'Well, both my previous visits were important—in May, 1877, when $200,000,000 of four and a half per cent. bonds were disposed of, and again last June, when $75,000,000 of the four per cent. bonds were subscribed for. The present visit is probably the last with such an object. I feel glad and relieved.'

'You failed to get the bank philosophers to get you the $50,000,000 of gold?'

'I thought I could see that they did not mean to enter into the subscription. They all said they wanted to see resumption achieved, and would like to aid it, but spoke of their obligations to their commercial customers. They said too, that they would have to rely on brokers to get the gold and pay commissions for it, and were afraid it might be run up on them. One or two, perhaps, expected a more advantageous offer as to rates—indeed, wanted me to pay them a commission for selling our bonds at par. I can excuse them, because they will have to be looking after the redemption of their own circulation.'

"I suggested to the secretary that some of the bank presidents had discouraged resumption or treated it as a figment.

'When the congressional committee was over here,' he answered, 'there was something said about the advantage of getting priority in the line on resumption day; but that is nothing. They were very civil, but didn't see the proposition favorably.'

'Is there any disadvantage in negotiating through the syndicate?'

'No, there is an advantage in this respect; they sold the higher bonds abroad, and taking these will also place a part of them there, facilitating exchange in commercial settlements and interestedly maintaining prices. A portion of these low bonds ought to locate in Europe.'

'Speaking of exchange, Mr. secretary, the idea has been put forward here, in the fiscal form, I believe, that a large, round balance of trade in our favor indicates poverty and collapse. Is that good political economy?'

'There are nations,' said the secretary, 'like England, which have steady apparent balances of trade against them, yet show a great prosperity. But that is only the product of English money invested in foreign places and colonies; it is an apparent purchase, but really their own harvest. No nation that is greatly in debt, as we are, can observe real balances of trade overwhelmingly against us and not feel alarmed.'

'Do you expect any opposition from Congress as the reply to this negotiation and the near probability of specie payments?'