get the gold and pay commissions for it, and were
afraid it might be run up on them. One or two, perhaps, expected
a more advantageous offer as to rates--indeed, wanted me to pay
them a commission for selling our bonds at par. I can excuse them,
because they will have to be looking after the redemption of their
own circulation.'

"I suggested to the secretary that some of the bank presidents had
discouraged resumption or treated it as a figment.

'When the congressional committee was over here,' he answered,
'there was something said about the advantage of getting priority
in the line on resumption day; but that is nothing. They were very
civil, but didn't see the proposition favorably.'

'Is there any disadvantage in negotiating through the syndicate?'

'No, there is an advantage in this respect; they sold the higher
bonds abroad, and taking these will also place a part of them there,
facilitating exchange in commercial settlements and interestedly
maintaining prices. A portion of these low bonds ought to locate
in Europe.'

'Speaking of exchange, Mr. secretary, the idea has been put forward
here, in the fiscal form, I believe, that a large, round balance
of trade in our favor indicates poverty and collapse. Is that good
political economy?'

'There are nations,' said the secretary, 'like England, which have
steady apparent balances of trade against them, yet show a great
prosperity. But that is only the product of English money invested
in foreign places and colonies; it is an apparent purchase, but
really their own harvest. No nation that is greatly in debt, as
we are, can observe real balances of trade overwhelmingly against
us and not feel alarmed.'

'Do you expect any opposition from Congress as the reply to this
negotiation and the near probability of specie payments?'

'No, I do not think Congress will interfere. The conservative
element of the inflation party was appeased by the reissue of
$300,000,000, and the candid way in which their silver legislation
was carried out. I do not anticipate that Congress can affect this
action.'

'May not the surprise of the news that you so readily negotiated
these bonds and secured your gold, enrage those who have cast their
political hopes upon preventing resumption?'

'I do not see why. General Ewing and the finance committee were
clearly apprised by me two weeks ago of the exact plan I have
followed out. They questioned me directly, and I told the