The state of affairs, however, was most anxious and critical, and calculated to create the most serious alarm. Although the efforts made during the past year, and the late successes in the South, had revived the public spirit, still no sufficient or permanent means had been provided for supplying the increasing wants of the army. The country seemed upon the brink of ruin. Nor can any situation be imagined more painful than that of the American congress at this moment. The enemy had advanced into the heart of the country; they had important militia operations to carry forward, but were wholly without money. Their bills of credit had so completely lost their value, that they had ceased to be a legal tender, and were not received even in payment of taxes. In this emergency their agents, as already had been done, were directed to borrow from France, Spain, and Holland. They resorted to the unpopular measure of taxation, the tax being apportioned among the several state governments, by whose authority it was collected; and in order as much as possible to introduce economy and to prevent disorder, waste, or peculation, they appointed Robert Morris of Philadelphia as their treasurer, a man whose pure morals, ardent patriotism, and great knowledge of financial concerns, eminently fitted him for this important station. The zeal and genius of Morris soon produced the best results. A national bank was established, wealthy individuals were induced to deposit here their funds, and by borrowing in the name of government from this bank, and pledging in return the taxes not yet collected, he was enabled to anticipate them, and command a supply. He also made use of his own credit, which was good, and bills were in circulation at one time, bearing his signature, to the amount of £100,000. Franklin also obtained a loan of 4,000,000 of livres from the court of France, which likewise gave its guarantee to Holland for a loan of 10,000,000. Spain refused to lend money unless she received a monopoly of the navigation of the Mississippi, which was steadily refused.[38]