ons than fifty dollars, payable on demand."
Representatives of the banks of New York, Boston, and Philadelphia
united to give moneyed support to the government. The secretary
opened books of subscription throughout the country. The banks
subscribed promptly for $50,000,000, paying $5,000,000 at once in
coin, and agreeing the pay the balance, also in coin, as needed by
the government. For this loan the banks received seven-thirty
notes, and the proceeds of the popular loan were transferred to
them. The sales to the public amounted to little more than half
that sum; but the banks, when called upon, made a second advance
of $50,000,000. By these and other agencies, Mr. Chase was able
to present an encouraging summary of the Treasury operations.

He stated that "there were paid to creditors, or exchanged for coin
at par, at different dates, in July and August, six per cent. two
years' notes, to the amount of $14,019,034.66; there was borrowed
at par. in the same months, upon sixty days' six per cent. notes,
the sum of $12,877,750; there were borrowed at par, on the 19th of
August, under three years' seven-thirty bonds, issued for the most
part to subscribers to the national loan, $50,000,000; there were
borrowed at par for seven per cent., on the 10th of November, upon
twenty years' six per cent. bonds, reduced to the equivalent of
sevens, including interest, $45,795,478.48; there have been issued,
and were in circulation and on deposit with the treasurer on the
30th of November, of United-States notes payable on demand,
$24,550,325,--making an aggregate realized from loans in various
forms of $197,242,588.14." The loan operations had therefore been
fairly successful, for they were still in progress; and President
Lincoln was justified in stating in his message that "the expenditures
made necessary by the Rebellion are not beyond the resources of
the loyal people, and the same patriotism which has thus far
sustained the government will continue to sustain it, till peace
and union shall yet bless the land."

But the shadows were growing thick, and the situation was very
serious. Mr. Chase was compelled to report that his estimates of
revenue must be reduced below the figures which he gave in July by
$25,447,334: at the same time the expenditures must be reckoned at
an increase of $213,904,427. Predictions as to the speedy close
of the war had ceased. Provision must be made, not only for the
deficiencies presented