The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-07-18
fiscal year, in order to avoid suspicion and
apprehension in business circles.


apprehension In business circles.
The Disruptien OF the German Confede-
ration.
Among the most important facts already ac-
complished by the war between Prussia and
Austria ID the total and 6fectual disruption OF
the German federal union. 1t IL also among
the most deplorable Of the events attendant
upon that war, since 1t must for time ct least
affect the spread Of that liberal opinion and
revolutionary sentiment which, II not more
prevalent, was certainly more practical in Ger
many than In any other part Of Europe. The
Italians and French were idealists in their sent-
ments of liberty, while the Germans have ever
been more quiet and more earnest reformers.
In some measure and in one sense Prussia and
Austria, while at war for boundary, are allies
in their desire and purpose to break up the
German confederation, and thus, as they hoped,
destroy every vestige Of organisation which
the republican element Of Europe possessed.
This purpose has now been fully accomplished.
After brief and preoarlous existence Of fifty
one years. the confederation is at an end, its
several rulers In prison or exile, is armies
Captured or isolated and helpless, It's constitu-
ton a dead letter and It's Diet violently dis
solved. 1t was weak concern, without vital
elements and existed thus long only because
of the outside pressure which kept it compact
The question now. comes up as to the dis
position which the conquerors mean to make
of the conquered provinces. What will be
the effect upon the late lamented confederacy
of the patched up peace between Prussia and
Austria which now appears probable If Bis
marck, like Barkis, is willings We imagine 1t
! will be something Of the fate OF Schleswig-
ffolstein on former occasion. It will be re-
membered that in 1850 Prussia declared war
with Austria in consequence of the Schleswig
complications, feigned great fury, made
grand preparations and grandiloquent threats,
marched a great army into Schleswig and
another towards Hesse Cassel, apparently de-
termined to settle the difficulty by force of
arms, and then suddenly veered around and
patched up peace with Austria. In the end
it was found that only the people Of Holstein
had suffered. They were deprived of their
free constitution, their natural bill Of rights
was abolished, and the navy which had been
built by free contributions of the republicans
Of Germany was sold by Prussia and Austria.
A patched up peace between the same Powers
at this time would leave the German republic
cans in the same deplorable condition. The
confederation could be amicably divided up
between the two in such a manner as to make
the Elbe and Rhine the boundary lines Of the
H. Ill ktNvr -
all former State lines and subdivisions To
this division Of the spoils Napoleon would offer
no objection II permitted to appropriate all
the confedsracy west Of the Rhine, and thus
possess himself Of this long coveted frontier.
The only dignitaries who would, in such an
event, have good reason TO object would be
the deposed monarchs and petty princes Of the
disrupted States the only sufferers would be
tho people thus robbed OF their rights. The
former could fnd consolation In England,
where they have great affection for poor Ger
man princes Tho latter would be compelled
to seek liberty and security In America, whore
We have republic strong enough TO repel
foreign aggression and subdue internal tres-
son, and where we have habit Of lending
helping hand to the oppressed Of oil nations.
Rorrsmnss OF rm NATIONAL BAxxs ORR
c1AILY ExPosED-RRsroNATIoN or THE CoxP-
TRoLLxR OF THE CURRENCY.-Coinciden with
the report Of tho Committee on Banks and
Currency, presented to the House of Rspressn-
tatlves on the 18th instant, in which an expo
sure Of the rottenness Of the national bank
system Is made, comes the announcement Of the
resignation Of Freeman Clarke, Comptroller Of
the Currency. The report OF the committee
shows how the business Of the national banks
Is managed, % illustrated In tho case Of the
Merchants National Bank In Washington, BY
the failure Of which the government loses hun
dreds Of thousands Of dollars. Among the
wisest suggestions In the report OF the commit
tee is recommendation that legal proceedings
should be had for the punishment Of those Of
the managers Of the Merchants National Bank
who are responsible for the loss of the funds
Of the government . matter that 10 white
washed under the moderate phrase of
breach Of trust" The decision. Of the COM
nittes is all right and proper. But why did
not the committee 20 little further, and i'm
plcate In these illegal transactions officers
higher In authority than an humble army
paymaster' Why did they not have some
thing to say about such an ofacial ~ the Comp
troller Of the Currency, who has ingloriously
resigned ct this crisis. The report Of this
House Committee and the proceedings in our
State courts In relation to these national banks
unfold degree Of unsoundness and utter want
Of responsibility without . parallel in the
financial history Of this country. Now that
Congress has taken hand in this work, we
hope II viii not be Withdrawn until the people
become possessed Of such information as will
satisfy them that the national bank system,
while II exacts from the government heavy