ade, a difficulty appeared
which had been anticipated, but not in its fullness. The proceeds from
the sales of the five per cent bonds were pledged to the redemption of
the six per cent five-twenty bonds, reckoned at their par value.

It was provided by the statute that whenever five-twenty bonds were
called, a notice of ninety days should be given, when interest would
cease. Thus it happened that whenever a bond was called it was worth
par and interest to the end of the ninety days. Of the called bonds
some were in America, and the owners did not choose to present them in
London in exchange for five per cent bonds, nor for coin. Hence it
happened that the total proceeds of the five per cent bonds, about
twenty million dollars were paid in gold coin by Cooke & Co. This
coin was deposited in the Bank of England, but upon such terms as
were imposed by the governors:

(1) The deposits must be made in the name of William A. Richardson.
This was done, but a statement was made by Judge Richardson that the
deposit was the property of the United States.

(2) The gold was not to be taken out of the country. This stipulation
was in the line of our policy, which was to invest the entire sum in
five-twenty bonds, whenever they could be bought at par. The
opportunity came in a manner that was not anticipated. The documents
referred to are of historical value, and they are therefore inserted
as follows:

_(a)_ A declaration of trust by William A. Richardson, Assistant
Secretary of the Treasury, dated at London, December 28, 1871.

_(b)_ Letter of William A. Richardson, Assistant Secretary of the
Treasury, to John P. Bigelow, Chief of the Loan Division of the
Treasury, dated also at London, December 28, 1871.

_(c)_ Letter of George Forbes, Chief Cashier of the Bank of England,
to Judge Richardson, dated January 4, 1872.

_(d)_ Letter of Judge Richardson to George Lyall, Governor of the
Bank of England, dated January 15, 1872.

_(e)_ Reply to the same by George Forbes, Chief Cashier, dated
January 17, 1872.

_(f)_ William A. Richardson's report of January 25, 1872.

_(a)_ DECLARATION BY WILLIAM A. RICHARDSON

Whereas, I have this day deposited in my name, as Assistant Secretary
of the Treasury, U. S. A., in the Bank of England, two million five
hundred and fifty thousand pounds sterling, and shall probably
hereafter make further deposits on the same account:

Now I hereby declare that said amount and d