erested in transactions growing out of
resumption or refunding, or did or could derive any benefit
therefrom.

The rapid payment of the 5-20 bonds had a more serious effect upon
the English market than upon our own. Here the four per cent.
bonds were received in place of the six per cent. bonds, no doubt
with regret by the holders of the latter for the loss of one-third
of their interest, but accompanied by a sense of national pride
that our credit was so good. In London the process of refunding
was regarded with disfavor and in some cases by denunciation. On
the 4th of March Secretary Evarts wrote me the following letter:

"Department of State, }
"Washington, March 4, 1870.}
"Hon. John Sherman, Secretary of the Treasury.

"Sir:--I have the honor to transmit herewith, for your information,
a copy of a dispatch No. 928, dated February 12, from the consul
general at London, in which the department is advised that there
exists dissatisfaction, among certain holders of the 5-20 bonds of
the issue of 1867, with the rapidity with which the government is
refunding its debt at a lower rate of interest, and that it is the
purpose of such holders to demand payment of their called bonds in
coin. I have to honor to be, sir, your obedient servant.

"Wm. M. Evarts."

This demand was easily met by the sale of four per cent. bonds in
London, and the balance of trade in our favor was increasing. The
anticipated movement of gold did not occur.

Congress, by the act approved January 25, 1879, extended the process
of refunding to the 10-40 bonds bearing interest at the rate of
five per cent., amounting to $195,000,000 as follows:

"AN ACT TO FACILITATE THE REFUNDING THE NATIONAL DEBT.

"_Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled_, That the Secretary
of the Treasury is hereby authorized, in the process of refunding
the national debt under existing laws, to exchange directly at par
the bonds of the United States bearing interest at four per centum
per annum, authorized by law, for the bonds of the United States
commonly known as 5-20's, outstanding and uncalled, and, whenever
all such 5-20 bonds shall have been redeemed, the provisions of
this section, and all existing provisions of law authorizing the
refunding of the national debt, shall apply to any bonds of the
United States bearing interest at five per centum per annum or a
higher rate, whic