dent remarked to me jocularly that he had suffered by not knowing
what the department was about to do, inasmuch as he had sold bonds a
few days too early and at a price below their then present value.
During my service as Secretary of the Treasury I carried two
questions only to the Cabinet discussions--and I have forgotten one
of the questions, but it had some political significance. The other
arose in this manner: My method of negotiating the sale of new bonds
under the Funding Act of July, 1870, had been severely criticized.
The Government was compelled to give ninety days' notice of its
purpose to redeem five-twenty bonds, and as we could not with safety
make a call until we had the funds, and as our chief source was the
proceeds of new bonds we could not call until a sale was made. As a
consequence the Government was a loser of interest on all called bonds
for the period of ninety days. I arranged with the subscribers for
new bonds, that they should have the interest for the ninety days
upon a deposit of old bonds as security for the new ones subscribed
and taken. The Government lost nothing, and the subscribers were
benefitted greatly, and thus the subscriptions were increased.

During the campaign of 1872 I had an opportunity to negotiate a new
loan upon the same basis. Knowing that the proceeding would renew
criticism, I thought it proper to lay the case before the President
and Cabinet. Upon their advice the negotiations were suspended.

Governor Fish on more than one occasion complained that the Cabinet
were as ignorant of the proceedings and purposes of the Treasury as
was the outside world. His complaints were well founded. Much of the
business aside from routine matters was secret. For example my orders
for the sale of gold and the purchase of bonds were never issued at
any other time than Sunday evening, and then always by myself. The
orders were sent to the Sub-Treasurer at New York, and given to the
Associated Press at the same time. Consequently, on Monday morning
all the country was informed, and under such circumstances that the
chance of some to speculate upon the ignorance of others were reduced
to the minimum. Moreover, the members of the Cabinet might divide. I
should then be compelled to act upon my own judgment, and against the
views of some of my associates. Again, if I had the support of the
President and Cabinet, I could not have used the fact as an excuse for
myself. The pub