The morning call., 1895-02-14

| the United States, with qualities, privileges
and exemptions of bonds issued under the act
| approved July IA, 1870, entitled "An act au-
! thorizing the retunding of the national debt
| loan,' to an amount not exceeding $65, LILO,
275, bearing interest at a rate not exceeding
3 per cent per annum the principal and in
terest payable in gold coin of the present
standard of weight and the said bonds to be
made payable not more than thirty years after
date.
Provided, however, that no part OF the pro-
ceeds of the sale of such bonds or notes re-
deemed with the proceeds be available for the
payment of the current expenses OF the Gov
ernment.
The vote is as follows: For the bill-Wil-
son, Tarsney, Turner, Montgomery, Stew
ems, Cochran D.), Reed and Payne
R)-S. Against = McMilliu, Whiting,
Bryan and Wheeler CD Hopkins
(R.G5. Bynum did not vote. Dalzell
and Gear were absent.
a minority report will be written by
Bryan. The provision against the redemp-
ton of the national bank notes by the
treasury, which Secretary Carlisle requested
Yesterday, and which the subcommittee
recommended, was passed over by general
consent, as it was thought best not to cum
Der the resolution with too many PROPOSE
tions.
The resolution prepared by Wheeler. de-
claring the enacting of the Presidents rec
ommendation to be an abandonment of
bimetallism and therefore inexpedlent,
and Bryan's resolution for the payment OF
all Government obligations In the coin
most convenient, were voted down, as was
| Cockran's proposition for more compre-
| hensive authority to the Secretary, but
| the votes were not recorded. Cochran SAID
he would vote to report the resolution, out
would reserve the right to offer an amend
ment. Reed said the plan was none OF his
making nor choosing, but under the cir
cumstances he would vote for it as a
scheme which might furnish some relief
for the Treasury.
The report which Chairman Wilson sub
mitted for the majority of the Ways and
Means Committee describes the resolution
and says:
The message of the President which is here
with appended, communicates to the House the
condition of the reserve of gold in the treasury
available for the redemption of the Govern
ment's legal tender notes and the maintenance
of the parity of its coin circulation, and the
reasons which compel at the present time an
/
reserve also the general terms of contract,
made under authority of section 300 of the
Revised Statutes, for the purchase and de-
| livery to the treasury of sum slightly in ex-
of 500 ,000, 900 of gold coin, to be added to
the stock in the treasury, which amounts to
only $42, ,217 ,081 at the present time. The
committee have had the benefit of a conference
with the Secretary of the Treasury, who ex-
| hibited to them the original contract, entered
1 L. IL IT.
and explained its details to them. A full and
complete copy of said contract is hereto added.
From a reading of this paper it will be seen
| the arrangement of the Secretary with the par
ties to the contract effects the purchase OF
! 100000 ounces of standard gold coin OF the
! United States amounting to $65, JIG, 275), at
east one-half OF which shall be obtained in and
shipped from Europe. For this gold coin he
has contracted with the parties furnishing it,
under authority of the act for the resumption
of specie payments, approved January IA,
! 1875, 4 per cent thirty-year coin bonds of the
United States at price realizing to them inter-
est at the rate OF 33l per cent. But the Secre-
tary OF the Treasury has reserved the right, if
authority be given him by Congress- to substi-
tute at par any bonds OF the United States
bearing 3 per cent interest OF which the prin-
pal and interest shall be specifically payable in
| United States gold coin of the present weight
and fneness, said substitution to be made
| within ten days from the date of the contract.
1t is the object of the joint resolution here
| with submitted to give to the Secretary OF the
! Treasury authority to substitute such bonds to
! the amount of the contract. The saving to be
! effected to the Government as set forth in the
Presidents message will be $539, 139 per year
! for every year the 3 per cent bonds run, and of
the amount OF $16, 170 ,77O should they run
thirty years. As it is not believed by the CON-
mittee the issue of bonds specifically payable
in gold will impose an additional burden of
liability upon the Government that if they are
made payable in coin under its pledge and
policy to preserve the parity OF the coins in the
two metals, the saving of this large amount
| becomes matter of substantial moment and
advantage to the Government, and as the par
ties to take the bonds are under contract to
furnish gold coin for them, it seems no hard
ship on the Government to contract to pay
them back in the same coin that they furnished
toit.
The contract was made part of the re-
port and its full text is as follows:
This agreement entered into this eighth day
| of February, 1895, between the Secretary of the
Treasury of the United States OF the first part
and Messrs August Belmont q Co. OF New
! York, on behalf of Messrs. n. NJ. Rothschild &
Sons of London, England, and themselves, and
Messrs ]. P. Morgan &, Co. of London, and
themselves parties of the second part; witness
! eth:
WHEREAS, 1t is provided by the Revised
Statutes of the United States (section 3700l that
the Secretary 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 ad-
vantageous to the public interests; and the Sec
retary OF the Treasury now deems that an
emergency exists in which the public interest
REQUIRES that, as hereinafter provided coin
shall be purchased with the bonds of the
United States of the description hereinafter
mentioned, authorized to be issued under the
act entitled can act to provide for the resump-
ton of specie payments" approved January
IA, 1875, being funds OF the United States de-
scribed in an act of Congress approved July Ia,
1870, entitled can act to authorize the re-
funding of the national debt"
Now, therefore, the said parties of the second
part hereby agree to sell and deliver to the
United States 35oOOO0 ounces of standard
gold coin of the United States at the rate of
ST.. .SO441 per ounce, payable in United States
4 per cent 30-year cupon 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