The state republican. (Jefferson City, Mo.) 1871-1896, 1895-02-14

- '~'1D ~ ~ I1A ~ e"'O -
tSPRESIDENT'S MESSAGE.
AFTER the defeat of the Springer
tbond bill President Cleveland sent
fhis message to congress:
To the Congress Of the United States:
Since my recent communication to
.congress calling attention to our fin
ancial condition and suggesting leg
4 islation which I deemed essential to
j our national welfare and credit the
anxiety and apprehension then ex-
listing in business circles have con-
,ttinued.
Asa precaution, therefore, against
failure of timely legislative aid
{lhEqEgh congress- active preparations
lsa Pssn pending to o.employ to the
\ ~ tscutive au-
dthority a. may, without additional
4 legislation, be exercised for the pur-
A pose 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 30 critical and the legislative stu
alton so unpromising with the omis-
sion thus far on the part Of congress
to beneficially enlarge the powers of
the secretary of the treasury in the
premises as to enjoin the immediate
executive action with the facilities
now at hand.
Therefore, in pursuance Of section
300 of the revised statutes the
details of an arrangement have this
day been concluded with parties
abundantly able to fulfill their un-
dertaking, whereby bonds of the
United States, authorized under the
act Of July IA, 1875, payable in coin
thirty years after their date, with
interest at the rate of per cent.
per annum, to the amount of "a little
less than $62, 400, 900 are to be issued
for the purchase of gold coin
amounting to sum slightly in excess
Of $85, 100000 to be delivered to the
treasury of the United States, which
sum, added to the gold now held in
our reserve, will make it amount to
something more than 800, 900.
Such premium is to be allowed to
the government upon the bonds as
to fix the rate of interest upon the
amount of gold realized at the rate
of three and three -fourths per cent.
per annum. At least one-half of
the gold to be obtained is to be sup
piled from abroad which is a very
Z Eiportant 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 per cent. interest
il the issue of the same should in the
meantime be authorised by congress.
The arrangement thus completed
which after careful inquiry appears
in present circumstances and consid-
ering all the objects desired, to be
the best attainable, develops such a
difference in the estimation of in
vestors between bonds made payable
in coin and those specially payable
in gold in favor of the latter as is
represented by three -fourths of a
cent in annual interest.
In the agreement just concluded
the annual saving in interest to the
government If per cent. gold bonds
should be substituted for 4 per cent.
coin bonds under the privilege re-
served would be five hundred and
thirty nine thousand, one hundred
and tlfty nine dollars, amounting in
thirty years, or at the maturity of
the coin bonds, to sixteen million,
one hundred and seventy four
thousand seven hundred and seventy
dollars.
OF course there never should be a
doubt in any quarter as to the
redemption in gold of the bonds of
the government which are made
payable in coin. Therefore the
discrimination in the judgment
of investors between our bond
obligations payabls in coin and
those specifically made payable
in gold is very significant. 1t is
hardly necessary to suggest that
whatever may be our views on the
subject the sentiments or preferences
Of those with whom we must nego-
tiate in disposing of our bonds for
gold are not subject to our dictation.
l have only to add that in my
opinion the transaction here inti-
mated for the information Of the
congress promises better results than
the efforts previously made in the
direction of effectively adding to our
gold reserve through the sale of