eficial to the holder, in begetting habits of saving, and to
the treasury, in aiding refunding; but its great benefit will be
that the people themselves will in this way have a direct interest
in preserving and maintaining the public faith."

On the same date I wrote a note for publication to the treasurer
of the United States, to facilitate the payment of called bonds,
as follows:

"As it is desirable to make payment of called bonds in the mode
that will least disturb the market, you will draw from the depositary
banks the proceeds of four per cent. bonds only when required to
make payment of called bonds, and in proportion from the several
depositaries to the amounts held by them, as near as may be, in
sums of $1,000. Money in the treasury received from four per cent.
bonds should be applied to the payment of called bonds before such
drafts are made.

"When practicable, drafts upon depositary banks, for transfers of
deposits on account of proceeds of four per cent. bonds, may be so
drawn as to be payable at the option of the bank, through the New
York clearing house.

"Drafts on depositary banks in cities other than New York should
be drawn a sufficient time in advance to meet payments there.

"Payment by called bonds should be treated as payment in money as
of the date when it would, under this order, be required."

On the 27th I received from Conant the following cablegram:

"Would be pleased to know if subscriptions to be settled during
April can be expected without disturbing market in New York."

I answered on the same day as follows:

"Entirely confident subscriptions during next month will be settled
without disturbing market. Order of the treasury department
yesterday will facilitate greatly."

The following correspondence with Conant, the syndicate and myself
then took place:

"London, March 28, 1879.
"Sherman, Washington.

"Rothschild & Sons request me to say they do not consider contract
of January 21, 1879, requires subscription two million to be made
April 1. On account of market price below par at present time they
desire delay subscription few days. Hope you will consent.

"Conant."

"Treasury Department, March 28, 1879.
"Conant, London.

"I think contract of January 21, 1879, very plain, subscription
should be made April 1, but, if they desire, time will be extended
to April 8.

"Sherman."

"Treasury Department, March 28, 1879.
"August Belmont & Co., New York