New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-02-09
A BOND ISSUE ANNOUNCED.
TO BE MADE IN TEN DAYS
THE PRESIDENT INFORMS CONGRESS OF
HIS INTENTIONS.
UNLESS IT DOES SOMETHING TO RELIEVE rHn
TREASURY. HE SAYS ss2, 10000 PER CENT
GOLD BONDS WILL BE SOLD TO A SYN
DICATE OF NEw-YORK AND FOR
EIGN BANKERs-CONGREss NOT
LIKELY TO DO ANYTHING.

LIKELY TO DO ANYTHING.
tBY TELEGRAPH THE rRIyuNE.l
Washington, Feb. S-The defeat In the House
of Representatives yesterday of the Administra-
tions Financial bill No. drew to-day from the
President a somewhat petuant and charac-
teriscally theatrical retort. Having failed to ex-
tort from the Democratic managers In Congress
approval Of his plans for the reform Of the cur
rency system. and having through Mr.. Springer
and other cuckoo" spokesmen dt the Capitol
repused the sensible and practical programme
for the relief of the Treasury offered by Mr.
Reed or behalf Of the Republicans. the President
now issues challenge to the Democratic ma
jority in both houses to urrender its opposi-
ton to a gold coin bond issue or assume the
responsibility of adding over 100000 yearly to
the fixed interest charge. of the Treasury. He
sent to Congress to-day the following message:
To the Congress Of the United States:
Since my recent communication to the Con-
gress calling attention to our financial condition
and suggesting legislation which deemed essen
tial to our National welfare and credit, the
anxiety and apprehe lsor then existing in bust-
ness circles have continued.
AS a precaution. therefore, against the failure
Of timely legislative aid through Congressional
action. cautious preparations have been pending
to employ to the best possible advantage, in de-
fault Of better means such Executive authority
may without additional legislation, be exer-
cised for the purpose cf reinforcing and main
tanning in our Treasury an adequate ana safe
gold reserve.
In the judgment or those especially charged
with this responsibility, the business situation Is
so critical and the legislative situation Is so un-
promising 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 acton Win the
facilities now at hand.
Therefore, in pursuance Of Section 3,IoO OF the
Revised Statutes. the details OF the arrange
ment have this day been concluded with parties
abundantly able to fulfil their undertaking.
whereby bonds Of the United States authorized
under the Act of July IA. 1875. payable in coin:
thirty years after their date, with interest at
the rate Of per cent per annum, TO the amount
OF little less than s62,4OO,000 are to be issued
for the purchase Of gold coin amounting to a
sum slightly in excess OF $3.50 000 to be de-
uvered 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 IL
amount to something more than Sl0O.OOOOoO.
Such premium is TO be allowed to the Gov.
ernment upon the bonds as to fix the rate OF
interest upon the amount Of gold realized at SS
per cent per annun,. At least one-half OF the
gold be obtained is to be supplied from abroad.
which is a very important and favorable feature
of the transaction
PRIVILEGE RESERVED.
The privilege is especially reserved to the Gov
ernment 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 per cent interest II the issue OF
the should in the mean time be authorized
by the Congress
The arrangement thus completed. which after
careful inquiry appears In present circumstances
and considering all the objects desired 10 De tne
best attaina BILE develops such difference in the
estimation of investors between bonds MADE pay
able in coin and those specifically made payable
in gold in favor Of the latter as Is represented Dy
:. of | per cent i'm annual interest. In the
agreement just concluded the annual saving IN
interest to the Government II per cent goid
bonds should be substituted for per cent com
bonds under the privilege reserved would be
s539.159 amounting i'm thirty years. or at the
maturity of the coin bonds to sl6 lf+Uo
OF course there should never be 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 me
Judgment Of investors between our Dond ooiiga-
tons payable in coin and those specifically made
payable in gold is very significant. 1t is hardly
necessary to suggest that, whatever may De our
views on the subject, the sentiments or prerer-
ences OF those with whom We must negotiate in
disposing Of bonds for gold are not subject
TO our dictation.
| have only to add th1; in my opinion the
transaction herein detailed for the information
Of the Congress promises better results than the
efforts previously made In the direction OK
effectually adding 20 our gold reserve through
the sale of bonds: and | believe il will tend. as
fer as such action can H. present circumstances,
to meet the determination expressed in the law
repeating the silver-purc hasing clause of the
Act of July IA. $780, and mat. In the language or
such repeating act the arrangement made VIII
aid our efforts to insure the maintenance Of the
parity i'm value of the coins OF the two metals
and the equal power Of every dollar at all times
in the markets and in the payment OF debts
GROVER CLEVELAND.
Executive Mansion. Feb. s. 1885,
Somewhat to the surprise Of experts in Con-
gress it appears from Mr.. Ceveand's message
that the new loan which he mas been negotiating
for two weeks past and now announces on the
heels of yesterdays legislative failure. is to be
hoated at 3A per cent; and the alternative Is
held out of a fiat 3 per cent sale I'm case both
Houses of Congress will pass within ten days
Joint resolution giving the desired authorization
of an issue of gold coin bonds. OF course the
President knows that the passage OF SUCH
resolution is impossible. and the only effect OF
the option paragraph OF the message VIII De 10
throw Upon the already discredted majority IN
Congress ttc odium OF increasing by their poHcy
Of obstinacy and inaction the burden OF inc
Treasury's interest obligations without thereby
increasing in any way the BENEFITS OF the pro-
posed new loan.
THE HOUSE NOT LIKELY TO ACT.
Although the reference of the message in the
House TO the Ways and Means Committee in
stead of the Banking and Currency Committee
NAV be taken In way 10 indicate that the
President has tired of Mr. Sprnger's fantastic
financial leadership. and desires to intrust the
fortunes of his latest plan for the relief Of the
Treasury 20 the more congen!al II equally inn
practicable supervision and management Of Mr..
Wilson. It is still the general belief at the Cap
ito that no possible advantage to the Admins.
tration can come from this change. and that no
serious effort will be made in the House TO fore
close the purely spectacular option granted to
the Administration by the representatives of the
English bond syndicate Of which Mr.. Belmont
and Mr. Morgan the representatives. Mr..
Wilson said to-day with his usual sanguine air
that the Presidents suggestion would be
sidered at meeting Of the Ways and Means
Committee tomorrow morning and that bill
embodying the Administrators ideas would pos
sibly be reported. Their" is. however. little or
no likelihood even Of this formal compliance with
the wishes OF the Administration. OF the Demo-