The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-02-12
BALTIMORE.
TUESDAY, FEBRUARY IL, 1861

TUESDAY, FEBRUARY IL, 1861
That the incoming Administration of Mr. LIN
COLIN is destined 10 enter upon Office with an empty
treasury and an impaired credit, is one of those
facts which ought, in the nature of things to have
an important bearing upon the question now pend
ing between the two sections of the Republic It
will not do to take for granted that all the mo-
ney required for carrying on the operations of
Government can be readily obtained, either by
loan, or by revision of the tariff, or by direct
taxation. In the former case it is the capitalists
in whose hands the decision finally rests, as TO
whether loan can be effected or not for without
their concurrence the authority TO raise money in
this manner is of no avail So long as confidence
in the stability of the Union was unimpaired
UNITED STATES securities were eagerly sought for at
n premium; but we have already seen that the mere
apprehension of dissolution of the UNION has had
the effect of seriously depreciating the value of those
securities, and that the bidders even at the reduced
rates, were very few in comparison to the number
which, under favorable circumstances
would have responded to the issue of proposals
for new loan. We have now the still more
significant intimation, from the Bankers and Capt.
talsts of New York and Boston, that unless there
be a satisfactory settlement Of our political trou-
bes, they will not advance one cent to the incom-
ing Administration, either in the way of loan or
to assist in keeping up the credit of the Govern
ment. This, be it remembered is no vague and
shadowy menace. 1t is not, indeed, designed to
operate in the nature of menace at ALL but COM
ing as it does, directly from that class of men by
whom the bo,
taken, it simply indicates their dread of the con-
sequences which will ensue from permanent rup-
ture of the Confederacy. Many of those who have
come to this determination are, at this time, large
holders of government securities, and are perfectly
sensible of the loss they must sustain in attempt
ing to realize upon them in the market, if public
confidence in their value is at all impaired They
are, therefore, of all Others more deeply interested
in promoting a sense of hopefulness than of
dependency, with reference to the final issue of
those difficulties which have already resulted in
the organization Of Southern Confederacy. The
gravity and importance af this movement on the
part of the Bankers and Capitalists of New York
and Boston, is, moreover, to he estimated not only
by the effect which their announcement is calcula-
ted to produce upon the minds of annuitants and
persons of small means, but of thrifty habits, who
are constantly in search of reliable investments:
but also by the equally profound impression it
will make in Europe, where UNITED STATES securi-
ties have been in great repute, in consequence of
the belief in the permanence and stability of the
UNION, and because of the higher rate of interest
derived from them, in comparison with that which
Is paid by the securities of other governments.
1t is clear that if Mr.. LINCoLN's administration
fails to command the confidence of American Cap.
ialiss, it can scarcely hope to effect loans abroad
except at humiliating sacrifices 1t is true that
Pennsylvania and New York and Massachusetts,,
have, by their Legislatures indicated willingness
to come to the rescue of the General Government
IN case of such an emer gency occurring; yet who
does not see that the mere prefer of State assist
auce is direct acknowledgement that the condi-
ton of the General Government is weak in the
extreme and calls for extraneous support? If then
it be a faCt-as the New York Tribune asserts.
and parades the declaration daily at the head of
its editorial column-that Mr.. LINCOLN has en-
phatically stated che will suffer death before he
''will consent to any concession or COMPROMISED
because he regards it as ''buying the privilege of
taking possession of the Government" it will
depend solely upon the prominent members of his
party as to whether he shall be sustained in his
extreme views, or whether-by an honorable ad-
justment of the quarrel with the South-they will
re-establsh the credit of the Government upon
firm and satisfactory basis. If the radical element
of the Republican party is to be taken into the
confidence OF the new Executive, those coercive
measures will at once be adopted which are depre-
Gated by even conservative Republicans them
Selves and would certainly be strenuousy op-
posed by all true friends of the UNION. 1t would
be nothing less than sheer madness for the North
to attempt to bring back the seeding States into
the Confederacy by force of arms. Beaten they
may be-though we doubt whether even this
would be possible on their own soil. CONQUERED
they never could be, even if standing army were
maintained in their midst to enforce obedience to
the Federal authorities. But what would be the
effect, at home and abroad, of such war? Would
the border slave States which now stand aloof
faithful alike TO the Constitution and the Laws
seeking redress of their own grievances by peace
full means so long rs hope remains that the
guarantees which they ask will be conceded
would they, when all effort at compromise had
failed, consent to turn their arms against their
sister States of the South, or would they not
rather stand shoulder to shoulder with them in
defence Of their mutual rights? Who can doubt
for moment, which course, under such circum-
stances, the border States would pursue? If the
Government, in carrying on war with the Sc
ceding States, were to call upon Maryland, Vir-
ginia, Kentucky, Missouri, Tennessee, North
Carolina, or Arkansas, for their respective quotas
of volunteers is it to be supposed that they
would respond to the call? Everybody knows
that not even a corporaPs guard could be
assembled for any such purpose. Then
all the levies must come from the
free States, and we hazard nothing in saying that
they would not be permitted to pass on their
bloody errand unopposed Southwark, through the
border Slave States. Coercion even in the milder
form proposed by some members of the Republic
can party, means war; for a blockade of the
Southern ports, or an attempt to collect the reve-
nue. on board of a vessel in the roadsead or har-
Dor, would inevitably be resisted by force of
arms, and war once commenced, who can tell
how long it would last, or in what manner it
would end? Some of the results of such a con-
ruined, the agricultural interests of the
country would be Frustrated, all the
operations of trade and manufactures
would be measurably paralyzed, specie would be
Withdrawn from circulation and boarded away,
capital now in would be called in and invested
elsewhere and all these disasters would befal US
in the attempt to preserve the UNION, which, even
if the South were overpowered in the struggle,
would be no longer the UNION it was before, and
could neither inspire the confidence of our own
Capitalists in its permanence, and still less would
it restore in Europe the implicit faith which until
now has been entertained in the value of Ameri-
can Securities.
Our readers doubtless remember the we'll known
comment-actual or nvented-made by Boston