for exchange, giving,
however, the syndicate the half per cent. commission. We will
considerably reduce the cost of the bonds, I think, to one-tenth
of one per cent., so that the contracting parties will have a
reasonably fair commission. I am already assured of many sales of
the bonds whenever offered, without the aid of the syndicate, so
that I consider myself strong enough to undertake the placing the
bonds even without their aid, if they will not agree to reasonable
terms. If I can secure the active, hearty co-operation of all the
parties who wish to engage in selling the bonds, and they will be
content with a reasonable profit, the operation of funding can go
on so rapidly that they ought to be satisfied with the profit they
will make.

"I have not overlooked the possibility that some movement of coin
will be made to meet called bonds in Europe in excess of bonds sold
there, but hope to perfect arrangements by which I will secure
American bullion to meet this demand, without stopping accumulations
of coin in the treasury.

"The prospects here are favorable for a good crop in all the states
of the Mississippi valley, but there will probably be a bad crop
in California.

"What we must do is push the loan so that it will be an established
success before the meeting of Congress. If you can succeed in
inspiring the Rothschilds to aid this purpose I am sure of success.
My proposition has been sent to them, and I was advised would be
answered by telegram about this time; but by the 15th I hope to
have the arrangements completed.

"If upon receipt of this letter there is anything of striking
interest affecting the loan you may cable me.

"All well in the department. Matters are going along quietly and
steadily.

"Very truly yours,
"John Sherman.
"Hon. Chas. F. Conant, London."

This letter he received about the time the new contract was executed.
I subsequently sent him the following cable telegram:

"Washington, June 9, 1877.
"Conant, London:

"Contract of August 24, 1876, closed new four and a half per cent.
bonds of $200,000,000. New contract twenty-five millions four per
cent. bonds taken firm. Particulars by mail.

"Sherman."

Two days later I received a reply, as follows:

"London, June 11, 1877.
"Sherman, Washington:

"Congratulations. Rothschilds request me to say that it is important
for this market that the public subscriptions in America for four
per cents. should be a s