The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-08-06
The War in It's Financial nnd CONNER
cial Aspccts-A Great Revolution.

A war against domestic or foreign enemies
of the magnitude of this in which we ore now
involved to "maintain the integrity of the
Union, must inevitably carry with it a great
revolution and comprehensive work of recon
struction, not only in our political. but In our
financial and commercial affairs.
The enormous demands upon our federal
Treasury involved in the organization and equip
ment of an army Of half million of men, and
In the necessities of largely increased naval
establishment, have suddenly augmented the
military bills Of Congress to the proportions of
those of he great European Powers. Congress,
too, has been called upon to provide the ways
and means for meeting these extraordinary de-
mands, and from necessity has been compelled
to resort to extraordinary measures. The re-
sources Of the cotton, sugar and rice and of
several of the tobacco and grain producing
States of the South, are not onlr rs....iiheid from
~ in this crisis, but they are employed against
us, including the loss to the loyal States of the
Union of an aggregate Of Southern debts,
stocks, bonds, securities, &c, of perhaps not
less than one hundred and fifty millions
of dollars. At the same time, all the
profits hitherto accruing to the North from our
trade with the South, and all the revenues flow
ing into the Treasury from European exchanges
for Southern products, are suspended under our
Southern embargo.
These heavy drawbacks Of this unparalleled
rebellion. and Its formidable military organza-
ton have driven our government to all the ex-
pcdients and available facilities of banks, Trea
sury notes, loans and direct taxes. The system
of measures passed at this extra session of Con-
gress accordingly, mark the commencement of
a new epoch in our financial and commercial
affairs, somewhat resembling that of the time Of
President Madison, which was brought about by
the heavy expenditures and public debt incurr-
ed from the war with England of le12-13-14-
rs. That war, under the auspices of the old
republican party, and from the exerions Of
Henry Clay, John c. Calhoun and other South.
ern statesmen Of that day, brought about the
protective tariff system. against the remon-
strances of the New England commercial States,
and brought about, also, the establishment Of a
| national bank.
Under this system Of protective tariff and
national bank the country prospered until
1882, when South Carolina, assuming the attitude
Of notification, secession and rebellion.
tariff compromise was effected to meet
the changed condition OF things 10 the
South in favor of free trade. A few years later
General Jackson commenced his war upon that
aristocratlc monopoly, the United States Bank,
nd tod In 10 Gall %
Ire bank, and, through the disastrous experiment
OF the pet bank substitute, TO the establishment,
Of the independent or Sub-Treasury system.
From this hide-bound financial system and from
all the tinkcripgs Of the tariff, the bountifl gold
mines of California acquired by and discovered
since the Mexican war; relieved us, and the
country continued to prosper and to speculate
until brought to sudden standstl by the late
financial revulsion Of 1857.
We are just recovering from this shock, and
launching again upon the broad sea Of peaceful
enterprise and extravaganza, when our country,
our political institutions, and our financial and
commercial systems are torn asupder and thrown
into ruin and confusion as by great earthquake.
Our government is suddenly meDaced by pow.
erful Southern armed conspiracy, our capital is
in danger Of revolutionary armed occupation.
The loyal States and people are called to Ne
rescue; and now, from a condition Of peace and
| boundless prosperity, we are called, government.
and people, to meet the acquisitions Of an army
Of five hundred thousand men, and Of nav
Of afty thousand, for the suppression Of Tia