The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-09-19

The London Stock Exchange Finds That
Its Aid Is Not Required by the Union.

we publish TINS morning from New York correspon
don't VIII be pcrused with peculiar interest. II enters
upon the delicate but momentous question of American
finance II gives us faithful reflection OF American
opinion upon the public expenditure tho pro-
gross of taxation and the independent Of the
Northern States. We learn from this unreserved com
munication what Is thought in New York OF tho com
pcence Of the federal government TO prosecute the war
OF its financial credit abroad and of the ways and
to be provided for it at home. Up to this moment no
such comprehensive calculations have been placed before
our readers.
The opening statement Of the exposition important
one 1t informs US that from tho moment WHOM !he le
raj government conceived tho negotiation OF TX WSs
resolved 10 boyry,o IN The Anican marcel oaly The lead
ing bankers who were consulted tho subject gave the
Treasury to understand that considerable amount of
money was likely to be obtained from Europe. They did
p@ y asaod y. Il ss' " aa credit
e'aa9 hdd glM Of good inpfsqNs athoaae, it not
nrops tit uch capital could be attracted across the
Atlantic The true couIsa of the government was to
borrow from it's own citizens, from the wealthy and
patriotic population Of shs Ugh The industry of
an annual produce Of ESQ 000 coo or $40 600 900
beyond what was renhired fdr the wants of the pro.
ducers All this surplus Income was available for
sion into public securities Government had but to tap
this source Of supply, and abundant income would flow
into its hands. This told was the opinion gren
bye No York. CAPITALISTS and upon Tie ggreynne7 has
acted The Soundness IF the conclusion as held to hare BEEN
established by he rey first experiment No sooner
seven per cent loan opened than the associated banks Of
New York. Boston and Philadelphia at took it up TO
the amount Of $50 900, 900 sterling and tho federal GO
vernment now stands provided with present suioen
cy-that is to say, with enough about
months consumption.
We shall not scrutinizc these operations with too
curious an eye, nor shall we inquire upon what con
victions this protested indepsn dence of European
capitalists probably founded. We believe the
New YORK bankers to have been in tho right when they
concluded that no considerable loan could have been
raised by The federal government in this country but it
is perfectly clear from the opinions which correspond
ent retals and from the extent to which he carries his
exposton that tho people OF the Northern States are de-
sros Of establishing good financial pc siton in the eyes
of the world. II is observed with emphasis that, what
may be the issue of the war-and the result is
modesy spoken of beyond the powers Of to pre-
dct-there aciH stiH remain great american Union-a
country at polulos enough and rich enunh 10
am amount Of public Income. American securities IL
current only at home would one day find their way at
premium into foreign kets and nobody co reetted
ihe resources of The NJ rher Ses or The unuin cr of
The federal government tcoud venture TO question their
tdlue. The Unon short, though shorn possibly of
of its provinces will still remain strong and
opulent that it would be irrational doubt either its
competence to maintain this from its resources
its ability to preserve financial reputation IN future
times Nothing can be more interesting to English read
than the details into which specua,ions of this kind
have led American economists We freely admit the gene
raj force Qf their arguments, but they have overlooked
the one consideration by which, in European estimates,
these arguments might be invadaed.
There no erdaJerdio7 in The pe'c thus taken Of spop
t''on and resources ne NORTH We are quite prepared
TO acinoud9e that me citizens q the Neo Union though
auced 10 t'penty mthons m Number, might De hred
an eIaeM htherto h'hn9nn on the other
sac sn 1ss ne H., Asa KIN, we allow inc truth OF
te worus wheh they dechre win KIND OF boast That
my arc soNen' W INC amount OF t4oNooooo year we
nave n 9oupt Dtt they couu pace themselves an re-
soct OF such obligations on level with the most heavily
burthened states oil Europe Our correspondent ennmer
ates with positive JUNCTION the number and variety OF
taxes avalpie against the pockets OF the American peo
PIE. uoVerile. can cap customs duties on articles OF
the htst necessity can multiply excise uuties Keep up an
Income EiA, anu set ee revenue OUT oi STAMPS an
thc sources OF PUBIC income eNenpieu IN our own ou
sot al eoap''u.o anu INA, ',s 81 many nn'1 VI
uheNporoe treasure. IL Is resh instance ana spieh-
aia one, vi tie iV @ Pussesseo 10y yous country
I'D its VIRGIN SOIL INC PocAets oi the American peope
are quite uht1ucneo.
