The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-11-18
THE NORTHERN GOVERNMENT LOANS.

The Northern journalists have INDUCED in great deal
of exutaton at the unexpected Of their govern
ment loans, which were arranged through the instru
mentality of the banks in Boston, New York and Phlade
pha. The ability OF the banks to advance hundred
millions Of their funds upon COVER nment Treasury notes.
bearing and threetenths per cent interest
only evidence that the usual subject Of bank discounts
to w.t. mercantile paper was not TO be procured in guam
titles commensurate with the capital OF tho banks. That
capital existed before the in magnitude adapted TO
the commercial wants of enterprsilg and prosperous
population, numbering twenty millions, carrying on
business which in the city OF New York alone repre-
sened in the Clearing House at from six hundred eight
hundred millions of dollars per month The breaking
of and cessation Of all dealings with the South, Of
course put stop to large classes of commercial enter
PRISE and left the capital of banking institutions usually
employed IN those branches Of blsiness, unoccupied
tcas, therefore, not rena7hdtl thing TO find the banks
scilling 10 Unrest their idle capital in loans
They first took fifty millions OF Treasury notes secur-
ing the privilege Of being the sole recipients Of tnose
issues OF the government aud Of taking other install
ments of fifty millions each at their option. They
have since availed themselves Of this option
and last nsalnent also There nothing to prevent
this operation Of the banks from going on swmmngy
long as the current Of specie kept from California and
also continued usual from Europe The banks long as
this state of things continued could pay their notes.
specie itself in discharge Of Treasury drafts drawn
against their loans to the government long specie
tending TO accumulate according to its wont in the
tres Of trade at the North no trouble or Inconvenience
could result TO the banks 10 paying the drafts Of the
government. But whibe there seasons during
which specie tends TO accumulate in the CONNER
IN
which 1t tends TO go abroad, and think that
will very soon set in; and We find significant para
graph in the last telegraphc advises from Europe, in
which it is said that the London Times thinks it
likely that tho moment that the drain Of specie COM
mences in the United States the financial community
The truth is that tho North have endeavored to blind
themselves to the fact that their trade cosld be ser
s , ees ns BY ,S Ms ss s,g., he Sssme a..
| continued to make large importations from Eu-
| rope, notwithstanding their lKs Of the Southern
| market The season of the summer and carly autumn
those in which these importaons have beon made
and they have heretofore been paid for by bills Of eY
change drawn against Southern cotton which ordinarily
began go abroad from this time until March. April
May. Upto this time their trade with Europe has
nued TO rest upon the old basis of cotton and other
Southern expectations, the last crop Of which had al
gone forward before tbs war began and heaoc the block
| ade declared.
The season is just beginning to recsr for those
Southern staples the crops just matured and maturing
to begin forward But the Southern ports are
bockaded and our staples will not go forth Not ever
their great naval expedition will be able to tempt them
the seaboard send them abroad 1t Is land locked
well as sea locked and will not move.
How. then will the North pay for the goods they have
imported largely and for the quantities OF arms
and military supplies which they have purchased in
such liberal profuson In Europes They pay for them
only with Northern exports consisting Of little else than
grain, with specie. But in ordinary the North
raises but small surplus of grain over and above its
own consumption The crops they Acoe recently harvested
very short and considering the number q laborers
taken away from agriculture by the and the increased
demand for provisions at home occasioned by tho
/
| grain from the North will be much more than nominal
1t results that they will have to pay for their impta
tions and discharge their oil ds 10 Europe ,yry laY0e
Jdr nth specie They indulge two hopes from which re-
| lief would come to them from this necessity They
hoped that Europe would take large part Of their war
loans and that they would be able ray their indebted
ness abroad by drafts against government bonds In
this calculation however, they have wholly failed Eu
ropean capitalists have refused. the solicitation
Of the powerful Rothschlds and Of Belmont invest IN
| this paper.
| Their other hope was from the achievements of the
coast This sch,ne the Nortery merchants rather
than Of the government and Is SAID haze made
coq,ditop Of e negotiation ba,ec the gosenm@t and TIE
banks. In their hopes u procuring cotton by tho
agency Of the fleet they going To be completely dsap
pointed We doubt thousand bales will be captured
10 reimburse tho expense II millions upon the armada
The English public this result clearly than
the Yankees and the Times declares their only sub
iect Of remittance will be specie. When that begins TO
set, in strong current Europewards then 1t thinks the
effect win be felt dsastrously by the commercial
| community OF the North than Bull run
The most inflated paper stem in the world Is that of
the North The eux OF specie will tell with tremendous
effect upon the system Not great bladder will be
pricked but tremendous balloon and only pent up
will escape but the foulcs gases ever assaed
the nostrils Of the moral world. We shall then wbe
the finances Of broken, bankrupt gDueramet bc
upheld by set OF broken and most rotten banks Not
only must the commercial community Of the North expe-
riencc mighter disaster than that Of Bull run but the
government itself will feel again another earthquake
| der its feet.
| Even England could not purchase cotton except
upon the condition Of paying for II in merchandise; for
her finances would be overtaxed IL required fur
nsh two hundred millions Of specie for single crop OF
single country II is to be whether the North can
stand paying for its importatons with specie The Yam
KEGS full of ingenuity and tricks, but here Is