t $200,000,000 of bonds,
mainly the six per cent. bonds of 1861, but permission was given
to the holders of the bonds to have them continued at the pleasure
of the government, with interest at the rate of three and a half
per cent. per annum, provided the holder should so request, and
the bonds should be received at the treasury for that purpose on
or before the 10th of May, 1881. The plan proved entirely
satisfactory. There were presented in due time, for continuance
at three and a half per cent., the amount of $178,055,150 of bonds,
leaving to be paid off from surplus revenue $24,211,400, for which
the treasury had ample resources. Having succeeded in disposing
of the six per cent. bonds, he gave notice that the coupon five
per cent. bonds of the loans of July 14, 1870, and January 20,
1871, would be paid on August 12, 1881, with a like privilege of
continuing the bonds at three and a half per cent. to such of the
holders who might present them for that purpose on or before July
1, 1881. At the same time the treasurer offered to receive for
continuance any of the uncalled registered bonds of that loan to
an amount not exceeding $250,000,000, the remainder of the loan
being reserved with a view to its payment from the surplus revenues.

The annual saving in interest by the continuance of these bonds
amounted to $10,473,952.25. I heartily approved this plan. In a
reported interview of the 14th of April I said:

"I see no difficulty in fully carrying out Secretary Windom's
policy, as far as developed. He has ample means for reducing the
interest on the five and six per cent. bonds. He can pay off all
those who wish to be paid in money, in strict accordance with the
terms of these bonds, leaving the mass of them at three and a half
per cent. interest, payable at the pleasure of Congress. This is
not only for the public interest, but is on the clear line of his
power and duty. Indeed, I think it is better for the country than
any refunding plan that would be carried out under a new law. The
old securities remain as redeemable bonds, bearing as low a rate
of interest as any new bonds would bear, which could be now sold
at par, and they are more readily payable with surplus revenue than
any new bonds could be. If it should appear next session that a
three per cent. bond would sell at par, that can be authorized.
Secretary Windom is cautious and careful, and has done the very
best for the public that is possibl