Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-02-09
MORE BONDS.
The President Notifies Con-
gress Of the Third Issue.
He Complains That That Body Has
Afforded Him No Reli.f.
Most Of This Issue to be Purchased with
Foreign Gold.

Washington, Feb S.-President Clevc-
land sent the following message TO Con-
gress, today:
| 10 the Congress of the United States:
Since my recent communication to Con-
gress calling attention to our financial
condition and suggesting legisiatlon
which deemed essential to our national
welfare and credit, the anxiety and appre-
hension then existing in business circles
have continued. As precaution, there
fore. against tho failure OF timely legisla-
tive aid through Congressional action
cautious preparations have been pending
to employ to the best possible advantage,
i'm default of better means, such eSecu-
tive authority as may, without additional
legislation, be exercised for the purpose of
reinforcing and maintaining in our treas
ury an adequate and safe gold reserve.
In the Judgment of those especially
charged with this responsibility, the bust
ness situation is so critical and the legis-
lative situation is so unpromising, with
the omission thus far on the part of Con-
gress to beneficially enlarge the powers OF
the secretary Of the treasury in the pre-
misses, as to enjoin immediate 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 concluded
with parties abundantly able to fulfill
their undertaking, whereby bonds of tie
United States authorized under the act of
July, 1875, payable in coin, 80 years afte
their date. with interest at the rate of 4
per cent. per annum to the amount OF a
little less than 500, 400, 000, are to he is
sued for the purchase of gold coin amount
ing to sum slightly in excess of sos, 600,
200, to be delivered to the treasury of the
United States, which sum. added to tie
gold now held in our reserves, will SO II =
store such reserve as to make it amount
to something more than 500, 600, 600,
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 81 per cent. per annum AT
least one-h half of 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 10 days from this date, in lieu OF
the per cent coin bonds. other bonds in
terms payable in gold and bearing only
per cent. interest if the issue of the
same should in tho meantime, be au-
thorized by Congress.
The arrangement thus completed, which
after careful inquiry, appears in present
circumstances and, considering all the oh
jects desired, to be the best attainable,
develops such difference in the estima-
ton of investors between bonds made pay
able in coin and those specially made pay
able in gold in favor of the latter as is rep
resented by three fourths of a cent in an
nual interest.
In the agreement just concluded the
annual saving in interest to the govern
ment if per cent. gold bonds should be
substituted for per cent. coin bonds I'M
der the privilege reserved, would be $3.50,
159, amounting in 30 years, or ut the ma
turity of the coin bonds, to $16 ia, no.
OF course there should never be a doubt
in any quarter as to the redemption in
gold of the bonds of the government which
are made payable in coin. Therefore the
discrimination in the Judgment of inves-
tors between our bond obligations payable
in coin and those specifically made pay
able in gold is very significant
1t is hardly necessary to suggest that
whatever may be our viewson the subject,
the sentiments or preferences of those with
whom we must negotiate i'll disposiDg of
our bonds for gold are not subject to our
dictation.
have only to add that in my opinion
the transaction herein detailed 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 believe it will tend as far Os such
action can in present circumstances to
meet the determination expressed in the
law repeating the silver purchasing
clause of the act of July IA, 1850, 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 dol
lar at all times in the markets and in the
payment of debts :"
(SignedD Grover Cleveland.