But for still greater caution, I made the written declaration of trust on the very day of the first deposit, signed and sealed by me, declaring the money and account as belonging to our Government, and not to me, a copy of which is hereto annexed.
I also gave written instruction to Messrs. Bigelow and Prentiss to draw all the checks, and how to draw them and keep an account thereof. As I make all my purchases through Jay Cooke, McCullough & Co., every check is in fact payable to that house, so that the account is easily kept, and the transactions cannot be mingled with others, for there are no others. I annex a copy of these instructions.
This, I believe, will give you a pretty correct idea of the difficulties which have been presented to me in the matter of taking, keeping, and paying out the money arising from the sale of the bonds, and the manner in which I have met them.
I may add that when the officers of the Bank were satisfied that I was not to withdraw the money and take it to New York, they reduced the rate of interest and there has been an easy market ever since.
There are now on deposit more than twelve million dollars; but I hope it will be reduced very fast next month. Had you not sent over the last ten million of bonds, we should have been able to close up very soon. I hope now that you will make another call of twenty million at least, because I think it would enable us to purchase more rapidly.
I annex: (1) Copy of declaration of trust. (2) Copy of instructions for drawing checks. (3) Copy of letter from Cashier of Bank of England, stating that the account would be considered personal. (4) Copy of my letter to the Governor of the Bank, asking that your name might be joined. (5) Copy of reply to last mentioned letter.
I am, very respectfully,
Your obedient servant,
(Signed) WILLIAM A. RICHARDSON.
When Cooke & Co. had completed their undertaking, the deposits in the Bank of England exceeded fifteen million dollars, and for three months they were for the most part unavailable, as the five-twenty bonds which had not matured under the calls that had been made were above par in the market. It was a condition of the loan that the five-twenty bonds redeemed should equal the 5 per cent bonds that had been issued, both issued to be reckoned at their par value.
In the month of April, 1872, the Commissioners who had been designated under the Treaty of Washington of 1871 to ascertain and determine the character and magnitude of the claims that had been preferred by the United States against Great Britain, growing out of the depredations committed by the "Alabama" and her associate cruisers, were about to meet at Geneva for the discharge of their duties.
The administration had appointed the Hon. J. C. Bancroft Davis, the most accomplished diplomatist of the country, as the agent of the United States, and the preparation of "the Case of the United States" was placed in his hands.