Rensselaer Republican, Volume 27, Number 25, Rensselaer, Jasper County, 14 February 1895 — RESIDENT’S MESSAGE [ARTICLE]

RESIDENT’S MESSAGE

Hr. Cleveland Gives Details Concerning .the New Bond Issue, The President, Feb. 8. sent the followng message to Congress; I’o the Cona-ess of the United StAtcs: —, Since my recent communication to the Congress, calling attention to our financial condition, and .suggesting legislation which I deemed essential to OUf national velfare and credit, the. anxiety and apprehension then existing in business carries have continued. As a precaution, hereforo, against the failure of timely cgtslativeaid, through congressional acion, cautious preparations have been pending to employ to the best possible adantage, in default of batter means, such ixecutiveauthority as may. witbout adJltiomtl legislation, be exercised for thq inrpose of reinforcing and maintaining in j.ur treasury an adequate and safe gold •eserve. 1 ; In the judgment of those especially charged with thisresponsibillty, the busiless situation is critical and the legislative situation is so unpromising, with the nnission thus far on the part of the Congress to beneficially enlarge the powers of the Secretary of die Treasuiy jn tnft_premses as to enjoin imin ‘diate executive acion witli the facilities now at hand. _ " Therefore, in pursuance of Section 3.703 if the Revised Statutes, the details of an arrangement leave this day been concluded, with parties abundantly able to fultill their undertaking, whereby bonds of the United States authorized under the act of July 44* 1875. payable in Coin, thirty years after their date, with interest at the rate if 4 per cent, per annum, to the amount if a little less than $i.‘,40),0:X) are to bo issued for the purchase of gold coin amounting to a sum slightly in excess of 165.000.090. to be delivered to the Treasury if the United States, which sum, added to the gold now held in our reserve* will so restore such reserve as to make it amount Co something more than SICO.OJO.OOO. The arrangement thus completed, which, after careful inquiry, appears, in present circumstances and considering all che objects desired, to he tlie best obtainable. develops such a difference in the es'iination of investors between b >nds made lay able in coin and those •specifically made payable In gold in favor of the latCer, as is represented by three-fourths of t cent in annual interest. In tiie agree ment just concluded, the annual savingin interest to the Government, if 3 per cent <old bonds should be substituted for 4 per lent, coin bonds under tiie privilege reterved, would be $539,153, amounting In Wiirty years. or at the matority-of- the coin bonds, to $16,174,770. Therefore, tiie discrimination in tiie judgment of investors between our bond obligations payable in coin, and those specifi:ally made payable in gold is very significant. It is hardly necessary to suggest that whatever may be our views on th« subject, the sentiments or preferences of those with whom we must negotiate, in disposing of our bonds for gold, are not subjeetto our dictation. I have only to add that in my opinion the transaction here intimate I for the information of tiie Congress, promises better results than the efforts previously made in tiie direction of effectively adding co our gold reserve, and I believe it will tend to Insure the maintenance of the parity in value of the coins of tho two metals, ami the equal power of ever dollar it all times In tho markets, and in the payment of debts. GnovEK -Cleveland. Executive Mansion, Feb 8, 1895.