My home was built in 1894 and has a sandstone foundation.
We re-built a retaining wall on one side of our property and the contractor acccidentaly framed and poured it 18" closer to our house, leaving 48" between the wall and the foudation.
When it rains water comes into our newly poured cement floor in the basement.
We have rain gutters and have tubed the water towards the back of the house, but the water still comes in.
It has been suggested that we drill holes in the retaining wall.
Does anyone out there have any suggestions other that tearing down the retaing wall and starting again. The contractor recently died and the cost now would be out of my reach.

It sounds like the wall was not built ptoperly since there apparently is no drainage and water is collecting behind it. If the old soil and something that was not granual was used, the soil will also hold water rather than drain away.

Drlling holes is a possibility, but usually not effective since they can clog up if the wrong soil was used.

Consider removing the soil behind the wall, install perforated PVC and proper fill around and under it.

The picture of what you have there isn't clear, but I assume you didn't have the water problem before the retaining wall was built. I'm guessing that perhaps heavy equipment was run too close to your old sandstone foundation and that it's now cracked.

What does the retaining wall retain? Doesn't it have weep holes? How high is it?