at disturbs me.

"Very respectfully,
"John Sherman."

My published correspondence shows that with all the efforts and
strength of the department it was impossible to keep up with the
subscriptions for bonds pouring in from all parts of the United
States and from Europe. Over sixty millions were subscribed for
in the first two weeks of January. Offers made by me in December,
though not accepted at the time, were made the grounds of demands
in January, when conditions had greatly changed. As the money
received for four per cent. bonds could not be applied to the
payment of six per cent. called bonds until interest on such bonds
ceased, ninety days after the call, I feared that the enormous
deposits would create a serious stringency in the money market,
and perhaps cause a panic after the first of April. The banks and
bankers in New York, as well as in other large cities of the United
States, were actively competing to swell these subscriptions, so
as to get the larger commission offered for the greater amount of
bonds sold. Such a contest occurred between the First National
Bank of New York, and Seligman & Co., and their associates. In
ended in a contract made on the 21st of January, between the
Secretary of the Treasury and the former syndicate, by which the
latter subscribed for $10,000,000 of four per cent. bonds, on the
terms stated in my circular of January 1, and $5,000,000 a month
thereafter, the secretary reserving the power to terminate the
contract.

On the same day a call was made for $20,000,000 of six per cent.
bonds. Another call for a like amount was made on the 28th. The
aggregate call for six per cent. bonds in January was $120,000,000.

Charles F. Conant was again appointed as the funding agent of the
treasury department, and directed to assume the general management
and supervision of all business in London arising from the funding
of bonds. He was instructed to advise me frequently as to the
condition of the business intrusted to him.

The object of this sale of bonds in London was stated in the public
prints, and also in the following letter:

"Treasury Department, January 22, 1879.
"Charles M. Fry, Esq.,
"President Bank of New York, National Banking Association, New
York.
"Sir:--Your telegram was received yesterday.

"The syndicate arrangement was confined to the sale of bonds in
Europe, where it is deemed important to sell bonds partly to cover
called bonds held abr