George Bancroft, the eminent historian, lived in Washington for many years during the latter part of his life. His house was always an attractive and hospitable one. I had many interesting conversations with him, mainly on historical subjects. Both of us carefully eschewed politics, for to the end of his life, I think, he always regarded himself as a Democrat. I insert an autograph letter from him, written at the age of eighty-one.

"1623 H Street, } "Washington, D. C., February 22, 1881.} "My Dear Mr. Sherman:—I thank you very much for the complete statement, you were very good to send me, of the time and amounts of payments made to Washington as President. Congratulating you on the high state of the credit of the United States, I remain, ever, dear Mr. Secretary,

"Very truly yours,
"Geo. Bancroft."

Before closing my recollections of the administration of President Hayes I ought to express my high appreciation of my colleagues in his cabinet. It was throughout his term a happy family. I do not recall a single incident that disturbed the sincere friendship of its members, nor any clashing of opinions that produced discord or contention. Neither interfered with the duties of the other. The true rule was acted upon that the head of each department should submit to the President his view of any important question that arose in his department. If the President wished the opinion of his cabinet on any question, he submitted it to the cabinet but took the responsibility of deciding it after hearing their opinions. It was the habit of each head of a department to present any questions of general interest in his department, but as a rule he decided it with the approbation of the President. Evarts was always genial and witty, McCrary was an excellent Secretary of War. He was sensible, industrious and prudent. Thompson was a charming old gentleman of pleasing manners and address, a good advocate and an eloquent orator, who had filled many positions of honor and trust. The President regretted his resignation, to engage in the abortive scheme of De Lesseps to construct the Panama Canal. Attorney General Devens was a good lawyer and judge and an accomplished gentleman. He frequently assisted me in my resumption and refunding operations, and, fortunately for me, he agreed with me in my opinions as to the legality and expedience of the measures adopted. General Carl Schurz was a brilliant and able man and discharged the duties of Secretary of the Interior with ability. I had known him in the Senate as an admirable and eloquent debater, but in the cabinet he was industrious and practical and heartily supported the policy of the President and was highly esteemed by him. Key, of Tennessee, was selected as a moderate Democrat to represent the south. This was an experiment in cabinet making, cabinets being usually composed of members of the same party as the President, but Key proved to be a good and popular officer. The two vacancies that occurred by the resignations of McCrary and Thompson were acceptably filled by Governor Ramsey, of Minnesota, and Goff, of West Virginia. Each of these gentlemen contributed to the success of Hayes' administration, and each of the heartily sympathized with, and supported the measures of, the treasury department.

On the 4th day of March, 1881, I attended the special session of the Senate, called by President Hayes, and took the oath prescribed by law. In conformity with the usages of the Senate, I lost my priority on the committee on finance by the interregnum in my service, but was made chairman of the committee on the library, and a member of the committees on finance, rules, and privileges and elections. Mr. Morrill, of Vermont, became chairman of the committee on finance, and, by the courtesy of the other members, I was placed next to him on that committee. Our relations since our entrance together, in 1854, into the House of Representatives had been so intimate and cordial that it made no practical difference which of us sat at the head of the table. When I recalled the facts that in both the Senate and House of Representatives I had been chairman of the financial committee, and Mr. Morrill a member, that my service in the treasury department did not impair my fitness as chairman, but rather improved it, and that under precisely the same conditions I had restored to Mr. Fessenden his former position, I felt piqued, but my feelings did not extend to Mr. Morrill, for whom I had the highest respect and confidence, and with whom I rarely differed on any public question. He is now the Nestor of the Senate, wonderfully vigorous in mind and body.

