.

"Gentlemen:--In confirmation of my two telegrams of to-day to you,
copies of which are inclosed, I have to inform you that the proper
legal officers of the department, as well as myself, consider it
very clear that, under the contract of January 21, your option to
make the second subscription expires on the 1st of April, but I am
not at all desirous of raising the question, and therefore am
willing to extend the time a week, within which I am quite confident
the anxiety about the April payments will begin to subside. Thus
far this week, over $17,000,000 called bonds have been redeemed by
credit on subscriptions, and $450,000 only paid by draft. Called
bonds are rapidly coming in for credit. The subscriptions in excess
of bonds called now amount to $6,600,000. With an assurance of a
subscription of $2,000,000 from you, by the 1st, or even the 8th,
of April, I would immediately issue a call for $10,000,000, and
may do so without waiting for your subscription.

"I would prefer that the parties to the contract should not avail
themselves of the extension offered, but leave that entirely to
your good judgment.

"Very respectfully,
"John Sherman, Secretary."

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

"The contract is very plain that the first subscription should be
made by April 1. The stipulation for five million each month would
have made the second subscription in February or March, but, by
the agreement, it need not be made before April 1.

"John Sherman, Secretary."

"New York, March 28, 1879.
"Hon. John Sherman, Secretary of the Treasury, Washington, D. C.

"Dear Sir:--We received this morning a telegram from Messrs.
Rothschild about the next subscription under the contract of the
21st of January, and telegraphed its contents to you, as follows:

'London associates telegraph consider according contract have all
month April to make next subscription. Please telegraph whether
you agree they are right'

"In reply we received your telegrams reading:

'The contract is very plain that the next subscription should be
made by April 1. The stipulation for five million each month would
have made the second subscription in February or March, but by
agreement it need not be made before April 1.'

"and--

'Have cabled Conant to extend option, if desired, to April 8.'

"contents of which we have communicated to our London friends.

"Yours, ve