pedients were proposed, and finally the resumption
act was passed, and, if undisturbed, is now on the eve of execution.

"The promise made in 1862, and so often repeated, is about to be
fulfilled. Agitation on collateral questions may delay it, but
the obligation of public faith, written on the face of every United
States note and sacredly pledged by the act to strengthen the public
credit, will give us neither peace nor assured prosperity until it
is fulfilled. Public opinion may vibrate, and men and parties may
array themselves against the fulfillment of these public promises,
but in time they will be fulfilled, and I think the sooner the
better. Pardon me for this long answer to your note, but I have
no time to condense it.

"Very respectfully,
"John Sherman."

Relief from the fear of the enactment of the Bland bill, and the
limitation of the amount of silver dollars to be coined, removed
the great impediment to the sale of four per cent. bonds, for
refunding purposes, and the progress toward specie payments.

As already indicated, I had concluded to terminate the existing
contract with the syndicate, and to make the sales directly through
national bank depositaries, and the treasury and sub-treasuries of
the United States. I therefore gave August Belmont & Co. the
following notice:

"Treasury Department, January 14, 1878.
"Messrs. August Belmont & Co., New York.

"Gentlemen:--In compliance with the second clause of the contract
between the Secretary of the Treasury and yourselves and associates,
of the date of June 9, 1877, for the sale of four per cent. bonds,
I give you notice that from and after the 26th day of January
instant that contract is terminated. It is the desire of the
President, in which I concur, to open subscriptions in the United
States to the four per cent. bonds in a different way from that
provided in our contract, and therefore this notice is given. I
sincerely hope to have your active co-operation in the new plan,
and am disposed, if you are willing, to continue in substance, by
a new contract with you, the sale of these bonds in European markets,
and invite your suggestions to that end.

"Very respectfully,
"John Sherman, Secretary."

I received from them the following answer:

"New York, January 15, 1878.
"Hon. John Sherman, Secretary of the Treasury, Washington.

"Dear Sir:--We beg to acknowledge receipt of your favor of the 14th
instant, notifying us of the