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(represented by A. Belmont) were soon understood to be interested, and were in fact successful to a large extent in the bidding. Their bidding encouraged American capitalists. Probably the notes could safely, and therefore should, have been made convertible into 5 per cent, instead of 6 per cent, bonds. The interest paid on them at redemption was 52 or 6 per cent (De Knight, Currency, 71).

June 1, 1847, Walker reported treasury notes as outstanding (minus $789,700 of cancelled notes on hand): of issues prior to July 22, 1846, $303,817; of issues under the Act of July 22, $3,565,600; of issues under the Act of Jan. 28, $8,100,000; net total, $11,179,717 (Niles, June 5, p. 224). About the middle of August, 1847, they sold at 106, but within a week (probably because reports that Scott had captured Mexico City were found to be false) they fell at New York to 103. The issuing of more notes was objected to on the ground that it would virtually mean a government bank controlled by a party. It was argued by some that notes for small amounts bearing interest at a nominal rate should have been put out. These, it was said, would have been purchased by persons of small means, who actually put their savings into specie needed by the government. The question was raised why Polk asked in December, 1846, for funds to cover the fiscal year 1847-8 (N. Y. Express, Dec. 14, 1846). Walker's report included estimates for that period, but this fact does not seem to be an adequate explanation. One suspects that Polk and Walker knew the money would be needed, and thought this the easiest way to get it.

15. Richardson, Messages, iv, 516. Pakenham, no. 6, Jan. 28, 1847. Sen. 2; 29, 2 (Walker, report, Dec. 9, 1846). Ho. 6; 30, 1 (Id., report, Dec. 8, 1847). Ho. 7; 30, 2 (Id., report, Dec. 9, 1848). Sen. 105; 29, 2 (Id. to Dallas, Feb. 1, 1847). Sen. 392; 29, 1 Ud. to Polk, June 15, 1846). Taussig, Tariff Hist., 115. Welles papers. Polk, Diary, Jan. 2, 1847. Niles, Jan. 2, 1847, p. 288. Boston Courier, Feb. 17, 1848. Cong. Globe, 30, 1, pp. 281, 298. N. Y. Herald (weekly), Jan. 9, 1847. (Pessimists) 345G. A. Worth to Van Buren, May 20, 1847.

In Dec., 1847, Polk had to admit that a deficiency of $15,729,114 on June 30, 1848, was probable. The British minister reported that one reason for proposing the tax on tea and coffee was a wish to defeat anticipated attempts of the protectionists to repeal the tariff of 1846. It was suspected that Walker made the appeal to Congress in order to display his influence or to relieve that body of responsibility for modifying the tariff it had so recently voted. The motives of the House were mixed. Some members doubtless objected to the plan on principle, others because they wished to be consistent with their action in accepting that tariff, others because the estimated return from such a tax ($2,500,000 or $3,000,000 per year) did not seem enough to meet the requirements, and others, perhaps, to rebuke what struck them like dictation on Walker's part; but the main considerations appear to be those mentioned in chap. xxxiv (e g, p. 285.) The vote in the House was taken Jan. 2, 1847. Walker persisted, but without effect. Benton's idea was adopted in 1854. See "Public Lands, Bill to reduce and graduate the price of," in Senate index of ''Cong. Globe,'' 29 Cong., 1 and 2 sess.; 30 Cong., 1 sess., etc.

16. Ho. 6; 30, 1 (Walker, report, Dec. 8, 1847). Ho. 7; 30, 2 (Id., report, Dec. 9, 1848). 13Pakenham, no. 147, Dec. 29, 1846. Stockton, circular, Aug. 15, 1846. Ho. 60; 30, 1, pp. 905 (Marcy); 930, 1085 (Scott); 931 (Worth). London Times, June 8, 1846. Richardson,