"Treasury Department, April 19, 1878.
"Hon. Thomas Ewing, Acting Chairman Committee on Banking and
Currency, House of Representatives.
"Sir:—In compliance with your request of the 18th instant, I inclose herewith a copy of the contract recently made with a syndicate of New York bankers for the sale of four and a half per cent. bonds. The only previous correspondence on this subject was a letter sent to said bankers and one to the presidents of certain national banks, copies of which are inclosed.
"In response to your question as to the amount of accrued interest that will be allowed to the syndicate at each payment on account of such sales, I have to reply that no accrued interest is paid to them, but, as you will see by the fourth paragraph of said contract, they are to pay the United States the amount of interest accrued on the bond up to the time of payment for it, in addition to the premium of one and a half per cent. The interest on the four and a half per cent. bonds accrued on the 1st of March, and therefore, the interest is added from that date to the date of payment for the bonds.
"The amount of commission to be paid is fixed by law at one-half of one per cent., but out of this the associates are to pay all expenses incurred by them in the sale, and reimburse the United States all expenses incurred by it as stated by said contract in paragraph 5.
"Very respectfully,
"John Sherman, Secretary."
No further action was taken by the committee on banking and currency.
Subsequently I wrote Mr. Ewing the following letter:
"May 21, 1878. "Dear Sir:—I notice the crazy barkings of Buell in the 'Post' about the syndicate, and favors granted to it by me.
"I wish to say to you that nothing would please me better than to have the banking and currency committee examine into this matter, and I am quite sure you will be gratified that the result will be to my credit.
"I have no desire to dignify this by asking an investigation, but only to say to you privately, as a personal friend, that I court, rather than fear, such an inquiry.
"Very truly yours,
"John Sherman.
"Hon. Thomas Ewing, House of Representatives."