Courier Democrat. (Langdon, N.D.) 1891-1920, 1895-02-14
PRESIDENT CLEVELAND SENDS A
MESSAGE TO CONGRESS.
He Gives Notice Tint Owing to the
Delay i'm Passing n Financial Bill
the Administration II Gah-
PEELED to Make Another
Issue of Bonds.
GOLD WILL COME FROM ABROAD.
The Statement Is MaLa That Half of
the $G:,GOO,OOO Bonds Will he
Taken in Europe.

'el.. liie lolAoWlaS message to congress:
TO the Congress Of the United States:
since lily recent communication to
congress calling attention to our tinan-
clal condition and suggesting legisla-
zion which l deemed essential TO our
national welfare and credit, the ankle
~ and apprehension then existing in
business circles have continued
AS a precaution, therefore, against
inc 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 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 so critical and
the legislative situation so unpromis-
ing With the omission thus far OH the
part of the congress to benefcially en-
Large the powers of the secretary Of
tha treasury in the premises, as to
elioin Immediate action with the IA
c4litieS now at hand.
Therefore, in pursuance of Section
EGO 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 of the United States
authorized under the act Of July II.
1875. payable in coin. thirty years af
ter their date, with interest at the rate
of 4 per cent per annum, to the amount
of little less than S62.O0O.OOO are to
be issued for the purchase of gold coin
amounting to a sum slightly in excess
of $G5,0O0.000. 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 $10O.OO0.000. Such premi-
UNI 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 3-4 per cent
per annum. At least one-half the gold
to be obtained
Is to BE Supplied From Abroad,
which is 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 per cent coin bond. other bonds
in terms payable in gold. only 8 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
i 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 cent in annual
| interest.
In the agreement just concluded. the
annual saving in interest to the gov.
eminent. if 5 per cent gold bonds
should be substituted by 4 per cent
coin bonds under the privilege reserved
would be S532.159 amounting in thirty
years. or at the maturity of the coin
bonds. to S16.174.770.
OF course. there never should be a
doubt in any quarter as to the re-
demption in gold of the bonds of the
government. which are made payable
in coin. Therefore. the discrimination
in 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.
I have only to add that in my opln-
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 II, 1890, and that in the
language of such repeating act the ar
rangement 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 ana
in the payment Of debts
Grover Cleveland.