In order to force the products of the mines into circulation for the benefit of both Americans and Mexicans, Scott forbade the exportation of gold and silver bullion, and on gold and silver coin exported he imposed a duty of 5 per cent ([65]gen. orders 362). Walker’s and Polk’s views on these points had been different from Scott’s, and Scott’s action was taken subject to revision at Washington, where he presented his reasons. At the end of April, 1848, Walker’s instructions were put into force by General Butler.
Scott instructed his officers to execute his orders in a conciliatory manner, if possible, but apply force should that be necessary. Should there be no other way, the commanding officer was to collect the assessment in money or some equivalent from the wealthier inhabitants.
In the northeast Wool carried out the financial purposes of the government to the best of his ability, beginning at Saltillo as early as May, 1847, with a revenue system, the occupation of buildings, and the seizure of cattle, mules, etc. He punished refractory towns and places violating pledges of neutrality with special taxes. Mar. 2, 1848, he reported that all were paying their taxes. The owners of houses taken for the use of the army were indemnified through a tax on all the real estate of the vicinity. In northwestern Mexico only coast towns were in our hands. California and New Mexico, which the United States government intended to retain, were of course viewed in a different light. Naturally all possible attempts were made by the Mexicans to protect their property against us. Subsistence, forage, etc., continued to be paid for, since the interests of the army prescribed that policy still. Our officers were not permitted to have any interest (e.g. claim for special services) in cases of seizure, etc.
[23.] Richardson, Messages, iv, 591, 651, 678. Sen. 52; 30, 1, pp. 107–9. [69]Hughes to Scott, Jan. 5, 1848. [63]Marcy to Twiggs, Mar. 7, 1848. Ho. 60; 30, 1, p. 1062 (Scott). Sen. 1; 30, 1, p. 588. Ho. 47; 30, 2, pp. 2 (Marcy), 109 (Mason). Ho. 1; 30, 2, p. 1131 (Shubrick). [47]Shubrick, Apr. 15, 1848. [69]Wool to Marcy, Jan. 24, 1848. Sen. 14; 30, 1, p. 11 (Scott).
Import, export and tonnage duties produced in all only $3,434,665; contributions from other sources, $553,055; captured money and property, $163,573; assessments on states and the City of Mexico, $225,649; and state and municipal revenues, together with some other sources of income, $163,055. From these amounts the costs of collection, drawbacks on goods disposed of to men in the service, and the expenses of the state and municipal governments had to be deducted. It was to make up for surrendering the monopolies that Scott quadrupled the state assessments originally contemplated. $769,650 derived from the military contributions were applied on the first instalment due to Mexico. All of the $3,000,000 appropriated by the Act of March 3, 1847, was paid to her shortly after she ratified the treaty of peace (Sen. 52; 30, 1, pp. 107–9; Richardson, Messages, iv, 588).
[24.] Sen. 1; 30, 1, p. 589. [13]Pakenham, no. 74, June 13, 1846. Ho. Rep. 503; 31, 1. Ho. 60; 30, 1, p. 1004 (Marcy). Sen. 52; 30, 1, p. 125 (Scott). Scott, Mems., ii, 583. Polk, Diary, Aug. 18–20, 24–5, 28; Nov. 13, 1847. Wash. Union, Dec. 9, 1847. N. Y. Herald (weekly), May 23; June 20; Oct. 31; Nov. 7, 1846; Aug. 21; Oct. 16; Nov. 6, 1847. Ho. Report 503; 31, 1. Picayune, Sept. 14, 1847. [256]J. Parrott to Marcy, Dec. 20, 27, 1847, private. [139]W. B. to D. Campbell, Aug. 9, 1846.
Scott spent nearly $64,000 of the funds that he derived from the Mexicans for blankets and shoes given to private soldiers; and $10 each were given to a large number of wounded men when they left the hospital. Probably Belmont’s arrangement left the Rothschilds a handsome profit, for John Parrott, who had been our consul at Mazatlán, offered, if the government would open a credit of two or three millions in London, to take charge of supplying cash in Mexico at the rate of five dollars for every pound sterling, and a pound sterling would have cost the government only about $4.80. One main purpose of our government in laying an export duty on gold and silver was to facilitate the exchange of treasury notes for specie with Mexican citizens; but probably little was accomplished, for nearly all the specie in Mexico was held by foreigners. In the offices at Washington a good deal of carelessness in making estimates and handling funds appears to have prevailed (e.g. Polk’s Diary, Aug. 18–28, 1847), and Walker’s relations with Belmont and with Corcoran and Riggs were perhaps a little too intimate (ibid.); but one finds no reasons for suspecting Walker of crookedness. Of course property was handled more or less wastefully in the field, and contractors took an advantage sometimes. Roa Bárcena (Recuerdos, 249) states that some men buying grain, etc., for the American army required the sellers to give receipts for larger sums than were paid to them. See also Polk, Diary, July 10, 1847. The largest loss resulted from Gaines’s unauthorized calls for troops, which probably cost $1,500,000 ([13]Pakenham, no. 74, 1847).
[25.] Sen. 15; 30, 1. Semmes, Service, 472–3. Bancroft, Pac. States, viii, 545. Ho. 70; 30, 1, p. 11. Ho. 9, 27; 30, 2. Polk, Diary, Nov. 7, 1846; Feb. 16; Nov. 6, 9, 1847; Jan. 24, 1848. Sen. 27; 30, 1. [73]Bermúdez de Castro, no. 517, June 29, 1847. Richardson, Messages, iv, 591. Ho. 6; 29, 1 (Walker, report, Dec. 3, 1845). Ho. 7; 30, 2 (Id.., report, Dec. 9, 1848). Lalor, Cyclop., iii, 864. N. Y. Herald (weekly), Apr. 10, 1847; July 1, 1848.
[26.] (Webster) Wash. Union, Dec. 11, 1846; Niles, Jan. 9, 1847, p. 303. Cong. Globe, 30, 1, p. 912 (Stephens). The national debt, Oct. 1, 1845, was $17,075,446 (Walker, report, Dec. 3, 1845). July 6, 1848, Polk gave it as $65,778,450 including the bonds and treasury notes still available for issue (Richardson, Messages, iv, 591). Walker’s report, Dec. 9, 1848, gave the increase of the national debt over that of March 4, 1845, as $48,036,151.
In a sense the war with Mexico cost too little. The estimates were pared below our needs. Troops could not be called out when they should have been. Transports and many other necessaries were lacking at critical times. This point will come up in the text of the next chapter. At the 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).