March 31, 1861; The New York Herald
The predominant power just now at Washington is Wall street. The question of money is one that this government as well as all others must look squarely in the face. Money has been aptly defined as the sinews of war, and it is very certain that the Lincoln administration is now bound hand and foot by this ugly spectre which has ruined so many splendid schemes and thwarted so many magnificent ideas of brilliant theoretical statesmen. It is all very well for the radical republicans to demand that the principles of Garrison, Phillips & Co. shall be carried into effect without regard to the cost; and it doubtless sounds well to Southern ears when Mr. Memminger offers to borrow fifteen millions for the purpose of putting the Confederate States upon a war footing. But the question for the people of the North and South to settle is, whether or not they will impoverish themselves in going to war upon an abstract question which cannot be settled by the sword. As it appears to us, both governments–that at Washington and that at Montgomery–are equally powerless.
Davis & Co. have, however, the advantage over Lincoln & Co. The government of the Southern confederacy is plucky and clever in its personnel. The Lincoln administration is cowardly, mean and vicious, without the power to carry out its designs. So far from being in a condition to make war–the most expensive luxury wherewith a government can indulge itself–the administration has not sufficient money for the ordinary expenses of the departments. Mr. Dix borrowed eight millions at twelve per cent. Mr. Chase wants eight millions more, and will probably get it from the brokers, who have done well with the Dix loan. In a very short time Mr. Chase will be obliged to call for nine millions and then our national debt will reach the disagreeable figure of one hundred millions of dollars.
In the event of war this debt would be very much increased. One item will indicate how much. The last Congress authorized the building of six steam sloops of war. To construct, equip and keep this fleet in commission during twelve months would cost three millions of dollars–In the event of war the revenues of the government would be entirely cut off, and the expenses increased from seventy to one hundred millions per annum; a time would arrive when loans could not be effected, and direct taxation would be resorted to. This with the burden of State and city debt, added to the general suspension of business and prostration of all industrial interest, would soon reduce the republic to a condition of anarchy and distress heretofore unparalleled in the history of the civilized world. In the South, where the population is comparatively thin, and where few people live hand to mouth, things would be easier, but not much. Laying an export duty on cotton was a measure of dire necessity, and must be only temporary. Otherwise the impost will be evaded in a hundred ways. And the stern fact of the case is that the men in power in both sections of the country are altogether unequal to the emergency they have brought us into. And, notwithstanding all this, they have the sublime impudence to ask us for money with which to perpetuate their odious policy. The Cabinet at Washington plays with the gravest questions. One day they intend to reinforce Sumter and Pickens; the next they purpose to withdraw the troops. What they really intend to do is a mystery. This course is pursued in order to obtain money. We verily believe that if Lincoln & co. had a handsome surplus in the treasury they would immediately precipitate the country into civil war. Now the only way to prevent such a calamity is to refuse the supplies. The government should be made to understand that unless it openly declares in favor of a peace policy the people will not loan it a dollar. There is a double reason for reticence. First, to avoid war, and second, because, in the event of bankruptcy, the United States bondholders would have no security for their money. The public lands have been given away by the Homestead and railway grant bills, and the public property would be at the mercy of the strongest hand.
It is the duty of statesmen to look forward. Progress is the rule everywhere except in this country. Here our public men retrograde, and this country, once a Power in Christendom, is new an object of ridicule and contempt. ‘Poor, effete old Spain’ sneers at us, and even Peru insults us with impunity. Our flag is no longer a symbol of strength; it is the ensign of imbeciles, outlaws and fanatics. And now we say again that the only way to bring the politicians to their senses is to stop the supplies. Withdraw the troops from the Southern forts, send the naval vessels to the coast of Africa or anywhere else, disarm the Southern militia, vacate the commissions of the generals, colonels and what not–in fact, put everything on a peace footing–and then we can negotiate either for the reconstruction of the Union–a result which is not altogether out of the question–or the recognition of two confederacies, never to return their arms against each other, but always ready to resist the interference of European Powers upon this continent. That is the platform for all men of common sense, and in six months a great party might be built upon it. In the meantime stop the supplies.