The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1895-02-18
LATE FOREIGN NEWS.
san FaASolsco, Feb 9.
tper s. s. Alameda,l
UNITED STATES.
UNITED STATES.
LARGE PURCHASE OF GOLD.

fTeSlUent SleVtldHu transmitted
message to Congress yesterday an
nouncing the purchase OF $50 100000
gold by the sale of bonds. The
President discusses the critical fnan-
cial situation, and says that, to pro.
vide the failure Of timely Legislative
action, executive authority that
could be exercised without addi-
tional legislation was employed.
He then explained the transaction
as follows:
Therefore, in pursuance to Sec.
ton 300 of the Revised Statutes
the details OF an arrangement this
day have been concluded with par
ties abundantly able to fulfill their
undertaking, whereby bonds OF the
United States are authorized under
the act Of July ii, 1875, payable in
coin thirty years after their date
with interest AT the rate of percent
per annum, to amount to little less
than $62,OO0,OO0, to be issued for the
purchase of gold coin amounting to
sum slightly in excess of S65,OO0,-
coo, 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 Sl0O,OO0,OOO Such pre-
MUM is to be allowed to the Gov
eminent upon the bonds so as to fix
the rate OF interest upon the amount
Of gold realized at 81 percent per
aupum.
"At least one-half OF the gold to
be obtained is to be supplied from
abroad, which is very important
and favorable feature to the trans.
action. The privilege is especially
reserved to the Government to SUBJ
stitute, at par, within ten days from
this date, in lieu Of 4 percent coin
bonds, other bonds in terms payable
in gold, and bearing only 3 percent
interest II the issue OF the same in
the meantime be authorized by Con-
gress. Arrangements for this have
been completed, which, after care
full inquiry, appears in the present
circumstances and considering all
the objects desired to be the best
attainable.
I'm the agreement just concluded
there will be an annual saving ol
interest to the Govern mant, il 3 per
cent gold bonds should be substi
tuted for percent bonds. Under
the privilege reserved there woulG
be S539, l59, amounting in thirty
years, or at the maturity of the coir
bonds, to $l6,l74,770."
A New York dispatch says: TIL,
bond transaction consummated to
day, strictly speaking, is not a sal,
Of bonds for gold, but a purchase o
gold to be paid for in bonds. TIL,
issue was not made under the author
ity granted by the resumption act
but under section 300 OF the Re
vised Statutes, which reads as fol
lows: "The Secretary OF the Treas
ury may purchase coin with any o
the bonds or notes OF the United
States authorized by law, at sucl
rates and upon such terms as he ma,
deem most advantageous to the pub
lie interest"
The contract was made will
August Belmount & Co. OF New
York on behalf Of n. M. Roths
childs a. Sons OF London and them
selves, and ]. 2. Morgan Il Co. Of New
York on behalf Of j. s. Morgan Il CO
OF London and themselves, and pro
vides for the delivery to the United
States OF 100000 ounces OF stand
ard gold coin OF the United State:
to be paid for in United States
percent bonds. A large number @
other banks and financial institu
tions are interested in the transac
tions but their names are not men
toned in the contract itself.
OTHER LANDS.