uhce more leu us say that we nave not WORD 10 oer
against these assertions we beleve that the new Aeri
can oho or what remains Oh the OLD one, would DC per-
ecty abe 10 rase the sterlhg contemplated
oy our correspohdeht us ils possime income what rs
none we are sure at every penny o tnis VIII DC actuy
neeue9 the wAr se,uio continue. Iii :" that sum wli
thh De required LOT inc nero interest Oh inc hatohai
DEBT ana inc rest VIII soon DC swaowea up IN the estl-
mats ,u si9 ~, o q; M, VI sJou s ,G
army: All TINS, however, " nesue tne marx Thc real
question at issue IS, not what taxation the Americans
couu leaiy ~ suPPoit, oue VIVA. .iey "ouu consent
10 ehuare' lhey arc not rockonlhg al All 100 last
| III ueT eseHiatcS vi custoHis anu eNclse uutes
as sources Oh revenue. Tax upon articles OF food,
such Us tIcy htNe airc"oy hp"seu, stringent excise
laws, anu strh Ike ehcttnents undoubtedly form an
e1ectve machinery ior tne eXtractoh OF money Nom9
,roH o. .dsier nun 70 rd@ we lc"ru Tettfue permanent
.ytrom ooo 10 t4o W teg's.dm nIon his
basis our only dott IS oto,a the assent 0 e people 10 Tie
process ana on N'S poam ne arguments q the Neao York
poc carry no assurance lhey ask VS. whether the teqe
raj government has not hitherto discharged all its obga
hons win ipsoute ihith. we aAswer-that may be so
but when they admit in the very same BREATH that the
federal tax gathcrer is as yet unknown they deprive
ther appear oil al Us apparent force. II their crcum
stances were so delightfully."- easy that no contribution
was required from them Tor hc foundation OF Their pub.
nc deDts, IL Is not nucn 10 theT credit that these
puplc Genus were PAID Iheie would De lew gentlemen
even AZ bouoghc VINO would not be ready to satisfy
thir creditors IN ull on terms SO convenient But it
VIII DC very Giercnt thina when "the federal tax
ga'nerer instead OF Dclhg UNKNOWN becomes an uncom
monty i'ini pcrsohh2e-when he appears quarter after
quater Il. every man door anu makes ms agency felt
at every ay meal lheh tho taxation Tor federal pur
poses VIII become ms baa or worse han the taxation for
state purposes was IN Michigan or Mississippi when the
ctzens unuef us pressure repuualed Their debts viii
the ctzens OF the Union display more unfinchng nteg
ritY VIII they pursue their various ca'n!s under
the restrictions OF the excise, consent to be taxed
throngh the food ,hey eat and see goody slice shorf
from their earnings year after year, not for the
gfatihcat,on OF popular passion but to support the
dead weight OF a puoiic debY we do not say they
VIII not do So bnt the New York people must EXCUSE us
Tor saying that the case IS entirely probiemaca at pre-
SENT ana that the uncertainty which rnavoidaby sur
ROUNDS IL Is point which european capitalists cannot
overlook IN their estimation OF American credit.
Two broad assertions nave been made IN this country
by the aav, Gates ana opponents OF American institutions
respectively. The former declared that community
governed on genuine democratic principles would
Ii. lno w"i W os Which louilu ts interest IN such
poncy. teptULC couu aIoru 10 DC impatient OF