row a call will issue
for the whole of the sixty-eights.

"John Sherman, Secretary."

"E. D. Randolph, President, etc., New York.

"Your two million subscription received and accepted, but can accept
no more. All 5-20's are covered.

"John Sherman, Secretary."

"New York, April 4, 18979.
"Hon. John Sherman.

"We subscribe for three millions more, making five in all.

"F. Taylor, Cashier Continental National Bank."

"Treasury Department, April 4, 1879.
"F. Taylor, Cashier Continental National Bank, New York.

"Your subscription for three millions arrived too late; all the 5-
20's have been covered by previous subscriptions.

"John Sherman, Secretary."

A similar telegram was sent to the Continental National Bank of
New York, which subscribed $25,000,000 additional, the Hanover
National Bank of New York, $25,000,000, and the New York National
Banking Association, $2,000,000.

I then telegraphed to Mr. Conant as follows:

"Subscriptions have been made covering all 5-20 bonds (consols of
1867 and consols of 1868) outstanding, reserving for contracting
parties the one million not subscribed for.

"Inform the contracting parties and accept no new subscriptions."

On the 4th of April, 1879, I had the satisfaction of issuing the
95th and 96th calls for 5-20 bonds, covering all the bonds outstanding
issued under the act of March 3, 1865, and the last of the United
States 5-20 bonds. The early twenty year bonds, issued during the
first two years of the Civil War, were not yet due or redeemable,
and, therefore, could not be called for payment. This was a
practical illustration of the importance, in issuing government
securities, of reserving the right to redeem them before maturity.

The rapid and irregular subscriptions made on the 4th of April
involved the department in serious difficulty in determining who
of the many subscribers were entitled to the bonds. The aggregate
of subscriptions was more than double the amount of 5-20 bonds
outstanding. By adopting a rule of accepting bids made before a
fixed hour of that day, and by voluntary arrangements among the
bidders, a distribution was made.

The only serious controversy in respect to this distribution was
upon the claim of the Rothschilds that they had option extending
to the 30th of June for ten millions of bonds, and for one million
extended from April 1 to April 8. The latter was allowed, but the
department held that the opt