lic knew no one but the Secretary. I chose to act upon
my own judgment knowing that there was no one else to share the
responsibility in case of failure.

In my report to Congress, in December, 1869, I set forth a system for
refunding the Public Debt. I had unfolded the scheme in a speech in
the House of Representatives, July 1868. I had already taken two
steps preparatory to the undertaking. First, in May, 1869, I
established the Sinking Fund under the Act of February 25, 1862.
Second, by the purchase of bonds the world had assurance that the debt
would be paid. The effect of these two measures was seen in the
increasing market value of the bonds. In other words the credit of the
country was improving. When the President was preparing his message of
December, 1869, he called upon me for my views in regard to the
Treasury, and I furnished him with a synopsis of my plan which he
embodied in his message. I retained a copy of the synopsis and that
copy is in the hands of my daughter. Simultaneously I prepared a bill
upon the basis of the report and caused the same to be printed upon the
Treasury press. Upon an examination of the papers on file in the
archives of the Senate I find that cuttings from my printed bill form
a part of the bill which was printed by the Finance Committee of the
Senate of which Senator Sherman was chairman. The bill was changed in
details but not in principle. The loan was in three parts as my bill
was prepared. A portion at 5 per cent, a portion at 4 1/2 per cent,
and a third portion at 4 per cent. The division was retained in the
statute, but the amount of the loan at each of the several rates was
changed. By my bill the interest could be made payable in Europe.
This feature was stricken out by the committees in the House or the
Senate. This change I overcame or avoided ultimately by a rule of the
department by which interest on registered bonds could be made payable
in checks of the Treasurer. These checks are now sent to all parts of
the world and through the banking facilities they are everywhere as
good as gold, subject only to the natural rates of exchange between
different countries. Since that time railroad companies and other
business corporations have accepted the system. My plan of making the
interest on the bonds payable in Europe was rejected under the lead of
gentlemen who thought it involved some sort of national degradation.
My object was to make the loan more ne