You may have had the last cracks from settlement--or not. You might put in an interior drainage system in the area that you already know has the leak. Once water gets in, it has to have a place to drain off, or you'll have damage in the finished wall. Better yet, fix it. At the least, use a crystalline waterproof coating on the inside walls to protect against small cracks. I use steel framing in basements, so as not to provide food for mould growth.

Is the part of the house you are talking about the original house, and possibly the rest has been added on to? Let me first say that I know basically nothing about the construction of old homes. I *love* old homes, but I don't pretend to know how they are built. However I remember reading, possibly on this forum about something called "balloon framing". The main thing about their construction was that they were designed to allow air to flow through their walls. I believe it kept the structure sound, even in high winds. Maybe if you google "balloon frame home" and read the descriptions you can decide if this is what you are dealing with... Just a thought ~ hopefully someone with more information or ideas will come along. I could be (and often am) totally off!

Long Island is a big place. The water table ranges from virtually nothing on the barrier islands to the south, to 70 feet on parts of the North Shore. See here to check for your location. Self-healing foundations? Love the idea! But no. Doesn't sound like much leakage though if this is not a finished basement and water isn't accumulating somewhere behind finished walls before revealing itself on the floor. Check: --Grading Ground should slope away from the foundation. --Eavestroughs Eavestroughs (gutters) should be sloped gently to the downspouts and must be large enough and clean enough so that water flows to the downspouts. --Downspouts Downspouts should bring the water at least 10 feet away from the wall. Too many of these just dump the water onto the ground two or three feet from the foundation.

Guess I should have pointed out that it is the steel pipe on the right that is leaving, not the copper. Also, I do not believe chopping out the foundation is an option as it is a poured concrete foundation that is below the water table after rains and leaks at cracks and a cold joint. Chopping the foundation would only cause yet another leak I think.