The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-09-10


If New York credits. WbiIo this mutual conf
fence and cooperation exist, while the people
contribute their wealth and the banks pledge
their capital, the Government viii find no lack
,f means. That additional funds win be provided
when required, is almost sellevident, from the
act that they have been so freely provided al
ready.
The contrast between the North and the South
is striking. The war of TIE South is the war of
the people, supported by the people. The war of
the North is the war of party, attempted to be
carried on, by political schemers independently of
the people, on the credit of divided country, and
on the pledges of the faith of an old Union,
which has, in reality, ceased to exist
Supplies have been voted, and bankers and
brokers have been applied to, to furnish the
means. The loan, which could only have been
successful as national one, was made stock
board transaction, and subscribed for rs a matter
Depreciation. The consequences have been nat
ural. Capitalists have discovered too late that
they were unable to carry so large amount
without the assistance OF the people, and they are
even now staggering under a load which is too
heavy for them to bear. Government, seeing its
fatal error, applies to the people at the eleventh
hour; but distrust has already been manifested
and even the news of the So allied brilliant success
at Hatteras Inlet and of the death OF the "arch-
consprator, JEFFERSON DAVIS - both of which were
turned to good account at the New York stock
board, could scarcely enable the fnanciers who
have so much at stake, to sustain temporarily the
deprecated rates to which Government securities
have fallen. The interest bearing treasury notes
of the North are already at a discount, and the
demand notes, which are guaranteed only by the
faith of shattered section, and not by any sub
stantia security, may soon be expected to be
poured upon the market at much lower rates.
There can be no better comment upon the res
pective financial condition of the two sections than
the prices OF Government securities in the two Con-
federacies.. In the South the bQpds bearing per
cent. interest are at par-while in the North the
loan of 1861 is selling to-day at $751; rate
which yields l01 per cent. interest annually--a
difference ofover 25 per cent in favor of Southern
securities
-------n%-~-@--S~4-s--.-~-
The New York papers are making desperate eff
forts TO cast upon the Confederates the RESPONSE
bility of having violated the neutrality of Ken
lucky. The Times Of yesterday says, that gin
''spite of the earnest efforts of loyal Unionsts to
"preserve the State from the horrors of war, the
'tramp of hostile armies is now felt on her soil'
1t then proceeds to give what it calls the facts of
the case 1t tells us that on "the night of the
18th instant considerable body of Confederate
"troops were thrown into Western Kentucky at
Hickman" and that on the next day the Federal
commander at Cairo, 'knowing of this move
"ment of the rehes," sent two regiments to take
possession of Paducah. Thus the Times would
have the Northern people believe that it is the Con-
federate Government which has deliberately refused
to respect the neutrality which Kentucky desired
to preserve. Our readers however, can scarcely
have forgotten the correspondence between Cover
nor MAGoFFIN and Presidents DAVIS and LINCOLN
which we published yesterday. They will rcmem-
Der that in Ir DAVIS letter of August 28th, the
latter assured Gov. MAGoFFIN that the Confeder-
ate States did not intend TO disturb the neutrality
of Kentucky, and also reminded him Of the inlispu-
table fact that up to that moment they had res
pected that neutrality ''most scrupulousfy." He
very properly added, however, that 'tneutrality
"to be entitled TO respect must be strictly main
Claimed between both parties; for if the door be
''opened on one side for the aggressons of one
t'of the begercnt powers upon the other
'it ought not to be shut to the assaled
"when they seek to enter it for the purposes of
4" selt-delence." Thus it will be seen that the
Confederate States had no disposition to make
Kentucky the theatre Of hosti,ies, nor had they
attempted to do so, although prior to the date of
Mr. DAVIS letter, the cause had arisen which in
his judgment, and by the laws of war, would fully
have justified him in occupying portion of that
State. The fact is clearly shown in Mr.. LINCoLN's
reply to Gov. MAGoFFIN. His letter is dated as
lar back as the oath of August, and in it he adj
mitted that there was at that time "a military
"force in camp within Kentucky, acting by au-
thorty of the United States" and that arms
had tbeen furnished TO this force by the United
Estates" He moreover declined explicitly to re-
move these troops. Thus for some weeks prior to
the march of the Confederates on Hickman, Fed
erai army had been organizing and drilling in
Eo-.''nisy which favorable moment
would unquestionably have made an at
tack on the Confederate lines in Tennessee.
1t is absurd to suppose that the Confederates were
bound to regard as neutral territory a State
which was partially in possession of the Federal
Government, and in which preparations were
being actively made for an expedition against the
South. The door having been opened on the one
side, for the aggressons of one of the be!lgerent
powers, the other party had every right to enter
it for purposes of self-defence. 1t is perfectly
clear that the Confederates are in no way respon-
sible for the violation of Kentucky's neutrality.
The Administration at Washington, as we always
foresaw it would whenever it felt strong enough
has now thrown off the mask, and insists, as in
the cases of Maryland and Missouri, that Kentucky
shall do its bidding. The people of that State
therefore, unless they are able to offer effectua
resistance must prepare 10 help the North to con-
quer the South or themselves accept subiugation