Chapter 19

The National Finances.--Debt when the Civil War began.--Deadly Blow to Public Credit.--Treasury Notes due in 1861.--$10,000,000 required. --An Empty Treasury.--Recommendation by Secretary Dix.--Secretary Thomas recommends a Pledge of the Public Lands.--Strange Suggestions. --Heavy Burdens upon the Treasury.--Embarrassment of Legislators. --First Receipts in the Treasury in 1861.--Chief Dependence had always been on Customs.--Morrill Tariff goes into Effect.--It meets Financial Exigencies.--Mr. Vallandigham puts our Revenue at $50,000,000, our Expenditures at $500,000,000.--Annual Deficiency under Mr. Buchanan.--Extra Session in July, 1861.--Secretary Chase recommends $80,000,000 by Taxation, and $240,000,000 by Loans.-- Loan Bill of July 17, 1861.--Its Provisions.--Demand Notes.--Seven- thirties.--Secretary Chase's Report, December, 1861.--Situation Serious.--Sales of Public Lands.--Suspension of Specie Payment.-- The Loss of our Coin.--Its Steady Export to Europe.