Drain beans, saving the liquid.

Peel onion and slice paper thin. Heat oil in a large heavy pan. Add onion. green pepper and beef. Cook, stirring constantly and breaking beef apart, until beef is lightly browned. Add beans, tomatoes, tomato sauce, chili powder,salt, bay leaf and cayenne.

Cover and cook gently 1 1/2 hours. Add some of the saved bean liquid if necessary(mixture should be the consistancy of a very thick soup at the end of cooking).

Serve in soup bowls and pass crackers or toast.(Serves 6).

NOTE: This makes a very mild chili. If you like it hot, increase chili powder up to 2 tbsp..