The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-02-09
CLEVELAND WARNS CONGRESS
THE MEMBERS GIVEN NOTICE or
TIRE COMING BOND ISSUE.

He Has Made Arrangements to Float
SG2,iOO.OO0 Thirty Year Gold Is on
an Interest BASIS of 3 Sd Per Cent.
IL Congress Acts lie Can Place ,
Per Cents. Instead OF the 4s-aiost
Of the Issue 90 Go Abroad.
Washington, Feb. S.-President Cleve-
land sent the following message to con-
gress at noon to-day:
To the Congress Of the United States:
Since my recent communication to the CON
gress calling attention to our financial
condition and suggesting legislation which
] deemed essential TO our national welfare
and credit. the anxiety and apprehension
then existing In business circles have
continued.
As precauton, therefore. against fall
ure of timely legislative and thorough
congressional acton. cautious prepare
tons 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 reinforc.ng
and maintaining IN our treasury an ade-
quate gold reserve.
In the Judgment OF those especiaIiv
charged with this responsibility the bus
incss situation is so critical and the iegis-
lative situation so Unpromlsing with the
omission thus Tar on the part Of the con
gress to henehcialiy enlarge the powers Of
the Secretary OF the Treasury In the pre-
misses as to enjoin immediate executive
action with the facilities now at hand.
Therefore, In pursuance OF section 200
Of the revised statues details of an ar
rangement have this day been concluded
with parties abundantly able TO fulnl the r
undertaking whereby bonds Of the United
states authorized under the act OF July
A. 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 sG2. 400. 900
are to be Issued for the purchase Of
gold coin amounting to a sum slightly in
excess OF sixty-hve millions Of dollars to
be delivered 10 the treasury OF the United
states-which sum added to the gold now
held In our reserve VIII so restore such
reserve as to make II amount to some
thing more than one hundred millions OF
dollars. Such premium 10 be allowed TO
the government upon the bonds as to hN
the rate OF interest upon the amount of
gold realized at 80 per cent per annum.
AT least One-half Of the gold to be OBJ
tanned 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 per
cent. coin bonds other bonds Ia term
payable in gold and bearing only per
cent. interest II issue OF the same should
In the meantime be authorized by con
gress.
The arrangement thus completed, which
after careful Inquiry and considering all
the objects desired to be best attainable
"a
tion Of investors between bonds made
payable In coin and those especially made
payable In gold in favor Of the latter
as Is represented by three-fourths of one
per cent. In the annual interest, IN the
agreement Just concluded, the annual saw
ing in interest to the government of 3 per
cent. gold bonds should be substituted for
reserved, would be $J39, 159 olts-ati onmd a
per cent coin bonds under
the privilege reserved, would be s539i59
amounting in thirty years. or at the ma
thrifty of coin bonds. 20 si6,174.770
OF course there never should be doubt
in any quarter as to the redemption in
gold OF bonds Of the government which
are made payable in gold.
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.
It Is hardly necessary to suggest that
whatever may be our views on the subject
the sentiments or preferences of those
with whom we must negotiate in dis
posing of our bonds for gold
are not subject 70 our dictations
have only to add that. in my opn-
ion, the plan herein detailed for the in
formation Of congress promises better re-
suits than the efforts previously made
in the direction Of effectively adding TO
our gold reserve through the sale of bonds.
and / believe IL will tend as far as such
action can In the present circumstances
TO meet the determination expressed In
the law repeating the silver purchasing
clause Of the act Of July H. 1890. and
that in the language OF such repeating
act. the arrangement made Will aid In our
efforts to Insure the maintenance of the
parity In the value of coins of the two
metals and equal power of every dollar
at all times in the markets and IN the
payment Of debts"
Grover Cleveland,
Executive Mansion, Feb. s. 1886.
Unless congress in ten days passes n
law authorizing the issue OF gold bonds
bearing per cent. interest, running thir-
ty years. or otherwise relieves the treas
ury in the replenishment of the gold re-
serve, Secretary Carlisle win, by direc-
tion Of the President. sell per cent. bonds
10 ANe dAlounl UA ? - tuNDV3 i0E EOtus AT
rangements whereby this can be done and
$6J,000,O00 in gold be received for the bonds
have been perfected, and the contingent
contract was signed to-day.
The official memorandum Of the tran
saction was made public to-day at the
treasury this afternoon. II is as follows:
'-Ihe contract was made with August Bel
mont & Co. of New York, on behalf of
Messrs. n. N. Rothschild & Sons Of Lon
don and J. p. Morgan & Co. of New
York on behalf of ]. S. Morgan & Co of
London and themselves, and provides for
the delivery TO the United States of $780,
900 ounces of standard gold coin of the
United States, to be paid for in United
States per cent. bonds. A large mum.
ber Of other banks and financial insttu-
tions are interested in the transaction,
but their names are not mentioned in the
contract itself The department does NOT
know in what proportion the various part
les are to furnish the gold coin or re-
celye the bonds, as this is a matter for
arrangement between themselves. BY the
terms of the contract the parties are to
bear all the expense Of bringing the gold
from abroad, and they are. so far as II
lies in their power, TO exert all their
financial influence and make all legiti-i
mate efforts to pro ect the treasury against
withdrawals OF gold pending toe complete