The pioneer press. (Miller, Hand County, S.D.) 1893-190?, 1895-02-14
BONDS TO BE ISSUED.
PRESIDENT CLEVELAND SENDS 4
MESSAGE TO CONGRESS.
He Gives Notice That Owing To the
Delay In Passing n Financial BiII
the Administration IL ComycIIed
10 Mnke Another Issue of Bonds.

Washington, Feb. 1O.-Thc president
sent the following message to congress:
10 the Congress of the United States:
Since Ivy recent communication to
congress calling attention to our tinan-
Ciai condition and suggesting legiSla-
ton which | deemed essential to our
national welfare and credit. the ankle
ty and apprehension then existing in
business circles have continued.
As IA precaCtiGA. therefore. against
til" failure OF timely Legislative aid.
through congressional action. cautious
preparations have been pending to
employ to The best advantage. in de
fault of better means. such executive
authority as may, without additional
legislation be exercised for the
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 so critical, and
the legislative situation 50 unDrOmis-
ing with the omission thus far on the
part Of the congress to bencficially en-
large the powers of the secretary Of
the treasury in the premises. as to
enJoin Immediate action with the IA
cillties now at hand.
Therefore. in pursuance Of Section
300 of the Revised Statutes the de-
tails Of an arrangement have this day
been concluded with parties abundant
ly able to fulfill their undertaking.
whereby bonds 90 t'p United States
authorized undcr - act of July II.
1875. payable in coin. thirty years af-
ter their date. with interest at the rate
of 4 per cent per arnum. TO the amount
OF a little less tia. $62.0 0O. 900 are to
be Issued for the purchase Of gold coin
amounting TO a sum slightly in excess
of $50, 900 900, 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 reserve
as to make it amount to something
more than 500. 00O. 600. Such prCmi-
um is to be allowed TO the govern
ment upon the bonds as to fix the rate
Of interest upon the amount OF gold
realized at the rate of 3 81 per cent
per n At least one-half the gold
to be obtained
Is to He Supplied From Abroad,
which is a very important and favora-
bic feature of the transaction. The
privilege Is especially reserved to the
government TO substitute at par with
in ten days from this date in lieu of
the 4 per cent coin bond. other bonds
in terms payable in gold, only 3 per
cent, If the issue of the same should in
the meantime be authorized by the
congress.
The arrangement thus completed.
which, after careful inquiry, appears
in present circumstances, and consid-
ering all the objects desired to be the
best attainable, develops such a diff
ference in the estimation of investors
between bonds made payable in coin
and those specifically 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 saving in interest to the gov
eminent. II 3 per cent gold bonds
should be substituted by 4 per cent
coin bonds under the privilege reserved
would be 1882, 159, amounting in thirty
years, or at the maturity Of the coin
bonds, to SIG, ia, 40.
OF course, there never should be a
uOuDt III any quarter dS W TIE re-
demption in gold Of the bonds of the
government. which are made payable
In coin. Therefore, the discrimination
i'm the Judgment OF investors between
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 opin-
ion the transaction here intimated for
the information Of congress promises
better results than the efforts previous
ly made in the direction of effectively
adding to our gold reserve through the
sale of bonds; and I believe it will
tend. as far as such action can in pres
ent circumstances, to meet the deter
mination expressed in the law repeal
ing the silver purchasing clause of the
act Of July IA, 1890, and that in the
language OF such repeating act the ar
rangement made will aid our efforts
to insure the maintenance OF the
parity in value Of the coins OF the two
metals, and the equal power OF every
dollar ut all times in the markets and
in the payment of debts
Grover Cleveland.