The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-09-27

millions OF The STOCK 10 De her In other words
Congress admitted The Liability OF the general government
to pay all that portion OF the public debt OF Texas and
laid It's hand upon nve millions oil The stock provided for
as security that Texas should pay that portion of her
debt IN her failure do So the five millions thus
withheld should DC fund out OF which that class OF the
creditors OF both Texas and the United States should be
paa IN whole or IN part as The relative amount OF such
debt and the fund reserved should determine.
Inc history OF the debt contracted by Texas white she
yet an independent power and her subsequent moor
poraion into the Union State OF the republic OF the
United States il is believed, make the United States LA
Bile Tor this portion oil the Texas debt
The laws of nations which govern the subject well
understood and OF easy application TO the present ques
ton These laws all proceed upon The idea that the moral
obligations OF independent States are binding when once
they attach compacts between States, or between States
and Individuals and that they except by the
voluntary agreement OF the parties interested by their
iuhlment and complete discharge Hence, where an IN
dependent power contracts Obligations and is afterwards,
by the act OF another power, jointly with herself moor
poraed nto and subjected 10, the dominion OF the latter
whereby the national responsibility OF the former is de-
stroyed and The OF fulfilling her obligations trans
feed the latter, all such Obligations 10 the extent al
least OF the thus transferred attach with all their
force TO the nation TO whom such means have been SO
| transferred
Ii will be found that all writers on public law having
any authority agreed upon this point, from the time
OF Grouus TO The present lndeed the proposition thus
asserted is obviously just that II is not possible for
nation in modern times 10 conlIovert without foreung
that character Tor justice and prohy which, happily for
mankind has become indispensable Tor sovereign States
II this view OF the subject which doubtless dictated
| that provision OF the law which am now considering
II known 10 Congress that Texas had contracted
debts 10 large amount to individuals while she was
independent power II equally well known that rev
arising from I" duties Imports was, amongst all
nations modern times, II not the principal
one, Tor the payment OF The debts OF nations It was
known also by the trainers of this act that by the
nexaon of Texas to the United States, the power to levy
duties imports within the ports territories of Texas
was taken away from the latter and transferred 10 the
United States. IL therefore assumed that the United
States should pay, if Texas did not all that portion of
the debt OF Texas for which duties on imports had been
pledged for the obvious that these duties, thus
pledged were taken from Texas and transferred to the
United States and TO that extent the creditors of Texas
by plain principle of justice, had become the creditors
With these facts and principles for the basis OF legisla
tion the question recurs, what class of debts
pretended in the terms used in the law?
| entertain no doubt of what the design of Con.
gress They evidently intended that Texas should pay
out OF the ten millions granted all those debts oil hers for
which they deemed the United States had become liable
by the Incorporation OF Texas into the Union and they
deemed this government liable for all debts OF Texas, for
! the payment OF which the duties imports had been
pledged in any form. The words employed are, " for
which duties imports specially pledged" In all
cases, therefore, where duties imports have by the
laws OF Texas been specially set apart for the payment of
any loan, my judgment II becomes the duty of the
President require the releases specified the law of
Congress Before he issues TO Texas the remaining five
millions OF stock
By the act OF It'll June. 1897, the republic of Texas
pledged her public faith for the redemption OF every loan
under that law, and also $50 much OF the arising
from imports and direct taxation may be necessary 10
meet the annual interest of the funded debit (See
schedule A, and the law there quoled) Under this act,
appears by schedule A, loaa effected, which,
with It's interest, leaves outstanding the st OF July,
1850. 81 ,65l $50 OF.
The terms OF the law plainly secure by pledge of i'm.
port duties, the payment OF the interest," which, effect,
special pledge Of duties imports for the payment
OF the interest," which interest while the fund apart
remains, is perpeually secured This, then, is of
the loans coming within the proviso referred to- releases
States, for all interest which has accrued may
before the remaining hive millions OF stock be issued
| TO Texas.
The loans designated in schedule were made under
the of the 18th of November the 10th of May
1885 22d January, 1889; 18th January, Isi0 and Isl
February 1910. The amount. with interest computed
Isl of July, 1850, under these acts, is 1902 10
BY The 9th section OF the act OF 1885, The public faith,
the proceeds of the sales OF public lands. and all the
year 1885 set apart for the payment OF the interest
and principal of the loan therein provided for.
The only provision OF the before mentioned laws which
Il seems important to consider as bearing the act OF
Congress in question is the 18th section OF the OF i4h
January 1870 That section contains the following pro-
vision
BE frthu enacted That, for the redemption Of all
loans negotiated by the authority of the republic Of Texas
proceeds OF the rnes of the public lands and
| public faith, are solemuly pledged"
1t seems perfectly clear that pledge of all the reye
nue." oil government whose organic form admitted the
power 10 raise by duties imports" is a spe-
cal pledge OF duties on imports. well all other
sources OF taxation known 10 such government IT, in
stead OF pledge OF the "revenues"a term comprehend.
ing every item OF revenue-anoher form OF expression
had been adopted, which had enumerated each ITEM in
Guiding duties on imports then would doubt that
the law contained special pledge of the duties i'm
ports,
Ii, then the pledge of all revenue without enume
ration OF items or classes does not include duty i'm.
ports, neither does IT, for the reason include any
other species Of revenue; and thus IL would follow that
nothing pledged by the act in ques,ion-ap absurdty
too hagran for consideration. Such construction
would admit the possibility OF intention by the Con-
gess OF Texas 10 hold out to the world deusve prom
tse seeming TO be substantial, and yet fact offering
no real security The section referred to- therefore, must
be considered pedgng specially the duties on imports
as well az any other species oil possible under
the government then existing II these views are cor
rect all loans negotiated BY Texas prior the ish Jan.
uary 1870 and under that act, .ecured by special
pledge OF the duties imports II follows that the FIVE
millions OF stock specified in the act of Congress of TIE
9th September $780, should no, be issued until releases
are filed, prescribed, by all OF that portion OF
the debt OF Texas.
The public debt created under one OF the acts OF 5th
February 1910, il slated in schedule TO amount with
interest up to lei July, 1850, TO the of 1923 a36 &c
do not lind any pledge 10 this act for the pay OF
either the principal interest OF this portion OF the
/ debt
The deb, 10 schedule D. with interest up to list
/ July, 1850, is 81 d72,oIs so.
This debt was created under another act OF the 5h
February 1870 BY the "a section OF this act il is pro
vded that TIE bonds before referred to shall be at all
times receivable by any collector OF revenue, al the
Treasury Department IN payment OF any debt TO the gov.
eminent, any duties by Imports direct TAXATION for
the value OF such funds and the interest which
may have accrued thereon"
II will be seen, by inspection OF the specimen of the
bonds under this ACT furnished schedule d. that the