me arrives for the settlement of the large subscriptions made in
New York and elsewhere at home the market will be found overloaded,
and that a fall in price will take place, still exists here, and
has the effect of causing certain classes of investors to delay
making purchases, which they will ultimately make. I have not
hesitated to say to the associates here that when refunding operations
shall have been completed the four per cent. consols will soon
thereafter go to a premium, and good reasons can be given why such
should be the case."

Soon after I commenced receiving prophecies of stringency and
disaster. A long letter from Fisk & Hatch, of New York, said that
general apprehension had been growing up in financial circles, and
was rapidly gaining ground, that the settlements by the national
banks with the treasury department, in April and May, for the large
subscriptions of four per cent. bonds made in January and February,
would occasion serious disturbance and embarrassment in the money
market. They advised me to pursue a course that, whether proper
or not, was not in accordance with law. Mr. L. P. Morton., on the
same date, took a milder view of it, but still suggested a remedy
not within my power.

On the 13th, General Hillhouse, in referring to the apprehensions
of my correspondents in regard to the settlements in connection
with refunding, said that they might be caused in some instances
by the suspicion, if not by the conviction, that their subscriptions
had been carried beyond the point of absolute safety, "and now that
settlement day is approaching they are naturally desirous of
ascertaining how far they can count on the forbearance of the
government."

This was the same view I had taken of the matter. I did not feel
myself officially bound to do anything but to require prompt payment
for the bonds subscribed. The treasury, however, was well prepared
for any probable stringency, and I was convinced that the settlements
would not cause any serious disturbance. The advices from London
continued to be unfavorable. The bonds were offered in the market
in some cases at a less price than the syndicate were to pay for
them.

In the process of selling the four per cent. bonds I had frequently
been written to by persons of limited means, who wished to invest
their savings in government bonds of small denominations bearing
four per cent. interest. I called the attention of the proper
committee of eac