The Nevada Democrat., 1861-11-19
Our National Finances as Affected by
the War


The working and prospect of our war in
debtedness, in its bearings upon business,
are we'll stated in the circular of Messrs.
Hallett d Co., of Boston, prepared for the
outgoing foreign steamer which left New
York about a month since. The circular
says, and its testimony is unquestionAbly
accurate:
So far, all fears of stringency, or of the
inability of the country to sustain the bur-
den, have proved utterly groundless. The
only question now raised is whether we can
infer the future from the past, and whether
We can prosecute the war dd hbituBa, to use
the phrase, or till we increase our national
debt to $500, ,OOo, 600 or 81 200, 900, 900 with
out interfering injuriously with the indus
tries of our people, or with their commerce
and trade.
Without extending our inquiries as to the
ultimate consequences of the creation OF a
large national debt for military purposes,
there is no doubt that this debt, represent
ed by the bonds and promissOry notes Of
government, has an effect similar to the adj
dition Of capital equal 10 their nominal val
ne, either suddenly created or imported
from abroad. The government securities
are capital TO the person holding them, as
much as gold or silver. They pay his debts
or may be the basis of any business enter
prise. The creation of this debt only keeps
pace with the sales made by the people TO
the government of food, clothing, munitions
of war, and the time of the soldiers.
1t is to be issued. consequently, mainly
against the future earnings Of the country,
aud not against its past accumulation
Should the government advertise for tenders
for the delivery of such articles aud of per-
sonal service, there is no doubt that the
offers would exceed five times the whole
present wants of the government, or $780,
900. 900 instead of 100,000,000, this Illus
tration states the case. So long, therefore,
as our Industries are unembarrassed, the
debt created is stimulus to them rather
than burden. There seems to be no cause
of apprehension that their freedom will be
interfered with. Exchanges are so decide.
edly in favor that the influx of specie must
continue.
The expenditures are all among ourselves,
and the money returns by natural attrac-
tion to the great centers. Notwithstanding
the amounts already paid by the banks,
they are as able TO lend TO their customers
as ever, while the rates were never lower.
Wnlle Inc war mas apparently 10 eIect 10
absorb or exhaust capital to an injurious
extent, the expenditures going on have al
ready given q very decided impulse to our
manufacturing industries and to trade
Everywhere are establishments being put
in motion, while trade Of all kinds is resum-
ing something like its wOnted Volume Our
people have pretty well got over the shock
caused by the outbreak of the rebellion,
which of course for time arrested nearly
every business movement.
But the great interest Of the country,
agriculture, was never more prOsperOus.-
The farmer was never better able to buy,
and with the existence of all the means for
an active trade, it cannot long remain in
allegiance.
The apprehension now expressed by our
more conservative bankers is not on &C.
count of siagnation from scarcity of capi-
tai, but of an injurious expansion of the
currency, with its usual acCOmpaniments,
speculation and Overtrading. Such fear
we believe to be, for the present, at least
without sufficient foundation.