Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1895-02-15
CLEvELAND'S WORDS.
A Message Accompanies the
Bond Issue.

1
To the Congress Of the United States;
Since my recent cOmmunica ION
to the Congress calling attention
to our financial condition and sug-
gesliog Legislation which l deemed
essential to our national welfare
and credit, the anxiety aud appre'
htnslOn then existing 10 business
circles have continued.
As a prtcautlOn, therefore,
Against the f,iluIe OF timely legls
lative aid through congressional
action, cautious preparations have
been pending to employ to the best
possible advantage, in default oil
better means, such Executive au-
thority as may, without additional
legislation, b. exercised for the
purpose of reinforcing and main
taiulng IN orr Treasury an adeqeate
AMI safe gold reserve.
In the judgement OF those es'
pecialIy charged with this reSpon'
sibillty the business situation s so
critical and the legislative situs'
ton is so promising, with
the omission tins far on the
part Of Congress to benehcially
eularge the powers Ofthe Secretary
of the Treasury IN the premises, a S
to enjoin Immediate Executive
action with the facilities now at
hand.
rbeI efOr'; in pursuance of sec ion
300, of the revised statutes, the
details of an arrangement have
this day been concluded with par
ties abundautly able to fulfil their
undertaking, whereby bonds OF the
United States, authorized under
the act of July IA, 1878, payable
IN coin, thirty years after date,
with interest at the rate of four
per cent. per annum, to the amount
of little less than So, 100000 are
to be issued for the purpose OF pro-
clllng gold coin amounting to a sum
slightly in excess OF $50, OOO,OOO
to be delivered to the Treasury OF
the United States, which sum,
added to the gold now 10 our
reserve, Will so restore such reserve
as TO make it amount to something
more than one hundred millions.
Such a 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
three and three fOurths cents per
annum. At least one halt Of the
gold to be obtained is to be sup
piled from abroad, which Is a very
important and favorable feature of
the transaction.
The privilege is especially re.
served 10 the government TO sub
stitute at par within ten days from
this date in lieu of the four per
cent coin bonds, other bonds IN
terms payable IN gOlu and bearing
only three per cent. interest. IL
the Issue of the same should in the
meantime be authorized by Con-
gress, the arrangement thus COM
Dleted, which after careful inquiry
appears in present circumstances
and considering all the objects de-
sired, to be the best attainable, de-
velOps such difference in the es-
umanoa of investors between bonds
made pay able in coin and those
specially made payable in gold In
favor of the latter, as is represent
ed by threa fourths Of a cent IN
annual interest. In the agreement
Just concluded the annual saving IN
interest to the government, it three
per cent. gold bonds should be
substituted for four per cent. coin
bonds, under the privilege reserved;
would be 1899, 159, amounting in
thirty wears, or at the maturity OF
the coin bonds, to sl6,l7A,77Q.
Of course there never should be
doubt 10 any quarter as to the
redemption in gold Of the bonds OF
the government which are made
payable IN coin. Therefore, the
determination in the judgment OF
investors between our bond obi.
cations payable in coin and those
specifically made payable IN gold
is very significant.
1t is hardly necessary to suggest
that whatever might be our Views
on the subject the sentiment or
preferences of those with whom we
must negotiate IN dlsposing OF our
bonds for gold are DOT subject to
our dlctation.
have only to add that in my
opinion the transaction herein
detailed for the information OF the
Congress promises better results
than the ,fforts previously made
in the direction of effectively add.