The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-12-25
For the Union.
The DE bts Of Texas.

Governor p. H. Bell, in his message OF November TO-
10 The legislature Of Texas, makes the following re-
marks
The republic of Texas having executed her bonds
and other evidences OF debt erceedinglY dark and
gloomy period of her history became necessary to issue
them for nominal amounts, bearing OF proportion
TO the amounts actually received and pledge her re-
sources, arising mainly at that tine from her revenues
for their redemption These securities generally speak
ing, were contracted at vety low rates in the hands of
moneyed Spectators, who had contributed nothing 10
the achievement OF her independence the relief of
her actual necessities in the administration OF the govern
ment at the time they issued. This consideration
well understood and appreciated, induced inquiry
respect 10 the mode OF edeeming these securities as no
one could enfera's The opinion for moment thai he gou
pnment under any obligation, either jisiice or
morality 10 redeem them by paying the amounts expressed
on their face and that inquiry resulted in the passage OF
the acl OF the State legislature of March 90 1885, so
provide for ascertanng The debt of the late republic
Texas which required The auditor aud comptroller OF
the State TO reduce all claims presented for liquidation
The actual par value i realized by the republic
he time Of their The evident meaning and con
temptation OF that act that the holders Of the claims
should be paid in accordance with the amounts thus
,cerlaned by the aujoal board subject to the revision
OF the legislature, and the amounts sscertaned
considered all that cere actually due from The State 20
her several creditors That the legislature had he night
holding the bonds other evidences Of debt
against the republic bound by it there be as
little"
In relation TO this we have 10 remark
L. That Texas executed her bonds and other evil
denees of debt in exceedingly dark and gloomy period
of her history. she had right TO expect anything
else than that would be "nseessary TO issue them for
nominal amounts bearing proportion TO the
actually received" Her necessities very great-her
credit very low. lie bold man, and with the
organ Of "hope" fully developed, who would consent to
lend to her any terms. She sold her bonds in the
open Market she got for them what then their full
value II they have since risen in price, il there is
n ~. n, ,l,a
disadvantage OF the purchaser Flour is sometimes FIVE
dollars barre-someimes il ia Ten cotton is sometimes
six cents pound-sometmes il is twelve Bonds, like
other merchandise, rise and fall in value; but that the
bonds OF Texas had any value al the time they were
issued owing 10 the expeciaon-a least the hope
that they would ultimately be paid in full II Texas does
not so pay them. she will ialsfy her engagements. u
her intention TO pay for the bonds than she
received she ought have said She ought to have
told her creditors II do, indeed, give you promises
pay 900 dollars, but mean TO pay only 100 3OO and
in instances, more than $50 or 300 dollars for
one thousand dollar bond" This would have been The
fair way OF dealing, and then nobody woulI have lent
Texas Each of her creditors would have invested hi,
money in other securities.
g. These securities generally speaking, were" Gays
the governor contracted at very low rates, in the
hands OF moneycd spectators. who bad contributed
nothing 10 the achievement of her independence 10
the relief OF her actual necessities" Here the governor
is in great error. Money is the sinew OF war" To
these moneyed specuators Texas is indebted for her
very existence as State. Without money, courage and
wisdom would have awaited nothing in her contest with
Mexico. Without courage and wisdom money indeed
would be OF little efficacy but il takes three lines Ia
complete triangle, so courage, wisdom, and money
all required TO bring national struggle TO successful
issue.
g. Bonds for one thousand dollars, which may not be
paid for many years. il paid at ALL and the payment Of
even the interest on which is uncertain, are, have
already shown. worth al the time OF issue than
700 dollars 500 dollars. $50 dollars, 200 dollars,
eording to the exgency OF the The full value oil
the bonds at the time OF their Issue Texas received
But" says the governor. would entertain the
opinion for moment that the government under
any obhga,io either justice morality, TO redeem
them by paying the amounts expressed on their face"
Let other governments ACT like principles OF Jus
tice and morality and there is at end Of public
credit In the year 1913 the United States government
borrowed about fifteen millions Of dollars for twelve mil
lions OF which stock issued al the OF one hun
dred and twenty five dollars for hundred dollars paid
in AS much OF this loan received in deprecated
bank paper The United States government did not realize
more than seven hundred dollars, perhaps not than
sr hundred dollars. for every thousand dollars OF
scrip il issued Yet vhe United S,aeA government did
not on that fail 10 pay in full and in specie or IL
enuiya.nt Its motives OF justice and morality" were
very different from those which appear TO be entertained
nv The government of Texas Its exigencies were 10
urea, that il had TO borrow terms AZ unfavorabe as
those ON which Texas negotiated OF her loans bn
yet hi. did not lead the passage OF an act requiring
the auditor and comptroller ito reduce all CLAIMS TO the