The record-union., 1896-06-10
WHOLE NO. 17,O6i.

efforts to protect the treasury of the
United States against the Withdrawals
of gold pending the complete perform
ance Of the contract. One ounce of
standard gold was worth S1S.6046o, and
the difference between that sum and
the contract price CS17.044D represented
the premium received by the Govern
ment on the bonds, making the price at
which the bonds were accepted
Sl04.4946. With this price they would
yield to the investor 3.I5 per cent. per
annum.
In order that Congress might be af-
fcrded the earliest possible opportunity
10 take such action on the subject as 1t
might consider most beneficial to the
public interest, the President of the
United States on the same day and i'm
mediately on the execution of the con-
tract, executed a special message ask
ing Congress to officially provide for u
) per cent. bonds. which would effect a.
saving of over $16000,000 to the Gov
ernment. \ bill was introduced in the
House of Representatives to authorize
the substitution of 3 per cent. bonds,
payable in gold for the per cent.
bonds described in the contract, but it
failed to pass, and consequently the
parties proceeded to complete the trans
action by the exchange of gold for 4 per
cent. thirty-year bonds, according to
the terms of the contract.
The agreement by the parties of the
second part, that they would, as far as
in their power, make all legitimate eff
forts to protect the treasury OF the
United States against Withdrawals of
al 4. 90
contract, was faithfully and effectually
carried out, and no gold was taken from
tie treasury to be used in paying for
the bonds, as had been done in the two
previous sales, nor was any withdrawn
for shipment until after the delivery of
gold in exchange for the bonds had
been completed under the contract.
after a large part of the gold had
been furnished from abroad the Secre-
tary, in order to prevent disturbances
in the rates of foreign exchange at q
critical period and create a condition
which would force gold exports ana
consequent Withdrawals, acquieSced in
a departure from the literal terms or
the contract requiring one-half of the
coin to be produced abroad, and accept
ed deposits of gold then held in this
country to complete the delivery.
Speaking generally of the various is
sues the Secretary says:
Owing to the discouraging condition
of our financial affairs, and the con-
sequent lack of confidence in the abil-
ity of the Government permanently to
maintain a reserve under a system of
redemption and reissue of notes, very
considerable difficulty was encountered
il effecting the loan invited by the pro-
pcsals of January II, 1894, and at one
time pending the call it was feared that
the effort would fail. However, owing
TO extraordinary exertions made during
the last two or three days preceding the
time when the bids were to be opened
subscriptions for the whole amount
were secured, as hereinbefore stated.
cat the time the contract of February
8 1895, was made the emergency was
So pressing that the whole purpose of
the loan would have been defeated if
the replenishment of the reserve had
been postponed for a sufficient length
of time to advertise for bids, and besides
it was exceedingly doubtful whether
under the circumstances any sales
could have been made to the general
pubic on as fayggable terms as to the
rate of interest as we're secured by that
contract"
Replying to that part of the Senate
resolutions which directs the committee
to investigate and report What effect
the bond sales had on the credit and
business of the people of the United
States," the Secretary says that in his
opinion the sales were necessary for
the preservation of the credit of the
Government and security of the busi-
ness interests of the people, and that
they in fact accomplished those results.