The condition of affairs in Mexico was favorable to a negotiation. Santa
Ana had usurped the powers of the government, and was absolute dictator
under the name of President. There was no Mexican Congress, and none had
been convened since they were herded together at the conclusion of the
Mexican War under protection of American troops.

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