gotiable in Europe and thus to
extend the demand, and consequently, to increase the value of our
securities.

The records of the Treasury Department show that on the 23rd day of
December, 1869, I sent to General Schenck of the House, a draught of a
bill for refunding the Public Debt. The same records show that on the
19th of January, 1870, I sent to Senator Sherman eight copies of a
bill. These bills were framed in conformity to the plan marked out in
my report of December, 1869. Previous to the preparation of that
report I had not any conference with any member of Congress nor with
any other person in regard to the details of the scheme.

On the 12th of July, 1870, Mr. Sumner introduced a bill for refunding
the Pubic Debt (Sen. S. 80). As might have been expected it was not
a practical measure, and on the 3rd day of the following February Mr.
Sherman reported the bill of Mr. Sumner in a new draught. A single
copy of that bill is on file in the office of the secretary of the
Senate, and no other copy can be found.

This bill conforms to my report, and upon my recollection it is the
bill as prepared by me. The division of the loan conforms to my
recommendation in the report, and it provides that the interest may be
made payable abroad. Subsequently these provisions were changed.
General Schenck had then recently returned from Europe and he was of
the opinion that the loan could all be negotiated at four or four and
one half per cent and it was this opinion on his part which led to
delays. The bill was not passed till July, 1870, at the very moment
when the Franco-Prussian War opened. Had the bill been passed in
March, quite large negotiations could have been made in April of that
year. But the sale of the new five per cent bonds was an undertaking
of great difficulty. It is now impossible to realize that a six per
cent bond was not worth par in 1869-'70. At that time the leading
bankers of the world were unwilling to engage in the undertaking. The
Rothschilds and Barings stood aloof. The Amsterdam bankers wrote
letters of inquiry, but they did nothing more. Mr. Morton, of the firm
of Morton, Bliss & Co., New York, was inclined to engage in the
business, but his partner, Mr. Bliss was doubtful of the success of
the scheme, and they therefore stood aside when the first negotiations
were attempted. Finally an arrangement was made with Jay Cooke & Co.,
by which they advertised what was called a popular loa