The Dakota chief. (Gann Valley, Buffalo County, S.D.) 18??-1913, 1895-02-14

Tho President Writcs H"""'
u.~.sbinCton. Feb. President
C,e,eland sent a message ; congress
- noon today announcing ne sale OF
az, 400 600 4 per cent. "coin')onds at a
.romium that makes hem equivalent
- "a. per cents. He alsoannounced
+bat the government had tserved the
,rivilege to substitute a 3 pr cent. gold
t,,d IL authorized by CoEsess so to
A within ten days. whichvould make
on annual interest savini OF $685., 1853,
,r abou, SIG. 900. 900 In thethirty years
the bonds are to run.
The bond translation cnsummated,
etri.tly speaking, is not aiale OF bonds
for gold. but a purchaser gold to be
raid for in bonds. The ;sue was not
,,ade under the authorit granted by
tbe resumption act, but inder section
8r0o Of the revised statute. which reads
as follows:
"The secretary Of hetreasury may
nurchase coin with any { the bonds or
notes of the United Sizes authorized
hy law, at such rates and upon such
tPllIlS dS liz iiNy -
GUS to the public interess.'
Stipulations of te Sale.
The contract was mae with August
Be,mont & Co.. of Newfork, on behalf
of Messrs. N. Nj. RothsOilds & Sons, of
London, and thenselve. and with j.. P.
Morgan & Co.. o New York
On behalf of j. 8. Nor
gan & Co, OF London,a and themselves,
and provides for the delivery to the
United States Of $4,000 ounces or
standard gold coin Of ne United States.
to be paid for in United States 4 per
cent. bonds. A large number OF other
banks and financial istitutions are in
terested in the tranaction, but their
names are not mentioned in the con-
tract itself. The department does not
know in what proportions the various
parties are to furnish the gold coin or
receive the bonds, a. this Is a matter
for arrangement bdween themselves.
BY the terms Of TIE contract the par
ties are to bear all tie expense Of bring
ing the gold from abroad. Another
stipulation Of great Importance Is that
Messrs. Morgan AMI Belmont agree to
exert all their financial strength and
influence and hat Of their associates
at home and ABROAD to protect the gov
eminent against he Withdrawals of
gold pending the c)mplete performance
Of the contract. No bonds are to be
delivered except ir the payment OF gold
actually delivered. In view Of the prob
able failure OF congress the treasury
officials declare that these terms are
the best that ccud be procured with a
coin bond. Those who are in a position
TO know the Presidents views on the
subJect give it as rs opinion hat this
frapsoctSnp will "a for raSfnra nQncl
confidence at home and abroad that any
other issues will be unnecessary, at least
until the meeting Of the next congress.
In December. If, however, 1t should
become necessary the president will act
as promptly a. may be necessary to
~p.rotect the public credit.
Thinks II Averts an Extra Session.
1t Is confidently expected by the pres
ident that this issue will render an ex-
ira session Of congress wholly unneces-
sary. 1t IS stated on good authority
Mat it was the presidents first inten-
ton to make the loan 800, 900, 900. and
this amount was for some time insisted
on by the London bankers, blu after
much deliberation, the president con-
cluded that the amount TO-
day would probably answer the purpose
as fully as a greater amount n re-
Gently he stated to Messrs. Morgan and
Belmont that as $500, 900 ounces of gold
would place our reserve at about the
800, 900, 900 point he would not consent
TO purchase a greater amount. His de-
eislon was reluctantly In.
There is said to be no provision in the
contract obligating the government TO
dispose Of any future Issues to Messrs.
Morgan and Belmont or to anyone
Whomsoever. nor is there any specific
or implied understanding to that effect.
IL &c AndnrctnnI thot tho cn16 called
lot by the terms Of today's agreement
VIII he shipped from London at the
earliest day practicable. h agree
ment on the part of Messrs. Morgan
and Belmont to use their best endeav-
ors to prevent gold from being with
afaWn from the treasury was under
stood to mean that no part of the gold
Dargained for should either directly or
indirectly be taken from the treasury,
and therefore it is fully believed that
the reserve will be augmented by tthe
iu!l amount Of gold purchased.
Message of the President.
The presidents message Is as follows:
10 the Congress of the United states:
SINCE my recent communication to the
'ohgress calling attention to our financial
IoIdltion and suggesting legislation which
ueemed essential to our national wei
tare and credit. the anxiety and appre-
hension then existing in business circles
AZ a ~precaution. therefore. against the
lAuure OF timely legislative aid through
.ohgressional action cauttous prepare
IONS have been pending TO employ to the
eest possible advantage. in default OF bet
wr means. such executive authority as
MAJ. without additional legislation, be ex-
reused for the purpose Of reinforcing and
ntihtalnlng In our treasury an adequate
and safe gold reserve.
IN the judgment of those especially
charged with thisr responsibility, the bust
ISIS situation r. so critical and the legis-
.atVe situation Is SO unpromising. with
we omission thus far on the part Of con
stess to benef1cially enlarge the powers OF
me secretary Of the treasury In the prem
ISes' as to enjoin immediate executive
aGuon with the facilities now at hand.
therefore,. In pursuance Of section 37W
oI me revised statutes. the details Of an
@.rangement have this day been conclud-
% with parties able to fulnl their under
ssAlng. whereby bonds of the United
states. authorized under the act Of July
- 1875: payable in coin. thirty years after
nneir cato with interest at the rate of 4
peT cent. per annum. to the amount Of a
nttle less than $50. 400. 900 arc to be issued