Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1895-02-13
Presidents Message.

Since nv recent communication 10 the
Congress calling attention to our financial
condition and suggesting legislation which
I deemed essential to our national welfare
and credit, the anxiety aud apprehension
then existing in business circles have con-
tinued.
As a precaution, therefore, against the
failure Of timely legislative aid through con-
gressional action, cautious preparations
have been pending to employ to the best
possible advantage, in default of better
means. such executive authority as may
without additional legislation, be exercised
for the purpose of reinforcing aud main
tanning in our treasury an adequate and safe
gold reseserve.
In the judgment of those especially charg-
ed with this responsibility, the business sit
uation is so critical and the legislative stu
alton is so unprOmising, with the omission
thus far Cd the part of the Congress to ben
e6cially enlarge the powers of the Secretary
Of the Treasury in the premises, as to epjoin
immediate executive action with the facili-
ties now at hand Therefore, in pursuance
of section 300 of the Revised Statutes, the
details Of 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 II, 1875, payable in coin thirty
years after their date, with interest at the
rate Of 4 per cent. per annum, to the amount
of a little less than $50, 100000, are to be is
sued for the purchase of gold coin amount
ing to a sum slightly in excess of 500, O0O,'
600, to be delivered to the treasury of the
United States, which sum, added to the gold
now in our reserve, will so restore such re-
serve a. to make it amount to something
more than SlOOOO0,OOO. Such a premium
is to be allowed to the government upon the
bonds as to fix the rate of interest upon the
amount Of gold realized at 81 per cent. pei
anuum. At least one-half 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 ter
days from this date in lieu Of the four pei
cent. coin bonds, other bonds in terms pay
able in gold and bearing only three per cent
interest if the issue of the same should il
the meantime be authorized by the Con
gress.
The arrangement thus completed, which
after careful inquiry, appears 10 present cir
cumstances and considering all the object;
desired to be the best sttainable, develop;
such difference in the estimation of inves'
tors between bonds made payable in coir
aud those specifically made payable in gold
in favor of the latter, as is represented by
three-fourths OF a cent in annual interest
In the agreement just concluded the annual
saving in interest to the government if
per cent. gold bonds should be substituted
for 4 per cent. coin bonds under the priv.
lege reserved would be Sj39 l59, amounting
in thirty years or at the maturity of the coin
bonds to l6,l74,77O.
Ofcourse, there never should be doubt
in any quarter as to the redemption in gold
OF the bonds of the government which are
made payable in coin. Therefore, the dis
elimination in the judgment of investors be-
tween our bond obligations payable in coin
aud those specifically made payable in gold
is very significant.
It's hardly necessary to suggest that what
ever may be our views on the subject, the
sentiments of preferences of those with
whom we must negotiate in disposing of our
bonds for gold are not subject to our dicta.
ton.
have only to add that in my opinion the
transaction herein detailed for the informa-
ton Of the Congress promises better results
than the efforts previously made in the d.
rectiou Of effectively adding to our gold re-
serve through the sale of bonds, and be-
lieye it will tend, as far as such action can,
in present circumstances TO meet the deter
mination expressed in the law repeating the
silver purchasing clause of the act of July
IA, 1890, and that, in the language of such
repeating act, the arrangement 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 and in the pay
meut of debts" GROVER CLEVELAND.
Executive Mansion, February S, 1895.
The farmers are just as well off as they
ever were. because they get everything else
so much cheaper than formerly that the low
prices for wheat is thus equslized. Now let
Us see. How much better off is the Office
holder, the mortgage owner, the banker, the
railroad stakeholder aud every nOn-producer
who not only gets everything the farmer pro-
duces at less than the cost of production,
but buys everything else measurably cheap
er, so that the dollar of his fixed salary buys
three times as much of the necessities Of