I sent word to others that I demanded them to pay what they could on their paper, and then returned to the bank, to meet Hammond.

In due time, he came down with Palmer (of Palmer, Cook & Co.), and there he met Smiley, who was, of course, very anxious to retire his notes.

We there discussed the matter fully, when Hammond said, "Sherman, give me up my two acceptances, and I will substitute therefor my check of forty thousand dollars," with "the distinct understanding that, if the money is not needed by you, it shall be returned to me, and the transaction then to remain statu quo." To this there was a general assent.

Nisbet handed him his two acceptances, and he handed me his check, signed as collector of the port, on Major J.R.

Snyder, United States Treasurer, for forty thousand dollars.