Le MeschaceÌbeÌ. [volume] ([Lucy] La.) 1853-1942, 1895-02-16
A SPECIAL MESSAGE

Transmitted to Congress by President
Cleveland In Connection with the Bond
Issue-If Congress viii Authorize n
Three-Per-Cent. Gold Bond Within Ten
Days the Government Can Save Over
S5OO,0Oe Year Interest.
WASHINGTON, Feb. 9.-The president
sent the following message to congress
at noon:
To THE CONGRESS OF THE UNITED STATES
Since my recent communication to the con-
gress calling attention to our financial condi-
tion, and suggesting legislation which deemed
essential to our national welfare and credit,
the anxiety and apprehension then existing in
business circles have continued. As
precaution, therefore, against the failure
of timely legislative aid through
congressional action, cautious preparations
have been pending to employ the best possible
advantage in default of better means, such
executive authority as may, without additional
legislation be exercised for the purpose of re-
inforcing end maintaining in our treasury an
adequate and safe gold reserve.
in the Judgment OF those especially charged
with this responsibility. the business situation
is critical and the legislative situation so
unpromising, with the omission thus Tar on the
part of the congress to benetcially enlarge the
powers OF the secretary of the treasury IN the
premises, as to enjoin immediate executive ac-
tion with the facilities now at hand.
Therefore in pursuance of section 300 OF
the Revised Statutes, the details of an ar
rangement have this day been concluded with
parties abundantly able to fulfill their under
taking whereby bonds of the United Suites.
authorized under the act OF July IA, 1879, pay
able in coin, ten years after their date, with In
terest at the rate of 4 per cent. per annum, TO
the amount of little less than s62, 100000, are
to be issued for the purchase OF gold coin
amounting to a sum slightly in excess OF 500
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 restore such
reserve as to make IL amount to something
more than 500 0,000 Such premium Is TO be
allowed to the government upon the bonds as
to fix the rate OF interest upon the amount or
gold realized at Sa per cent. per annum. At
least one-half OF the gold to be obtained is to
be supplied from abroad, which Is a very Inn
portant and favorable feature of the transac-
ton f* @
The privilege is especially reserved to the
government to substitute at par, within ten
days from this date. in lieu OF the per cent.
bonds. other bonds In terms payable in gold,
and bearing only 3 per cent. interest, II the
issue OF the same should in the meantime be
authorized By congress.
The arrangement thus completed which,
after careful inquiry. appears In present cir
cumstances and, considering all the objects de-
sired, to be the best attainable. develops
such q difference In the estimation OF
investors between bonds payable in coin and
those specifically made payable in gold in favor
of the latter as Is represented by three-fourths
of cent in annual interest. In the agreements
just concluded the annual saving in interest to
the government II per cent. gold
bonds should be- substituted for per
cent. coin bonds under the privilege
reserved, would be 9,159, amounting
in thirty years, or at the maturity of the coin
bonds, to s16.i74.770. OF course, there never
should be doubt in any quarter as to the re-
demption in gold of the bonds of the govern
ment which are made payable in gold. There
vestors between our bond obligations payable
in coin and those specifically made payable in
gold is very significant.
1t is hardly necessary to suggest that what
ever 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 dictation.
1 have only to add that in my opinion the
transaction herein detailed for the informa-
tion of the congress promises better results
than the efforts previously made In the dfrec-
tion OF effectively adding to our gold reserve
through the sale of bonds. and believe it
will tend, as far as such action can, in
present circumstances. to meet the determine
tion expressed in the law repeating the silver
purchasing clause of the act OF July Ii. 1890,
and that in the language of such ,repealing act
the arrangement made will aid our efforts to
insure 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
markets and in the payment Of debts.
ISigned.l GROVER CLEVELAND.
Executive Mansion. Feb. 8. 1895.