Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1895-02-14
NOW GROVER ACTS.
The President Announces an Ar
rangement for Another
Bond Issue.

Washington, D. c., Feb S.-The Presi-
dent today sent the following message
to Congress:
To the Congress of the United States:
Since my recent communication to Con-
gress calling attention to our financial
condition and suggesting legislation which
/ deemed essential to our national well
fare and credit the anxiety and apprehen-
sion then existing in business circles have
continued.
AS a precaution, therefore, against the
congressional action cautious prepara-
tons have been pending to employ to the
best possible advantage, in default of
better means, such executive authority
as may, without additional legislation,
be exercised for the purpose of reinforc-
ing and maintaining in our treasury an
adequate and safe gold reserve.
In the Judgment of those especially
charged with this responsibility, the bust
ness situation is so critical and the legis-
latlye situation is so unpromising with
the omission thus far on the part of Con-
gres IS to beneficially enlarge the powers
OF the secretary of the treasury in the
premises, as to enjoin immediate action
with the facilities now at hand.
therefore, in pursuance of section
800 of the revised statutes, the details
OF an arrangement have this day been
concluded with 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 the amount of a little less
than $62, 100000 and are to be issued for
the purchase of gold coin amounting to
a sum slightly in excess of $50, 100000
to be delivered to the treasury of the
United States, which sum, added to the
gold now held in our reserve, will SO rest
in such reserve as to make it amount to
something more than 1OO,OOO,OOO of dol
lars. 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 3A per cent.
per annum. At least one-half of the gold
to be obtained is to be supplied from
abroad, which is very important and
favorable 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 the
per cent. coin bonds other bonds in
terms payab BILE in gold and only 3 per cent.
if the issue of the same should in the
meantime be authorized by Congress.
The arrangement thus completed
which, after careful inquiry, appears in
the objects desired to be the best attain
able, develops such difference in the es-
timation of investors between bonds made
payable in coin and those specifically pay
able in gold in favor of the latter as is
represented by three-fourths of cent in
concluded the annual saving in interest
to the government, if 3 per cent. gold
bonds should be substituted by per cent.
coin bonds under the privilege reserved,
would be $3.50, 159, amounting in thirty
years, or at the maturity of the coin
dc 10
OF course there never should be doubt
in any quarter as to the redemption in
gold of the bonds of the government
which are made payable in coin. There
fore the discrimination in the judgment
Of investors between our bond obliga-
ly made payable in gold is very signif>
cant. It is hardly necessary 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 dictation.
| have only to add that in my opinion
the transaction here intimated for the in
formation 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 bonds;
and / believe it will tend as far as such
action can in present circumstances to
law repeating the silver purchasing clause
of the act of July Il, 1890, and that in the
language of such repeating act the ar
rangement made will aid our efforts to
Ensure 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 market and the payment of
debts Grover Cleveland
Executive Mansion, Feb. 8. 1895.
The Bond Purchasers.
New York, Feb. S.-According to the
Evening Post it is agreed on the part Of
the syndicate that takes the new govern,
ment bond issue that none of the gold
paid into the treasury for the bonds shall
be withdrawn by it's members by any
subterfuge whatever, and, if necessary,
the syndicate will import gold on a mer>
chandise basis against the certificates
placed abroad, and that these terms &C,
count for the high rate of interest paid.
It was also learned this afternoon that
100000 will come from former pur-
chasers of bonds.