beyond $5,000,000 a month,
with a credit at the low ebb which the sales of its bonds had
already exhibited, the nation was to prepare for a war of untold
magnitude. Mr. Chase, as Secretary of the Treasury, began to try
the fruitfulness of the loan laws under which he must proceed.
April 2, 1861, he offered $8,000,000, but the prices were not
satisfactory to him, and he sold only $3,099,000 at the rate of
94.01. Nine days later he received bids for $1,000,000 of Treasury
notes bearing six per cent. interest, and with considerable exertion
he secured the increase of this sum to $5,000,000 at par. A
committee of the New-York Chamber of Commerce led in a movement,
representing the banks of some of the chief cities, to assist the
Treasury in borrowing the means required for its pressing exigencies.
By this co-operation Mr. Chase raised in May $7,310,000 on bonds
at rates from eighty-five to ninety-three per cent. and $1,684,000
by Treasury notes at par.

When Congress met in special session under the call of Mr. Lincoln
July 4, Secretary Chase found it necessary to declare that while
the laws still permitted loans amounting to $21,393,450, the
authority was unavailable because of the limitation that the
securities, whether bonds or Treasury notes, should be issued only
at par, on the basis of six per cent. interest. Practically
therefore no power existed to borrow money. While, on the first
of the month then current, there was a nominal balance in the
Treasury of $2,355,635, charges by reason of appropriations for
the account of the preceding fiscal year were outstanding to the
extent of $20,121,880. The short loans already made, constituted
also an immediate claim, and these amounted to $12,639,861. All
these burdens were to be borne in addition to the demands of the
year, which, as already demonstrated, would be one of extended
military operations and of costly preparations and movements at
sea. The total for which the secretary asked that Congress might
provide resources, reached according to his estimates the sum of
$318,519,581 for the fiscal year. Far-seeing men believed that
even this enormous aggregate would fall short of the actual demand.

Mr. Chase proposed that $80,000,000 be raised by taxation, and
$240,000,000 by loans. The suggestion was already urged that even
a larger proportion of the money needed, should be raised by
taxation. But unwillingness to create friction and opposition
doubtless en