The daily union., 1852-08-01
Memorial.

Wetnore, assignee OF the trustee oi he Bank OF the
United States the trustees OF said bank Isaac MeGary,
Henry Blood, +. s. Lyon Trustee Of the Bank of the
State OF Alabama, Charles McAlllster Augustus Isham,
Joseph w Hubbel Benjamin Rieiley, William M Walk.
er John A. Motiaw and others, respectfully showeh I.
That on the 9th day of September. 1850. an act OF
Congress was approved by the President OF The United
States, usually termed the boundary act" providing for
the cesson OF certain territory by the State of Texas to
the United States, in consideration OF which cesson the
government OF the United States became obligated to pay
to The State OF Texas the sum of ten millions OF dollars
In certain stock bearing five per cent interest
la the same law, il is provided that '.no more than five
millions OF said stock sb il be issued until the creditors
o The State holding bonds and other certificates of stock
OF Texas, or t0ieh aus on inporaions peys speetaHg
pledged. shall first file the treasury OF the United States
releases OF all claims against the United States for
account OF said bonds or certificates of stock, in such
form as shall be prescribed by the Secretary OF the Treas
ury, and approved by the President of the United States
Under the construction placed upon this provso by the
Secretary OF tho Treasury and approved by the President
of the United States part of this fund can be paid over
TO the creditors OF Texas until they have all signed their
releases.
Il is nearly two years since this act was passed.
and not one fahng OF this fund OF five millions has been
paid over The FIRST unreserved five millions, Texas
has received and applied to pay off such classes OF her
debt she calls domestic and hereafter to the purposes
(as supposedly OF education and internal improvement
reserving the ve millions in the treasury OF the United
States for the payment OF the creditors of her late
republic
put on the provso by the Secretary of the Treasury be
correct, the disbursement OF the money wholly mprac
tcable and this obviously results from OF an IN
superable character. 1t requires consenianeous
ofmity OF opinion and action in sixteen hundred
persons before any one receive his money One
lumacious creditor may thus keep fifteen hundred and
ninety nine OF the just payment OF their claims forever
Nor are these moral causes alone influential. Those OF
Physica character would be equally operative In the
dihay course OF nature amongst thousand creditors one
might die ntesate and before letters OF administration
could be taken out his estate another creditor might
also die, and thus the fund be hung up perpetuty
In TRUTH if il had been designed las it was no) that
Hgos Hg nnJH fban
could not have been more eHectually admirably
devised, IL the construction given it be indeed correct.
With great Difference to the distinguished public func
onary who placed this construction on the provso your
memoriasis conceive that the Interpretation is essen
tally erroneous The provso does not specify that oil
the creditors shall release but that the creditors shall sign
releases OF all claims, which would surely Justify the a
ference that If any single creditor TO sign his
lease of all his eatms be is entitled to his payment 1t
is however, useless to discuss this question, since. with
The views entertained BY the Executive, becomes alb
solutey necessary that your honorable bodies should
modify the terms Of the provso
The difficulties, however, do not end here. The State
OF Texas, assuming the prerogatve OF sovereign State
has hxed, dehned and declared her public debt In It's
definition she has established the following standard
viz to return to each creditor, with interest the amount
which she received al her treasury the respective
curies which she issued She has, by legislative dec
araon, affirmed that she has received upon portion of
this stock The various amounts of one hundred seventy
hlty thirty twenty five, and twenty in the dollar
and has not only declared her willingness, but appoprla
led the necessary amount to pay her creditors these
win Inc interest called the oil the
spective certificates they hold out Of the five millions
now reserved III the treasury of the United States
Whilst your memorallsts deeply regret that Texas has
not in money and land provided for the payment of the
whole debt they must be permitted TO remark that il the
provso remains in It's present condition the difficulties OF
settlement are vastly complicated. The legislature OF
Texas, by act approved 3st January 1882 provided
that the credors filing their releases for the amounts
due hem according 10 The scale established for the pay
ment oil their claims, on the transfer OF an equivalent
amount OF stock by the Treasurer of the United States
order tley should
paid al the treasury al Austin. But many OF those
crediiors~,he nominal value OF whose securies have
been essentially reducedbave refused 10 sign their re-
leases and resist this settlement under the construction
OF the meaning and intent of the provso by the Secretary
OF the Treasury, the five millions are likely 10 remain IN
state OF perpetual suspension unless relieved by the
nierpostion OF Congress We, therefore, who will
ling to comply with the above requstons, respectfully
pray your honorable bodies that this povlso may be
modified that each creditor may be permitted, signing
his release, to settle with Texas and receive his money
The claims oil ha, class OF creditors, who under this
modification would probably come in and sign their re-
leases, would amount 10 about s2,50OO0O, their claims
having been reduced from about three millions and
hall 10 this sum. There would be left IN the treasury
Of the United States, with the accumulation OF interest
and premium the stock, about three millions aud half
security for about six millions and half al par for
that class OF creditors whose claims the Legislature OF
Texas has scaled down to something like an aggregate
OF about two millions OF dollars
From this statement 1t is quite obvious that II all the
creditors rated nominay 100 10, and 50 cents
to come in and sign their releases and receive their money
accept the settlement that Texas tenders, would hold
equal security and be in good condition as they
at present. II the poylso be not modified and we all
main subject 10 its restriction. But II number OF those
creditors who rated at less than fifty cents in the dol
lar also TO come IN and take the amount at which
they scaled, either from necessity inclination, il is
qure obvious that the amount remaining in the treasury
for those who hold out for better settlement would be
greatly augmented by the accumuatiDg interest on the
und left IN the treasury, and the probable still greater
rise in the prices OF United States stock.
In approaching the officially which invests this whole
subject the question resolves itself into this; Who shall
determine what The debt of Texas is, and what she owes
to her respective creditors Is this the province OF her
sovereign authority, does this responsibility devove
the United S,aesl II the United States is liable tor
this debt then she has right TO participate IN the power
OF determining what its amount IL, and IN what proper
tons II is due TO individuals she is not liable, she
well place herself in the situation OF commissioned Of
bankruptcy, distributing the assets OF sovereign State in
this Union.
1t has been said that the Committee on Finance OF
the Senate have to the conclusion that the United
should be confirmed by Congress- the government of the
United States would not have the shadow OF pretext 10
retain the reserved hve millions IN the treasury an hour
IT, the other hand she is LIABLE why does sho not
pay She has had two years TO consider OF the weight
and gravity OF this obligation.
Your memoalists therefore contend that the govern
ment OF the United States ought 10 do OF two things
either to pay the debt herself or 10 modify the propo
and allow Texas TO do so, under her existing appopria
tons, IN conformity with her conviction OF what rs due
to her creditors We will not place ourselves in the a
tude OF defending and lusutylng the scale by which
Texas proposes pay her debt which deeply regret
not alone from the losses eniaed upon ourselves but
the other classes of her creditors Bot what contend
Tor ls, that u positive act OF injustice the part OF
he limited States In tvhhold