n the same footing with
respect to the use of United States notes in settlements, and thus
aid in maintaining them at par with gold in all the vast transactions
connected with our internal trade and commerce. I have not given
the question sufficient thought to speak with confidence, but it
seems to me a very important one, and well worthy of careful
consideration."

A committee of the clearing house called upon me and the subject
was thoroughly considered. Mr. Gilfillan wrote to General Hillhouse
as follows:

"Treasury of the United States.}
"Washington, November 9, 1878. }
"Sir:--By direction of the secretary, I have the honor to request
that you will submit to the Clearing House Association of the banks
of your city the following propositions, and, upon obtaining the
assent of the association to them and communicating that fact to
the department, you are expected to act in conformity with them.

"First. Hereafter, drafts drawn upon any bank represented in the
Clearing House Association in the city of New York, received by
the assistant treasurer in that city, may be presented to such bank
at the clearing house for payment.

"Second. Hereafter, drafts drawn on the assistant treasurer at
New York may be adjusted by him at the clearing house, and the
balances due from the United States may be paid at his office in
United States notes or clearing house certificates.

"Third. After the 1st of January next, payment of checks presented
to the assistant treasurer by any bank connected with the clearing
house may be made by him in United States notes.

"Very respectfully,
"James Gilfillan, Treasurer United States.
"Hon. Thomas Hillhouse, Assistant Treasurer United States, New
York."

General Hillhouse, on the 12th of November, advised me of the
receipt of this letter, and that the propositions of the treasurer
were referred to the Clearing House Association, that a meeting
would be held and there was little doubt but that they would be
accepted.

On the same day the Clearing House Association, fifty out of fifty-
eight banks, members of the associations, being present, unanimously
adopted the following resolutions:

"_Resolved_, That in order to facilitate the payment of drafts and
checks, between the treasurer of the United States and the associated
banks, the manager of the New York clearing house is authorized to
make such an arrangement with the assistant treasurer as will
accomplish that pur