes, merchants went into bankruptcy or
| prison, aud the army Was the only refuge Of the
people from starvation. The beginning of
| crest war, and the short continuance Of anv
| strictly local conflict, acts rs a stimulus upon
trade and industry, because its effects are as yet
ielt oaiy IN fhe1r demand for the elements Of de-
sttuctlon- But when its true work comes to
bear-when the circulating medium is turned
| from It's wonted channels, and the force of de-
atfuction without Production and exchange be-
gins to be felt-the longing for peace sets in,
and continues to increase in intensity till its ar
rival is celebrated With bonires aud enthusias-
tic shouts that far exceed any manifestations of
JOY at the declaration Of war. This simple truth
marks the real effect Of war upon tho common
veal. Let Us now gronp 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 1st Of
January, hare either come into the market, or
are preparing to come in, for loans to tho
amount Of three hundred and fifty millions of
dollars. England raised thirty y-fve millions for
Of it in silver to Calcutta. Austria aaked for a
hundred mlllions; but all the power and credit
Of the Rothschilds could not rase it for her. and
she seized the metallic reserve of the Bank Of
Vienna, suspended specie payments, borrowed
t"o"thirds Of the sum in paper, and asscssed
do-Venetia. Russia sought for sixty millions;
but she, too, failed to obtain it, and has adopted
system Of financial expedients at home. Sar-
dinia asked for nix millions, failed to get it, and
suspended specie payments also, borrowing the
emountin paper from the Bank Of Turin France
has called nnpon her people to contribute one
hundred millions Of dollars and they offer Eve
hundred millions. Turkey borrowed a short
time since twenty-five millions. Prussia, Hol-
iand, Belgium and the German Confederation
are now preparing to come into the money MR.
The first effects Of these extraordinary bor-
TuwIngs IS to cause the people to look at the e.
nnncial 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 col.
Lars more than her revenue. Austria has done
the same to the extent of four hundred millions
England lad to borrow nearly one hundred
millions to prosecute the Crimean war and if
she goes into the present one, there is no posi-
b!lity of estimating how much she must borrow,
Rnssia, sardisis, Spain: Germany, Prussia-sn
the revolution that now threatens to sweep orer
commerce iEes no hope Of different state of
things.
As u result Of these movements we end specie
disappearing from the vaults of trade, and
seeking the boards Of fear or the war chests
of the army. In fifteen days New York has !
sent of ten millions Of dollurs~ The last IT,
turns Of the Banks Of England and Francc |
sho" that IN one month they had lost ten mil. |
lions Of bullion. In the two months preceding |
the declaration Of war in 1854, the bullion i'll
the Bank Of England alone ran down eight |
millions, and in the two succeeding monf1s /
ten millions more. To eudeavor 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 further advanced.
This stops commerce from using money. But
war does not care for per ceutages: its first
step is to suspend specie payments, which,
when taken by government. is nothing more
nor less than direct robbery of its own sub
jocts.
Already the consequences of these extraor-
d:nary movements are beginning to be felt,
Although the promised rate Of interest has not
been refused, an immense depreciation has
been caused in the value Of government secur-
lt1es aud public stocks. It is calculated that |
the depreciation in British conso1s is already |
equal to three hundred and fft. millions Of
dollars, and that of the stocks Of public COM
panles three hundred and fifty millions more
on the Continent the effect has been mucl,
greater, md We may safely estimate the fall in
E!lc Value OF funded property in Europe at four
thousand millions OF dollars, From these causes
*il follow the ruin of the bankers; and they
hare already begun to full In April Luttcroth
ailed for large amount III Trieste. On 1he ID |
# May, Wolf Co.. Berlin bankers, failed; on
he 5th, Lloyd, Belby l. Co. failed in London
~ tho 9Th, Arnstein l. EcElcs, Vienna bankers. |
alled for ten millions Of dollars; and up to the |
18th Of May, nearly one hundred failures we're |
On the Stock Exchange and trade
4 London. At Constantiltople 4 sudden ad-
;ance in the value Of sterling exchange from |
IS to l56 Eiastres had caused the bankers to
luther in council in tue beginning Of May and
n Holland, where large amounts Of Austrian
md other Continental securities arc held, the
depreciation OF securities had been 50 severely |
cit tt!ut numerous distressing suicides had ta.
zen place.
:. The cause of these dire results mar be re-.
'uced TO simple expression. The governing
lass in Europa class that has no connection
sith commerce and little sympathy with indus
ry-is seizing upon the wealth Of the world,
'erverting it from tue arteries and veins Of
radc, and pouring it into their own pockets and
he pockets Of hoard Of army contractors, and
quandering it in destructive dynastic wars,
ct not our merchants aatter themselves that ,
hese things are going to be good for them, :
hey will be good for new class Of specula-
prs: men who will run great risks for the =
hance Of great profits-men who connect
1emse1res with the quartermssters and supply
ontractors Of Europe, and who will resort to ! :
II kinds Of expedients to win purse or break | ,
neck in the race for fortune. hut general =
ar in Europe will break down all its existing =
nanclal and commercial circles, and the effects | r
,nnot but be severely felt in one way or an =
Eher here !