The National tribune., 1895-02-14
NEW BOND LOAN.
The President Tells of a Contract with
Syndicate.

1he preslueDt 1e1is OF u with
Syndicate.
The President sent the following message to
Congress last Friday:
Since my recent communication TO the Congress
calling attention TO our financial condition and
suggesting legislation which deemed essential TO
our National welfare aud credit. the anxiety and
apprehension then existing In business circles have
continued.
As precauiion, therefore. aganst the failure of
timely legislative aid through Congressional action,
cautious preparations have been pcuding TO employ
TO the best possible advantage In default OF better
means. such Executive authority as may, without
additional legislation, be exercised for the purpose
of reinforcing aud maintaining In our Treasury an
adequate and safe gold reserve.
In the Judgment Of those especially charged with
this responsibility the business situation is cri
cal and the legislative situation is unpromsing,
with tie omission thus FAR on the part OF Congress
TO beneficialy enlarge the powers of the Secretary
of the Treasury in the premises to enioin immo
diate Executive action with the facilities now at
hand.
Therefore I'm pursuance of Section 300 Of the Re-
yised Statutes the details of arrangement have
this day been concluded with parties abuudsntly
able 10 fuhll their undertaking. whereby bonds OF
the United States authorized under the act Of July
II. 1875 payable in coin 30 years after their date,
with interest ut the rate of per cent. un,
be issued for the purchase Of gold coin, Htnounting
10 slightly in excess Of goo, to be de-
ivered to the Treasury of the United States, which
sum. added to the gold now held in our reserve.
will so restore such to make II amount
TO something more than Sl00. 900 600.
Such premium Is to be allowed to the Govern
ment upon bonds to fx the rate of interest
upon the amount of gold realized at 81 per cent.
per annum. At least one. half of the gold TO be
obtained il to be supplied from abroad which Is a
very important and favorable feature OF the trans
action.
The privilege is especially reserved to the Gov
eminent TO substitute at par, within 10 days from
this date, in lieu Of the four per cent coin bonds
other bonds in terms payable In gold. aud bearing
only three per cent interest," fthe issue of tho
Ia th< antfp he aathn ixeh ~ tha
Congress.
The arrangement thus completed. which. after
careful inquiry. appears In present circumstances.
and considering all the Obj ecs desired. TO be the
best aitainabe. develops such q difference In the
estimation of investors between bonds made pay
able IN coin and those specifically made payable
in gold in favor Of the latter IL represented by
,hree-fourths of cent In annual interest. In the
agreement Just concluded the annual saving In In
tercet the Government. II three per cent. gold
bonds should be substituted for four per cent coin
bonds under the privilege reserved, would be $3.50.
l59, amounting In 80 years, or at maturity Of the
! coin bonds, 10 SIG, ia, 40.
OF course there never should be doubt in any
quarter ns 10 the redemption In gold Of the bonds
OF the Government which are made payable In
| coin. Therefore the discrimination in the judy
ment Of investors between our bond obligations
/ payable ia coin and those specifically made pay
able In gold Is very sufficient IL IL hardly neces-
sary to suggest that whatever may be our views on
the subject tie sentiments preferences OF those
with whom must negotiate Ia dsposing OF our
| bonds for gold are not subject to dlciaiion.
nave only 10 hnu tDat ia my oplbion, INC tIans
action herein detned for the infor alton OF the
Congress promises better results than the efforts
| previously made in the direction Of effectively
| adding To our gold reserve through the sale o
| bonds and believe IL will tend, as far as such
| action can in present circumstances, to meet the
determination expressed In the law repeating ths
sver-purchasing clause OF the act OF July u. 1890
aud that in the language OF such repeating act thu
| arrangement made will aid our efforts TO 'iDsur,
the maintenance of the parity in value of the con
of the two metals and the equal power of every
dollar all times in the markets and in the pay
! ments Of debts. GROVER CLEVELAND.
/ Executive Mansion, Feb. 8. 1895.