The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-02-14
NOW LOOKS LIKE A GOLD BOND
THE HOUSE WAYS AND MEANS CON-
MuTTEE VOTES FOR IT.

Isle to Issue %G5. .I1G,25J Three
Per Cents 10 Restore the Reserve
Chairman. Wilson the Author oi
the Report Accompanying the
Resolution "a che House.
Washington. Feb lS-The House way
and means comm. ttee to-day agreed TO
report the following resolution:
Resolved, That the Secretary OF the
Treasury be and he is hereby authorize
to issue and dispose of at not less than
par IN gold coin. bonds OF the United
States, with the quality. privileges and exc
empuon Of bonds issued under the act ap
proved. July a. 1870 entitled "an act au-
thorizng tn refunding of the nat ona
debt To an amount not exceeding SO5-
1880, bearing interest az rate not eE
ceedng per cent. per annum, princIa
and interest payable IN gold CON Of IN.
present STANDARD of weight and fine
ness, said bonds to be mace payable To
more than thirty years after cate, pro
vided. however that no part of the Iro
ceeds of sale of such bonds nor OF the
notes redeemed with such proceeds hal
be available for the payment Of the cur
rent expenses of the government
The resolution was adopted by a vote
Of TO s. those voting m The Affirmative
being Messrs. Wilson of West Nrg MIA.
Turner of Georgia. Cochran Of New ok,
Montgomery of Kentucky, ) etens OF
Massachusetts and Tarnscy of Missouri.
democrats, and Messrs. Reed Of Name
and Payne of New York, republicans.
The negative vote was cast by MossIs
McMillin OF Tennessee, Bryan Of Nebras-
ka, Wheeler OF Alabama, Whiting OF
Michigan, democrats. and Hopkins OF II
linois. republican. Mr.. Gr0sN enor, rep, o
Ohio, who was present did not vote,
inasmuch as he was opposed TO the prop
osition. but was swllng that IL should
be brought before the House. Immediate
ly after taking this vote the committee
adjourned.
There was some discussion when the
committee first met over The resolution
introduced yesterday by Mr. Wheeler OF
Alabama, which characterized the is
suance of a gold bond as an abandon
ment Of the principal of b mettallism, hi
contention being that no nation has
ever issued a gold bond He said that
secretary Carlisle had said this In ans
wer TO a query addressed to him yester-
day by Mr.. Wheeler when the Secretary
was before the committee.
Mr.. Wilson this afternoon reported 70
the House the joint resolution agreed upon
In committee this "a lrning authorizing
the issuance OF a thirty year per cent
interest bearing gold bond.
The report written by Chairman VII
son, accompanying the resolution includes
a copy Of the Presidents recent message
to congress bearing upon The subject, ana
also a copy of the contract made by the
treasury department with the European
syndicate for the purchase of the new
bonds. Continuing the report says; "'fhe
committee has had the benefit Of con-
ference with the Secretary Of the Treas
ury, who exhibited to them the orig mi
contract entered into by himself on Feb.
g. ana explained its details - them. a
full and complete copy of said contract
is hereto added. From a reading OF this
paper 1t will be seen that the arrangement
OF the secretary with the parties to this
contract effects the purchase OF $500, )O0
ounces of standard gold coin OF the United
States amounting TO $G5,ll6,27O, at least
one-half of which shall be obtained In
and shipped from Europe. For this gold
coin he has contracted 10 issue to the
parties furnishing It, under authority Of
the act for the resumption OF specie pay
ments, approved Jan. T. 1870, per cent
thirty year coin bonds of the United
States, at a price which realizes them
interest at the rate of 3% per cent. But
the Secretary of the Treasury has re-
served the right If authority Is given
him by congress, to substitute at par any
bonds of the United States bearing 3 per
cent interest, Of which the principal and
interest shall be specifically payable In
United States gold coin OF the present
weight and hneness, said substitution
however to be made within ten days from
the date of the contract.
1T Is the object of the joint resolution
herewith reported, to give to the Secre-
tary of the Treasury authority to suosti-
tute such bonds to the amount of the con-
tract.
The saving to be enecred TO the gov
elnnent, as se+ iCrth In the Pr sidents
message, Will be S5Sy, 80 per year TO- ev-
cry year the per cent. bonds run, and
of the amount Of sl6,174,7O should they
run thirty years. As il IS not believed by
the committee that the issue Of bonds
specifically payable in gold viii impose
any additional burden Or liability upon
the government than IL they are made
payable in coin, under its pledge and
policy to preserve the parity Of the co ms
I'm the two metals, the saving Of tn
large amount becomes matter OF sub
stantial moment and advantage to the
government. And as the parties to take
the bonds are under contract to furnish
gold for them. Il seems no hardship On
.Je 20 c.,m,ut to cont at to pay them
ba Z; In h. same c7in that they fur-
nish to IT,"
Following is the text CT the contract
between the treasury and the syndicate:
's'rhis agreement entered into this 5 h
day Of February 1895 between the Sec
retary Of the Treasury of the United
states OF the first part, and Messrs. Au-
gust Belmont < Co of New York on be-
half of Messrs. y. NJ Rothschilds q
sons OF London. England, and them
selves, and Messrs. J. p. Morgan Co
Of New York on behalf Of J. S. Morgan &
60. of London, and themselves, parties
of the second part,
Witnesseth: Whereas, 1t Is provided by
the Revised Statutes Of the United states
Cection 370O that the Secretary Of the
Treasury may purchase coin with any OF
the bonds or notes Of the United states
authorized by law at such rates and upon
such terms as he may deem most advan-
tageous to the public interests and the
Secretary Of the Trearury now deems that
an emergency exists IN wh ch the public
interests require that, as hereinafter pro-
yldod. coin shall be purchased with the
bonds Of the United States Of the descr p
ton hereinafter mentioned. authorized TO
be issued under the act emitted An act 10
provide for the resumption Of g ; cie
pavr.ents.' approved Jan. II, 1875. being
bonds Of the United States described IT,
an act OF congress, approved July Ia.
1870. entitled An act TO authorize the re
funding Of the national debit now. there.
fore. the sad parties Of the second par