Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1861-10-04
rur AmER1 CAN CRISIS LERoAD.
The New American National loan.
rr.r. A.. 1 I.-I... r.. 90 Q - 60

T. Ehe New WAH1erie0nNStlon1l LoGns
- fl From the LordOn Times. sspt.2 ..
At the present crisis Of American affairs letter
which we publish this morning from our New York
correspondent will be perused with peculiar inter
est. It enters upon the delicate but momentous
I question Of American finance. 1t gives faith
ful reflection OF American opinion upon the In
crease of public expenditure, the progress of taxa
ton and the Independent resources Of the North
ern States. We learn from this unreserved commu-
ncation what is thought in New York Of the compe-
tence Of The Federal Government to prosecute the
war of its financial credit abroad and Of the Wsys
and means to be provided for 1t at home Up to this
moment no such comprehensive calculations have
been placed before our readers.
The opening statement of the exposition is al i'm
poytaat one. 1t informs that from the IN ,nent
1 when the Federal government conceived the nego,
! hahOns of loan it was resolved to borrow in the
/ American market cnly. The leading bankers who
were consulted on the subject gave the Treasury to
understand thzt 10 considerable amount Of money
was likely TO be obtained from Europe. They did
| not take upon themselves to depreciate American
/ credit, but they argued that as European nations
+ and we especially, had glut Of good investments
/ at home, 1t was not probable that much capital
could be attracted across the Atlantic. The true
course. Of the government WAS TO borrow from itz
| own citizens from TIE wealthy and pstr1otc popu
1 lsdon Of the North The industry Of it, busy and
prosperous States Was ewarded ~ the annual pro
| duce of $50 900 600 or 8400000O0 beyond what
vas required for the wants Of the producers. All
into public securities Government had but TO tap
this source OF supply. and an abundant income
weuld flow into its hands. This. we are told, was
the opinion given BY the New York capitalists and
upon i the government has acted. The soandnesE
Of h ccnelusion is held to have been established by
the very first experiment. No sooner was seven
per cent lean opened than the associated banks Of
New York, Boston and PhiIadePbis at once took il
up TO the amount Of e5909O0oO sterling. ard the
Federal government n0H stands provided With
present suffeieney-thst ia 20 ssy. with moaey
enough for about four months consumption.
We shall not scFutiniTe these operations with too
curious an eye; nor shall We inquire upon what
convictions this profsssed ependenee Of Eqropaau
capitalists wss probably founded We believe the
New York bankers to have 0een in the right whea
they concluded thstRo considerable loan could have
been raised by the Federal Government in this
country but it is perfectly clear from the opin-
ions which our Correspondents reisils and from the
extent 90 which he carries bis exposition that the
people Of the Northern States are esirouz Of estzb
fishing good financial position in the eyes Of the
world. Il Is Observed with emphasisth1t Whatever
may be the issue Of the war-and the result is now
ulOdesty spoken Of as beyond the powers Of man TO
predict-there will still remsin great Anericzn
UniOn-a country at once pOpulCus enough and rich
enough 10 rsise Sny amount OF public income
American Eecurites II now current only at home |
would one day ind their way at premium into |
foreign markets, and nobody-who reflected or the
RESOURCES of the Northern States or the untainted
credit Of the Federal Government, would venture |
TO question their intrinsic value. The Union in /
short though RkOrn possibly of some of its uroyin
ccs, wiilstll remain 30 strORg and so cpuent that
1t would be irrational to doubt either cornpeenee
to maintain this war from its own resources or is
ability 70 preserve financial reputation in future
times Nothing can be more Interesting to English /
readers than the details INTO which specuaions of
this kind have led the American ecOnoulists We /
freely admit the general force Of their Arguments
but they have overlooked the one consideration by
which, in EurepesH estimates these arguments
might be invahdated. --1 r. = --.l-.
There is no exaggeratiOn in tAe view thus taken
Of the population and resources of the North. We
are quite prepared to acknowledge that the citizens
of the rev Unicn, though reduced TO twenty
millions IN number, might be taxed 20 an extent
hitherto Unknown on the other SIDE of the Atlantic
We allow the truth of their words when thew DE- /
clare with kind Of boast that they are solvent to
the amount of 4e46 000 600 q year. We have not
doubt thar they could plaes themselves in respect
such obligations on q level with the most heavily |
surtheaed States of Europe. Our correspondent
with positive unchoa the number and
variety Of taxes available against the pockets Of
the American people Government can clap Gus
cms duties on articles Of the first necessity, can
multiply excise duties, keep up an income tax and
get large revenue cut Of stamps. All the sources
IF public income exempliied in our own budgets
Ire rsc2pitalated and estimated az SO many mines
IF unexplored treasure. 1t is q fresh instance and
splendid one, of the advantages possessed bv /
1oung country in its "Yirgin SOIL" The pockets Of
be American people are quite untouched.
Once more let rs say that we have not word to
lher against these assertions. We believe that the /
lew American Union, or what remains Of the old
me, would be perfectly able to raise the $40 600 |
700 sterling as it is contemplated by our CORES
pendent as its possible income. What is more, We
ire sure that every penny Of this will be actually
leeded if the war should contaue. Half of that (
um will be required for the mere interest on that
iatonal debt, and the rest viii sooa he swallowed
lp in the estimates necessary for the maintenance
# good standing army. All this, however. ia
Ieside the mark. Tbs real question at isue is net
shAt taxation the AnsricanS ceuld really support
,ut what they would consent to endure. They are
lOt reckoning at all TOO fast in their estimates Of
ust0Asrs and excise duties, as sources of revenue
tax upon articles Of food, such as they have al
esdF imposed, stringent excise laws ard such ike
undoubtedly from effsetiYe machine j
y for the extraction Of money. Nothing would be
ssier, than. TO raise the Federal revenue perma>
emily from Els GOO Geo TO 60 900 900 by legislation
ipOn this basis. Our only doubt is about the as
snt Of the people to the process aad this point
be arguments Of the New York public carryns |
HsuFaRce. They ask Us Wheiler:tie Federal Gov, I
rnuent has not hitherto discharged all its obiiga
iona with absolute faith. We snswer-that NAV be
o; but they admit in the very same breath that Z
the Federal tax gathered as is yet unknOv 4 tkev
spriYe their sppeal Of all its apparent force If
heir circumstances were Delightfully."- easy that
o contribution was required from them for the Z
quidaton Of their public debts, it s not much TO o
heir credit that these public deb's were paid
| y
ho would not be ready to satisfy their creditors
full On terms convenient. Bat it will be = very
iferert thing when ''the Federal tax gathsrerD '
lstead of being unknown, becomes very familiar .
he appears quarter after quarter
every mans door, and makes his agency felt at
very days mtal. Then the taxation for Federal
urposes will become as bad or woTse than the tax
lion for State purposes was IN Michigan or Missis-
ppi when the citizens, under rs pressure. repudia
d their debts. VIII the citizens Of the Union dis
lay more unflnching integrity? VIII they pursue
slr various calEngs under the restrictions of the s
Ccise consent to be taxed through the food they r.
It, and a goodly slice shOrn from their cara :
gs year after year, not for the qualification Of
'pular passion, but to support the dead weight Of
public debit We do not say that they will not do =,
!, but the New York people must excuse ugfor Il
ying that the case is entirely problem teal a. =
ssent, and that the uncertainty which rnavoida
y suFroundsit It is q point which EnOpean capital
s cannot overlook IN their estimation ofAnaerican
edit - A
Two broad assertions have been made in tbs q