Daily Nashville patriot. [volume] (Nashville, Tenn.) 1860-1862, 1861-06-26
Fem ,hs R,obm.pa Examiner.

From the Richnsrd Examiner.
The New York World has the courage to
look the facts of the war which the North is
waging, full in the face:
"Congress, which opens three weeks from
to-day, will be called upon to provide the
means for crushing a rebellion which, if not
crushed. would OVerwhelm the Republic in
ruin. They must first authorize the raising
of the requisite military force. Public ne
cessity-the very preservation. in fact, of the
GoverDment-rpquiredt the Executive to an
tieipate the action of the legislative depart
ment in some measure. Military levies must
be authorized far beyond any requisitien that
has yet been made. The President should
he clothed with power to summon to the field
halt a million of men, if necessary. The navy.
too, must be aIgely increased. Provision
must be made for large feet of sloops- Of
war. steam cutters and gun-boats, adapted for
operations in rivers as we'll as in shoal wa
ter on the coasts. The most difficult matter
of the session will be to settle the mode OF
raising the vast sums necessary for the COM
plete overthrow of the rebellion. AT the
lowest estimate one hundred and fifty millions
will be needed for this purpose. The money
must be had. how Is it to be obtained! Inc
present tariff will do very little towards it
probably, at best, will not yield thirty-five
millions; and no tariff that can be devised on
the strictest revenue principle, with the most
to be obtained from tea. coffee, and all artic-
les now On the free list, would yield more
than fifty millions in the present state OF trade
not enough to cover the ordinary expenses
of Government, far less to meet maturing
liabilities. The Government, then, must
either use its credit or resort to direct taxa
ton. Direct taxation for Federal purposes
would be new thing to our people, and its
novelty would make it all the more unpopu-
lar. Neither is the country in the prosper
Gus condition that England was; directly The
reverse. The Federal Government cannot
hope TO supply its immediate necessities from
any such source. It's only resort is TO make
the best of its credit. And, rs treasury notes
cannot be issued beyond certain limits with
out very Injurious deprecIatson, an immense
public loan would seem TO be an absolute ne
cessity. Congress may well make up its
mind at once for funded debt such as the
country never yet saw. But this ought not
really to excite any very deep concern AT
the time of the first call for troops, the Gov
eminent owed about one hundred millions.
Allowing two hundred millions for the ex-
pense of putting down the rebellion-whIch
is a very large estimate-and fifty millions
to cover all peace deficits, we shall have
national debt of $3.50, 100000"
Such is the World's financial view of the
war, with respect to the case of the Govern
ment. The Herald in its money article of the
10th inst, takes up the other end of the sto-
~ and discusses the financial prospects of the
Northern community at large. The Herald
is gloomy:
THE fate of merchants lately engaged in
the Southern trade has been sealed by the re-
cent act of the socalled Congress at MOntgO-
merry. which prohibits under heavy penal
ties, remittances to the North in payment OF
debts. From this decision there is no appeal |
except To arms and there is every reason to |
fear that when this war is ended the people |
of the South will not have the power, if they |
had ever so much the will, to pay their debts |
On the other hand, collections in the West, |
are blocked by the currency crisis. Western |
merchants write that they are willing to pay |
their debis in Western currency, which at
Chicago is at a discount of from 80 to so per
cent. and is steadily falling. This amounts
to practical stay of all collections. 1t seems
but too evident that this summer must wit
ness the suspension of the bulk of our job
hers and of those who are engaged with
them in trade. How the assets of the banks
will stand alter these failures is a problem
which is engaging much attention.
Tue poliucai and military crisis is without
precedent in our history. Neither the war Of
1917 nor that of 1872 bears any comparison
with the civil war in which we are now EN-
harked Neither of the two were necessari-
Iy fatal to our internal industry and COM
merce. Neither di,located the joints of trade,
as he present war IS doing Neither of them
placed the very existence of the republic in
Tue principal commercial chaTac-
Ieristics eff the war which has now begun are
a total d structiOn of our enormous trade
between the North and the South a repudi-
al. L. Il
yariOuSly estimated at from sixty to two hun
bred millions of dollars, due to the North
the compulsory failure OF the bulk of the
great jUbbing and importing houses, to whose
enter prise and wealth the growth aud pros
perity of New York have been mainly due
tue probable suspension of the bulk OF the
NOrJ hern banks, the consequences of the
wOTthlesSDess of their assets a reduction OF |
from fifty to seventy per cent. in our foreign
trade, in conse quence OF the stOppage of ex-
ports OF cotton rice and tobacco Gu the one |
hand, and general dimlnUtion of cOnsump-
ton on the other the destruction OF the
credit OF the States which have nearly two
hundred millions of bonds afioat the with
lrawal of nearly million OF men from the
productive agricultural, industrial or mer-
camille pursuits, and their employment in the
occupation OF warfare and the
creation, for the first time in our history, of
State and federal debts bearing some proper
ton to the debts of the European mOnarchies.
These are the obvious and certain features OF
The war. In addition to these, other and equal
" grave commercial complications will arise,
should the war at the South lead to gener-
al stampede OF negroes. and so imperil the
future agriculture OF that section; or should
Great Britain perseVere in a policy of secret
with the South, and compel the
United States to declare war upon her.
..Thic condition of fhiDua 10 pntiralu |
new that it is impossible to ioresee its effects
lpon our commercial and financial interests |
We may be sure that these effects will be Sc
7erely disastrous; but TO what extent the dis
lster may spead. or what interests will sur |
rive amid the general ruin, it is impossible to
discern. There are reasons for believing that
me of the most marked changes which are
will be a sudden turn in the
money market. With the exception of a | ,
rief period of panic late last autumn, we
ave had an easy money market here ever
ince the crisis of 1857. This year especially j
be ordinary laws of money seem to have !
cen reversed. We have imported gold from !
Europe instead of exporting it, and money !
as been cheaper in New York than in Lon :
on. This anomaly was caused by the mod :,
ration of our imports, and our unusually
,rge exports of cotton, breadstutfs, prOvi- /;
ions, etc. If in December last exchange .
al Euleu dc II ReHeTdlly uOes, our oduhS 4
TOuld all have suspended before New Year. :
Ve are now exporting no cotton, and from :
resent appearances shall export none until :
ne United States Army restores the power OF !
be government in the Gulf States-which 8
annOt be before January next, at earliest. :
he exports of tobacco, rice, turpentine, nav. :
/ stores. &c, have ceased in like manner. :
: it not reasonable to expect that this stop ;
age ofexports must before long begin to tell :
pom the exchange market. and revive ship :
lents of specie to Europe2 Can we expect !
D so through July and August without part =
ng with some of our gold? And when the !
rain does begin, how can It be checked? The I,
reat staples which have heretofore paid our :
ebts in Europe are out OF reach. We have
othing left TO pay with except gold and
OOd. Will our banks be able to stand such !
drain as we suffered in 1855, 1857. 1859 | :