The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-08-23
EUROPE.
FOREIGN ITEMS.
THE AMERICAN LOAN.

The London Times, of August s, in its city art
Gle, publishes letter. from which we extract th
IS following:
a New York and Massachusetts, are probably 200
y for any portion of the loan that might be endorse
3y them, but 1t must not be forgotten that Ne,
s YORK has been built up by Southern and Wester
trade; consequently, if the former is lost to it an
much OF the latter diverted, the taxable capacitie
: OF New York, as well as all the New Epglab,
states, VIII De considerably diminished. The Fed
eral debt is at present undoubtedly small and tber
can be no question as to the wealth population &,
resources OF the Northern States; but if resource
ana populatloh alone constituted security, we shoulc
see Spanish bonds nearer par. We must remember
that it is fixed principle of United States law a
laid down by Judge Story, that it is illegal to pay
any debt to an individual living in State will
Whlch the United States are at war, ransom deb
alone excepted. As to the observance of this law
we have the united testimony Of the North thai
southern States aud Southern traders reiriousy
ooey this one law at least of the Union thew bave
so So,ennIy a1Iured On the other hand, we know
that the Government of the Federalists acted upon
this principle in the matter of the Texas indemnity
bonds, snd again later, in forbdding the mint to
banks. ''' = 10
Such being the law of the United States. and tho
practice OF both Federalists and Confederates when
hghting among themselves, what would be the
prospects Tor our principal and interest if we found
ourselves involved in the war with which thew g.,
| constantly threaten us? Again, supposinp the
| Union re-estabished, how will the South coerced
PACK, look at a debt incurred for its subugation :?
w no1u an uncomfortable democracy quietly submit
10 the annual payment OF a tribute of interest to
Eurnpean capitalists? On the other hand if the
Horthern Tree States do not attain their passionate
desire 10 be reunited to the Southern slave States
| II the South cannot be coerced back into the
Union, and the principle of secession is rccornzad
! established aud triumphant-to what are we to
look as the United States? Where is secession to
| stop, and to which of the States shall we
eventually have to look for repayment p
| Shall we trust the Federation until wa see
whether there is any centrpetal force in the
reslduarv States? Or shall we be content to look to
the ln1lVlduat entities OF States for repayment of
their respective proportions nfthe loan? The New
England States may be good for their shares; but
three of their Northern, well as three of their
Southern sisters, have had their characters dam
aged by reputation. Iowa has lust as bad a local
reputation as the others have European stain and
Tennessee is looked upon very suspici3usly in Wall
street, on account of recent acts of its State egis
lature. II is notorious that the American people
are very Jealous of taxation. AS to the extent of
their taxable capacities, that is question of oin
ion. 1t is generally allowed that Mr. Chase has
greatly exaggerated the realized property of the
country, and in irstance-that of Ohio-the
fallaciousness of his figures has been clearly OK
posed Indiana and Illinois have lately been in the
marketfor loans to meet the requirements of their
State expenditure. The former was taken at n low
rate, the latter had to be withdrawn
IT they are obliged to borrow for State reouire-
mens the prospect of their being able to bear
additional direct taxation for Federal purposes? II
q ted
to the payment OF the interest Of this loan If this
be true, it is great fall for America to be ryinp
pledges like Mexico Turkey; but it is in reality
no security, for this simple reason that the laws of
the United States are interpreted by an elective
Judiciary, which is paid for interpreting them ac.
cordlng to the will Of the people. Witness their
procedure relative to the question of belirerent
rights, which they interpreted contrary to heaton
and contrary to their own action in the civil war
between Spain and her colonies also the blockade
OF their own ports, although not many months pre-
viously they had held that Francis H. corld not
blockade bis Sicilian portS; and next, their recent
haste to come into the Paris treaty declaring pri-
Watering piracy, after having been the strenuous
opponents of that great step in civilization.
They now enunciate new feature in iuterna-
tional law by attempting to collect import duties
outside their harbOrs-fn fact on the open sea- |
Their whole course Of action in this matter Of the
blockade is based on two enormous errors First |
the Federalists claim that they have majority OF
alonSts with them in the South, and yet hev per-
sist in running the trade of Northern and Southern
friends merely to injure the recusant minority: Sc.
cOndy, 1t is utterly impossible to stop the trade |
ou may as well attempt to dam the Mississippi as
prevent cotton worth nine in New Orleans |
finding its way 10 New York, Liverpool and Bos- |
ton, where it is worth nearly double Freights of |
I'd per pound from coast 1000 miles in extent |
will enlist the sympathies of Northern shipowpers |
who at present ind their occupation gone. They |
have been the chief supporters of the slave trade
Let us hope that thew will forsake that inhuman |
traffic tor the more respectable calling OF smugglers
No capitalist who has the interest of this country
really at heart will endorse the proposed loan bv
his agency. The only fear of its being attempted
Is from the enormous bribe that MIR. Chase has it
in bis power ,offer-nne such as was never hafore
placed in the hands of any Minister in anv freo
country. 1t is fact that only the price aud
the amount OF this loan, but the where, the when
aud tho Row IL lE to Dc rase,t intTusted solely
TO hr. Chase Further he has the power to fix |
the rate OF exchange at which interest and rrinci.
pal are to be remitted. This will Involve transac
ons OF 81 100000 per annum for interest amount
lnG IN twenty years to G26, eco 900.
