The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-04-01
TREASURY DEPARTMENT. Feb. IL. 1851


SRI acknowledge the receipt of your letter Q
the Goth utimo propoundng certain queries in con
necton with the debt Of Texas, and the five million
of stock reserved by the Texas boundary act Of 9i
September, 1850, until certain creditors Of Texas
have filed full and complete release of the United
| States, and have the honor to state:-
| To your first query, "What rule will the govern.
ment adopt, in order to arrive at knowledge OF
on imposts specially pledged, in contradistinc-
ion to the residue of her debts, the department
plies, that it will require authenticated copies Of
every law Of the Republic or State Of Texas, Great
ing or authorizing the different issues OF her debt
wei as all laws in any way bearing upon, relating
to- said debt. Also, an authenticated tac snae copy
OF each OF the different stock certificates, bonds,
treasury notes, certificates Of record other evil
dences OF debt, which have been issued by Texas.
To the second query, "What plan will be adopted
to ascertain the number of creditors of the descrip
ton alluded to, SO as to know when all of the re-
leases referred to in the act have been fled;" the
department replies that the documents alluded to
in the preceding to the first query it is pre-.
sumed will show what portion of the debt will be
applicable to the reserved five millions and when
that is ascertaned it will be required that the whole
amount Of it should be released to the United
States, before the reserved stock can be handed
over to Texas. The department considers that
public notice should be given in some of the leading
papers of Texas, and of the principal cities of the
Union, to all holders of such claim to present and
file them Mt the department, and it will rest with
Congress to fix the period after which such claims
To the third query, ''How is it proposed to
tain the amount actually due from the State to
each of said creditors" tho department repiesthat
when it is in possession of all the facts connected
with the creation and present state Of the debt Of
Texas, which will be furnished by the documents
alluded to in the preceding answers, it will proceed
on the data thus furnished and what can be procur-
ed from other sources, to determine the amount o.
the debt to which the reserved five millions will be
Applicable .I =, .,,.... ..,s..u.. AZ.
found that the debt for which impost duties
specially pledged does not amount to the five mil
lions of dollars, which is authorized by the act Of
Congress to be retained for the payment of such
debt, will not the stock over and above that neces-
sary to discharge this character Of indebtedness be
delivered to Texas, soon as that fact can be
certaincd p the department replies, that it could
not give up any portion of the reserved stock until
all the claims alluded to in the boundary act Of 9th
September, 1850, are first relinquished to the Uni
ted States, whether the amount of them shall be
more or less than the five millions.
To the fifth query, "Should Texas think it proper
to pay any portion of her debt, for which impost
duties specially pledged out of the five millions
Of stock which, by her acceptance Of the proposition,
she becomes in the immediate possession of, would
not corresponding amount of stock of the retained
five millions be delivered to Texas, on her filing the
proper releases from the original holders of said
debt? the department replies that the same answer
must be given as to the last query, in its opinion
the terms of the law will not authorize it to give up
any portion of the five millions until all the claims
released as against the United States, and the
payment Of portion Of those claims by Texas would
be only partial, and not entire discharge and
that Texas could claim no privilege for priority of
settlement of those claims which was not enjoyed by
the previous individual holders Of them.
To the sixth query, {" From what date will the
bonds certificates of stock bear interest! it is
sdercd that by fair construction of the act of Con-
gress Texas entitled have interest from the 18th
November, 1850, that being the day which the
contract was contaminated on her part by transfer
Of the territory to the United States Will not the
annually il becomes due, although the stock for
portion of the principal may be retained by the
United States" the department replies, that the
certificate of stock will bear interest from the lst
January, 1851, and for period Of fourteen years
from that date, but no possible construction of the
law, in the opinion of the department, will authorize
the interest to commence from the 10th of November.
The notice of the acceptance of the law was given
by Texas on the 18th December, and from that
period, ut the utmost, could interest be possibly
claimed, but in that case it must on the
day in 1864 but ii is considered that in giving the
full fourteen years interest from lst January, 1851,
though it commences few days later than the ac-
tual date of the special notice, it is virtual COM
pliance with the law.
In reply to the remaining portion Of your letter,
would state that the original evidences Of debt
should be fled together with the releases and left in
the department, and the authorities Of Texas
should also furnish full and detailed statement of
all the outstanding evidences of debt they now
exist with the date, numbers, and amount of each,
and the names Of all the claimants, and their resi-
dences, so far US they can be ascertained.
No interest can be paid the stock until after
il passes out Of the control of the department. but,
as previously stated, the interest will commence
from LIST January, 1851. The department will
cheerfuly issue the certificates Of the stock in such
form, and in such amounts as may be most advan-
tageous for Texas, and the certificates which have
been prepared are in amounts of 100, 800, 1000
and 5000 dollars without coupons and 81 900 with
coupons-the former, which are transferable only
the books Of the Treasury, are most desired by
holders in the United States; and the latter, which
are payable to bearer, and transferred by delivery,
are in request for foreign holders Previous expc-
rience has shown, that certificates in for 900
most desirable for this latter purpose.
Very respectfully, your obedient servant,
Tho. CoRwIN, Secretary Of the Treasury.
JAMES b. SHAW. Esq, Comptroller Of Public Ac-