The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-02-08
THE BONDS ARE SOLD
Sixty-five Millions Are Already
Negotiated.
Half of the New Issue Goes to
Foreigners.
FOundNecessary to Pay a Higher
Rate of Interest.
TOLD TO CONGRESS.
The President Writes Another
Message Today.
He Tells Congress What He Has
Done and Why.
SHOULD BE NO DOUBT
He Says of the Governments
Intention as to Bonds.
They Must be Redeemed in Gold
Alone.

WASHINGTON, FeD. S.-Ihe president
sent the following message to congress
today:
To the Congress of the United States:
Since my recent communication to
congress, calling attention to our finan-.
cial condition and suggesting legislation
which l deemed essential to our national
welfare and credit, the anxiety and ap-
prehension then existing in business cir
cles have continued.
AS precaution therefore, against the
failure of timely legislative and through
congressional action, cautious prepara-
tiOns have been pending to employ to the
hest possible advantage in default of bet
ter means, such executive authority as
may without additional Legislation, be
exercised for the purpose of reinforcing
and maintaining in our treasury an ade-
Quate and safe gold reserve.
Business No Better.
In the judgment of those especially
charged with this responsibility, the
business situation is so critical and the
legislative situation unpromising with
the omission thus far on the part of
congress- to benefcially enlarge .4the
powers of the secretary Of the treasury
in the premises, as to enjoin Immediate
executive action with the facilities now
at hand.
Therefore, in pursuance of section
300 of the revised statutes the details of
an arrangement have this day been con-
cluded with parties abuudantly 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 in
terest at the rate of per cent per annum,
to the amount of a little less than sixty
two
sand dollars are to be issued for
the purchase of gold coin amounting to
/ a sum slightly in excess of sixty five mil =
| lion dollars to be delivered to the treasury
| of the United States, which sum added
to the gold now held in our reserve, will
so rest in such reserve as to make it
amount to something more than 100
millions of dollars. Such 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 the rate
! of three and three-fourths per cent per
annum.
Half From Abroad.
At least one half of the gold to be OBJ
tained is to be supplied from abroad
Which is very important and favorable
feature OF the transaction. The privilege
is especially reserved to the government
! to substitute at par within ten days from
bonds, other bonds in terms payable in
gold and bearing only3 per centinterest if
the issue of the same should in the mean
time be authorized by congress. The
arrangements thus completed, which
after careful inquiry, appears in present
circumstances and considering all the
objects desired to be the best attainab BILE.
develops such difference in the esti
nation of interest between bonds made
payable in coin and those specifically
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 in
terest to the government if 3 per cent
gold bonds should be substituted for 4
per cent coin bonds under the privilege
reserved, would be $539, ,159, amounting
in 30 years. or at the maturity of the coin
bonds to sixteen million one hundred and
seventy-four thousand seven hundred
and seventy dollars.
Should Be No Doubt.
OF course there should not be a doub
in any quarter as to the redemption il
gold of the bonds or the government
which are made payable in coin. There
fore the discrimination in the judg
ment of investors between our bond OBJ
legations payable in coin and those speci
ficalIy made payable in gold is yer,
| significant It is hardly necessary t
suggest that whatever may be our view
on the subject, the sentiments or prefer
u, ences of those with whom we must ne
gotiate in disposing of our bonds for golG
, are not subject to our dictation.
, l have only to add that in my opinion
that the transaction here intimated 70
the information of the congress promise
better results than the efforts previousl,
made in the direction of effectively add
ing to our gold reserve through tn
sale of bonds; and believe it will ten.
, as far as such action can in present cir
: cumstances to meet the determinatio
: expressed in the law repeating the silve
purchasing clause of the act of Jul
IA. 1890, and that in the language c
such repeating act the arrange
ment made will aid our efforts t
| sinsnra the rnaintananca of tho ra-i*