Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-02-14
8 PER CENT BOND.
THE JOINT RESOLUTION REPORT
ED ny CHAIRMAN WILSON.
and Redeemable In
Thirty.Three Years-COntract I'm.
tered Into by the Secretary Of the
Treasury with the Rothschilds.

ported 10 the House the joint resoiut'oh
agreed upon in committee this morning.
authorizing the issuance Of a thirty-year
3 per cent. interest-bearing gold bond.
The report accompanying the resolution
includes a copy OF the Presidents mes
I sage to Congress bearing upon the subject,
and also a copy Of the contract made
by the Treasury Department with the Eu-
ropean syndicate for the purchase OF the
new bonds. Continuing the report says
THE committee have had the benefit OF
conference with the Secretary OF the
Treasury. who exhibited to them the
original contract entered into by himself
on the sth day OF February and explained
Its details to them. A full and complete
copy of said contract is hereto added.
From a reading OF this paper 1t will be
seen that the arrangement OF the Secreta-
ry with the parties to this contract
affects the purchase Of $4,000 ounces
Of gold coin Of the United states
amounting to s6S.il6275). at last
one half Of which shall be obtained
In. and shipped from Europe. For this
gold coin he has contracted to issue to
the parties furnishing it, under authority
payments. approved January 4. 1915. per
cent. thirty-year coin bonds Of the United
States at price which realizes to them
interest al the rate of 3-4 per cent.
RESERVED THE RIGHT.
But the Secretary of the Treasury has
reserved the right OF authority given him
by Congress to subscribe at par any bonds
Of the United States. bearing per
cent. interest. of which the principal and
interest shall be specifically payable IN
United States gold coin. OF the present
wight and fneness; said subscription,
however. TO be made within ten days from
the date of the contract. 1t Ia the oD-
ject of the Joint resolution. herewith re-
ported. to give to the Secretary OF the
Treasurer authority TO subscribe such
bonds to the amount Of the contract
THE saving 10 be effected BY the gov
ment, as set forth In the Presidents mes
sage. will be $53s l59 per year. for every
year the per cent. bonds run. and or
the amount Of sl6.lA,'7o should they run
thirty years: as II Is not believed py
that committee. that the Issue OF bonds
specifically payable In gold Will impose
any additional burden or liability upon
the government, than II they are made
payable In coin. under It's pledge ana
policy to preserve the parity Of the coins
the saving of this large amount be-
comes a matter OF substantial moment.
and advantage to the government. And
as the psrtjes to take the bonds are
under contract to furnish gold for them.
IL seems no hardship on the government
TO contract to pay them back in the same
coin that they furnish to it,
Following is the text of the contract
btween the Treasury and the syndicate:
This agres ment entered into this Sth day
OF February. 1886. between the Secretary
of the Treasury Of the United States OF
the first part. and Messrs. August Bel
mont & Co. Of New York. on behalf OF
Msssrs n. NJ. Rothschild & Sons Of Lon
don. Eng. and themselves. and Messrs.
j. T. Morgan & CO., of New York. on be-
half Of Messrs. J. S. Morgan & Co. OF
London, and themselves; and parties or
the second part. wltnesseth: Whereas II
IL provided by the revised statutes OF the
United States ,section 370C). that the Secre-
tary Of the Treasury may purchase coin.
with any Of the bonds or notes OF the
United States authorized by law. at such
rates and upon such terms as he may
deem most advantageous to the public
interests and the Secretary Of the Trea-
sury now deems that an emergency sx-
lists In which the public interests require
that as herein provided. coin shall be
purchased with the bonds Of the United
States Of the description hereinafter men
toned. authorized TO be issued under the
ict entitled An Act to Provide for the
Resumption OF Sps Gle Payments" ap-
proved January l, 1875. being bonds OF the
United States described in an act OF Con-
gress approved July II. 1875. entitled, IAN
Act to Authorize the Refundng OF the
National Debt now therefore, the said
parties of the second part hereby agree
to sell and deliver TO the United States
3. 800 900 ounces Of standard gold coin
of the United States. at the rate
of slTSih per ounce, payable
in United States 4 per cent thrty-year
coupon or registered bonds; said bonds |
to be dated February 1. 1895. and payable |
at the pleasure of the United States after
thirty years from date. issued under the |
acts Of Congress of July l, 1886. January |
-. 1911. and January l. 1875, bearing inter- |
est at the rate OF per cent. per annum. |
payable quarterly.
CONDITIONS.
First Such purchase and sale OF gold |
coin being made on the following condi- |
tions: % AT least one half of all coin de-
livered hereinunder shall be obtained in, |
and shipped from Europe. but the ship |
ments shall not be required to exceed /
10000 ounces per month; unless the par
ties OF the second part shall consent |
thereto: % all deliveries shall be made
at any OF the sub-treasuries or at any |
other legal depository Of the United |
States CD all gold coins delivered shall |
be received on the basis Of 25.S-l6 grains OF
standard gold. per dollar. II within the
limit of tolerance: D bonds delivered
under this contract are TO be delivered ]
free of accrued interest, which Is TO be
assumed and paid by the parties or the
second part ut the time Of their delivery
to them.
Second. Should the Secretary OF the
Treasury desire 10 offer or sell any bonds
OF the United States on or before October
|. 1885. he shall first offer the same to
the parties Of the second part; but there
after he shall be free from every such
obligation to the parties OF the second
part
WITHIN TEN DAYS.
Third. The Secretary Of the Treasury
hereby reserves the right, within ten
days from the date hereof. in case ne
shall receive authority from Congress |
therefor, 10 substitute any bonds of the
United States bearing per cent. interest,
OF which the principal and interest shall
be specifically payable In United States
gold coin. OF the present weight and fine
ness. for the bonds herein alluded to;
suSh per cent. DonuS 10 De accepted by
the parties OF the second part at par. at
$lS646o per ounce Of standard gold.
Fourth No bonds shall be delivered to
the parties OF the second part or either
OF them. except in payment for coin from
time 10 time received hereunder; where
upon the Secretary OF the Treasury Of
the United States shall and will deliver
the bonds as herein provided at such
places as shall be designated by the
parties of the second part. Any expense
Of delivery OF the United States shall be
assumed and paid by the parties OF the
second part.
Fifth. In consideration Of the purchase
of such coin. the parties OF the second
part and their associates hereunder as
;ume and will bear all the expense. and
Inevitable loss OF bringing gold from
Europe hereunder; and. as far as lies In |
heir power. will exert all financial in
iuence, and Will make all legitimate eff
'orts to protect the Treasury Of the
Initeti States against Withdrawals of
,old. pending the complete performance
II this contract.
In witness hereof Of the parties
,ereto, have hereunto set their hands In
i've parts this Sth day OF February. 1895.
]. G. CARLISLE. Secretary Of the Treas
ury.
AUGUST BELMONT & CO.. on behalf
Of n. NJ Rothschilds & Son. Of London.
and Themselves:
p MORGAN & CO., on behalf Of |