[19.] N. Y. Express, Dec. 1, 1846. Sumner, Amer. Currency, 167. Economist, Apr. 24, 1847. Gallatin, War Expenses, 3, 10. Bankers’ Mag., i, 513–6, 609–12, 673–4; ii, 201, 706–7. N. Y. Herald (weekly), Dec. 19, 1846; Feb. 6; Apr. 17, 24; July 24, 31; Nov. 20; Dec. 11, 1847. Niles, Feb. 13, 1847, p. 384; Feb. 27, p. 416; Sept. 11, p. 18; Sept. 25, p. 60; Oct. 2, p. 80; Oct. 9, p. 82; Oct. 23, p. 128; Nov. 6, p. 145. [52]Bancroft, no. 46, Dec. 4, 1847. Welles papers. [198]Gallatin to Everett, Dec. 16, 1847. Ho. 6; 30, 1 (Walker, report, Dec. 8, 1847). Ho. 7; 30, 2 (Id.., report, Dec. 9, 1848). [181]Buchanan to Donelson, Jan. 29, 1847.
During the year ending June 30, 1848, almost thirty-seven and a half millions in breadstuffs were exported (Walker, report, Dec. 9, 1848 in Ho. 7; 30, 2). As early as March, 1847, the Bankers’ Magazine estimated the increase in the value of our “present” exports of grain and cotton as $12–15,000,000. The customs receipts for the year ending June 30, 1847, were $23,747,865; for the following year $31,757,071. Of course the rising tide of prosperity, besides increasing the customs 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. [13]Crampton, 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. [345]Niles 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 deficiencies. 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). [256]J. Parrott to Marcy, Dec. 20, 1847, private. [256]Marcy 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. [63]Mason to Scott, Sept. 1, 1847. Richardson, Messages, iv, 546–8. [13]Crampton, no. 58, Nov. 28, 1847. Sen. 52; 30, 1, pp. 124 (Scott); 145 (Marcy). Scott, Mems., ii, 552–3. 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 sparseness of the population, especially since the Americans had to keep together. For this reason, though some of the enemy expected us to rouse the nation by undertaking to enforce such a policy, the wiser Mexicans did not look for it. On the ground that places would be occupied alternately by the contending armies, the British chargé at Washington deplored the order to exact contributions; but the course of the war preserved the Mexicans from this misfortune in a way he did not anticipate.
[22.] Ho. 60; 30, 1, pp. 1048, 1062, 1081, 1085 (Scott), 1050, 1063, 1066 (gen. orders). J. Parrott to Marcy ([note 21]). [256]Id.. to Id.., Dec. 28, 1847, private. [60]Butler to Marcy, Mar. 7, 1848. [69]Wool to Marcy, Jan. 24, 1848. Sen. 14; 30, 1, pp. 11, 13. [63]Marcy to Gates, Mar. 7, 1848; to Davenport, May 2, 1848. [65]Scott, gen. orders 358, 376, 395 (1847); 15, 31 (1848). Scott, Mems., ii, 553, 582. Grant, Mems., i, 170–1. 61McDowell to Hunter, Feb. 20; Mar. 5, 1848. Rodríguez, Breve Reseña, 1849, 5. [69]Scott to commander at Jalapa, Jan. 6, 1848. [61]McDowell to Monclova ayunt., Mar. 5, 1848. [80]Actg. treas., Méx. state, Feb. 29, 1848. [60]Taylor to Marcy, Nov. 20, 1847. [60]Butler to Marcy, Mar. 2, 7, 1848. [92]Mex. ayunt., session of Sept. 16, 1847. 92Quitman, proclam., Sept. 22. [92]Veramendi to ayunt., Sept. 24. [65]Wool, orders 157, Dec., 1847. Delta, Dec. 19, 1847 (“Mustang”). [61]Memoir on Mex. finances. Sen. 19; 30, 1, pp. 2–4 (Scott). Moreno, Cantón, 380. [69]Wool to Taylor, Mar. 7, 1847. [61]McDowell to Webb, Apr. 15, 1848. [358]Williams to father, Dec. 27, 1847.
Besides the $150,000, Scott collected some $70,000 (about $12,000 captured at Cerro Gordo, nearly $50,000 for captured tobacco, and smaller amounts for licenses, etc.). Polk was accused of inconsistency for holding that Mexico could pay us no indemnity except in territory and yet expecting to draw large revenues from that country (Amer. Review, Jan., 1848, p. *2). The reply is threefold: 1, in the latter case he assumed that Mexico was to be deprived by military force of the revenues normally used by a nation; 2, even if a Mexican government might have had the physical power to raise a cash indemnity for us, it could not actually have obtained the money from the people for that purpose, as our own armies were expected to do by force; and, 3, Polk’s expectations were not realized. Polk was also charged with encroaching upon the prerogatives of the House both in taxing the Mexicans and in spending the proceeds. Webster and Calhoun concurred in this view (Cong. Globe, 30, 1, 495–6). But if Gen. Taylor had a right—as all admitted—to impress a Mexican donkey into the service of his army, Polk had a right to do all that he did in this regard. The authority of the commander-in-chief in the enemy’s country, waging war according to the Constitution, was quite broad enough to cover it. See Cong. Globe, 30, 1, app., 423–4.
The estimated possible revenues were as follows: import duties, $12,000,000; duties on goods passing to the interior, $2,400,000; direct taxes on real estate, professions, trades, etc., $3,000,000; duties on the production of gold and silver, $600,000; melting and assay dues, $50,000; export duties on coined gold and silver, $1,000,000; revenue from the monopolies, $3,525,000 ([61]Memoir). Transit dues on animals and goods, including the duties at city gates (alcabalas), were to be discontinued. For a short time in 1847 Perry allowed logwood to be exported under a 10 per cent duty. It seemed impracticable to seize the mines, for the miners would probably have fled on the approach of American troops.
Scott resolved not to take the ordinary state and city revenues, because he felt that such a course would be “to make war on civilization”; since every civilized community requires the means of paying for administration, without which it would fall into anarchy (Ho. 60; 30, 1, p. 1049). His broad taxation orders were based upon an announced intention of spreading over the country. He proposed to send out expeditions soon. One actually proceeded, as we have seen, to Toluca, another to Cuernavaca, and another to the important mining town of Pachuca (Ho. 60; 30, 1, pp. 1048, 1061–2). The occupation of Córdoba and Orizaba was partly in pursuance of the same policy ([61]Scott to Twiggs, Dec. 26, 1847). He proposed in particular to send 7000 men to San Luis Potosí in order to open the communication between Tampico and the mining city of Zacatecas. But his lack of troops and the peace negotiations prevented this.