The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1895-02-27
AuO THER BOND BSUE.i
Message Of the Presidentto Congress
Giving Details.
se2, 100000 FoURS TO Be SOLD.
Interest Rate About s 3-4 Per Cent-The
Amount Received From This Sale VIII
Be Over SCI, 900, 900, and Will More
Than Restore tho Reserve-Ten Days
Grace for Congress.


Grace for Congress.
The President has sent the following mes
sage to Congress:
To the Co ngress of the United States
Since my recent communication to the
Congress calling attention to our financial
condition and suggesting legislation which I
deemed essential to our National welfare and
credit, the anxiety and apprehension then ex-
listing in business circles have continued. As
q precaution, therefore, against the failure
of timely legislative aid through Congression-
al action, cautious preparations have been
pending to employ to the best possible ad-
vantage, IN default Of better means, such es-
eeutiye authority as may, without additiona!
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 responsibility, the business
situation Is so critical and the legislative
situation 30 unpromising, with the omis-
sion thus far on the part OF the Congress to
beneflcially enlarge the powers OF tho
Secretary Of the Treasury In the premises,
as to enjoin immediate executive ac-
ton with the facilities now at hand.
Therefore, in pursuance of section $40 OF
the revised statutes, the details Of an arrange
ment have this day been concluded with par
ties abundantly able to fulfil their undertake
ing whereby bonds Of the United States au-
thorized under the act Of July IA, 1915, pay
able In coin thirty years after their date, with
interest at the rate Of four per cent. per annum,
to the amount of little less than $62, 400, 900,
are to be issued for the purchase Of gold
coin amounting to sum slightly IN excess
Of s65. .OOo, 900, to be delivered to the Treas
ury Of the United States, which sum, added
to the gold now held in our reserve, will 30
restore such reserve es to make 1t amount to
something more than $100, 100000. 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 so per
cent. per annum. At least one-hah OF the
gold to be obtained is to. be supplied from
abroad, which Is very important and faVor-
able feature Of the transaction.
The privilege is specially reserved to the
Government to substitute at par within ten
days from this date, in lieu OF the per cent.
coin bonds, other bonds in terms payable La
gold and bearing only 8 per cent. interest, II
the issue of the same should in the mean
time be authorized by the Congress.
The arrangement thus completed. winch
after careful inquiry appears in present cir
oumstanoes and considering all the objects
desired, to be the best attainable, develops
such q difference in the estimation OF In
vestors between bonds made payable in coin
and those specifically made payable In gold
in favor Of tho latter. as is represented BY
three-fourths of cent in annual interest," In
the agreement Just concluded the annual saw
ing in interest to the Government II = per
cent. gold bonds should be substituted for
cent. coin bonds under the privilege reserved,
would be 1856, ,159, amounting In thirty years,
or at the maturity of the coin bonds, to $16,-
174,770. o.,
OF course there never should be doubt in
any quarter as to the redemption in gold OF
the bonds OF tho Government which are
made payable in coin. Therefore, the dis
elimination In the judgment Of investors be-
tween our bond obligations payable In coin
and those specifically made payable In gold ID
very significant. It Is hardly necessary to
suggest that, whatever may be our views on
the subject, tho sentiments or preferences OF
those with whom we must negotiate In dis
posing of our bonds for gold are not subject
to our dictation.
I have only to add that in my opinion the
transaction herein detailed for the informa-
ton Of the Congress promises better results
than the efforts previously made In the d.
rection of effectively adding to our gold re-
serve through the sale OF bonds; and be-
lieve it will tend as far as such action can IN
present circumstances to meet the determi-'
nation expressed in the law repeating the sill
ver-purchasing clause OF the act OF July IA,
1890, end that in the language Of such repeal
ing act the arrangement 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 markets and in the payment OF
debts" GROVER CLEVELAND
Executive Mansion, February 8, 1895.