"At eleven o'clock called on Mr. Boutwell, the Secretary of the Treasury, at Parker's Hotel, according to agreement. Found him alone in his minute bedroom. He soon opened his subject--handed over to me a packet from Governor Fish, and said that it was the desire of the Government, it I could find it consistent with what they understood to be my views of the question of indirect damages, that I would make such intimation of them to persons of authority in London as might relieve them of the difficulty which had been occasioned by them. I told them of my conversation held with the Marquis of Ripon, in which I had assumed the heavy responsibility of assuring him that the Government would not press them. I was glad now to find that I had not been mistaken. I should cheerfully do all in my power to confirm the impressions consistently with my own position."
Thus, through Mr. Adams, the claim for "indirect damages" was relinquished. When the fact of the disturbed relations between the United States and Great Britain became public there was a panic in the London stock market, and in the brief period of eight and forty hours our deposit of twelve million or more in the Bank of England was converted into five-twenty United States 6 per cent bonds, purchased at par.
In my annual report for December, 1872, I was able to make this statement:
"Since my last annual report the business of negotiating two hundred million of 5 per cent bonds, and the redemption of two hundred million 6 per cent five-twenty bonds has been completed and the accounts have been settled by the accounting officers of the Treasury.
"Further negotiations of 5 per cent bonds can now be made on the basis of the former negotiation."
The greatness of General Grant in war, in civil affairs, and in personal qualities which at once excite our admiration and deserve our commendation, was not fully appreciated by the generation to which he belonged, nor can it be appreciated by the generations that can know of him only as his life and character may appear upon the written record. He had weaknesses, and of some of them I may speak; but they do not qualify in any essential manner his claim to greatness in the particulars named. He was not fortunate in the circumstances incident to the appointment of his Cabinet. The appointment of Mr. Washburne as Secretary of State for the brief period of one or two weeks was not a wise opening of the administration, if the arrangement was designed, and was a misfortune, if the brief term was due to events not anticipated. The selection of Mr. Fish compensated, and more than compensated, for the errors which preceded his appointment. The country can never expect an administration of the affairs of the Department of State more worthy of approval and eulogy than the administration of Mr. Fish. Apparently we were then on the verge of war with Great Britain, and demands were made in very responsible quarters which offered no alternative but war. The treaty of 1871, which was the outcome of Mr. Fish's diplomacy, re-established our relations of friendship with Great Britain, and the treaty was then accepted as a step in the direction of general peace.