nd banks on both sides of the Atlantic will not buy
a bond at par _in gold_, when it is almost certain, from the
overwhelming vote in the House, and the known attitude of the
Senate, that a silver bill, making the old silver dollar a legal
tender for all private and public obligations, will pass both Houses
this winter. . . .

"The bonds are selling at ninety-nine and one-fourth in gold in open
market, and it seems to me very doubtful policy to offer bonds, by
us, to the public at this moment, and thus assist the advocates of
the old silver dollar by our apparent indifference to the injustice
and dishonesty of the Bland bill."

This condition of suspense and anxiety continued during the remainder
of the year.

My first annual report, as Secretary of the Treasury, was made to
Congress on the 3rd of December, 1877. The statement made of our
financial condition was a very favorable one, showing a surplus
revenue of $30,340,577.69. The receipts from different sources of
revenue were largely diminished, but the expenditures for the year
were reduced by an equal amount. The surplus revenue was applied
to the redemption of United States notes and of fractional currency,
and to the payment of six per cent. bonds for the sinking fund.
The report dealt with the usual topics of such reports, embracing
a great variety of subjects. What attracted the most attention
was, naturally, what was said about refunding the public debt and
the resumption of specie payments. The results of refunding during
the previous year have already been sufficiently stated. The plans
for the resumption of specie payments were fully explained. The
mode and manner of bringing this about was not specified in the
law, but the time for resumption was fixed and the means provided
for accumulating coin for that purpose were ample.

By the resumption act the Secretary of the Treasury was required
to redeem legal tender notes to the amount of eighty per centum of
the sum of national bank notes issued, and to continue such
redemption, as circulating notes were issued, until there was
outstanding the sum of $300,000,000 of such legal tender United
States notes, and no more.

By the same act it was provided that, on and after the 1st day of
January, 1879, the Secretary of the Treasury should redeem, in
coin, the United States legal tender notes then outstanding, on
their presentation for redemption at the office of the assistant
treasurer of the United