Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1895-02-16
CLEVELAND TO CONGRESS
II They Were Gold Bonds interest
Would Be 3 Per Cent.
The Dilemma Respectfully Re-
ferred to Congress.
The President Gives linking OF the Recent
Bond Negoiistions--1he Option the
Treasury Has Retained Of sub
stituting Gold Bonds at
~ Lower Rate of
Interest.

Washington, Feb. S.-The president
sent the following message to
II oon today:
ITO the Congress of the United
state: Since my recent communication
10 the congress calling attention To our
financial condition and suggesting leg
lslation which / deemed essential 10
our national welfare and credit. the
anxiety and apprehension hen existing
IN business circles have continued.
las a precaution, therefore. against
the failure of timely legislative aid
through congressional action. cautious
preparations have been pending to en-
ploy to best possible advantage, In
iefault of better means, such executive
authority M may. without additional
legislation. be exercised for the purpose
# reinforcing and maintaining In our
treasury an adequate and safe gold re-
serve.
"ln the Judgment OF those especially
,harged with this responsibility, the
business situation Is so critical and The
legislative situation is SO unpromising.
with the omission thus far on the part
If To beneficially enlarge the
powers OF the secretary Of the treas
Try in The premises, as to- enjoin inn
mediate executive action with the fa-
.ilities now at hand.
Therefore, in pursuance Of section
1900 Of the revised statutes. the details
II an arrangement have his day been
concluded with parties able 10
'ulhll their undertaking. whereby bonds
If the United States authorized under
the act of July il, 1875. payable I'm coin.
thirty years after their date with inter
.st at the rate Of 1 per cent per annum,
% the amount Of a little less h $62.-
100, 900 are To be issued for the purpose
Of obtaining gold coin amounting to a
sum slightly in excess Of $6j. 000, 900, to
pc 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 Co make IL amount
20 something more than $780, 600, 900.
Such a premium is to be allowed to the
government upon the bonds as TO fix
he rate OF interest upon the amount of
gold realized at 3A per cent per annum.
At least one half Of the gold to he OBJ
aimed Is to he supplied from abroad.
which Is a very important and favora-
Die feature Of the transaction. The
- ~ W ~ - NolN'Aats iNH'i W. W. nv
government to substitute at par within
ten days from his date i'm lieu of the 4
per cent coin bonds other bonds in
terms payable in gold and bearing only
) per cent interest If the issue OF the
same should in the meantime be au-
.horized by congress.
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 Il difference In
the estimation of investors between
bonds made payable in coin and those
specifically made payable in gold in IA
'or of the latter, as is represented by
In the agreement just conclude
ed the annual saving i'm interest To the
government on 3 per cent bonds, should,
they be substituted for 4 per cent coin
bonds under the privilege reserved,
would be $539. 1853, amounting i'm thirty
or at the maturity of the coin
bonds, To SIG, la. 40. OF course there
could never be a doubt i'm n 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 I'm.
gold is very significant.
1T 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 i'm disposing OF our bonds for
gold are not subject to our dictation. /
have only To add that, I'm 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 our gold reserve
through the sale Of bonds; and 1 be-
lieve IL will tend, az far as such action
In the present circumstances, to
meet the determination expressed In
the Law repeating the silver purchasing
clause of the act OF July IA, 1890. and
that i'm the language OF such ~repealing
act the arrangement made will aid bur
efforts to insure the maintenance OF
the parity In value of the coin of the
W metals and the equal power of ey-
cry dollar at all times i'm the markets
and In the payment OF debts.
Grover Cleveland
Executive Mansion. February S, 1895.