Mexico weekly ledger., 1895-02-14
The Third Bond Issue.
THIRTY YEAR FOUR PER CENTS
TO THE AMOUNT OF S62, 400 1000.
Message to Congress by the President
Over Three Million Ozs. Standard
Gold Coin to be Purchased.

WASHINGTON, ID. c., Feb. s.-The
President to-day sent the following
message to Congress.
To the Congress of the United States:
Since my recent communication to
Congress calling attention TO the tinan-
ciaI condition and suggesting legisla-
ton which | deemed essential to our
national welfare and credit the anxiety
and apprehension then existing IN
business circles have continued.
AS a precaution,~ therefore, against
failure of timely Legislative aid through
Congress active preparations have
been pending TO employ to the best
possible advantage, in default of bet
ter means, such executive authority
as may, without additional legislation,
be exercised for the purpose of rein
forcing and maintaining in our Treas
ury 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 SO unpromising with the
omission thus far on the part of the
Congress to benefcially enlarge the
pomsrs-ef-ehe- Secretary OF the
Treasury in the premises as to en-
Join immediate executive action with
the facilities now at hand.
Therefore, in pursuance of sec. 300
- Tho ,a,-,unI statrrfns tho In%a,1a ~
an arrangement have this day been
concluded with parties abundantly able
to fulfill 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 a little
less than s62, 400 900 are to be issued
for the purchase of gold coin amount
ing to a sum slightly in excess of $685.
000, 900 to be delivered to the Treasury
of the United States, which sum, added
to the gold now held in our reserve,
will make it amount to something more
than 500, DOC, 900.
Such premium is to be allowed t. the
Government upon the bonds as to fix
the rate of interest upon the amount
of gold realized at the rate of three
and three-fourths per cent. per an
mum. At least one-half of the gold to
be obtained is to be supplied from
abroad which is a very important and
favorable feature of the transaction.
The privilege is especially reserved
to the Government to substitute at par
within ten days from this date in lieu !
of the 4 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 mean
time be authorized by Congress.
The arrangement thus completed
which after careful inquiry appears in
present circumstances and considering
all the objects desired, to be the best
attainaole, developes such a difference !
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
fonrths of a cen in annual interest.
In the agreement just concluded the
annual Saving m interest TO the Gov |
eminent if 3 per cent. gold bonds
should be substituted for 4 per cent.
coin bonds under the privilege re-
would be five hundred and
thirty nine thousand, hundred and
dollars, amounting in thirty
years, or at the maturity of the coin
to sixteen million one hundred
and seventy-four thousand seven hun
and seventy dollars.
of course there never should be a
doubt in any quarter as to the re-
lemption in gold of the bonds of the
which are made payable
n coin. Therefore the discrimination
the judgement of investors between
bond obligations payable in coin
md those specifically made payable in
gold is very significant. 1t is hardly
necessary to suggest that whatever
nay be our views on the subject the
sentiments or preferences of those
With whom we must negotiate in dis
'osing of our bonds for gold are not
ubject to u dictation. |;
have only to add that in my opin- !,
on that the transaction here intimated
or the information of the Congress
romises better results than the efforts
~reviously made in the direction of y
ffectively adding to our gold reserve
trough the sale of bonds, and / be-
eve it will tend Is far as such action
an in present circumstances, to meet
ne determination expressed in the .
wv repeating the silver purchasing c
Iause of the act of July IA, 1890, and L
in the language of such repeating c
the arrangement made will aid our r
forts to ENSURE the maintenance of '
he parity in value of the coins, of the v
metals and the equal power of s
very dollar at all times in the markets p
nd i'm the payments of debts" t
GROVER CLEVELAND.