Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-02-08
CONGRESS INFORMED
The PresideD Sc Is in Financial
Message Today.
A new BOND LOAN NEGOTIATED
But Other Bonds Can Be Substi-
tuted if Congress Acts.
TO PROTECT GOLD RESERVE
TO PROTECT GOLD RESERVE

The President today sent the following
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
i deemed essential to our national welfare
and credit the anxiety and apprehension
then ext ling in business circles have con-
tinued.
As precaution. therefore, against the
failure of timely legislative aid through
congressional action, cautious preparations
have been pending to employ to the best
possible advantage. in default of better
means. such executive authority as may,
without additional legislation, be exer-
cisei for the purpose of reinforcing and
maintaining in our treasury an adequate
and safe gold reserve.
In the judgment of those especially
charged with this responsibility, the busi-
ness situation is so critical and the legisla-
tive situation Is unpromising, with the
omission thus far on the part of the Con-
gress to beneicially enlarge the powers of
the Secretary OF the Treasury In the prem
ises, as to enjoin immediate executive ac-
tion with the facilities now at hand
Therefore, in pursuance of sec tiON 800
of the Revised Statutes, the details of an
arrangement have this day been concluded
with parties abundantly able to fulfill their
undertaking whereby bonds of the United
States, authorized under the act of July
H. 1915. payable in coin, thirty years after
their date. with interest at the rate of
per cent per annum to the amount of a
little less than s62,4O0.O00 are to be issued
for the purchase of gold coin, amounting
to a sum slightly in excess of S65,O0O,00O, TO
be delivered to the treasury of the United
States, which sum. added to the gold low
held in our reserve, will so restore such
reserve as to make 1t amount to some
thing more than SlO0,UO,OOO.
Such a premium is to be allowed to the
government upon our bonds to fix the
rate of interest upon the amount OF gold
realized at 3 and 81 per cent per annum.
At least one-half OF the gold to be obtain
ed Is to be supplied from abroad, which Is
very important and favorable 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 A
per cent coin bonds, other bonds in terms
cent interest. IL the 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 considering all the OBJ
Jects desired, to be the best attainable de-
velopS such a difference in the estimation or
Investors between bonds made payable
In coin and those specifically made payable
In gold in favor of the latter as is rep
resented by 3-4 of a cent in annual inter-
est. In the agreement just concluded the
annual saving in interest to the govern
ment, IL 8 per cent gold bonds should be
substituted for per cent coin bonds under
the privilege reserved, would be S539, 49,
amounting in thirty years, or at maturity
of the coin bonds. to S16.1T4,7IO.
OF course there never should be doubt
in any quarter as to the redemption In
gold of the bonds of the government which
made payable in coin. 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. 1t Is hardly neceS-
sary to suggest that whatever may be our
views on the subject the sentiments or
preferences of those with whom We must
negotiate In disposing of our bonds for gold
are not subject to our dctation.
/ have only to add that, In my opinion,
the transaction herein detailed for the in
formation of the Congress promises better
results than the efforts previously made in
the direction of effectively adding to our
gold reserve through the sale Of bonds; and
/ believe 1T will tend, as far as such action
determination expressed in the law re-
pealing the silver purchasing clause of the
act of July II. 1890, and that in the Ian
guage of such repeating act the arrange
ment made will aid our efforts to insure
the maintenance of the parity in value of
the coins of the two metals and the equal
power of every dollar at all times in the
markets and in the payments of debts"
GROVER CLEVELAND.
Executive Mansion. February $. 1895.