But notes were the most convenient and readiest, if not the only way of quickly anticipating revenue; they were particularly suited to the nature of the government's expenditures; they provided an easy method of transmitting the large sums that would be needed in the south on the war account; and financial critics at New York approved of them. Not. all were of that opinion, however. About the middle of September the appearance of notes for half a million was announced by one journal under the heading, "Extensive Paper Money Manufactory"; but the government persisted, and by the ninth of December, 1846, nearly four millions of them were out. This with the balance — more than nine millions — handed over by the previous fiscal year, made up for the lean customs receipts of this period.[1]
Meanwhile attention was given to the more substantial resource of a loan. At the end of September the secretary of the treasury disappeared mysteriously from his accustomed haunts, and to Polk's acute distress of mind wandered for more than two weeks in the perilous jungle of Wall Street. His experiences there were in fact rather hard. 'The capitalists looked with favor on the project of a loan and had plenty of money, but — believing the government would require a large amount, and therefore that a loan made now would be likely to depreciate, as well as actuated by their characteristic spirit of thrift — they stood out for six per cent. The New York and Boston banks, it was thought at the White House, were in league against the administration. Besides, the public had little information about the way money was being spent, and felt apprehensive of extravagance and a huge debt. Many believed the war had cost half a million each day. Not a few distrusted Walker. He had engineered Mississippi into bankruptcy, and had become insolvent personally. In the Senate his reputation had been that of a needy adventurer, intensely ambitious, clever in debate and intrigue, but not of solid ability, and especially not a financier. At present nobody denied his real talents or his extreme devotion to work, but he was charged with inaccuracy and with sophistical reasoning.[2]
Apparently five and two fifths per cent was all he felt ready to offer, and special reasons could be given for halting there, since it was feared that issuing a six per cent loan at par would
