The McCook tribune. (McCook, Neb.) 1886-1936, 1895-02-15
A Message to Congress.

WASHINGTON, Feb. 9.-The presi-
dent to-day sent the following mes
sage to congress, after q brief final
conference with Attorney General
Olney and Secretary Carlisle:
To the Congress of the United
States-Since my recent communica-
ton to congress, calling your atten-
suggesting legislation which 1 deemed
essential to our national welfare and
credit, the anxiety and apprehension
then existing in business circles have
continued.
As a precaution, therefore, against
the failure Of timely legislative and
thorough congressional action, eau
tious preparations have been pending
to employ to the best possible advan-
tage, in default of better means, such
executive authority as may, without
additional legislation, be exercised
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 SO unprom-
isiug with the omission thus far on
the part of congress to beneficially
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
37OO of the Revised Statutes, the de-
tails of an arrangement have this day
been concluded with parties abund-
antiy able to fulfill their undertaking
whereby bonds of the United States,
authorized under the act of July IA,
1873, payable in coin thirty years
after date, with interest at the rate
of four per cent per annum to the
amount of a little less than So, 400, 900
are to be issued for the purchase of
gold coin amounting to q sum
slightly in excess Of $65, 600. 600, to be
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 to make it
amount to something more than $780,
600, 900. 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
the ate of three and three-fourths
per cent per annum. At least one
half of the gold to be obtained is to be
supplied from abroad, which is a 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 4 per cent coin bonds other
bonds in terms payable in gold and
bearing only 3 per cent interest, if
the issue of the same should in the
meantime be authorized by congress.
The arrangement thus completed,
which, after careful inquiry, appears
from present circumstances, and con-
sidering all the objects desired, to be
best attainable,% develops such u differ
ence in the estimation of investors
between bonds made payable in coin
and those specifically payable in
gold in favor of the latter as is repre-
sented by ~three-fourths of a cent in
annual interest. In the agreement
just concluded the annual saving in
interest to the government if 3 per
cent gold bonds shall be substituted
by 4 per cent coin bonds under the
privilege reserved, would be $3.50, 159,
amounting in thirty years, or at the
maturity of the coin bonds, to S1G,-
TIA, no.
Of course, there never should be a
doubt in any quarter as to the re-
demption in gold of the bonds of the
government which are made payable
in coin. Therefore the discrilaina-
ton in the Judgment of investors be-
tween our bond obligations payable
in coin and those specifically made
payable in gold is very significant.
It is hardly necessary to suggest that
whatever may be our views on the
subject, the sentiments or preferences
of those with whom we must negoti-
ate in d~isposing of our bonds for gold
are not subject to our dictation.
l have only to add that in my opin-
ion the transaction here intimated for
the information of 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 it will tend, rs far as such &C
ton can in present circumstances,
to meet the determination ex-
pressed in the law repeating the
silver purchasing clause of the act
of July IA, 1890, and that in the lam
guage of such repeating act the ar
rangement made will aid our efforts
to ENSURE 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"
GROVER CLEVELAND.
Executive Mansion, Feb. 8. 1895.