The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-05-25

The Rise and Fall OF Government Ptnanciers.
Our commercial community were shocked yes
terday with the announcement of the failure of
one of our largest, Oldest and most respectable
mercantile houses, which has long been connect
ed with Mexico and the Mexican trade
1t is supposed that the delay and distrust at
tending all enterprises in that revolutionary
country, and the completion OF obligations on the
part Of its declining governments, have brought
about this result to one Of the most wealthy and
best managed concerns in our city. 1t is well
attested fact in history that the financial agents
ofevery government rise and prosper, or decay
and fall, with the advancing or receding sys-
TENS which they uphold. And indeed no other
result could be expected. Extensively engaged
in contracting and disseminating among the peo-
pie the burthen of loans and contracts upon
which all governments have for the last hundred
years relied for relief, their credit is always
staked to much larger amount than that of
their private fortunes Matters go along well,
and the profits continually accrue as long
IS the government can comply measurably
with it's obligations, and the confidence of the
community continues to repose in the system
But as soon as this ceases the tide turns, and no
human power can prevent the impending ruin.
Though new forms Of government may be i'm.
mediate]y erected out of the ruins of the old.
this fact has never suffCed to save from destruc-
ton the financial system and agents of the past,
Such was the case with the system of govern
meat established during the Revolution by our
own forefathers. When, after the first peace
with England, the revolutionary form of go.
vernmen fell to pieces, its financial system and
all the great names that supported it fell with
it. The present confederation, which was soon
after formed, never undertook to revive the one
nor remunerate the others. The names of Robert
Morris and hundreds of others still stand on the
pages of our history, melancholy proofs of this
great truth. A similar change took place when
the French Revolution swept away the old
regime. Its financial system, with its managers
and bankers, went with it, Upon their ruins
rose the Directory, with it's scheme of assignats
and attendant prosperous and wealthy bankers.
These, in their turn, were swept away by the rs-
ing fortunes of the new empire, with its own train
they controlled the money markets of continen-
tai Europe, till in their turn they fell before
The rising fortunes of the coalition against Ma
poleon. Their places were soon filled by the
loan agents and brokers of the allied Powers.
prominent among whom was old Anselm Roths-
child, of Frankfort
Linking his fortunes with the new system of
Germany, be rose rapidly as the public acquired
confidence in its stability, and founded that great
house which has since stood at the head of the
financial schemes of Germanic Europe. 1t has
seen pass away the banking houses of the elder
Bourbons, of Louis Philippe, and of the repub-
lie Of 1S4S, in France, and now looks upon the
new names that figure in the finances of the
French empire as parvenues in the golden art
But each must rise or fall with the political and
financial scheme which each upholds These
systems have now come into open conflict with
each other, and though the strife may for the
present be confined to Italy, the effects of the
victory must soon be felt both in Germany and
France II the Austrian power is driven out of
Italy its financial scheme and it's agents must ex-
perieDce the effects of the political decay; and
should Louis Napoleon be driven back beyond
the Alps, the French bankers must, in their turn,
expect to meet the effects of the consequent
withdrawal of public confidence in the political
scheme which they uphold, and with whose
financial engagements they are so indiHolubly
connected.
The invariable operation Of these great causes
should lead our business men to exercise eau
ton in placing their reliance in the engage
ments of any Of the great concerns linked with
the different political schemes and governments
of Europe. The present war is not superficial
one. 1t is war for the reconstruction Of terri
torial arrangements and of dynasties. Some Of
the present Powers must be remodelled and 70
constructed, and in the new constructions the
effete and the burthensome elements of the oil