The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-12-19


tor, and would become to us formidable ally
In the promising enterprise of another effort
for her own deliverance.
Finally, if upon the pretext of an unpardon
able insult on the high SEAS in this affair of the
Trent England is resolved upon war; she may
rely upon it that the continental States of Eu-
rope, upon the great question of maritime
rights, will catch the contagion, and that before
this worldwide war is over there will be an
end of England dictatorial supremacy on the
seas. Up to this time, however, our Cabinet
has received no communication on the subject
either from Lord Lyons or from England.
Financial Condition OF the Government
and the Banks.
There is great deal of excitement in the
halls of Congress and among the monetary
and banking interests in Wall street. The
causes are very different In Washington the
trouble is all about the niger. In New York it
IS about the present and future financial
government loans, the progress of the rebellion
and the apprehensions of a war with England.
1t is not from any commercial causes that the
financial embarrassment proceeds The want
of cotton has been compensated by an i'm
mcnse surplus of cereals for which there has
been hitherto an active demand in Europe, and
particularly in England and the loss of the
Ia io oJo h,,tb o c,;y
to the internal trade Of the Northern States by
the vast expenditures for the war. The coun-
try has never been more prosperous than it
has been during the last year in all the ele-
ments of national wealth. Phc canal tolls are
| a remarkable evidence of this. But the rapid
progress OF u sudden and gigantic rebellion
still unchecked, and cloud suddenly appear
ing in the eastern horizon indicative of foreign
war, together with the vast requirements of the
government for money. have combined to create
uncasiness and alarm among a class OF dcposi-
tors who are always easily frightened. Yet the
banks are bravely bearing up. That they have
not already broken down is proof of their
strength, and that they intend to weather the
storm as long as possible is proof Of their in
| tcgrity and patriotism.
| At a meeting Of the banks, held on Tuesday
at the American Exchange Bank, the following
| preamble and resolution were adopted without
| Giscussion:-
Whereas, tho public mind has been undy agiIatel in
regard to tins financial to ha pursued by tho banks
aad the United states government which hiss led pre-.
mature discussion OF tic suspension OF specie payments;
| and
Whereas an examination into the condition Of the specie
IN the country has resided in the belief Tint hold
eighty millions e bullion more than WE held year ago,
| Oh which Il lair proportion Is IN the banks; and
Whereas, our exports OF cereals and provisions have
FAR exceeded thest Of former yss that Notwithstanding
tic lss OF tue cotton crop, exports lar exceed i'm
raia;ins and there IS demand For foreign exchange
to warrant considerable shipments 81 coin; and
WAoseas the renting differences with Great Brtan viii
probably prove BE- ctpab 81 i diplomatic solution
t'roas!t the ordinary chinnes, or by arbitration, and
f,ats III this score arc pr mature and groan Hess ami
Whereas thao i, notn.ns in tn, position Of The loans
To 'he government 10 cause uutasnes-, and the entire
rears tue them FROM ,is banss Of this city-a
siderable part cf which i, to b. reimbursed-io
cci S3l 10000 provided the Secretary in his drafts
therefor VII! .suit tlcir wis,s, mhch my expect
cd Fl IN him irrm motives Of interest and policy, wen
! as frem his Promises: AMI
Whereas independently of all these considerations II
: not only unbcc ming but bad faith, for t'ciry agents
TO rti'%e IN lust nanda o deEosios, unless Tor clear
cause aud manifest 'cessty; and nothing ~ entire
want hic coliehce great natl nal considerations
raieig impossible 70 comply with all rngal emenls,
! can exc iis.i.y such rognsal: ihe ofose,
| Resolved That the New York banks, with assurarc
from re- esenatiycs &c banks in isoa and philadelphia
Of their operation, easoa, justification or he
ccssity for sasaal 81 Of specie payments under tho
istiag sttr - fhg.f rlaos with c banks OF his
try, the tnc stas vernmcnt and Europe. rciyinc,
{aetaJrf, cuaHtn 81 ne harmnni us actm o, thc
seraiacn. By eaiird conA .e.ce al their drposi-
~ tad ~ ~ laWlote n u tn. ioope, tey win man
tam srNtle NY nc4t.
liis \ ~o'ed eoe, ne. j. Tie true princi-
pc ef business: ANA II Il could be always al
hcred !" there wrild be 10 failures and no
diltaoa! embarrassment. II is Of course de-
sirable u stick to il rs lc' 6 as possible Only
do mol let too much Of Tie gold be drawn ont Of
The banks and removed from the country. The
time viii soon come, We fear, when il will be
absolutely necessary to suspend specie pay
mcnts If the war continues. not only must that
be done, but Congress must issue paper money
rs uniform currency, in which tho public will
have confidence because thr national faith i;
pledged as its security. VI the rebellion should
be speedily crushed, there would be no need
either Tor The suspension OF specie payments or
for the issue Of federal paper money.
As for war with England there is no cause for
il just now. The case ut issue is mere legal
technicaity, to be settled by diplomacy and in
| risprudence. and not by cannon balls. But the
revolution which we have to cope with is dill
fercnt affair. No diplomacy or soft words will
charm That down. Nothing but heavy blows
will suffice. 1t is a revolution sudden and
great, and OF which 40 man can now predict the
end. The treasury wll be empty before
month. and vast sums OF money will DC wanted
by the government. and our whole iinan-
c;al affairs will become dcrangcd, IN
less Congress takes time by TIE forclock
and makes provision for the contingency by
wise and ludicious enactments. In their recent
wars France and England were moi emba, rassed
in their finances, because the wars were short
and of limited extent, and because those nations
made provision beforehand. With us the case
is entirely difierent and we shall probably SON
have to do what France and England did in
their long and vast wars arising out OF the
French Revolution. IN England the system of
paper money was continued from 1897 till 1921,
period OF twenly-iour years, and even seven
Ca. H.. -