h may be redeemable. In any exchange made under
the provisions of this section interest may be allowed, on the
bonds redeemed, for a period of three months."

On the 26th of February the following act was passed:

"AN ACT TO AUTHORIZE THE ISSUE OF CERTIFICATES OF DEPOSIT IN AID
OF THE REFUNDING OF THE PUBLIC 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 and directed to issue, in
exchange for lawful money of the United States that may be presented
for such exchange, certificates of deposit, of the denominations
of ten dollars, bearing interest at the rate of four per centum
per annum, and convertible at any time, with accrued interest, into
the four per centum bonds described in the refunding act; and the
money so received shall be applied only to the payment of the bonds
bearing interest at a rate of not less than five per centum in the
mode prescribed by said act, and he is authorized to prescribe
suitable rules and regulations in conformity with this act."

On the 4th of March, 1879, the amount of uncalled 5-20 six per
cent. bonds outstanding was $88,079,800. Anticipating that sales
of four per cent. bonds would continue, I gave the following notice:

"Notice is given that when the 5-20 six per cent. bonds of the
United States are covered by subscriptions to the four per cent.
consols, the latter will be withdrawn from sale upon the terms
proposed by department circular of January 1, 1879, and upon the
terms stated in the contract with the Messrs. Rothschild and others,
of the date of January 21, 1879. The amount of 5-20 six per cent.
bonds outstanding and embraced in calls to this date is $88,079,800.
When this sum is covered by subscriptions under the existing circular
and contract, all further sales of four per cent. consols, to
provide for the refunding of the 10-40 five per cent. bonds, will
be made upon terms which will probably be less favorable to the
purchaser, and in accordance with new proposals and contracts.
This notice is given so that all parties wishing to subscribe for
consols upon the terms stated in the circular and contract may have
an opportunity to do so until the 5-20 bonds are called."

In giving this notice I had in view a change in the mode of refunding
which would save to the government the whole or large part of the
three months' interest pending th