The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1895-02-16
CLEVELAND 70 CONGRESS
If They Were Gold Bonds Interest
Would Be 8 Per Cent.
The Dilemma Respectfully Re-
ferred to Congress.
The President Gives linking of the Recent
Bond Neso,iations-The option the
Treasury Has Re,ained of Sub
stituting Gold Bonds at
~ Lower Rate of
Yntarost. r

Washington. Feb. S.-The president
sent the following message to congress
Ut noon today:
TO the Congress of he United
State: Since my recent communication
to the congress calling attention to u
financial condition and suggesting leg
lslation which I deemed essential to
our national welfare and credit, the
anxiety and apprehension then existing
in business circles have continued.
A a p%recaution. therefore. against
the failure of timely legislative aid
through congressional action, cautious
preparations have been pending to EN-
ploy to best possible advantage, In
lefault of better a such executive
authority as may, without additional
legislation, be exercised for the purpose
IF reinforcing and maintaining in our
treasury an adequate and safe gold re-
serve. ,
In the judgment of those especially
charged with this responsibility, the
business situation is so critical and the
legislative situation is so unpromising,
With the omission thus far on the part
Of congress to beneficially enlarge the
powers of the secretary of the treas
lry in the premises, as to enjoin inn
mediate executive action with the ia
,ilities now at hand.
Therefore, in pursuance of section
300 of the revised statutes, the details
If an arrangement a this day been
concluded With parties able TO
fulfill their undertaking, whereby bonds
II the United States authorized under
The act of July IA, 1875, payable in coin,
thirty years after their date with inter-
est at the rate of 4 per cent per nun
20 the mount of a little less Than $62,-
l00,0 900 are to be issued for the purpose
If obtaining gold coin amounting to a
sum slightly In. excess of SOS. 000, 900, to
be delivered to the treasury of the
United States, which sum. added to the
gold now held In our reserve. will so re-
store such reserve as to make it amount
70 something more than 500, 900, 900.
Such a premium Is to be allowed to the
government pon the bonds as to fix
he rate of interest upon the amount of
sold realized at az per cent per annum.
At least one half of the gold to be OBJ
.ained Is to be supplied from abroad,
which is a very important and faVora-
Bile feature of the transaction. The
privilege is especially reserved to the
government to substitute at par within
ten days from this date in lieu of the 4
per cent coin bonds other bonds in
;erms payable in gold and bearing only
! per cent interest if the issue of the
same should in the meantime be au-i
:horiZed by congress. 7
1.-The arrangement thus completed,
which, after careful inquiry, appears in
present circumstances and considering
all the objects desired to be the best at
tainable, develops such a difference in
the estimation of investors between
bonds made payable in coin and those
specifically made payable in gold in ia
vor of the latter, as is represented by
three-quarters of a cent in annual in
~terest. In the agreement just conclud-
ed the annua saving in interest to the.
government on 8 per cent bonds, should
they be substituted for 4 per zen coin
bonds under the privilege reserved,
would be S539. 159, amounting in thirty
years, or at the maturity of the coin
bonds, to SIG, ia, 40. OF course there
could never be a doubt in any quarter
as to the redemption in gold Of the
bonds of the government, even those
which are not made specifically payable
in gold. Therefore the discrimination,
in the judgment of investors, between
our bond obligations payable in coin
and those specifically made payable in
gold is very significant.
"It is hardly necessary to suggest
that, whatever may be our views on
the subject. the sentiments or prefer
ences of those with whom we must ne
gotiate in disposing Of u bonds for
gold are not subject to our dictation. I
have only to add that, in my opinion,
the transaction herein detailed for the
Information of the congress promises
better results than the efforts previ-
ously made in the direction of effect
lively adding to u gold reserve
through the sale of bonds; and / be-
lieve 1t will tend, as far as such action
can in the present circumstances, to
meet the determination expressed in
the law repeating the silver purchasing
clause of the act of July IA, 1880, and
that in the language of such repeating
act the arrangement made will aid our
efforts to insure the maintenance Of
the parity in value Of the coin of the
two metals and the equal power of ev-
cry dollar at all times in the markets
and in the payment OF debts.
Grover Cleveland"
Executive Mansion, February s, 1895.
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L r. n r A~~A N~N n So