Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1895-02-16
THE EXPECTED ISSUE.
Congress Formally Notified OF Another
Issue of Bonds,

President to-day sent tne lollo"Ihs ihoe-
sage to Congress:
Since my recent communication 10
CONGRESS calling attention to our imam
cial condition, and suggesting legislation
which | deemed essential to our national
welfare and credit, the anxiety and APP
nrehension then existing in business CIR
Giles have continued.
As A precaution, therefore, against the
failure OF timely legislative action, eau
tious preparations have been pending to
employ to the best possible advantage
in default of better means, such EXecu-
tive authority as may without additional
legislation be exercised Tor the purpose
of reinforcing and maintaining IN our
treasury an adequate and sale gold re-
serve. In the Judgment OF those es-
peclallv charged with this responsibility
the business situation is so critical ana
the legislative situation so unpromlslng,
with commission thus far on the part OF
Congress to adequately enlarge the pow
ers OF the Secretary OF the treasury IN
the premises, as to force immediate TX
ecutIve action with the facilities now at
hand.
Therefore, in pursuance of section
300 of the revised statutes, details OF
arrangement have this day been con-
Guided with parties abundantly able 10
fulfill their undertaking, whereby bonds
of the United States authorized under
the act OF July IA, 1873, payable IN coin
thirty years after their date with inter-
terest at the rate of 4 per cent per an
mum to amount to little less than Sb2,-
400 900 are to be issued Tor the purchase
of gold com amounting to a sum slightly
in excess of $65 100000, to be delivered
at the Treasury of the United States
which sum added to the gold now held
in our reserve, will so rest IN such re-
serve as to make it amount to some
thing more than 800, 0OO,0 900. Such
premium is to be allowed to the govern
ment upon the bonds as will fix the rate
of interest upon the amount OF gold
realized at 334 per cent per annum.
At least hall 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
these 4 per cent coin bonds other bonds
in terms payable in gold and bearing
only 3 per ceut interest, if the issue OF
the same meantime be authorized by
Congress. The arrangement Just com
pleted, which after careful inquiry ap-
pears under the present circumstances
and considering all objects desired, TO be
the best attainable, develops such dlt-
ference in the estimation OF the interest
between the bonds made payable III com
and those especially payable In gold, IN
favor of the latter, as is represented by
three fourths per cent annual interest.
In the agreement just concluded the
annual saving OF interest to the govern
ment if the per cent gold bonds sho1ld
be substituted for 4 per cent bonds
under the privilege reserved would be
$500 l59, amounting in thirty years, or
at maturity of the coin bonds, to &c.
ia no. OF course there never should
be 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 discrimination in
the Judgment of investors between our
bond obligations, made payable in coin
and those specifically made payable in
gold is very significant. 1t is hardly NEG
essary to suggest that whatever 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 dlctation.
have only to add that in my opinion
the transaction herein intimated tor the
information OF Congress promises better
results than efforts previously made in
this direction, effectively adding to our
gold reserve through the sale OF bonds,
and believe it will tend, as far as such
action can 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 in the language of such repeating
act, "the arrangement made will aid in
our efforts to secure the maintenance of
parity in the value of coins of the two
metals and in the equal power of every
dollar at all times in the market and in
the payment of debts"