The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1895-02-09
10 GET BRITISH GOLD
Cleveland Sends a Message
to Congress.
HID WILL ISSUE BONDS.
Without the Consent Of the Nations
Signature.
LAYING DOWN THE LAW PLAINLY.
The Bankers Who Have Taken the BE-.
curitieS Agree to Let the Treasury
Alone Now.
LAYING DOWN THE LAW PLAINLY.

WASHINGTON, Feb. S.-The President to-
day sent the following message to Con-
gress:
Since my recent communication to Congress
calling attention to our hnanclal conoltloh
and suggesting legislation which deemed es-
sential to our national welfare and credit the
anxiety and apprehension then existing Is
business circles have continued.
AS precaution, therefore, against the nature
OF timely legislative action, cautious prepara-
lions have been pending to employ 10 the pest
possible advantage in default of better means,
such executive authority as may, without addi-
tional legislation, be exercised for the purpose
of reinforcing and maintaining in our treas
ury an adequate and safe gold reserve.
In my judgment, and those especially charged
with this responsibility, the business SITUATION
is so critical and the legislative situation is so
unpromising through an omission thus far on
the part of Congress to briefly enlarge the
powers of the Secretary of the Treasury IN
the premises as to enjoln immediate eX-
ecutive action with the facilities now at hand
Therefore, in pursuance to section 800 of
the Revised Statutes the details OF arrange
ment for this day have been concluded with
parties abundantly able to fulfill their under
dertaking, whereby bonds of the United States
are authorized under act of July IA, 1879, pay
able in coin thirty years after their date, with
interest at the rate of per cent per annum,
to amount to a little less than $62 400
900, are to be issued for the pur-
chase of gold coin amounting to
aum slightly in excess of 500 100000
are to be delivered to the treasury OF the
United States, which sum, added to the gold
now held in our reserve, will so rest in such re-
serve as to make it amount TO something more
+l,o q &c fO ha
allowed to the Government upon bonds so as
to fix the rate of interest upon the amount of
gold realized at 334 per cent per annum.
At least one-half of the gold to be obtained
is to be supplied from abroad which is q very
important and favorable feature to the transac-
ton. The privilege is especially reserved to the
Government to substitute at par within 10 days
from this date, in lieu of 4-per-cent coin bonds
other bonds in terms payable in gold, and
bearing only per cent interest If the issue OF
the same in the meantime be authorized by
Congress. Arrangements for this have been
completed which after careful inquiry, appear
in the present circumstances and considering
all objects desired to be best attainable.
In the agreement just concluded there will
be an annual saving of interest to the Govern
ment, if 3-per-cent gold bonds should be sub
stituted for 4-per cent bonds. Under the privi-
lege reserved there would be 1888, 159,
amounting in thirty years, or at maturity
of coin bonds, to SIG, Iva, 40. OF course
there never should be doubt in any
quarter. as to the redemption in gold
bonds of the Government. which are made
payable in coin. Therefore, discrimination in
the judgment of investors between our bond
obligations payable in coin and those specific
ally made payable in gold is very significant.
1t is hardly necessary to suggest that what
ever may be our views on the subjects,
sentiments or preferences for those with
whom we must negotiate in disposing
of our bonds for gold are not subject
to our dictation. l have only to add that in my
opinion the transaction here intimated for the
information of Congress promises better re-
suit than any efforts previously made in the
direction of effectively adding to our gold re-
serve through the sale of bonds. And / be-
lieve it viii tend, as far as such an action
can in the present circumstances, to meet
the determination expressed in the law
repeating the silver-purchasing clause act of
July IA, 1890 and that in the language of
such a repeating act arrangement may be made
that will aid our efforts to secure the main
tenance of parity in the value of coins of two
metals and an equal power to every dollar at
all times GROVER CLEVELAND.
Executive Mansion, February 8, 1895.
The action of the House Ways and
Means Committee on the message cannot
be predicted with certainty by members of
that body, although they were engaged in
canvass of views nearly all day. 1t is
understood that bill based on the mes
sage will be submitted to the committee,
but the attitude of several members toward
it is not known. Representatives Wilson,
Turner, Stevens, Bynum and Tarsney of
the Democrats are supposed to favor such
a measure. Messrs. Bryan and Wheeler
are listed in the doubtful column.
The two first named voted against the
Springer bill and the last for il, and their
attitude on the subject is likely to be UNI
changed. The Republican members Of the
committee generally speaking, decline to
say what position they will take on the
question, but there was talk among them
of Offering counter perhaps
ooro e+hip0 in the line with Reeds plan-