The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-05-22

Rodgers in the Valparaiso affair won for US q
slight respect; but these officers were mere
agents, and Mr.. Seward, and Mr. Seward
alone is responsible for the insction Of our
feet and it is he alone who has brought con.
tempt upon this country.
Europe and the Unitea states I'm . Fi-
nancial Point OF View.
The financial condition Of Europe lately
has been much disturbed and continued so up
to the latest dates. The announcement OF
heavy failures had caused great excitement,
and all the large and controlling moneyed
establishments had taken measures to protect
themselves from drain OF specie. The Bank
of England had raised the rate of discount
from seven to eight, then to nine, and finally
to ten per cent in the space Of fortyeight hours,
the banks Of Frankfort and Holland to six per
cent, and other great central moneyed institu-
tons throughout Europe were taking similar pre-
cautionary measures, while foreign exchanges
were advancing everywhere. There is more
than one cause for this state Of things; but TIE
chief cause is, undoubtedly, the war cloud that
overhangs the continent The London Times
attributes 1t in great measure to overtrading,
and says that "relief can only be looked for
by sudden contraction" Still it is evident
that the warlike attitude of the two great Ger
man Powers and the general feeling of
uneasiness and uncertainty as to the chances
of European war have much to do with the
financial situation. We see the effect of this
state of things here An extraordinary de-
mand for specie is made on this country. Last
week there was shipped to Europe little less
than nine millions Of dollars-a sum larger
than ever was transmitted before within one
week.
Now, while Europe is thus disturbed, and the
great moneyed institutions of England and the
Continent have to resort TO extreme measures
10 protect themselves and keep specie at
home, we cal shin the enormous sum Of nine
millions in one week without feeling it very
sensibly. We do not say we could ship this or
any approximate amount every week without
serious inconvenience, nor will there be
any necessity for doing so; but it is clear
we are in position to do moro in
this respect than any other nation.
We are in a situation to become the
great moneyed Power of the world, ii we only
knew it and would lay down system in &C
cordance with the fact We are and shall be
subject to disturbances and fluctuations, as all
other nations are, from overtrading and specu-
lations; but these are only ripplcs on the
surface, and soon pass awaJ. Our vast re-
sources ard enormous productions, both Of the
precious metals and the materials of prime
necessity, place us in a position that neither
England nor any other nation occupies In fact
we have grown above those disturbing contin-
gencies that used to bring serious disasters and
that now create trouble in Europe. ship
ment of nine millions of gold in one week, in
former imes-at such time, for example, rs
the financial troubles of 1837--would have
created the greatest disturbance. Hundreds
Of commercial houses and banks would have
felt shock, and widespread trouble might
have been the consequence. Now, how
ever, we can part with such vast
amount of specie scarcely feeling it, and still
have an available reserve of the largest amount
for any contingency. A certain class Of timid
alarmists look with astsnishment at ths state
Of things and continue TO predict disasters Chat
never come. These people cannot realize eur
extraordinary developments and situation. As
our almost iIlimitable resources become bettor
known Our means and credit will risc
higher. We hardly know them ourselves
yet even our public mea have had such
an imperfect conception of them that they
have Numbered strangely in their caloula-
tons and legislation. A country that can
raise an ordinary revenue, without loans, Of
Eve hundred millions of dollars, can have mo
fear about its credit or the payment Of its
debt Our debt, which would sink almos. any
other nation, though nearly all contracted
within -four years, need not give us any mn
easiness. We can not only pay the interest
without feeling it much, but we can pay the
principal within the lifetime of one generation
The cotton crop alone amounted last year to
six or seven times the yearly production Of the
precious metals, great and valuable as these
productions were. and cotton is equivalent to
gold, II not better, in the exchanges Of the
world. What Is to hinder us, with such re
sources, from becoming the financial centre Of
the world,
The Treasury Department has almost insen-
sbly and from the necessity Of circumstances
drilled into system similar to that Of the
Bank Of England in operating upon the money
market and foreign exchange. Il will DO well
10 establish . permanent system Of this char
actsr. Let rs have the government legal
tenders a. the only and universal currency,
like the Bank Of England notes in Great
Britain. Let there be an ample specie reserve
always on hand in the Treasury or in some
other lcgslixed national depository, which can
be used TO give security and 10 regulate cx-
change; then we shall commence TO be what
we ought 70 be-the regulator Of the financial
operations fthc world. New York will take the
place Of London. The rate Of exchange would
be brought down gradually, and without high
v.rot.cxivo tariff mr. con tracfior NJ thn curranrv