; that they
would place themselves at my service in any way I might wish without
compensation. He said that he thought an arrangement could be made
by which the national banks could be made my agents in the sale of
bonds. He thought the banks might take the $50,000,000 of four
and a half per cent. bonds, to be paid for by the 1st of January,
the government to receive whatever the banks could get for the
bonds.

I invited the gentlemen to confer among themselves, and, if
practicable, make me some definite proposition in the morning.

In the afternoon of the same day we met the members of the old
syndicate. Mr. Belmont read a cable from the Rothschilds offering
101 for $100,000,000 four and a half per cent. bonds, $50,000,000
for resumption and $50,000,000 for refunding purposes.

I said I was not prepared to accept, but would give a definite
answer next day.

On the following morning I met Mr. Vail, of the National Bank of
Commerce, and Mr. Vermilye, of the Merchants' National Bank, at
the sub-treasury.

Mr. Vail and Mr. Vermilye submitted a memorandum that if I would
indicate my willingness to receive a proposition for the negotiation
of $50,000,000 four and a half per cent. bonds at par in gold they
would recommend the national banks to unite in making it.

I then asked Mr. Vail and Mr. Vermilye whether, if a proposition
was made to me by bankers of acknowledged credit and responsibility
of 101 for four and a half per cent. bonds, payable in installments
and with the usual option, in their opinion, it was my duty to
accept it.

They both said decidedly, yes; that such an arrangement would be
far more advantageous than the acceptance of their proposition,
and besides, if they took the bonds, it might impair to some extent
their power to render the usual facilities to their commercial
customers.

The proposition submitted by Messrs. Vail and Vermilye, in behalf
of the national banks, was as follows:

"If the secretary will intimate his willingness to receive a
proposition from the national banks in New York, Boston, Philadelphia
and Baltimore for the negotiation of fifty millions four and a half
per cent. bonds at par in gold, for resumption purposes, we will
recommend our associates to unite in making it, with the belief on
our part that it can be accomplished as suggested. This special
loan to be the only bonds of this character offered, unless the
same parties have the option on any further sums requ