The financial resources of the North.
--When war broke out, a blockade was established with a view to destroy the trade of the hostile States, and this prohibition of ingress and egress necessarily puts an end to all the fiscal receipts which had been estimated in the budget. The very commerce which was to have been the fruitful source of taxation was sought to be annihilated, and the commodities raised for the express purpose of exports, by means of which corresponding imports would have been paid for, were condemned to remain in the war-houses of the South. Thus the authorities at Washington destroyed the very revenue on which they had calculated. Mr. President Lincoln has now taken a step even more decided, having issued a proclamation suspending ‘"all commercial intercourse with the South,"’ so that by land, as well as by sea, eleven States are completely severed from the remaining twenty-three; and to this sweeping enactment it is evident that the Federal tax collectors cannot form an exception. The mails of the South are stopped, and the smuggler alone remains to carry on any precarious communication. It is plain that the budget of the last session of Congress is mere waste paper in the seceded States, and the North is now thrown on its own unaided resources.The banks of New York and Boston have subscribed for the present loan, and just now they are well stocked with bullion; but there is no certainty that what departs will return — indeed, it can only return through the channels of trade, and these must be choked by war. The exports of the South are stopped, and they cannot sell — have not the means of buying; while the new Morrill tariff must restrict the trade of the North. There appears, then, no source from which the stream of bullion will continue to flow into the banks. New loans, then, must be sought for in Europe; but can they be raised in that quarter? Granting that 7 per cent. is a tempting bait, it is counteracted by the characters of the borrowers, for though the Federation has ever kept faith with its creditors, many of the separate States have repudiated, and Philadelphia bonds have become a by-word for dishonesty. If we do not insist on the immorality of loans, knowingly granted to prolong civil war, it is because experience has taught us that in the acquisition of wealth virtue imposes no restraint which selfishness is willing to obey; and it would be vain for us to urge that every five-pound note embarked in this quarrel might multiply the sad list of widows and orphans and of young men maimed for life. All that we have attempted is to warn the cupidity to which the tempting lure of seven percent. is now being offered, that the security is decidedly bad; and though the loss of principal and interest would be the befitting punishment of the crime, we hope the penalty may be avoided by rejecting the proposal.--London Herald. （Derby organ.)
