No one knew how much specie the country contained. Gallatin afterward estimated it at seventeen million dollars,[479] and of that amount the banks of New England in 1814 probably held nearly ten millions. The Massachusetts banks, with seven millions in specie, had a bank-note circulation of less than three millions. The Middle, Southern, and Western States must have had a bank-note circulation approaching forty millions in paper, with seven or eight millions in specie to support it,[480] while the paper was constantly increasing in quantity and the specie constantly diminishing. Bank paper, as was believed, could not with safety exceed the proportion of three paper dollars to every specie dollar in the bank vaults; but the banks in 1814 beyond New England were circulating at least four paper dollars to every silver or gold dollar, and in many cases were issuing paper without specie in their possession. Already the banks of New England were pressing their demands on those of New York, which in their turn called on Philadelphia and Baltimore. The specie drained to New England could find its way back only by means of government loans, which New England refused to make in any large amount. On the other hand, Boston bought freely British Treasury notes at liberal discount, and sent coin to Canada in payment of them.[481] Probably New England lent to the British government during the war more money than she lent to her own. The total amount subscribed in New England to the United States loans was less than three millions. This situation was well understood by Congress. In the debate of February, 1814, the approaching dangers were repeatedly pointed out. The alarm was then so great that the Committee of Ways and Means reported a bill to incorporate a new national bank with a capital of thirty million dollars, while Macon openly advocated the issue of government paper,[482] declaring that “paper money never was beat.” Congress after a diffuse debate passed only a loan bill for twenty-five millions, and an Act for the issue of five million interest-bearing Treasury notes, leaving with the President the option to issue five millions more in case he could not borrow it. The legislation was evidently insufficient, and satisfied no one. “You have authorized a loan for twenty-five millions,” said Grundy in the debate of April 2, “and have provided for the expenditure of so much money. Where is the money?” Without attempting to answer this question, April 18 Congress adjourned. CHAPTER XVI. WHILE Congress was thus employed, much occurred behind the scenes that bore directly on the movements of war. The French minister, Serurier, alone made official reports, and his letters became less interesting as his importance diminished; but occasionally he still threw a ray of light on Madison’s troubles. At midsummer in 1813 he was in high spirits.