Birmingham age-herald., 1895-02-14
The Contract Drawn Up and
 Signed by All Parties.
THE GOLD CLAUSE INSERTED
The Syndicate Agrees to As- sist the United States in
 Maintaining the Reserve.

committee this afternoon authorizing the issuance of thirty year per cent interest bearing gold bond. The report accom- panying the resolution includes a copy of the presidents recent message to congress bearing upon the subject, and also copy of the contract made by the treasury de- partment with the European syndicate for the purchase of the new bonds.
 Continuing, the report says: The coan- mittee have had the benefit of conference with the secretary of the treasury, who ex- hibited to them the original contract eu- tered into by himself on the Sth day of February and explained its details to them. A full and complete copy of said contract is here to be added. From reading of this paper 1t will be seen that the arrangement of the secretary with the parties to tha contract effects the purchase of 8, 3,500, 900 ounces of standard gold coin, which shall be obtained in and shipped from Europe. For this gold coin he has contracted to issue to the parties furnish ing 1t. under authority of the act for the resumption of specie payments, approved January 4, 1875, per cent thirty year coin bonds of the United States at price which realizes them interest at the rate of 3A per cent.
 But the secretary of the treasury has re- served the right, If authority Is given hlm by congress, to substitute at par any bonds of the United States bearing 3 per cent in- terest, of which the principal and interest shall be specifically payable in United States gold coin of the present weight and f1neness, said substitution, however, to be made within ten days oi the contract:
 It is the object of the joint resolution herewith reported 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 govern ment, as set forth in the presidents mes sage, will be S639, 159 per year for every year the per cent bonds run, and of the amount of $16, 174 ITO should they run thirty years. As it is not believed by that committee that the issue of bonds specih- cally payable in gold will Impose any addi- tional burden or liability upon the govern ment than if they are made payable in coin under it's pledge and policy to pre- serve the parity of the coins In the two metalss the saving of this large amount be. comes matter of substantial moment and advantage to the government, and as the parties to take the bonds are under con- tract to furnish gold for them, it seems no hardship on the government to contract to pay them back in the same coin that they furnish to It.
 The following is the text of the contract between the treasury and the syndicate:
 "This agreement, entered into this, the Sth day of February, 1895, between the secretary of the treasury of the United States of the first part, and Messrs. August Messrs. N. M. Rothschild & Sons of Lon- don, Eng. and themselves, and Messrs. J. P. Morgan 6 Co. of New York, on behalf of Messrs. J. b. Morgan Co. of London and themselves, parties of the second part is provided:
 Witnasaas. Whereas If ia provided bv the revised statutes of the United States (section 3700) 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 advan- tageous to the public interest, and the sec. reiary of the treasury now deems that an emergency exists in which the public inter est 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 'an act to provide for the resumption of specie pay ments,' approved January 14, 1875, being bonds of the United States described In an act of congress approved July 14, 1870, en- titled "an act to authorize the refunding of the national debt.' Now, therefore, the said parties of the second part hereby agree to sell and deliver to tbe United States 8 ,500, 1000 ounces
 
 at the rate Of S17 80. Al per ounce, payable in United States per cent tbirty- year coupon or registered bonds, said bonds 10 be dated February l, 1895, and payable at the pleasure of tue United States after thirty years from date, issued under the acts of congress of July IA, 1870. January 20, 1871, and January 16, 1875, bearing in- terest at the rate of per cent per annum, payable quarterly.
 1. Sucn purchase and sale Of gold coin Ia ft,a Coli
 U). At least one- half of all coin delivered hereinunder shall be obtained under and shipped from Europe, but the shipments shall not be required to exceed 300 GOO ounces per month, unless the parties of the second part shall consent thereto.
 (2). All deliveries shall be made nt any of the sub .treasuries, or at any other legal depository of the United States.
 (3). All gold coins delivered shall be re- celved on the basis, of % 8-10 grains of standard gold per dollar if within the limit of tolerance.
 (4) Bonds delivered funder this contract are to te delivered freS of accrued interest, which is to be assuYed and paid by the parties Of the seconf part at the time of their delivery to. th9m.
 9. Should the secretary of the treasury desire to offer or sell any bonds of the United States on q before October 1, 1895, he shall first offer The same 10 the parties Of the second part, but thereafter be shall De Tree lTOm every yucu oDiiSdtiou to tuS parties of the second part.
 8. The secretary of the treasury hereby reserves the right within ten days from the date hereof, in case ne shall receive authority from congress therefor, to sub' stitute any bonds of the United States bearing per cent interest, oi which the principal and interest shall be specifically payable in United States gold coin of the present weight and ineness for the bonds herein alluded to, such per cent bonds to be accepted by ihe parties of the second part at par, i. e., at SIS 90. 465 per ounce of standard gold.
 4. No bonds shall be delivered to the parties of the second part, or either of them, except in payment for coin from time to time received hereunder, where upon the secretary of the treasury of the United States shall and will deliver the bonds as herein provided at such places as shall bs designated by the parties of the second part. Any expense of delivery out of the United States shall be assumed and paid by the parties of the the second part.
 (5. h consideration of the purchase of ench coin the parties of the second part and their associates hereunder assume and will bear all the expense and lnevitab ble less Of bringing gold from Europe here- under, and as far ss liee In their power will exert all financial influence and will