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end of the war the country and the treasury were in a sound condition, and the government's income was ample. A period of solid prosperity ensued. It may be worth mention that American capitalists offered more than $100,000,000 for the less than $50,000,000 of government securities, and that the total received by the treasury in premiums was $555,511 (Walker, report, Dec. 9, 1848, in Ho. 7; 30, 2).

An account of the money market during the war (based mainly on the financial columns of the New York Weekly Herald) may be of interest. During the early spring of 1846 the Oregon controversy with England was a strong depressing influence. The outbreak of the war with Mexico caused a panic (May 11), but this passed immediately (May 12), and by May 19 the market was rather buoyant, largely in consequence of favorable news from Taylor. it then declined; but about the middle of June there was a plethora of money, and much activity prevailed in consequence of the settlement of the Oregon controversy. This faded gradually away into dulness, but quickened again about the first of August. Fluctuations followed. The first half of September saw a decline. Sept. 5 United States bonds that had sold at 113 before the war brought only 102, but the prospect of foreign demands for grain caused a revival (Sept. 20Oct. 3). Dulness then returned; the general feeling about the war was reflected in very low prices about the middle of November, and Dec. 7 was a "blue day." Though the treasury required all payments to it to be in specie on and after Jan. 1, 1847, it did not begin to pay out specie until Apr. 1. Hence it piled up coin during the interim. Jan. 3, 1847, the market was rather stringent. During the second half of February, the Bank of England rate rose from 3 to 4. Prices continued to decline until by April 4 good prospects at the seat of war and an influx of specie turned the tide. May 1 the New York banks were said to have more than $12,000,000 in specie. May 10 Reading R. R. difficulties precipitated a panic, but this was only a flurry. Money was extremely abundant in a few days (May 19) and prices advanced until about the middle of July. During the second week of August the increasing war expenses bore hard on the market, and treasury notes fell about 2 per cent. About Oct. 1 the report that Scott had entered Mexico City was found to be untrue, and a panic set in (Oct. 4), due to that fact and bad news regarding the financial situation in Europe. The "explosion" of "corners" followed. By Nov. 11 the banks were "shaking in the wind," and a crisis came on at once (Nov. 14). Paper money was loudly called for. After a troubled month, however, money became much easier and prices responded (Dec. 19). Another month, and the banks (really in a tight place themselves) were believed to be tightening everything to force a change in the financial policy of the government (Jan. 25, 1848); but by Feb. 10 natural conditions revived buoyancy, and there was a loud call for more treasury notes. Things then quieted down, but the arrival of the draft of a treaty stimulated activity once more. Absurd rumors about the terms of the treaty next caused a temporary reaction; but when it was accepted, prices went up (Mar. 11). For the day-by-day prices of United States securities, Dec. 1, 1846, to Dec. 1, 1847, see Ho. 6; 30, 1, p. 71.

Other financial legislation of the war period. U.S. Statutes at Large, ix, p. 35, Act of June 27, 1846, sec. 2: $75,000 in U. S. stock belonging to the Seneca Indians to be cancelled, and interest to be paid them on a credit of that amount to be entered on the books of the secretary of the treasury. P. 94, Act of Aug. 10, 1846: Mexican Indemnity Stock (see Bayley,