injure the United States sixes, now held at 106, and also the credit of the government. But finally, with the approval of the President and the Cabinet, he advertised, October 30, for bids on a five million loan for ten years at six per cent. November 12 the:tenders were opened. For a small fraction of the amount a slight premium was offered, and for the rest par. No doubt the rate, in comparison with European standards, had to be regarded as high, but on-the other hand this was our first specie loan, and was said to be the only war loan ever taken without a discount.[1]
Plainly, however, more needed to be done. It was already extraordinarily difficult to pay the comparatively small expenses of the war, wrote the British minister at this time. Congress had not fully provided for even the minimum needs recognized by the sanguine, if not sophistical, Walker; and early in December, 1846, his annual report intimated that on July 1, 1848, with a due allowance for the working capital of the treasury, there would be a deficit of twenty-three millions. Apparently a Joan was requisite, and he advised making the term twenty years. Then, with no little anxiety, the administration waited. At the end of December Bancroft wrote privately, "If we can raise the ways and means," we can surmount the other difficulties. On the eleventh of January, 1847, a bill virtually embodying Walker's recommendations was thrown into the House, and a long, acrimonious debate ensued. The treasury "languishes," announced the organ of the government; needed volunteers could not be called out; but the legislators had irrepressible things to say. At length, however, on January 28 the bill providing $23,000,000 became a law. Though it primarily contemplated treasury notes, it permitted the Executive liberty of action; and a large amount of six per cent bonds were sold.[2]
But Polk was by no means out of trouble now. Walker's estimate made no mention of great outstanding purchases, for which the contractors had not vet sent in their accounts. Not only the customs duties but the sales of public lands were coming far short of his expectations. No allowance appeared to be made for the effect of bounty land scrip that was likely to reduce them still more. The Vera Cruz expedition and a possible march to the enemy's capital were in view. Indeed,
