The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1895-02-13
Sixty Millions More.
Cleveland Informs Congress
OF Another Issue of Bonds.


Congress at noon to day
To the Congress Of the United
States:
Since my recent communication to
the Congress, calling attention to our
financial condition and suggesting
legislation which deemed essential
to our national welfare and credit, the
anxiety and apprehension then exist
ing in business circles have con-
tinued.
Asa precaution, therefore, against
the failure of timely legislative aid,
through Congressional action, eau
tlous preparations have been pending
to employ to the best possible advan-
tage, in default of better means, such
executive authority as may, without
additional legislation. be exercised
for the purpose of reinforcing and
maintaining in our Treasury an ade-
quate 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 at the ommission so far on the
part of the Congress to benehcially
enlarge the powers of the Secretary
of the Treasury in the premises as to
enioin Immediate executive action
with the facilities now at hand.
Therefore, in pursuance of Section
270O of the Revised Statutes, the
details of AN arrangement have this
day been concluded with parties
abundantly able to fulfil their under
taking whereby bonds of the United
States, authorized nnder the act of
July IA, 1875, payable in coin, thirty
wears after their date. with interest
at the rate of 4 per centum per
annum, to the amount of little less
than sixty two millions and four hu,:-
dred thousand dollars are to be issued
for the purchase of gold coin amount
ing to a sum slightly in excess of
siSty-fve millions Of dollars, to be de-
livered to the Treasury of the United
States, which sum, added to the gold
now held in our reserve, will so re
store such reserve as to make it
amount to something more than one
hundred million of dollars. Such pre-
MUM 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 three and three-fourths
per cent per annum At least
one-half of the gold to be obtained
is to be supplied from abroad, which
is a very safe and favorable feature OF
the transaction. The privilege is
especially reserved to the govern
ment to substitute at par within ten
days from this date in lien of the
four per cent. coin bonds, other
bonds iu terms payable in gold and
bearing only three per cent interest
if the issue OF the same should III
the meantime be authorized by the
Congress.
The arrangement thus completed,
which after careful investigation ap-
pears in present circumstances ane
considering all the objects desired to
be the best attainable, develops such
a difference in the estimation Of in.
vestors between bonds made payable
in coin and those specifically made
payable in gold in favor of the latter,
as is represented by 81 ceut. in
annual interest. In the agreement
lust concluded the annual saving to
the government in the interest Of 3
per cent. gold bonds should be sub
stituted for g. per cent. coin bonds
under the privilege reserved. would
be $3.50, ,l59, amounting in thirty
wears, or at the maturity of the coin
bonds to $16,174,77o.
Of course, there never should be
doubt in any quarter as to redemp-
ton 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 con
and those specifically payable in
gold is very signi6can, 1t is hardly
necessary to suggest thai 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 iii my
opinion, the transaction herein de-
tailed for the information Of Congress
promises better results than the
efforts previously made in the direc-
ton of effectively adding to our gold
reserve through the sale of bonds
and believe it will tend as far as
such action can in present circum-
stances to meet the determination
l.<.