The daily union. [volume] (Washington [D.C.]) 1845-1857, 1852-03-28
The Public Debt of Texas.

Are The creditors OF Texas bound IN law or in morals
to accept, in satisfaction OF their claims, the amounts
thereof when reduced TO the actual par value which
realized by the late republic Of Texas
This question involves the following inquiries First
whether there anything connected with The manner
in which the creditors became and assgnees OF
the claims which renders IT unjust or unconscentious
in them 10 demand the amounts due upon the face OF
their claims. II not then second whether the credi-
have agreed, either expressly or by lar Imi
cation, receive in satisfaction the amounts originally
realized in par funds by The republic of Texas,
l. II is most probably true that the creditors OF Texas
became such n the usual way OF dealers IN stocks and
other securities upon speculation The rate OF discount
at which the claims were bought depended upon the
amount OF risk 10 be run, upon the ultimate ability OF the
debtor, upon the probable disposition oil Texas 10 keep
her faith upon The o pressure under which
the claims sold As between the present creditors
and those persons from whom they purchased, ques
ton has arisen; and the assignments were probably
made without recourse, arse II matter OF
perfect indifference therefore, whether the present cred
tors purchased AT large small rate OF discount The
debtor has right IN law equity 10 inquire into ihls
matter the grounds which raise any objection 10
the payment OF the entire claims according 10 their face
II any such inquiry could be egtimaiey made by Tex
as could not extend beyond The claims oil those OF her
creditors to whom she issued her bonds notes II any
Of her creditors in this situation, which - hardly
probable, their claims could only be resisted upon the
ground OF usury and extoon, some other species OF
fraud No such plea has been or can be relied on by
Texas She dealt at ams-length with such capitalists as
were willing to hazard their money IN The investment
and II she realized less than the lace OF her bonds she
did so under no constrant compuson, but freely and
because regarded it her interest 10 do But so lar
as the present holders OF her obligations concerned,
she have OF preert 10 resist their claims upon
the ground that the amounts originally realized by her
were less than The face OF the bonds There was moth
ing therefore, in the IN which the creditors be-
came owners OF the claims which gives TO Texas any
ground for resisting their payment in full.
q In the next place. have the creditors OF Texas ever
agreed either expressly by implication, TO accept less
than the face of their claims brief statement OF the
legislation OF Texas in regard to her Indebtedness be-
becomes necessary in the prosecution OF this inquiry;
On the Goth March, ls4s, the Legislature of Texas passed
law entitled AN act to provide for ascea'ning the
debt Of the late republic of Texas" The ffst section
requires the auditor and comptroller to advertise Tor all
creditors present their claims TO them on or before me
second Monday in November, ls49. and provides thai
al claims that shall not be presented on or before that
time shall be postponed" The second section directs the
auditor and comptroller to receipt for all CLAIMS present
ed TO them setting forth the par value thereof al the time
The same accrued or issued the name OF the person
10 whom the deb, accrued the date and amount thereof
The lird section requires the auditor and comptroller
40 report TO the nex biennial session OF the legislature.
for FINAL adjustment the whole amount and character OF
The public debt asceriaincd" aforesaid. The fourth
section requires the auditor and comptroller ITO classify
ali claims presented under the provisions OF this act
dacng the same to the actual par value which may have