The condition of affairs in the United States was also extremely favorable. The treasury was overflowing with California gold, under the tariff of 1846 business was prosperous, the public debt small, and the future unclouded. The American Minister to Mexico (General Gadsden of South Carolina) was authorized to make several propositions:-- 1st. Fifty Millions for a boundary line from the mouth of the Rio Grande west to the Pacific Ocean. 2nd. Twenty millions for a boundary line due east from the mouth of the Yaqui River in the Gulf of Mexico to the Rio Grande. This was to include the peninsula of Lower California. 3rd. Ten millions for a boundary line to include the "railroad pass." A treaty was finally concluded for the smaller boundary, including the "railroad pass," comprising the land between the Rio Grande and the Colorado Rivers south of the Gila River, with the boundary line between the United States and Mexico about the shape of a dog's hind leg. The price paid for the new territory, which was temporarily called the "Gadsden Purchase," was ten million dollars. A check for seven million was given by Mr. Guthrie, Secretary of the Treasury, on the sub-treasury in New York, to the agent of Santa Ana; but not a dollar of it ever reached the Mexican treasury, as Santa Ana fled with the spoil. The remaining three millions were retained to pay the "lobby" and confirm the treaty. The treaty was signed in Mexico on the 23d day of December, 1853. Pending the negotiation of the treaty between the high contracting parties, in the City of Mexico, the discussion of the subject grew interesting at the Government Boarding-House in San Francisco, and a new California was hoped for on the southern boundary. Old Spanish history was ransacked for information from the voyages of Cortez in the Gulf of California to the latest dates, and maps of the country were in great demand. In the mean time an agent of the Iturbide family had arrived in San Francisco with a "Mexican Grant." After the execution of the Emperor Iturbide, the Congress of the Mexican Republic voted an indemnity to the family of one million dollars; but on account of successive revolutions this sum was never at the disposition of the Mexican treasury, and in liquidation the Mexican government made the family a grant of land in California, north of the Bay of San Francisco, but before the land could be located, the Americans had "acquired" the country, and it was lost. The heirs then made application to the Mexican government for another grant of land in lieu of the California concession, and were granted seven hundred leagues of land, to be located in Sonora, Sinaloa and Lower California, in such parcels as they might select.