CHAPTER XVIII. The National Finances.--Debt when the Civil War began.--Deadly Blow to Public Credit.--Treasury Notes due in 1861.--$10,000,000 required. --An Empty Treasury.--Recommendation by Secretary Dix.--Secretary Thomas recommends a Pledge of the Public Lands.--Strange Suggestions. --Heavy Burdens upon the Treasury.--Embarrassment of Legislators. --First Receipts in the Treasury in 1861.--Chief Dependence had always been on Customs.--Morrill Tariff goes into Effect.--It meets Financial Exigencies.--Mr. Vallandigham puts our Revenue at $50,000,000, our Expenditures at $500,000,000.--Annual Deficiency under Mr. Buchanan.--Extra Session in July, 1861.--Secretary Chase recommends $80,000,000 by Taxation, and $240,000,000 by Loans.-- Loan Bill of July 17, 1861.--Its Provisions.--Demand Notes.--Seven- thirties.--Secretary Chase's Report, December, 1861.--Situation Serious.--Sales of Public Lands.--Suspension of Specie Payment.-- The Loss of our Coin.--Its Steady Export to Europe. CHAPTER XIX. The Legal-tender Bill.--National Finances at the Opening of the Year 1862.--A Threefold Contest.--The Country thrown upon its own Resources.--A Good Currency demanded.--Government takes Control of the Question.--Authorizes the Issue of $150,000,000 of Legal-tender Notes.--Mr. Spaulding the Author of the Measure.--His Speech.-- Opposed by Mr. Pendleton.--Position of Secretary Chase.--Urges the Measure upon Congress.--Speeches by Thaddeus Stevens, Mr. Vallandigham, Mr. V. B. Horton, Mr. Lovejoy, Mr. Conkling, Mr. Hooper, Mr. Morrill, Mr. Bingham, Mr. Shellabarger, Mr. Pike and Others.--Spirited and Able Debate.--Bill passes the House.--Its Consideration by the Senate.--Speeches by Mr. Fessenden, Mr. Sherman, Mr. Sumner, Mr. Bayard, Mr. Collamer and Others.--Bill passes the Senate.--Its Weighty Provisions.--Secretary Chase on State Banks.--Policy of the Legal-tender Bill.--Its Effect upon the Business and Prosperity of the Country.--Internal Revenue Act.--Necessity of Large Sums from Taxation.--Public Credit dependent on it.--Constitutional Provisions.--Financial Policy of Alexander Hamilton.--Excises Unpopular.--Whiskey Insurrection.--Resistance by Law.--Supreme Court Decision.--Case of Hylton.--Provisions of New Act.--Searching Character.--Great Revenue desired.--Credit due to Secretary Chase.