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receipts and bringing specie, enhanced the credit of the government generally, and assisted the country in other ways to support the burden of the war. The crops of 1847 were fine in Europe; the importations were found there to have been excessive; and prices fell sharply. British business proved to be far less solid than it had been supposed to be. Bancroft, our minister, reported "a whirlwind of bankruptcies overspreading the land" (no. 46, Dec. 4, 1847). Orders for American goods were cancelled. Owing to a want of confidence the practice of consigning goods to English houses, with bills drawn on the consignees for a considerable part of their value, was to a large extent abandoned. Every vessel from England brought large parcels of American bonds to be sold for what they would fetch. Early in November the rate of exchange went up and specie began to be exported from this country, though much remained in the interior. Numerous failures occurred in the United States. All called in their resources. But here the trouble did not prove to be long or very serious; and while another year of war might have caused embarrassment, the country, despite the revolution in France, soon found itself comfortable.

20. Ho. 6; 30, 1 (Walker, report, Dec. 8, 1847). Ho. 7; 30, 2 Id., report, Dec. 9, 1848). U. S. Stat. at Large, ix, 217. 13Crampton, no. 40, Apr. 2, 1848. N. Y. Herald (weekly), Jan. 29, 1848. Bayley, National Loans, 73. De Knight, Currency, 73. For the debates in Congress consult the Cong. Globe. Boston Courier, Feb. 23, 1848. 345Niles to V. Buren, Dec. 16, 1847. Polk, Diary, Feb. 1, 1848.

The debate in the House began Feb. 8 and ended Feb. 17. In the course of the discussion it came out that the treasury really had about $7,000,000 more than had been supposed, but that $4,000,000 were desired by the war department to make good certain deficiences. The amount of the loan was therefore reduced from $18,500,000 to "not more than" $16,000,000 (Bayley, Nat. Loans, 73). The power to borrow under this Act was to continue one year. The bonds were to bear not more than 6 per cent interest, be sold at not less than par, and be reimbursable at any time after July 1, 1868. Before July 1, 1868, the secretary could purchase the bonds at the market price (but not below par). Coupons could be attached to the certificates, and such certificates be transferable by mere delivery. The secretary of the treasury was required to advertise for bids — these to be received 20-60 days from the date of the earliest advertisement at Washington. In order to give the loan the aid of assured peace, Walker arranged the advertising so as to defer the time of opening the bids until June 17, 1848. The premium obtained was $487,169. Though assisted with this loan, the treasury ended the fiscal year with a balance of only $153,535.

21. Ho. 60; 30, 1, pp. 354 (Taylor); 994 (Scott); 1005 (Mason); 341, 1007, 1037 (Marcy). 256J. Parrott to Marcy, Dec. 20, 1847, private. 256Marcy to Scott, Nov. 17, 1847. Sen. 14; 30, 1, pp. 5 (Marcy), 6 (Scott). Cong. Globe, 30, 1, app., 423-4. Polk, Diary, Sept. 19, 1846; Aug. 31; Oct. 4, 5, 1847. 63Mason to Scott, Sept. 1, 1847. Richardson, Messages, iv, 546-8. 13Crampton, no. 58, Nov. 28, 1847. Sen. 52; 30, 1, pp. 124 (Scott); 145 (Marcy). Scott, Mems., ii, 552-8. Diario, May 23, 1847. Republicano, June 9, 1847. Ho. 6; 30, 1 (Walker, report, Dec. 8, 1847).

For the olive branches (i.e. offers to treat) see pp. 122-4. A particular difficulty in attempting to live on the country would have been the general