they had deposited in the treasury, as security for their
notes, an amount of United States bonds ten per cent. greater than
the entire amount of their circulating notes, and that these bonds
were worth in the market a large premium in currency. In addition
to the legal tenders on hand, they had five per cent. of their
circulation in legal tender notes deposited in the treasury as a
redemption fund, amounting to $15,028,340. They had also on hand
gold and silver coin and gold certificates amounting to $32,907,750,
making a total cash reserve of $145,019,338. The ratio of their
legal tender funds to circulation was 48.4; ratio of legal tenders
to circulation and deposits, 15.1.

In this interview I explicitly stated to the committee my purpose
to sell bonds, under the resumption act, at the rate of $5,000,000
a month, to the aggregate amount of $50,000,000; that I was satisfied
I could make this sale upon favorable terms, and could add to the
coin then in the treasury the sum of $50,000,000 gold coin, which
I thought sufficient to secure and maintain the parity of our notes
with coin. Mr. Ewing inquired:

"Where do you expect to get the additional fifty millions of gold
by January 1, 1879?"

My answer was as follows:

"You must see that for me to state too closely what I propose to
do might prevent me from doing what I expect to do, and therefore
I will answer your question just as far as I think you will say I
ought to go. I answer, mainly from the sale of bonds. Indeed, in
the present condition of the revenue, we cannot expect much help
from surplus revenue, except so far as that surplus revenue may be
applied to the payment of greenbacks and to the redemption of
fractional currency in aid of the sinking fund. To that extent I
think we can rely upon revenue enough to retire the United States
notes redeemed under the resumption act; so that I would say that
we can get the $50,000,000 of gold additional by the sale of bonds.
As to the kind of bonds that I would sell, and as to how I would
sell them, etc., I ought not to say anything on that subject at
present, because you ought to allow me, as an executive officer,
in the exercise of a very delicate discretion, free power to act
as I think right at the moment, holding me responsible for my action
afterward. As to what bonds I will sell, or where I will sell
them, or how I will sell them, as that is a discretionary power
left with the secretary, I ought not