The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-07-10

was no longer "conleueracy W Recognizes
was not worth thanking them for This act on
the part of Spain will obtain for her friendly |
feeling in this country, and may Do the means
of her retaining possession of Cuba few years
longer.
Our National Finances and the Gold
Question.
There is a vast amount of popular miscon-
ception regarding the condition and prospects
of the public finances which nothing but pro-
longed experience will, in all probability, be
sufficient to eradicate. Previous to the rebel
lion we had been so little encumbered with
debt and taxation that political economy was
q neglected science among our public men; so
that when we found ourselves in the midst of a
gigantic war, with enormous expenditures to
meet, the government hardly knew which way
to turn for the first fifty millions of dollars.
Mr. Chase proposed the Legal Tender act, and
it was obsequ;ously passed by Congress, since
which time our debt has gone on increasing at
the average rate of more than two millions day.
We have III consequence national debt Of
about three thousand Millions with a large
amount of claims still to be adjusted, and our
current expenses exceeding the revenue at
nearly the old rate At the same time we find-
that our foreign trade was such during the war
that we exported from the port of New York
alone, between the beginning of 1862 and the
end OF May Of the present year, $l64764,l74
more Of gold and silver than we imported.
How much remains in the country it is difficult
to estimate exactly, but il is probable that the
amount is much less than is generally supposed,
and does not exceed sixty-iivs millions in all
the States under the operation of the Legal
Tender act, North and South, including boards
This drain Of specie has been owing to
the decline in our exports consequent
upon the withdrawal Of labor from productive
pursuits to the army and navy. With re-
gard to the cotton trade, the supply in the
Southern country east and west OF the Missis-
sppi, is estimated to be less than million OF
bales by professedy competent judges, and The
crop of the present year at about three hundred
and fifty thousand bales The crop OF 1866 is
as yet matter Of uncertainty, owing to the
change in the system OF labor and the disorgani-
zation or absence Of capital
Yet under these conditions of the country,
with en- internal revenue which produces little
more than two hundred millions a year, there
are many who wonder what keeps up the price
ofgold They overlook the fact that the so-calied
balance OF trade is al present against us, and
thatwe can only pay the difference by shipping
gold or securities. But tie latter are only
temporary substitute for the other, and we are
exposed to the danger OF having them sud-
denly returned to us at any time, while those
which remain abroad till maturity will then
have to be redeemed in gold, and thus
the foreign holders will reap profit
which night have been secured to our
own people How far political agitation
of the financial question hereafter may intlu-
ence the return of fve-twen.ies remains to be
seen; but that it will moi contribute To the APP
probation OF the currency is more than proba-
bic. Meanwhile specie, which is already 80
scarce in the country, will gradually become
more so till we have full crops North and South
tocxport. For this reason among others, there
fore, the banks OF this city which have gold
lodged with them by their customers should
keep it in their vaults, and not speculate with
Il OF loan il TO speSu.aLoTs; and thoy should, fur
ihermore. not make a p.etencc. as they do
weekly, of having more gold than they really
haye--ior the time may como when they will
be unable TO make up their deficiencies
The vast resources OF tie country will, after
due time enable us TO so far increase our sup
ply of specie that We can resume coin pay
menis with comparatively light commercial
shock to the country; but there will be danger
a. some future time Of panic and resump-
ton Of specie payments arising frcm the very
scarcity of specie in tho country; in which case
the resumption will be premature and the
Il ock disastrous, as IL would involve heavy
depreciation. Of all paper money no. converti-
bic into gold, and bring down the prices of
government AID other securities in manner
which would prove ruirors 10 a large portion
of Che people. That we have not yet seen the
end Of our fsca! difficulties it is wei FOR us TO
understand. as by being iorcgaraed we shall
DO iorcarnied. and 80 the better aole % adjust
and overcome them. In .be interval let the
government reduce It's expenditures az much
as possible, on the principie tnat "a penny
savod is penny gained.9
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Maritime Law--Tac Necessity fer SIS Re-
vi .oE--Positien OF F. i.rce a1li, Tn glnni.
The experiences Of this war have shown that
the condition OF maritime law, especially Ii re-
lation 20 the character Of armed ships, Is ex-
ccedingly loose. There is hardly any fagrant
outrage that we could a9t lastly By Zee ex-
ampies Of Enplond and France ii I, wore com
United by our government. or cruisers against
the ships of those nations. five sh)1ld resls,
a refuge and supplies 10 tho cruisers in cases
Of great need, they have dors Inc same to ours
in every sea. II we should o0Untoaarce and
encourage the general nifty Of sve-y ceicc-
Of our government 10 their coi,rs, u ere w-uli.
by their own showing, De 40 rsirtis # 80
shnulg GlI tho caac -xifi, a-,anI -.t,.rz AMI