ect, I remain, yours truly,
"Chas. F. Conant.
"Hon. John Sherman."

I have set out in full this correspondence with Rothschild and his
associates and with Conant, to show that on the eve of complete
success they were discouraged and asked for a postponement of, to
them, the small subscription of $1,000,000, and did not even think
of taking the option of $10,000,000 of bonds subsequently claimed.

With the 1st of April all stringency disappeared. Accounts were
settled without difficulty. The amount of four per cent. consols
sold to March 31, inclusive, was $473,443,400.

On the 4th of April, while attending a meeting of the cabinet, I
was handed the following telegram:

"New York, April 4, 1879.
"Hon. John Sherman, Secretary of the Treasury, Washington, D. C.

"National Bank of Commerce in New York subscribes for forty million
dollars four per cent. bonds. Particulars and certificates by mail.

"Henry F. Vail, President."

I thought the amount was a mistake, that four instead of forty was
meant. I replied as follows:

"Henry F. Vail, President National Bank of Commerce, New York.
"Before making call I prefer you repeat your subscription."

A few moments after sending this telegram I received the following
from Mr. Vail:

"I sent you telegram to-day, which from its importance I beg you
will telegraph me acknowledgment of its receipt."

I replied:

"Your telegram is received, and I have asked repetition of it before
making call."

The following telegraphic correspondence then occurred:

"Hon. John Sherman.

"Please enter to-day for us a subscription for ten million dollars
four per cents. making, however, no announcement until we see you
to-morrow.

"G. F. Baker, President First National Bank, New York.

"Hon. John Sherman.

"We have taken two million subscriptions to-day thus far, and more
to follow.

"E. D. Randolph,
"President Continental National Bank, New York."

"New York, April 4, 1879.
"Hon. John Sherman.

"Your two telegrams received. I hereby confirm my telegram of to-
day, subscribing, in name of National Bank of Commerce in New York,
for forty million dollars four per cent. bonds.

"Henry F. Vail, President."

"Henry F. Vail, President National Bank of Commerce, New York.

"Your subscription for forty million four per cent. bonds, having
been repeated by telegram, is accepted. A call will issue to-day
for the balance of the sixty-sevens and to-mor