Towards Modern Public Finance: The American War with Mexico, 1846-1848 (Financial History)

Annotation This is the first in-depth study to address the financing of the American-Mexican War of 1846-48. Floating the Mexican War loans was the greatest single endeavour of the American financial community during the 1840s. Under President Polk, the Treasury issued three loans totalling $49 000 000. Investment bankers enthusiastically marketed these treasury notes and bonds directly to the international investing public. Cummings argues that the successful financing of the American-Mexican War had a long-term beneficial effect on American financial institutions and markets. At home, the stability of the Independent Treasury was assured, and abroad, America's international credit standing was restored. Most importantly, the dealing of government issue by investment bankers was a decisive step towards modern public finance Financial and economic background Ideology, revenue and financial system The Loan of 1846 The Loan of 1847 Mexico's finances Making war pay: the Mexican assessments The Independent Treaty at War The Loan of 1848 Mexican indemnity and bounty land. Addresses the financing of the American-Mexican War of 1846-48. This study argues that the successful financing of the American-Mexican War had a long-term beneficial effect on American financial institutions and markets.