INDEPENDENCE OF THE SOUTH.
From the London Post GsrcrRplent organ Auq S.
"ihFee Federal regiments have returned to New |
York, and have met with an enthusiastic rccep. |
ton. Whether these regiments were composed !
OF ninety days service men, who left the field of
battle when the enemys cannon was sounding in |
their ears, the telegraph does not state The Re |
publicans in New York, revering the 10 triunaDbe
OF Republican Rome, appear TO Justify disaster and
disgrace by accepting and acting upon the maxim,
Flctrtn ca"Fo Dlis piacuit, sed Uicta Caton Their
policy evidently is to put good face upon defeat
and disaster. We dn not quarrel with then for |
DONG thlS because 1t is only an additional spec-
men OF that spirit of exaggeration which would be
excusable if it had the merit in any sense of be- |
ing true.
The Northerners, to adopt the American phrpse-
ology, have received thorough and complete |
"whippIng," and tho elasticity OF their patriotism |
can only be measured by the folly which has piven
an ovation to three regiments which had the good
luck to escape from the in the chance medley
OF great battle. The New York papers apnear to |
think that it is their duty as well in the moment of
exultatinn of disaster to viliify and abuse Eng
land The acquisition of Canada, according to the
programme Of Mr. Seward, is to compensate for the
loss of the South. Cuba is also to be annexed at
the first convenient opportunity. We have no fear
for Canada, which, on former occasions and under
more dlSadVantageous circumstances, has success
fully held her OVID, not only in the face of direct
invasion, but against the !ess open attempts of
American sympathizers.
We believe that at present Spain has navy am
ply sufficient to secure the safety of Cuba, and to
defy any force which the Federal government could
bring to bear for the purpose of annexng an
island which, invaluable to the South as the great
entrepot and seat of the slave trade ought accord
ing to the theory Of the North, to be of little com
mercia or political importance to the free soil
States The Cabinet at Washington has quite
enough to do without wantonly Offering insult to
such power as Spain. We. however, take these
matters as specimens of that international bounce
which appears to be chronic feature of American
character. In the words of Tom Thumb s'When
rebellions dead, the New York press may take its
breakfast" and abuse villify and outrage friendly
foreign powers, but at present the task is both
premature and ridiculous. In the existing condi- |
ti0n of affairs in the United States, Maine and the
agricultural West have far greater chance of
separating from the Union and Joining Canada |
than British North America has of throwing in it's
fortunes with the eneebed, dislocated and dsmem-
bered neighboring republic.
But still there remains the question of belligerent
rights, which continues to excite the virtuous in
dignation of the Northern press. The few short
courteous and svmpathizing words which her Ma,
Jssty speech contains to be misinteTpreted
the other side OF the Atlantic 1t is of no use
to tell our American contemporaries that position
of neutrality is both the interest and the duty of
this country. They irritated and offended be-
cause England has not formally aided and abetted the
cause Of the North by declaring the secessioHists to be
rebels and traitors. We beierc that tie gocernanent
Of this country only deal ,oiH dc jure g0Uern.
Blents. IT Is A FACT THE South HAS ACHIEVED
INDEPENDENCE; and even if it we're not So the dsci
sions of the abest American urists may be cited
to show that foreign governments bound to
recognize and respect successful revolt. The United
colonies from Spain, ADMITTED the latter to bellig-
erent rights. England has done nothing more than
strictly follow the American precedent which hap
pens in this to be IN strict accordance with
public law 1t is, we repeat, the policy, well as
the interest of this country, to abstain from all in
terfcrcnce; and the Queens speech simply re-
asserts this great principle of international truth
and Justice.
Bat, as the Northern people so wilfuily msinter-
pret the practical effect Of her maesty's declara-
tion OF neutrality, it is worth while to inquire
whether these international proceedings have the
sanction of strict law. Wesay nothing of the arti-
Gle of cotton, of which a supply sufficient for the
consumption of the coming year exists in this
try. We hear, however, that Admiral Mine, the
commander of the British North American SQUAD
ron, has officially reported that "the blockade is
totally insufficient" This statement of the raant
Admiral has been confirmed in the most convincing
manner by the action of Congress ITSELF An act
has been passed which enables the Federal Govern
ment to station vessels off the Southern ports and
to collect import duties. AS Lord Palmerston on
Tuesday night remarked this enactment would al
would virtually permit, at least for fiscal purposes,
the ingreSS and cgrCss Of every description OF yeS-