termination of the contract of June
9, 1877, for the sale of four per cent. bonds, on the 29th of this
month, which we have communicated to the associates here and in
London.

"We have also communicated to our friends in London your willingness
to continue the contract for the sale of the four per cent. bonds
in Europe, with such modifications as may become necessary, and as
soon as we have received their views we shall take pleasure in
writing to you again for the purpose of appointing a conference on
the subject.

"In the meantime, we remain, very respectfully,

"Aug. Belmont & Co."

Notice was given to Mr. Conant of the termination of the contract,
but he was advised by me that we would probably agree to the
continuance of the syndicate in the European markets. He had
expressed to me a fear that a panic would occur about our bonds in
Europe, on account of the anticipated passage of the Bland bill,
but I was able to assure him that it would not become a law in the
form originally proposed.

Being thus free from all existing contracts, I published the
following notice inviting subscriptions to the four per cent. bonds:

"Treasury Department, }
"Washington, D. C., January 16, 1878.}
"The Secretary of the Treasury hereby gives notice that, from the
26th instant, and until further notice, he will receive subscriptions
for the four per cent. funded loan of the United States, in
denominations as stated below, at par and accrued interest, in coin.

"The bonds are redeemable July, 1907, and bear interest, payable
quarterly, on the first day of January, April, July, and October,
of each year, and are exempt from the payment of taxes or duties
to the United States, as well as from taxation in any form by or
under state, municipal, or local authority.

"The subscriptions may be made for coupon bonds of $50, $100, $500,
and $1,000, and for registered bonds of $50, $100, $500, $1,000,
$5,000, and $10,000.

"Two per cent. of the purchase money must accompany the subscription;
the remainder may be paid at the pleasure of the purchaser, either
at the time of subscription or within thirty days thereafter, with
interest on the amount of the subscription, at the rate of four
per cent. per annum, to date of payment.

"Upon the receipt of full payment, the bonds will be transmitted,
free of charge, to the subscribers, and a commission of one-fourth
of one per cent. will be allowed upon the amount of s