The Dalles daily chronicle. [volume] (The Dalles, Or.) 1890-1948, 1895-02-09
HIS LAST MESSAGE
Cleveland Informs Congress.
of Another Bond Issue.
TERMS OF THE ARRANGEMENT
VIII Run Thirty Years-Saving May Be
Effected by the Substitution of
Bonds PAYABLE in Gold.

WASHINGTON, Feb. 8.-The president
today sent the following message to con-
gress:
Since my recent communication to
congress calling attention to our finan-
cial condition and suggesting legislation
which deemed essential to our national
welfare and credit, the anxiety and ap-
prehension then existing in business
circles have continued.
Gas precaution, therefore, against
the failure of timely legislative action,
cautious preparations have been pend
ing to employ to the best possible ad
vantage, in default of better means, such
executive authority as may, without ad-
ditional 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 RESPONSE
bility the business situation is SO criti
cal and the legislative situation so un-
promising, with omission, thus far on
the part of congress, to briefly enlarge
the powers of the secretary of the treas
ury in the premises, as to enjoin imme-
diate executive 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-
cluded parties abundantly able to fulfill
their undertaking, 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
amount to little less than $62, 400, 900,
are to be issued for the purchase of gold
coin amounting to a sum slightly IN ex-
cess of $65 600, 900, to be delivered at the
treasury of the United States; which
sum, added to the gold now held in re-
serve, will so rest in such reserve as to
make it amount to something more than
500, 100000. Such premium is to be
allowed to the government upon the
bonds as will fix the rate of interest
upon the amount of gold realized at 80
per cent per annum.
cat least half of the gold to be OBJ
tanned Is to be supplied from abroad,
which is q very important and favora-
bic feature of the transaction.
The privilege is especially reserved to
the government to substitute at par with
in ten days from this date in lieu of
these per cent coin bonds other bonds in
terms payable in gold and bearing only
8 per cent interest, if the issue of the
same meantime be authorized by con-
gress, and the arrangements just COM
pear under the present circumstances,
and considering all objects desired, to be
the best attainable, develops such diff
ference in the estimation of the interest
between the bonds made payable in coin
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 3 per cent gold bonds should
be substituted for 4 per cent bonds, un-
der the privilege reserved, would be
$539, 159, amounting in thirty years, or
at maturity of the coin bonds, to $16,-
174,7 ,770. 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