ending with October 1 they were nearly double those of the corresponding week in 1846. In a word, gold rained upon us; the languishing treasury revived; and the credit of the government revived with it. Later, in the autumn of 1847, to be sure, the financial downpour abated, but it had already done its work. The ship of state rode now beyond the bar.[1]
Yet Polk still had to cope with difficulties. Early in December, 1847, when Congress assembled, he found it necessary to present large estimates and to admit that a deficit of nearly sixteen millions was to be expected by July 1, 1848; and there seemed to be little hope that Congress would provide additional revenue. Borrowing was inevitable, and Walker's report of December 8 proposed a loan of $18,500,000. Nothing was done, however. The banks of New York and Boston endeavored to force upon the government a fiscal policy more acceptable to them, and a strong element in Congress, of which more will be heard in the next chapter, not only entertained a similar desire, but seemed willing to impair the credit of the administration. At length, on the nineteenth of January, 1848, a bill was introduced, and after a further delay another long debate opened. "How is the loan bill getting on, Sir?"' inquired a newspaper correspondent of a Representative of the People after it had been on the tapis for about a month. "Oh, they are spouting away, spouting away, Sir," was the careless reply. But on the last day of March a six per cent. loan of $16,000,000 was authorized on substantially the same basis as the previous loans. The treaty of peace had been signed on February 2, and the new bonds brought a premium rising in some instances to $4.05 on a hundred.[2]
In the same report (December, 1847) Walker announced, though evidently a little chastened in spirit, that relief would soon come from Mexico. What he chiefly counted upon at this time, however, was not customs duties. As early as the nineteenth of September, 1846, Polk, justly offended by the enemy's disdainful treatment of our olive branch, decided that instead of endeavoring longer to conciliate the Mexicans by paying liberally for supplies, we should bring them to terms by levying contributions or taking needed articles without compensation, and this course was promptly recommended to General Taylor; but he replied, as we have seen, that such a
