The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-09-04

dollars in the Treasury notes payment for the month
They did not like it. The brokers charge per cent dis
count although the government pays per con, interest
on the twoyear notes. that there loss the orig
nal holder OF So per cent per hnnnm, if he submits TO
the discount These, however, are very tr1pg matters
In consideration of that which is TO come.
There is rumor Of an attack Cairo. It can only
succeed in consequence Of ncapaciy and cowardce on
the part OF the teenders.
The Army and Money Votes OF the Fedc-
raj Congress.
From the London Times, August 1911
The armies Of Xcrxes and the wealth of Solomon would
hardly sustain comparison with the hosts Of men and
are Placed at the command Of President Lincoln for the
suppress ion Of the Southern confcdcracy We may ven
tHre perhaps, to pass without too rigorous scrutiny the
bold, though somewhat gasconadng vote by which the
intelligence Of the defeat Manassas was received in
Congress The millions prccritateiy offered repre-
senied, probably the patriotic resolution Of the North
to spend Its last dollar In the preservation OF
the Union; but, without pressing these loose figures
the nsr wSs ar we o are really a0Sdsd at
reports. il used to be thought that n country had
attained an unhappy but nnapproachable eminencc In
national Indebtedness. Half our entire expenditure in
ordinary years still TO pny the interest Of Borrowed
money, and when were told TO look at America and
popuous as our could be quarter OF the
EXPENSE could not but feel the force contrast
We knec, indeed, that america had all her temptations 10
come and IL cas occasionally remarked IN these .as
that TIE tendency 10 extravaganza The other side If he
Atlantic was rapidly increasing; but the comparison sin
remained striking one. Now, however n critical test
has been applied America is involved in war. ami the
rate at which she is raising men and money will if
eny examined, appear alnost too extraordinary for
belief.
The xGct position OF American finances must be TO
great extent matter T estimate in the country it.
self; but has been calculated, good authority that
the actual expenditure OF the federal government the
present moment is a. the rate OF about G75 600 per
annsm This, II is true, is less by $4,000 coo than the
amount Of our own expcLdture--fS4 900 U00--in the
heaviest year of the Crmcan war; but third of that
charge absorbed in providing for the of tho
national debt and the whole only showed an excess
II 1858 spent Isl 900 600 in 1854 500 90 600; ard
was not until we found ourselves in the very agony OF
the struggle that we added rae sixty per
usual outlay. We may say, in short that tho war cost
us for the twelve months when it expensive
about $50 600 Of money, whereas the wi war is
costing The americans at its very outset at least twice
that An expenditure Of G75 GOO 900 represents m
excess Of about Geo. on the ordinary outlay of the
federal government and this incurred when the cam
paGn has but just been opened, and before the real pro-
portions OF tho war can be Supp sed to be de-
vcopcd This, however though most omnous fact
constitutes by no means the most striking feature of the
case before
When We in this country were spending these tens of
millions upon the war III hand also taxing our
selves in proportion We met outlay OF GS4 eco by
taxes to the amount Of fG3 000,c0o net actually paid into
the Exeequcr after the Of collection had been
ducted In the following year provided less than
fGS 600 eco to meet aggregate charge Of Els 600
80 that N the two years together we added only some
$50 COO GC0 10 the national debt In fact the whole war
sangInary ana exhacstng as it proved, only augmented
the public debt by the OF G32 1913 600. Let now
contrast these statistics with the accounts received from
America. Tho ordinary federal amounts to
about SIG goo 600 that tho extraordinary charge
the war be either by taxation or loaf is as VIC
have said about SEQ 600 But how do the Americans
propose 10 raise hs What proportion viii they borrow
and what proportion will they levy by taxation? AS far
as we can collect from thc figures transmitted, they de-
sign to borrow the whole They have voted fresh taxes
nndoubtcdy bpt these taxes, imagine viii do little
than provide for the interest of the debts
tracted or, rs 1t is phrascd serve "a basis Cor ons
We arrive at this conclusion partly by arithmetca calc-
ntion, and partly from intmaons conveyed by the Anne
rican journals. We arc told distinctly that though
Congress ready to anthorzc any amount
Of loans it hcstated when asked for supplies which to
base thCm and observe that though the BIZ affected
of the New York bankers did at first suggest provision
should he made for meeting part of the principal they
presently admitted that this arrangement might be dis
pcnsed with Moreover il seems pretty evident that the
produce Of the taxes will not suffice for much more
than the Liquidation Of the interest which Ms
shall presently remark, will be necessarily accruing
Until we get the estimates Of the government placed be-
fore rs we can do little moro than approximate the
truth by conjecture aud computations but the Federal
revenue to be doubled by the proceeds fresh taxa
ton the increase Of income would be all absorbed
in pay tie interest Of the debt which will probably he
cont acted by this time twevemCnth. In other words
the Americans are now creating national debt al the
Of $50 900 COO year.
We oItreat the reader to observe for moment, what
this implies. Steh yoiss oil or borrcacirq into
The stcdc. IN ell the nine years Of the American war
from IVA to 1888 we only borrowed sIo4 ooo eco In
the twenty two Of the great Revolutionary war VIC
averaged less than $50 GEO coo and in tic trcmen
dots year 1894 the loan but $50 0CO OCO But
this is only halt the battle The bUrthen Of loan depends
not much on The amount OF principal Of
interest. We borrowed money even in 1918 at a lit.
tie ABOVE TOUR ana nan per cent ana IN 1856 at little
above three per cent The Americans however began by
offer OF seven per cent, and ut this
moment compelled TO pay ten twelve per
cent. We find, therefore, that while 5000 600
annually would he added to their national debt
600 annually would be added the cha gc that
dc that four Years and thrcedaarter Of their pre-
sent expenditure would saddle them with burthen equal
to that which have incurred In century and half
Mr. Gladstone has provide G2S 900, 900 satisfy
the public creators Of Great Britain In the year 1866
II the American should be frotracsed SO long Mr.
Chases successor will have to provide rather than
that sum for the creditors Of the Union
IL is obvious to remark hat tho may not be carried
long, continued az heavy cfst md. indeed
the exo bant prorostcss Of Congress were probably
based upon the assumption that The way TO make short
work was so 10 work ursparintly at first But the
history Of the campaign up 20 The present point con
ains little 10 suggest speedy termination Of the strug
gle. The Sou,herners not likely TO vah, nor
The Northerners to retire. Neither Is IL at all in
accordance with cxpcl iepcc 81 ihese matters that
the cost Of war sscud be diminished IL goes Tho
scale Of operations indeed. faT resolutions 40 las
been actually ext Idcd. The last mal tells Us tlat the
Von1cr bills passed by Congress empowrr ,lc res dent
10 call million into The helc and IL su, posed
tbgt half those Numbers would be actcaly raised. Napo
leon had not larger army when he crossed the omen
with the most piodgious host IN modern BAYS.
We can de{cct sign Therefore ct any cnrailnc tn
dimensions Of Ills exirhordnury war, though may
wei foubi wbcther the Amcri.aus VIII hnd fhcmse.vY
sblc TO borrow quite so fast us they desire. They
will O rival the rockies s