The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1895-02-14
PREsIoENTs MESSAGE.


he Gives HIS Reasons. for Selling More
Bonds-Blsmes Congress for Not Heed
ing His First Warning.
WASHINGTON, Feb. g..-The president
sent the following message to congress
at noon Friday:
To the Congress Of the United States:
Since my recent communication to the con-
gress, calling attention to our financial condi-
tion, and suggesting legislation which deemed
essential TO our national welfare and credit
the anxiety and apprehension then existing in
business circles have continued. AS precau-
tion. therefore, against the failure Of timely
legislative aid through congressional action,
cautious preparations have been pending to
employ to the best possibe advantage in de-
fault OF better means such executive authority
as may, without additional legislation. be ex-
ercised 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 business situation
Is SO critical and the legislative situation is
unprom1slng with the omission thus far on the
part Of the congress to benefcially enlarge the
powers OF the secretary Of the treasury in the
premises as to enjoin immediate executive
action with the facilities now at hand.
therefore. In pursuance Of Section 300
OF the Revised States, the details of an ar
rangement have this day been concluded
with parties abundantly able to fulfIl their
undertaking whereby bonds of the United
States. authorized under the act Of July
a. 1875 payable in coin thirty years after their
date with interest at the rate Of 4 per cent.
per annum to the amount Of little less than
sixty-two millions. And four hundred thous-
and dollars are to be issued for the purchase
OF gold coin amounting to d sum slightly in
excess Of S65.000,000, to be delivered to the
treasury Of the United States. which sum,
added to the gold now held in our reserve, will
u,,ab IA
amount to something more than sI0O-
OOOOOO Such premium is to be al
lowed to the government upon the bonds as to
fix the rate Of interest upon the amount Of
gold realized at 3A per cent. per annum. At
least one-half OF the gold to be obtained ia
to be supplied from abroad, which Is o very
important and favorable feature of the trans
action.
The privilege is especially reserved to the
government to substitute at par within 10 days
from this date in lieu Of the 4 per cent coin
bonds. Other bonds in terms payable in gold
and bearing only per cent. interest II the issue
OF the same should In the meantime be author
lied by congress.
The arrangement thus completed, which,
after careful inquiry. appeaes in present
circumstances. and considering all the OBJ
jects desired to be the best attainable de-
velops such difference in the estimation
OF investors between bonds made payable
In coin and those specifically made payable
Tn gold In favor of tho latter, as is rep
resented by three-fourths of cent in an
nual interest In the agreement just con-
cluded the annual saving in interest to the
government II per cent. gold bonds should be
substituted for per cent. coin bonds under
the privilege reserved, would be $3.50, ,150,
amounting In 30 years, or at the maturity of
the coin bonds, to sl6,174.77O OF course there
never should be q doubt in any quarter
as to the redemption In gold Of the bonds Of
w do oy,1a IN
gold Therefore the discrimination, in the
judgment OF investors. between our bond obli-
cations, payable in coin and those specifically
made payable in gold is very significant
1t is hardly necessary to suggest that what
ever 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 dictation.
have only to add that. in my opinion, the
transaction herein detailed for the informa-
tion Of the congress, promises better results
than the efforts previously made in the direc-
tion OF the effectively adding to our gold
reserve through the sale Of bonds and
i believe it will tend, as far as such action can
In present circumstances, to meet the informa.
tion expressed in the law repeating the silver
purchase clause Of the act of July IA, 1890, and
that in the language of such repeating act the
arrangement made will aid our efforts to .in-
sure 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 mar
kets and in the payment OF debts.i
GROVER CLEVELAND.
Executive Mansion Feb q 1SQ5