exceed in
the aggregate $25,000,000, unless by mutual agreement of the
parties.

"Lot M. Morrill, Secretary of the Treasury.
"Aug. Belmont & Co., On behalf of N. M. Rothschild & Sons, London.
"J. & W. Seligman & Co., On behalf of Seligman Brothers.
"Drexel, Morgan & Co., On behalf of J. S. Morgan & Co., of London.
"Morton, Bliss & Co., For themselves and associates, as named
above."

By its terms the contract provided for the sale of $40,000,000,
four and a half per cent. bonds of the United States at par in gold
coin. The contractors had the exclusive right to subscribe for
all or any portion of the remainder of the four and a half per
cent. bonds, amounting to $260,000,000. The right to terminate
this contract at any time after March 4, 1877, after ten days'
notice, was reserved by the United States. The proceeds of the
bonds sold were to be applied solely to the payment of the six per
cent. 5-20 bonds of the United States. No provision was made in
this contract for the accumulation of coin for the redemption of
United States notes. The process of refunding under it progressed
slowly.

I felt it to be important that I should have some personal
representative in London, to protect the interests of the United
States in the execution of this contract, and, therefore, on the
31st of March, 1877, I appointed Charles F. Conant, as the funding
agent of the treasury department, and directed him to assume the
general management and supervision of all business in London,
arising from the funding of bonds. A letter of instructions
prescribing his duties was given him. He was directed to pursue
the same general plan under which former negotiations had been
conducted, except as modified by these instructions, which were
based upon the contract before mentioned. All bonds, money, or
coupons received by him were to be securely kept in safes, furnished
by the department for that purpose, to be deposited in the vaults
of the Messrs. Rothschild. Combination locks were provided for
each safe, and no safe could be unlocked except by three persons
on distinct combinations, each person using a combination unknown
to the others. He was to keep me fully advised as to the course
of the market, of the price not only of American securities, but
of foreign securities, and was to receive the new bonds and deliver
them to the Rothschilds in exchange for the bonds redeemed. He
proved to be a very competent and faithf