ust Belmont & Co., that the department expected
that by the 1st of October the remainder of the coin then due upon
the four and a half per cent. bonds, both from the American sales
and those made in London, would be paid into the treasury; that it
was deemed best that this should be done, so that the account of
this loan might be closed as soon thereafter as the books could be
made up. This request was promptly complied with.

Early in October there were many rumors in circulation charging
that prominent capitalists and speculators were combining to defeat
resumption. Among them Jay Gould was mentioned as being actively
engaged in "bearing" the market. About this period I received from
him the following letter:

"578 Fifth Avenue, Oct. 17, 1878.
"Hon. John Sherman.

"Dear Sir:--Referring to recent newspaper statements that I have
been interested in movements either to tighten money or create a
scarcity of gold and thus interfere with natural and early resumption,
I beg to say that they are without the slightest foundation. On
the contrary I feel a very deep interest in your efforts, so far
eminently successful in carrying the country to a successful
resumption.

"_If resumption is made a real success it will be accompanied with
substantial business prosperity and do more to strengthen and retain
the ascendency of the Republican party than any and all other
reasons_.

"The real causes of the recent disturbances in the money market
are the following:

"First. Government bonds have come back from Europe faster than
investment orders would absorb them--the surplus are carried on
call loans and have absorbed several millions of dollars.

"Second. The financial troubles in England are retarding the rapid
movement of western produce. The elevators at Chicago and Milwaukee
are full of grain; at Chicago alone about 7,000,000 bushels. The
currency sent west to pay for this grain will not be released until
the grain is marketed.

"Third. A large amount of foreign capital usually lent on call in
Wall street has been transferred to London and Liverpool as money
commands (or has until recently) better rates there than in New
York.

"I remain, yours very truly,
"Jay Gould."

The purchase of four per cent. bonds sensibly increased in October.
As the six per cent. bonds could not be paid within ninety days
after the call, the purchasers of the four per cent. bonds claimed
the right to pay for such bonds i