Fisherman & farmer. [volume] (Edenton, N.C.) 1887-19??, 1895-02-15
A MOTHER BOND issue.
Mess age of the President to Congress
Giving Details.
s62, 100000 FOURS TO BE SOLD.
Interest Rate About 81 Per Cent-The
Amount Received From This Sale Will
Be Over se5 900 900, and Will More
Thar, Restore the Reserve-Ten Days
Grace for Congress.

The President has sent the following mes
sage to Congress:
To the Congress Of the United States:
Since my recent communication TO the
Congress calling attention to our financial
condition and suggesting legislation which l
deemed essential to our National welfare and
credit, the anxiety and apprehension tn n 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 ex-
ecutive authority as may, without additional
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 critical and the legislative
situation SO unpromising, with the omls-
sion thus far on the part of the Congress to
benefcially enlarge the powers OF the
Secretary OF the Treasury In the premises
as to enjoin immediate executive &C
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 undertak-
thoriZed under the act of July IA, 1875, pay
able in coin thirty years after their date, with
interest at the rate of four per cent. per annum.
to the amount of a little less than S62 4OO,UO
are to be issued for the purchase of goid
coin amounting to q sum slightly in excess
of Sos 900 900. to be delivered to the Treas
urv of the United States, which sum, added
to the gold now held in our reserve, will SO
restore such reserve as to make 1t amount TO
something more than 500, 100000. Such a
al hal Tlf
upon the bonds as to fix the rate of interest
upon the amount of gold realized at 3$4 per
cent. per anDum. Al least One-haf 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 in
gold and bearing only per cent. interest. ii
the issue OF the same should in the mean
time be authorized by the Congress.
The arrangement thus completed. which
after careful inquiry appears in present cir
cumstances and considering all the objects
desired. to be the best attainable. develops
such a difference in the estimation of in
veStorS between bonds made payable in coin
and those specifically made payable in gold
in favor of the latter. as IS represented by
three-fourths of a cent in annual interest. In
the agreement just concluded the annual saw
ing in interest to the Government if per
cent. gold bonds should be substituted for 4
cent. coin bonds under the privilege reserved.
would be $3.50 159. amounting in thirty years,
or at the maturity of the coin bonds to S16,-
174.77O.
OF course there never should be a doubt in
any quarter as to the redemption in gold Of
the bonds of the 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 is
very significant. 1t is hardly necessary TO
suggest that, whatever may be our views on
the subject. the sentiments or preferences OF
those with whom we must negotiate in dis
posing of our bonds for gold are not subject
to our dictation.
have only to add that in my opinion the
transaction herein detailed for the iDfOrma-
ton of the Congress promises b. ter results
than the efforts previously made in the di-
rection of effectively adding to our gold re-
serve through the sale of bonds; and l be-
leve it will tend as far 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, and 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" GhOyER CLEVELAND.
Fyecutiva Mansion Fahruary 3 1895