the execution of the law as it now stands, he will feel it to be
his duty to redeem all United States notes presented on and after
January 1, next, at the office of the assistant treasurer of the
United States, in the city of New York, in sums of not less than
fifty dollars, with either gold or silver coin, as desired by the
holder, but reserving the legal option of the government; and to
pay out United States notes for all other demands on the treasury,
except when coin is demanded on coin liabilities.

"It is his duty, as an executive officer, to frankly state his
opinions, so that if he is in error Congress may prescribe such a
policy as is best for the public interests.

"The amount of four per cent. bonds sold during the present year,
prior to November 23, is $100,270,900, of which $94,770,900 were
sold under the refunding act approved July 14, 1870. Six per cent.
bonds, commonly known as 5-20's, to an equal amount, have been
redeemed, or will be redeemed as calls mature. This beneficial
process was greatly retarded by the requirement of the law that
subscriptions must be paid in coin, the inconvenience of obtaining
which, to the great body of people outside of the large cities,
deterred many sales. This will not affect sales after resumption,
when bonds can be paid for with United States notes. The large
absorption of United States securities in the American market, by
reason of their return from Europe, together with the sale of four
and a half per cent. bonds for resumption purposes, tended to retard
the sale of four per cent. bonds. As, from the best advices, not
more than $200,000,000 of United States bonds are now held out of
the country, it may be fairly anticipated that the sale of four
per cent. bonds, hereafter, will largely increase.

"Prior to May, 1877, United States bonds were mainly sold through
an association of bankers. Experience proves that under the present
plan of selling to all subscribers on terms fixed by public
advertisement, though the aggregate of sales may be less, their
distribution is more satisfactory. Under a popular loan the interest
is paid at home, and the investment is available at all times,
without loss, to meet the needs of the holder. This policy has
been carefully fostered by other nations, and should be specially
so in ours, where every citizen equally participates in the government
of his country. The holding of these bonds at home, in small sums
well distribu