The republic. [volume] (Washington [D.C.]) 1849-1853, 1850-12-13

States the actual amount of debt for which the
tanned i've millions stock were pledged.
eve ought not to presume, does the Ian
guage of the act require us to do that the General
Government intended to assume the right of just-
ing the liabilities of Texas, incurred whilst she
possessed separate national character and of set
Ting with her creditors upon the terms of such
adjustment, without reference TO and respect for
her own acli wledgment of the extent and valid
ity of their claims. We only suppose that the
provision 20 which / have adverted was incorpo-
rated III the law as a security on the part of the
United States against all liability for the payment
of such legal and acknowledged claims against
Texas as her transferred revenue was pledged to
protect Texas alone can determine what those
claims arc and to Texas only they look now
| for their ad justment. would, therefore,
mend to the honorable legislature the passage of a
| law Gf the present existing laws on this subject
| are not deemed sufficiently which will authorize
| and require the auditor and comptroller to make
out tabular statement of the amount for the pay
ment of which the custom house revenue of the
late republic pledged, and for which the State
is now Justly and equiably indebtedi this state,
inent to be filed at the Treasury of the United
States as evidence, and the only evidence which
the State admit of her liabilities to such credi
| tors; and, in preparing this statement, can per-
ceive no reason why the rule hitherto adopted for
ascertaining the actual value of the debt at the
time it was created. and of allowing interest there
on, should not be observed.
at was the misfortune of Texas, when laooring
under greatly depressed financial condition ia
her struggle Tor independence, to enter into con
tracts for different objects supposed to be beneficial
to her government, embracing stipuations therein
| by which the republic was obligated, in the event
of failure to comply with the contracts at matu-
rity, to issue to the contractors bonds double the
amount called for in the original contract. Some of
these contracts were not cancelled at the time spe-
Gifted, and bonds of the Government for double the
amount actually expended were issued and deliv-
cred TO the parties concerned and the revenues of
| the Republic pledged for their redemption. These
| bonds now constitute very material item of the
public debt OF Texas, for which certificates of stock
| for the five millions of dollars are withheld fea-
| ture in contracts such as these, if made between
| individuals, would, under the laws of most civil
lied countries, be void for usury. The creditor in
some instances, would lose not only the amount of
the unlawful exaction, but likewise his debt. do
not desire intend to suggest the adoption of so
stringent rule to contracts made by governments.
The government should certainly pay to its credi-
tors the full amount Of the benefits received, and
interests on the amount from the time when il
should have been paid. This is all that our credi-
tors ought in justice to require and it is all accord
ing to the highest standard of moral ethics that we
are bound to accord to them
Z" ! would also recommend that a law be passed
requiring all creditors holding claims against the
late Republic of Texas, and for which the revenues
arising from inpost duties were specially pledged,
to file releases in favor Of the United States in re-
spect to said claims, with the Comptroller of the
State within specified time; and, in default there
of, their claims upon the United States for liability
OF said debts growing out OF the transfer Of the
venue under the articles of annexation shall be
considered as waived. Measures of this sort il oc-
ours to me, absolutely necessary for settle
nent with the Treasury of the United States within
any reasonable time, of the amount which under
the act referred to IL to be retained a security
against these claims.
+ 'ln what manner the State shall dispose of the
five millions of dollars for which certificates of
stock will be issued and placed at its control as soon
AS notice Id given Of the acceptance of the PROPOSE
tons, presents subject, it occurs to me, of too
much Importance to the future prosperity and ad-
vanccment OF the country, TO be acted upon by the
honorable Legislature at its present session 1t is
one which will require much reflection and dclib-
Grafton, not only on the part Of the representatives
OF the people, but the people themselves, whose in
erests are to be materially affected should have
an opportunity of bestowng upon il deep and ma
tured thought, before plan can be indicated
which ID most likely to TO the State all the
practical advantages to be derived from the accep-
lance OF the propositions now before you. Up to
the present period, the citizens of the country have
had no means oil forming or expressing their opin-
IONS IN reference TO 1T, and IT to me, that
| their representatives,, who were not chosen with
any view to act upon question of 80 much impor-
lance, and who have had but little opportunity of
acquiring knowledge of their will in regard to it,
will not be disposed to prccipitate measures which
might not meet the appreciation Of their constitu-
ents, and the delay ofwhch can result in no injury
| to the State.
"There is to be superadded to this the conside-
ration that the agitation of this subject at your pre-
sent session WILL from the great diversity of opin-
ions no doubt existing i'll reference to it, elicit long
ana labored dlscussons protracting the session and
necessarily creating heavy draft ON the treasury
already in a feeble and exhausted state Though
secondary in importance this objection is not with
out Its iorce and validity, for the disturbing incl
dents Of the last year have made our State prolific
| IN Legislative bodies, causing heavy drain upon
| the treasury; and it now becomes an important
desideratum in political economy TO restrict
the action of the one In order to curtail the exhaust
ing drafts upon the other besides the progressive
and healthful condition of affairs Of the State gene
rally affords ample and satisfactory evidence that
s prosperity is not likely to be materially retarded
/ for want of legislative action.
"By holding on to the stock for the present, the
interest accrung from it would be than suffi-
cient TO meet the immediate and pressing demands
| upon the government and the members of another
Legislature would assemble better prepared after
the subject has been discussed hroug bout the coun-
try TO make such utimate disposition of the amount
referred 10, as would be most conducive To the pub
| lie veal.
al have therefore no recommendation TO make
to your honorable body other than that the dispo-
sition OF the funds be postponed for the action Of
future Legislature.
lin adopting these suggestions, my mind has
been directed chiefly TO measures promotive of the
! general good, without for n moment losing sight
OF the wishes and interest of creditors In dis
posing of the five millions Of stock the delay which
have proposed is not with view to disparago
any Just or equitable claim. An honest payment
of the public debt and rigid preservation OF the
! public faith embraces, in my humble Judgment, n
] principle too sacred TO be disregarded, GER
talnly ever TO be abandoned, by those intrusted
with the iaith, integrity and stability Of State
/ government; but individual interest must, under
the circumstances. yield TO the public veal. An
/ important portion Of the public debt yet remains
to be ascersined, and. by existing laws, the credi-
tors arc allowed until September next to file their
claims with the Auditor and Comptroller for adj
| justment. These claims, (if immediate action be
| taken,) the Legislature cannot be properly pre-
pared for; when by the delay proposed until the
meeting OF the Legislature at is regular session,
the entire public debt will have been ascortained,
| and legislative action can then be based upon a
| thorough knowledge Of the subject"
I
! CoLoEfzATIoN.-Thc New York Colonization So
ciety intends sending out six persons in the Libo-
rin hich In aan Rnliirr1nro