ry respectfully,
"_Pro_ August Belmont & Co.
"W. Suttgen.
"W. Beuter."

The explanation of these cablegrams is given in the following
letter:

"New Court, St. Swithin's Lane, }
"London, E. C., England, March 29, 1879.}
"Dear Mr. Secretary:--On the 27th instant I had the honor to make
an inquiry of you by cable dispatch, as follows: 'Would be pleased
to know if subscriptions to be settled during April can be effected
without disturbing market in New York.' The constant decline in
the price of all descriptions of our bonds in New York, the strenuous
efforts being made by certain parties to sell American bonds here
at low rates on home account, particularly the four and four and
a half per cent. stock, the advancing rates of interest, and the
condition of the exchanges, together with the rumors concerning
scarcity of money in New Orleans and elsewhere, gave rise to
apprehension, in the minds of many, that refunding operations had
been carried to too great an extent; that too many bonds had been
subscribed for on speculative account, and that any forced settlement
of the subscriptions falling due in April would produce a panic.
Private telegrams sent here conveyed information to the effect that
arrangements would be made between yourself and the banks, by which
the deposits in them would not be drawn upon until absolutely
necessary. The answer, however, which I received from you a few
hours later was highly gratifying and reassuring, and I gave it as
much publicity as possible without, of course, publishing it. It
reads as follows: 'Entirely confident subscriptions during the
next month will be settled without disturbing the market. Order
treasury department yesterday will facilitate greatly.'

"The question of obligation to make a subscription on the 1st day
of April to continue the contract has been under consideration by
the syndicate during the past week, and in fact ever since the
beginning of the decline in the price of the four per cent. stock.
The associates claim that they are only required to take five
millions of the bonds during the month of April, and that having
already taken three-fifths of the amount in advance, they should,
in view of the impossibility of disposing of the stock at present
prices, be allowed the balance of the month in which to subscribe
for the remaining two millions. They argue that it cannot be
expected that they can afford to take the bonds and pay the g