The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-04-01
The Debt 0f Texns.


The following is an interesting correspondence,
between the Secretary of the Treasury and the
Comptroller of Texas, relative to tho five millions
of stock which the Treasury Department is to retain
until certain creditors Of Texas have released the
United States:-
New YORK, March 4, 1851
As you are deeply interested in the Texas debt,
we enclose you copy which we have received from
ono Of our delegation in Congress- of the correspon
dence between the Secretary the Trea and the
Comptroller OF Texas in relation to the five millions
of stock, to be retained by the government until the
fulflment of certain conditions. From all that we
have seen and heard upon this subject, fear that
Texas intends to drive hard bargain with her crc-
dtors and to force them to accept of the valuation
of the debt, which you, of course aware she has
scaled down to what she calls the specie value at the
time of its issue, and we think the letter of Mr.
Shaw, which evidently has been written with much
elaboration, and very probably after consultation
with the delegation in Congress, is evidence Of such
intention.
The third query in this letter was evidently in
tended to obtain reply from Mr.. Corwin, which
would commit him III favor Of this scheme of repu-
diation for such il is in point Of fact, for
there IA more solemn obligation on the part Of any
country, to pay the full amount of the debt, princ
pal and interest, than what exists in the present
case with Texas The idea is absurd to suppose
that in the day of her adversely, when Texas was
contendng with Mexico, with all the odds against
her, that any ono would have loaned her money ut
80 or 49, even 20 cents on the dollar, under the
expectation that he to receive in return, ut the
ment. AT that time Maryland and Pennsylvania
stocks could have been purchased at 40 cents on the
dollar, which now worth par, and the parties
could have done much better with their money to
have purchased these stocks, particularly rs they
could have, in the mean time, received the full
amount of the interest. The loans to Texas were
on the principle of a lottery, and now, when the
holders have drawn "A prize, they are rendered
merely the original cost Of their ticket.
There is another very significant question put to
Mr. Corwn, in the comptrolers letter, about the
payment of the interest to Texas, on the whole ten
millions, while the reserved five millions was
retained by the United States, to which we are
highly pleased to see Mr.. Corwin has given such q
decided negative You cannot fail to note what an
advantage u favorable response to this query would
have been given to Texas, in the negotiations with
her creditors for if the latter refused to come into
her terms, she could readily tire them out, for with
five millions at once placed ut her command, and
at the same time drawing regularly the semi-annual
interest the other reserved five millions, she could
fold her arms and conveniently wait the whole OF
the fourteen years, which the stock has to run.
The whole reply of Mr.. Corwin evidently shows
that he has fully studied and understands the SUBJ
ject and draw from ii the most favorab BILE differences
that the rights of the creditors Of Texas will be pro-
tccted by him, far in his power, and hope,
aso that Texas herself will be willing deal justly
largest creditors, and certainly will agree
to any other terms, far at least, as we have an
equitable claim the United States which we
certainly have, to the extent Of the debt that we
hold, for which the customs were pledged