The chief subject of political interest in this session was the attitude of William Mahone, a Senator from Virginia. He had been a distinguished officer in the Confederate army, was a small man physically, but of wonderful vitality, of undoubted courage and tenacity. He had broken from the Democratic party, of which he had been a member, and had been elected a Senator on local issues in Virginia, arising chiefly out of the debt of that state. When he entered the Senate, that body was so equally divided that his vote would determine which party should have the control of its organization. He quickly made his choice. He was viciously assailed by Senator Hill, of Georgia, who, not by name but by plain inference, charged Mahone with disgracing the commission he held. The reply of Mahone was dramatic and magnetic. His long hair, his peculiar dress and person, and his bold and aggressive language, attracted the attention and sympathy of the Senate and the galleries. He opened his brief speech as follows:

"Mr. president, the Senator has assumed not only to be the custodian here of the Democratic party of this nation; but he has dared to assert his right to speak for a constituency that I have the privilege, the proud and honorable privilege on this floor, of representing without his assent, without the assent of such Democracy as he speaks for. I owe them, sir, I owe you [addressing Mr. Hill], and those for whom you undertake to speak, nothing in this chamber. I came here, sir, as a Virginian, to represent my people, not to represent the Democracy for which you stand. I come with as proud a claim to represent that people as you to represent the people of Georgia, won on field where I have vied with Georgians whom I commanded and others in the cause of my people and of their section in the late unhappy contest, but, thank God, for the peace and good of the country that contest is over, and as one of those who engaged in it, and who has neither here nor elsewhere any apology to make for the part taken, I am here by my humble efforts to bring peace to this whole country, peace and good will between the sections, not here as a partisan, not here to represent the Bourbonism which has done so much injury to my section of the country."

The debate that followed soon settled the position of General Mahone. He acted with the Republican party. During the whole of this session, which extended to May 20, little was done except to debate Virginia politics, of which Mahone was the center. His vote was decisive of nearly every question presented. I took part in the long debate on the election of officers of the Senate, mainly with Senator Bayard. My sympathy was with Mahone, as I felt that, whatever his view of the debt question in Virginia was, he was right on the reconstruction of the south and in opposition to the bitter sectionalism of the Democratic party in that state. In replying to Mr. Bayard I said I agreed with him in the principle that the majority must rule. I claimed, however, that when the action of a minority went beyond a reasonable delay it became revolution and, in a word, was worse than revolution, it was treason; that under the senate rules, and in conformity with them, this government might be as absolutely destroyed as the southern Confederates would have destroyed it if they had succeeded; that the rules were intended to be construed with reason and judgment; that the minority had certain rights to interpose dilatory motions in order to delay and weary out the will of the majority, but when it went beyond that limit it entered upon dangerous ground; that the simple question was whether the Senate should elect its officers by a majority vote or whether the minority should force the retention of those then in office. The session closed without electing officers of the Senate, and was in substance a debating society doing nothing but talk and acting upon presidential appointments.

The cabinet of President Garfield, as finally selected, was a good one and was promptly confirmed. Mr. Blaine, for the head of it, was determined upon early after the election, but the other members were not decided upon until near the inauguration. Mr. Windom certainly proved himself a very able and accomplished Secretary of the Treasury during the short period of his tenure. As I held myself in a large measure responsible for his appointment, I took a great interest in his success. He conferred with me freely about the best mode of refunding the large amount of bonds that became due on or before the 1st of July. Congress having failed to pass any law to provide for the refunding of this debt, he resorted to an ingenious expedient, which answered the purpose of refunding. Under a plan which was his own device there were called in, for absolute payment on July 1, 1881, about $200,000,000 of bonds, mainly the six per cent. bonds of 1861, but permission was given to the holders of the bonds to have them continued at the pleasure of the government, with interest at the rate of three and a half per cent. per annum, provided the holder should so request, and the bonds should be received at the treasury for that purpose on or before the 10th of May, 1881. The plan proved entirely satisfactory. There were presented in due time, for continuance at three and a half per cent., the amount of $178,055,150 of bonds, leaving to be paid off from surplus revenue $24,211,400, for which the treasury had ample resources. Having succeeded in disposing of the six per cent. bonds, he gave notice that the coupon five per cent. bonds of the loans of July 14, 1870, and January 20, 1871, would be paid on August 12, 1881, with a like privilege of continuing the bonds at three and a half per cent. to such of the holders who might present them for that purpose on or before July 1, 1881. At the same time the treasurer offered to receive for continuance any of the uncalled registered bonds of that loan to an amount not exceeding $250,000,000, the remainder of the loan being reserved with a view to its payment from the surplus revenues.

The annual saving in interest by the continuance of these bonds amounted to $10,473,952.25. I heartily approved this plan. In a reported interview of the 14th of April I said: