better. The war bill precipitated a panic in Wall Street, and soon business in the west and south was described as prostrate. Bad as such a financial outlook was in itself, too, it involved a consequent ill. Evidently the administration would have to pinch; and, as Madame de Sévigné once remarked, "There is nothing so expensive as want of money."[1]
The Democrats, however, were committed against the protective tariff of 1842, now in force, and Polk as a party man felt that something must be done about it. Walker no doubt shared this opinion; and, having gained immense prestige in the south by his brilliant advocacy of the annexation of Texas, he very likely hoped that by now carrying into effect the fiscal ideas prevalent in that section, he might supplant Calhoun. Probably, too, he sincerely believed in these ideas. To him the existing scale of duties appeared to be the cause of the shrinking revenues; and he stated boldly that war, which had been recognized for some time as a possibility, "would create an increased necessity for reducing our present high duties in order to obtain sufficient revenue to meet increased expenditures."[2]
Soon after hostilities began, therefore, a tariff bill came before Congress. It was bitterly and stubbornly fought. In the Senate its defeat appeared sure; but Crittenden and Clayton, believing it could only prove a discreditable failure, had a Whig support it in order to gain party advantage at the expense of the nation, and by this unworthy trick and the casting vote of the presiding officer it passed. In company with it went a warehouse bill and the restoration of the subtreasury system, which divorced the government from the banks, and required the treasury to accept and pay out only specie. About the first of August, 1846, this entire system became law. "Our administration seems enamoured of ruin, and woos calamity for itself,' exclaimed the Whig North American; our credit is threatened by the sub-treasury plan; our industries are deprived of protection; "while an expensive war is eating out our vitals, our revenue is to be diminished"; and a direct tax will have to be laid.[3]
The new tariff became effective on the first of December, 1846. As of course importers waited for it, a lean period preceded that event, and the heavy receipts that followed it,
