The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1895-02-09
NEGOTIATED Bonds
President Cleveland Notifies
Congress of His Action Re-
garding the Reserve.
THE INTEREST RATHER HIGH,
But May Be Reduced If Gold
Bonds Are Authorized
Within Ten Days.

WASHINGTON, Feb. O.--Th6 preSi-9
dents message to congress is as fol-
lows:
To the Congress of the United States:
Since my recent communication to-
congress calling attention to our finan-8
cial condition and suggesting legisla-
tion which deemed essential TO our
national welfare and credit, the anxiety
and apprehension then existing in busi-
ness circles have continued,
AS precaution, therefore, against
the failure of timely Legislative aid
through congressional action, cautious
preparations have been pending to em-a
ploy to the best possible advantage in
default of better means, such executive
authority as may, without additional
Legislation, be exercised for the pur-
pose of reinforcing and maintaining in
our taeasury an adequate and safe gold
reserve.
sixty-flvs Millions.
In the Judgment of those especially
charged with this responsibility, the
business situation is 50 critical, and the
legislative situation is 30 unpromising
with the omission thus far ON the part
OF congress to beneficially enlarge the
powers of the secretary of the treasury
IN the premises as to enioin immediate
action with the facilities now at hand.
Therefore, I'm pursuance of Section
B,7OO OF the Revised Statutes the details
OF an arrangement cave 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, 1876, payable
In coin, 80 years after their date, with
interest at the rate of 4 per cent
per annum, TO the amount
of little less than S62, 400, 600
are to be issued for the purchase of god
coin, amounting to a sum slightly In
excess of $50, ,O0O, 600 to be delivered Ia.
the treasury Of the United States, which
sum, added to the gold now held lin our
reserve, viii so restore such reserve as
to make it amount to something more
than 300, ,0O0, 600. 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 334 per cent per annum. At least one
half Of the gold to be obtained is to be
supplied from abroad, which is a very
important and favorable feature of the
transaction. s
Privilege Reserved.
The privilege is especially reserved to
the government to substitute at par
within ten days from this date in lien of
the per cent coin bonds, other bonds
in terms payable in god, and bearing
only per cent If tho Issue OF the same
should in the meantime be authorized
by the congress.
The arrangement thus comrleted.
which, after careful inquiry appears in
present circumstances and considering
all the objects desired 10 be- the best at
tainable, develops such difference In
the estimation Of investors between
bonds made payable in coin, and those
specifically payable in gold, in favor of
the latter, as lie represented by three
fourths of q cent in annual interest. In
the agreement just concluded the an
nual saving I'M interest to the govern
ment IL 8 per cent gold bonds should be
by I per cent coin bonds
under the privilege reserved, would be
$3.50, lb9, amounting I'M 80 years. or at
the maturity OF the coin bonds, fo S16..
ia, ITO.
OF course there never should be
doubt in any quarter as to the redeinp-
tion In gold of the bonds DC the govern
ment, which are made payable In coin.
Therefore, the discrimination III fhe
Judgment of investors between our bond
obligations payable In coin, and those
made payable in gold is very
have only to add that in my opinion
the transaction here intimabed for the
information Of 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 viii tend as far
as such action can i'm present circum-
stances to meet the determination ex-
pressed in the law repeating the silver
purchasing clause of the act Of July. III.
1850, and that In the language OF such /
act the arrangement made
win aid our efforts to insure the maila-
tenance Of the parity in value CT the
coins OF the two metals, and the euual
power Of every dollar at AL times iii the
markets and in the payment OF debts. !,
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