The star. (Reynoldsville, Pa.) 1892-1946, 1895-02-13
PRESIDENT TO CONGRESS.
ANOTHER BOND MESSAGE.
An Emergency Measure to Relieve the
Treasury.

The President sent message to congress
Friday chiding that body for not giving him
authority to issue gold bonds. lie also made
Recommendation, or suggestion, that Con-
sress act within the next ten days and do ex-
sctly what it refused to do Thursday, author.
ze the issuance Of per cent gold bonds.
The message is ms follows
To the Congress OF the United States:
Since my recent communication to the
Congress, calling attention to our financial
condition and suggesting legislation which l
deemed essential to our national welfare and
credit, the anxiety and apprehension then ex-
isting in business circles have continued.
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 rs may, without addi-
tiOnal legislation. be exercised Tor the pur-
pose Of reinforcing and maintaining in our
treasury nm adequate and safe gold reserve.
In the Judgment of those specially charged
with this responsibility, the business situation
is so critical and the legislative situation 50
unpromisng, with the emmssion thus far on
the part OF the congress to beneilcally enlarge
the powers OF the secretary Of the treasury
as to enjoin immediate executive action
with the facilities at hand. Therefore, In
pursuance Of section 3.700 Of the revised
statues. the details Of an arrangement have
this day been concluded with parties abund.
antly able to fulfill their undertaking where
by bonds OF the United States, authorized
under the act OF July IA, 1875 payable in
coin, 80 years after their date, with interest
at the rate Of per cent. per annum. to the
amount OF S62, 400, 900, are to be issued for the
purchase OF gold coin amounting to q sum
slightly In excess OF S65 000, 900 to be delivered
to the treasury Of the United States, which
sum added to the gold now held in our re-
serve will so restore such reserve as to make
II amount to something more than S100,00
900. Such premium is to be allowed TO the
government upon the bonds as to the rate OF
interest upon the amount Of gold realized al
the rate OF 394 per cent per annum. Al least
one-half OF the gold to be obtained is to be
supplied from abroad, which Is q very impor.
tant and favorable feature OF the transaction
RECOMMENDS GOLD BONDS.
The privilege is especially reserved TO the
government TO substitute at par within 10
days from this date in lieu Of the per cent
coin bonds other bonds In terms payable in
gold and bearing only 8 per cent. interest il
the issue of the same should In the meantime
be authorized by the congress.
The arrangement thus completed, which
after careful inquiry, appears in present cir.
cumstances, and considering all the objects
desired, TO be the best attainable. develops
eucn ul0erence IN tne eStlmutiOu Oh 1nNcS-
tors between bonds made payable in gold in
favor of the latter as Is represented by three
fourths OF cent In annual interest. In the
agreement Just concluded the annual saving
in interest to the government II 8 per cent
gold bonds should be substituted by 4 per
cent. coin bonds under the privilege reserved.
would be $685. l59. and amounting In 80
years, or at the maturity Of the coin bonds,
to S16, ,l74,710
Or course there never should be doubt In
any quarter as to the redemption In gold
made payable in gold coin. Therefore, the
discrimination In the judgment OF investors
between our bond obligations payable in coin
and those specifically made payable In gold
Is very significant 1t Is hardly necessary to
suggest that whatever may be our views on
the subject the sentiments of preferences
with those with whom we must negotiate In
disposing OF our bonds for gold are not
subject TO our distation.
have only 10 add that In my opinion the
the transaction here intimated for the in.
formation Of the 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 / be-
lieve 1t will tend, us far as such action can In
present circumstances, to meet the deter
mination expressed by the law repeating the
silver-purchhsing clause OF the act OF July
IA, 1890, and that In the language or such re-
pealing act the arrangement made will aid
our efforts 10 ENSURE maintenance OF the
parity in value Of the coins OF the two met
tails. and the equal power OF every dollar al
all times in the n aTkets and in the payment
OF deb;s."
(signed) GROVER CLEVELAND.
Executive Mansion, Feb. 8. 1895.