The government must look abroad, concluded the editor, and in Europe no light could be seen. By 1842 our state debts, mostly held there, had amounted to nearly $200,000,000. Mississippi, Michigan, Arkansas and Florida sank in the mire of repudiation. Pennsylvania, Maryland, Indiana, Illinois and Louisiana became delinquent. The bonds of South Carolina fell below par. Missouri passed a stay law. Sidney Smith, when he met a Pennsylvanian at dinner, felt like dividing the man's raiment among the British guests, most of whom, if not all, had probably suffered by the "dishonor" of the state. Indeed, the bondholders were disposed to throw off half of the interest rate, if our national treasury would assume the debts; but a proposition to do this failed in Congress.[33.8] As early as 1841 even our six per cent national bonds would not sell in Europe, though money commanded less than half as large a return there. "Who will lend on American securities?" asked the London _Spectator_ the very month we began war upon Mexico. Our credit then grew worse instead of better. The war bill precipitated a panic in Wall Street, and soon business in the west and south was described as prostrate. Bad as such a financial outlook was in itself, too, it involved a consequent ill. Evidently the administration would have to pinch; and, as Madame de Sévigné once remarked, "There is nothing so expensive as want of money."[33.8] The Democrats, however, were committed against the protective tariff of 1842, now in force, and Polk as a party man felt that something must be done about it. Walker no doubt shared this opinion; and, having gained immense prestige in the south by his brilliant advocacy of the annexation of Texas, he very likely hoped that by now carrying into effect the fiscal ideas prevalent in that section, he might supplant Calhoun. Probably, too, he sincerely believed in these ideas. To him the existing scale of duties appeared to be the cause of the shrinking revenues; and he stated boldly that war, which had been recognized for some time as a possibility, "would create an increased necessity for reducing our present high duties in order to obtain sufficient revenue to meet increased expenditures."[33.9] [NEW FISCAL LAWS]