"Third. That the Secretary of the Treasury shall not sell, during the continuance of this contract, any bonds other than such as by act of Congress may be provided to be sold for the payment of the Halifax or Geneva award, and the four per cent. consols of the United States, and those only for refunding purposes, except by mutual agreement of the parties hereto.
"Fourth. The parties of the second part agree to pay for the said four and a half per cent. bonds par and one and a half per cent. premium and interest accrued to the date of the application for the delivery of said bonds, in gold coin or matured United States gold coin coupons, or any of the six per centum 5-20 bonds heretofore called for redemption, or in United States gold certificates of deposit issued under the act of March 3, 1873, or in gold coin certificates of deposit of authorized designated deposit, and that have complied with the law.
"Fifth. The parties of the second part shall receive in gold coin a commission of half of one per centum on all bonds taken by them under this contract, as allowed by the act of July 14, 1870, and shall assume and defray all expenses which may be incurred in sending the bonds to London or elsewhere, upon their request, or by transmitting the bonds, coupons, or coin to the treasury department at Washington, including all cost of making the exchange. The bonds shall also be charged with the cost of preparation and issuing of the bonds.
"Sixth. No bonds shall be delivered to the parties of the second part, or either of them, until payment shall have been made in full therefor, in accordance with the terms of this contract.
"Signed by John Sherman, Secretary of the Treasury, J. & W. Seligman
& Co., Morton, Bliss & Co., August Belmont & Co., the First National
Bank of New York, Drexel, Morgan & Co.; and by Assistant United
States Treasurer Thomas Hillhouse and E. J. Babcock, as witnesses."
The importance of this contract and the open publicity of the negotiation, created quite a sensation in the newspaper press, which presented a medley of praise and censure. All varieties of opinion from extravagant flattery to extreme denunciation were visited upon me by the editors of papers according to their preconceived opinions. I made no effort at secrecy, and no answer to either praise or blame, but freely contributed any information in respect to the matter to anyone, whether friendly or otherwise, who applied to me. Perhaps as accurate a statement as any, of my opinions, was made by George Alfred Townsend, over his nom de plume of "Gath," in the New York "Graphic" of April 12, 1878. He said:
"At four o'clock yesterday afternoon John Sherman, the Secretary of the Treasury, was sitting in Parlor No. 1, the ante-room of the late Republican national committee, when I followed my card into his presence. 'Ah!' he said, rising from an easy chair where he was resting, like one recently wearied but now relieved. 'Come in; it's all over now, and I don't mind telling you about it.'
'Yes, it's all over Wall street, and I think opinion was more favorable to the syndicate getting the bonds than the bank presidents.'
'The representatives of the banks were very polite and well-meaning,' said the secretary. 'I sent word that I was coming to the city and asked the national banks, as intimately related to the treasury department, to select persons to meet me. I also notified the members of the old syndicate that I had some propositions to suggest to them.'
'This is your third visit on the general object of resumption? A very eventful visit, isn't it, in the story of our finances?'