The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-09-06

From the London ObSsrrer.

!
Whenever any of the great bankers Of the world
give currency to government securities they scru-
tlnise deeply the natural resources, the population
the debt, aud the general standing Of the nation
desiring to borrow, well as the purchase far
which the sum required is to be expended, and
make than calculations accordingly.
Hitherto, our transatlantic relatives have been
particularly fortunate in their applications TO the
great money centres, and whatever demand thev
have made upon the purse-s.rings of the capitalists
has been Handsomely responded to. The great np.
litical firm Of the Omitted States of America" has
GngJed t4G Hsrg 9es e fTedt qRd 88tth h88 tthfreas6f Fl as
ed on the most favorable terms. Almost FREQ from
debt and Mt peace with all the world, IL has been
prosperous; nature has favored it with every soil
and climate, its pinera wealth is very great, and
its agricultural products varOus its cnmuerCs has
whtened every sea, and nation within the his.
torC period has risen rapidly in importance A
vast change, however, has taken place; many Of
the partners of the great houss have Withdrawn
and formed new concern, and although the re
naming members Of tho establishment continue
business under the old firm at the old stand for
the presently, it becomes necessary to inquire
whether the capital left in the house is not entirely
too small tor such large and hazardous transactions
as Mr.. Lincoln has entered into. We say us, be-
cause Mr. Chase has suggested that large portion
OF the proposed loan be contracted for in
pounds sterling, with interest payable in London,
IN order to accommodate British capitalists. As
ell ming that our "striCt neutrality" doctrine will
permit us to subscribe to this lean, what is the
strength of the party deairiDg to borrow the
amount IN question: III l6 well known that the
Am roan States progressed very slowly during the
first twenty five years Of their existence as a con-
iederaCy, and that they in manner began to de-
velop themselves until the cotton crop grew to be
OF Importance TO England, France, Germany, aud
the great st pie became the king of commerce -
This fact gave the United States financial credit
with European nations that they otherwise would
not have had and has been the true lever Of their
| prosperity.
80 dependent has the North been upon the South
that the ships built in the New England States
nave oeen constructed out of timber cut from the
forests OF Delaware, Maryland. VIRGINIA North
Carolina and Florida, while their feights have been
derived principally from carving the raw material
outward and nprthward, and the manufactured ar.
tcles hOneward and southwark. The exports of
the South have paid for eght-tenhs Of the imports
into the Northern cities The South has pur urchased
freely OF Northern imports and manufactures; has
patronized Northern hotels and watering places.
aDd has sent her children TO Northern colleges and
schools. But the scbism that has been created will
naturally change the order of things. Ships will
be built in the Southern States where there is tim
Der and iron in abundance; manufactures will
spring up south Of Mason and Dixon's line, where
there is the very finest water-power, and where
coarse fabrics can be made lust as cheap as in Mas
sachusetts Imports direct from Europe will go on in
extended scale, as free trade is n cardinal priGC
pie with the Southerners. Colleges innumarable
will be erected; Baltimore, Norfolk, Charleston,
and other cities will become the seats Of learning,
of arts, of sciences, and OF commerce. The climate
of the South moreover, is so diversified that it will
grow as lnucn cOrHt ana 1eeu as many animals as
required, without interfering with the production
of cotton, rice, and tobacco Virginia, indeed,
having always been large exporter of wheat and
vegetables to the Northern s aes.
There will be exodus from the North to the
South soon matters settle down. Instead of
the census figures standing two thirds n favor of
the North and one-third the side of the South,
! they will probably be reversed, the Americans
a migratory people, and slight expense will
| transport them from the North to the South We
| have witnessed in day the rapid Advancement
! Of Australia and California, notwithstanding the
enormous cost OF reaching thos' countries, aud can
readily imagine the speed wit which great cities
will be founded and built up in lie South.
The investments of Northern capitalists, being in
| the chaSacter of securities that based upon
| the commercial prosperity of their locality, will
| become valueess with the decline in trade; Wall
| street, that now swayssthe financial sceDtre, will
! then lose its power, and some new "LOmbard
street" will rise up in the South; and the CONNER
! cial credit that England has for many years Law
ished upon the North will be diverted to that quar-
ter. There is nothing whatever produced or man
ufactured in the North but what can be cultivated
| or wrought in the South; but it would puzzle the
people of New En- gland to grow cotton Or rice in
their cold climate. = Il
In questioning the credit of a concern it is Gus
| tomary to look at the habits of the individual part
ners. In doing in this we a little chary
OF such States as Pennsylvania Michigan and lu-
diana, but we need not go over their past conduct
The present credit of some of the States is not very
good at home. The Illinois loan has been
! withdrawn, there being hardly any bidders for IT,.
The Indiana war loan has been taken at a very low
rate and the Pennsylvania war loan, announced
by the State authorities as all taken at par, is be-
ieved to be a mere sham
We not aware that the firm of the Con
federate States propose borrowing any money
from us; they seem to be in a comfortable condl-
tion as to financial matters their crops OF all KlndS
are represented being excellent and their labor
has mt beeu interfered with. TCeir army, otlcer-
cd nv the most accomplished men of the Federal
eeryice is comprised of individuals who, between
| the months of May and November, have generally
had very little to attend to, and the wealthy por-
tinn Of whom have on all former occasions spent
their time and their money, during the summer
season, at Northern cities and watering places,
proverbiay the most extravagant on the face OF
the globe. But by the turn of matters this year,
!, this usual expenditure is lost to the North and
gained to the South, and it is estimated that be-
| tween the rise in the price OF cotton, caused BIZ
the fear concerning next seasons crop not reach
ing market, and the economy OF the South, their
whole expenses for the war will be met. The
, Southet tners not having been commercial people
will lose nothing by bad debts or by investments
as their property is not of the same character a
that of their antagonists,
y Few persons believe that the South can be sub
jugaed, and every clearly that the Mort
will come out of the matter very much damaged.
As far as repudiation aad suspension are concern
n ed both sections of the late Union are pretty muc
| alike. The British capitalists have to complain O
l. the.deliuquency of three Northern States repre-
senting five millions of people, and of IKE nun
Der OF Southern States, containing eignt nuuute - =
r thousand Inhabitants. Pennsylvania, hoWeVe' .
subsequently paid up her interest ana 'ne ~
affair was settled by arbitrament. So STANDS IN
q credit OF the estates"
10 The Northern papers are still P16hsning 10