The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-09
MIR. CLEvELAND,s MESSAGE.
Congress Notified that bonds Will BE
Exchanged for Gold.

WASHINGTON, Feb. 8-The President
to-day sent the following message to Con-
gress:
ITO the Congress of the United States
since my ret ent COMMIT lnication 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 existing in business circles have con-
tinued. As a precaGtion, therefore, against
the failure of timely legislative aid through
nave peen 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 and maintain
ing in our treasury an adequate and safe
gold reserve.
charged with this responsibility, the bust
ness situation is 80 critical, and the legis-
omission thus far on the part of the Con-
gress to benefcially enlarge the powers oe
the Secretary of the Treasury in the prem
ises, as to enjcin immediate executive
tion with the ABILITIES now at hand. There
fore. In pursuance of Section 300 of the
Revised Statr les, the details of an arrange
ment have this day been concluded with
parties abundantly able TO fulfill their un-
dertaking, whereby bonds of the United
States, authorized under the act of July H.
1870, payable in coin, thirty years after
cate with interest at the rate of per cent.
than sixty-two millions and four hundred
thousand dollars, are to be issued for the
purchase of gold coin amounting to a sum
slisLtly in excess of siXty-five millions of
dollars, tc be delivered to the treasury of
the United States, which sum, added to the
gold now. held in our reserve, will re-
store such reserve as to make it amount to
something more than one hundred millions
OF dollars. Such premium is to be allowed
the rate of interest upon the amount of gold
realized at the rate of 3s4 per cent. per
annum. At least one-half of the gold to De
abroad. which is very important
and favorable feature of the trans
action. 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
cent. interest if the issue of the same should
in the meantime be authorized by The Con-
..The arrangement thus completed, which,
after careful Inquiry, appears in present
circumstances and considering all the OBJ
jects desired, to be the best attainable, de-
velops such difference in the estimation
of investors between bonds made payable
in coin and those specifically made payable
in gold in favor of the latter as is repre-
sented by three-fourths of cent in annual
interest. In the agreement just concluded
the annual saving in interest to the gov
ernment If three-per-cent. gold bonds should
be substituted for four-per-cent. coin bonds
under the privilege reserved, would be $685.
15s amounting in thirty years at the ma
turity of the coin bonds to s16174,77O.
'Of course, there never should be doubt
in any quarter as to the redemption in gold
or the pOIidS VI lAc SuFttuiiiSHl WHICH are
made payable in coin. Therefore the dis
elimination in the judgment of investors
between our bond obligations payable in
coiH and those specifically made payable in
gold is very significant. 1t is.hardly neces-
sary to suggest that whatever may be cur
views on the subject. the sentiments or
preferences of those with whom must
negotiate in disposing of our bonds for
gold are not subject to our dictation
have only to add that. in my opinion. the
transaction here intimated FOR the informal
assn " the Congress promises better re-