The Union times. [volume] (Union, S.C.) 1894-1918, 1895-02-15
BONDS TO BE ISSUED.
President Cleveland Sends Another
Special Message to Congress-.


To the Congress of the United States
Since my recent communication to
the Congress calling attention to our
financial condition and suggesting
legislation which | deemed essential
TO our national welfare and credit, the
anxiety and apprehension then exist
ing in business circles have continued.
AS Il precaution, therefore, against
the failure of timely Legislative aid,
through Congressional action, cautious
preparations have been pending to
employ to the best possible advantages
In default OF better means, such eXecu-.
tive authority as may without addi-
tional legislation, be exercised for the
purpose of reinforcing and maintaining
in our treasury an adequate. and safe
gold reserve. In the judgement of
those especially charged with this re-
sponsibility, the business situation is
SO critical and the Legislative situation
is so unpromising with the omission
thus far on the part of the Congress to
bCnehcially enlarge the powers OF the
secretary Of the treasury in the pre-
misses, as to enjoin immediate execu;
tive action of the facilities now at
hand.
Therefore, in pursuance Of secutiou
300 of the revised statutes, the de-
tails of an arrangement have this day
been concluded with parties abundant
ly able to fulfill their undertaking.
whereby bonds of the United States
authorized under the act of July ii,
1870, payable in coin. thirty years after
their date with interest at the rate of
per cent per annum to the amount Of
little less than siXty-two millions and
four hundred Thousand dollars, and to
be issued for the purchase of gold coin
amounting To IL sum slightly in excess
Of SiXty-tive millions OF the United
States, which sum, added to the gold
now held in our reserve, will so restore
such reserve us to make it amount
to something more than one hundred
millions OF dollars. Such premium is
to be allowed to the government upon
the bonds as to fix the rate Of interest
upon the amount OF gold realized at
the rate OF three and threc-fourths per
cent per annum. .s''
At least one half Of the gold to be
obtained is to be supplied from abroad,
which is very important and favor
able feature Of the transaction. The
privilege is especially reserved to the
government to substitute at par with
in ten days from this date, in lieu of
the 4 per cent coin bonds, other bonds
in terms payable in gold and bearing
only 3 per cent OF tho issue of the same
should, in the meantime, be authorized
by the Congress.
The arrangement thus completed
which after careful inquiry appears
in present circumstances and consider
ing all tue objects desired, to be the
best attainabc, develops such diff
ference in the estimation of investors
between bonds made payable in coin
and those specifically made payable in
gold in favor of the latter as is repre-
sented by three-fourths of cent in
annual interest.
In the agreement just concluded,
the annual saving to the government
of per cent gold bonds should be sub
Stituted for 1 per cent coin bonds under
the privilege reserved, would be five
hundred and thirty-nine thousand, one
hundred and fifty-nine dollars, amount
ing in thirty years, or at the maturity
OF the coin bonds, to sixteen million
one huGdred and scvcnty-four thou
sand, seven hundred and seventy dol
lars.
! or courses there, never. should be
doubt in any quarter as to redemption
| in gold of tho bonds Of the govern
ment which are made payable in coin
| Therefore tho Discrimination in the
| judgment of Investors between our
bond obligations payable in coin and
those specifically made payable in gold
is very significant. 1t is hardly neces-
sary To suggest that whatever may be
our views on the subject, the scnti-
ments or preferences Of those with
whom we must negotiate in disposing
our bonds for gold are not subject to
our dictatiDn.
have only to add, that in my opinion
the transaction here intimated for the
Information OF Congress promises bet
ter results than the efforts previously Y