The Coconino weekly sun., 1895-02-14
A NEW BOND ISSUE.

|
 The President Sends to Congress a Special
 Message Giving Information of n New
 Bond Issue-The Gold Reserve.
 WASHINGTON, Feb. 9.-The president yesterday sent the following message to congress, after final brief conference with Attorney-General Olney and Sec retary Carlisle:
 To the Congress of the United States:
 since my recent communication to congress, calling your attention to our financial condi- ton, and suggesting legislation which deemed essential to our national welfare and credit, the anxiety and apprehension thea existing in business circles have continued.
 As precaution therefore, against the fail- ure Of timely legislative and thorough congress slonal action, cautious preparations have been pending to employ to the best possible advan- tage, in default of better means such eXecu- tive authority as may, without additional legis- lation, be exercised for the purpose of rein forcing 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 unpromising with the omission thus far on the part of congress to beneficially enlarge the powers of the secretary of the treasury in the premises, as to enjoin immediate executive ac- JlOn Wltn Jne IaclllleS now on hand.
 Therefore, in pursuance Of section 3700 of the Revised Statutes, the details Of an arrange ment have this day been concluded with par ties abundantly able to fulfill their undertake ing whereby bonds of the United States, au- thorizcd under the act of July IA, 1875 payable in coin thirty years after date with interest at the rate of per cent. per annum to the amount of little less than s62IO0,00o, are to be issued for the purchase of gold coin amounting to gliphflU n n n be delivered to the treasury of the United States, which sum, added to the gold now held in our reserve will so restore such reserve as to make it amount to something more than l00,O0O000, Such premium is to be allowed to the government upon the bonds as to fix the rate of interest upon the amount of gold real- iZed at the rate of 3sl per cent. per annum. At least one-half of the gold to be obtained is to be supplied from abroad which is very important and favorable feature of the trans action.
 The privilege is especially reserved to the government to substitute at par within ten days from this date in lieu of the per cent. coin bonds other bonds in terms payable in gold and bearing only 3 per cent. interest, if the issue of the same should in the meantime be authorized by congress.
 The arrangement thus completed, which, after careful inquiry. appears from present circumstances, and considering all the objects desired to be best attainable, develops such . difference in the estimation of investors be- tween bonds made payable in coin and those specifically payable in gold in favor of the lat ter as is represented by three-fourths of u cent in annual interest In the agreement just concluded the annual saving in interest to the government if 3 per cent. gold bonds shall be substituted by per cent coin bonds under the privilege reserved, would be $559, l59. amount- ing in thirty years, or at the maturity of the coin bonds, to sl6,l7I770.
 Of course there never should be q doubt in any quarter as to the redemption in gold Of the bonds of the government which are made pay able in coin. Therefore the discrimination in the judgment of investors between our bond obligations payable in coin and those specih- cally made payable in gold is very significant. It is hardly necessary to suggest that what ever may be our views on the subject, the senti- ments or preferences of those with whom we must negotiate in disposing Of OFT bonds for gold are not subject to our dictatlon.
 I have only to add that in my opinion tho transaction here intimated for the information of congress promises better results than the efforts previously made in the direction Of effectively adding to our gold reserve through the sale of bonds, and believe 1t will tend, as far as such action can in present circumstances, to meet the determina- tion expressed in the law repeating the silver purchasing clause of the act of July l4 ls90 and that in tine language Of such repeating act the arrangement 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 at all times in the market and in the payment of debts"
 GROVER CLEVELAND.
 Executive Mansion, February 8, 1895.