Failing re-election by just fifty-three votes in 1870, Schenck was appointed by President Ulysses Grant as Minister to the United Kingdom, and he sailed for England in July 1871. As a member on the Alabama Claims Commission, he took part in settling the claims arising from the exploits of Raphael Semmes and his Confederate raider. In his book "History of Monetary Systems", historian Alexander Del Mar intimates on p. 488 and 489 that Schenck was instrumental in passing a bill denominating currency in only gold, whereas it had been previously redeemable in silver, as well. This is significant as it relates to the panic of 1873.