The daily union., 1852-01-13
For the Union.
rhs Debts Of Texas.

Aware MIR Editor, OF the pressure on your columns,
is with reluctance again claim your attention The
importance OF the subject must be my excuse In the
ronds or other securities OF Texas not interested in
~ amount OF one cent bat in the preservation OF the
nnblc faith you and and every other citizen OF the
Union, have deep concern
Ours il family OF States; and one member OF fam
v eanuo, do anything dscredtable without all the other
Members suffering or less in character.
Again public opinion is, to very great extent, the
nraecal rule OF morality and il wrong public opinion
h regard 10 the payment OF public debts prevails in one
State il will be very apt 10 spread into others,
These are points OF great importance, and yet there is
one Of still greater Importance Ii is this When the
STATES 10 whom men look up for the administration OF
,ns,iee become lax in the fulflnent of their public
n,omises private are apt 10 become equally lax in
,hs discharge OF their individual obligations There is
,oo much indifference already in this country about the
oayment OF debts The States ought not TO increase the
syl by setting the people bad example
The governor Of Texas lays down the following prin-
cipss:
lei, Thata State government is under no obligation,
either in Justice morality TO redeem" its bonds other
SECURITIES "by paying the amount expressed on their
face.n If these bonds issued " in an exceeding.
" dark and gloomy period. when il became necessary
issue them for nominal amounts bearing sort OF pro-
portion to the amounts actually received"
3D. That in such cases act should be passed /" 10
reduce all claims the actual par value which was
allied" by the State " at the lime OF their issue"
3d. a. That the legislature has right to pass such
law and that the individuals holding the bonds OF ii are
bound by IT,"
Iis to the case Of Texas that the governor makes
special application Of these principles; but, if true all
they are universal in their bearing What is right in
Texas cannot be wrong in Illinois, Indiana, Ohio
or Massachusetts,. And what is right in States cannot
be wrong in railroad and canal companies That power
ful corporston--the Reading Railroad Company-was
IS
in which gave bond of hundred dollars for every
sixsy received Admit the principle OF the governor OF
Texas to be correct. and there ia hardly railroad
canal company that will not repudiae large part of it's
debts The reputation OF q large amount OF private
debts will follow as necessary consequence for there
cannot be rule OF "usce and morality" for Staes
another for corporations and yet another for individuals
II these opinions were peculiar to the governor they
might be suffered to pass without comments but the effect
OF these opinions evident from the Galveston Civilian
and Gazette OF the 9th December the editor OF which,
referring writer who had urged the payment Of the
debt says He and those he represents need deude
themselves with the idea that they can force Texas 10
pay these rapacous bondhoders than she has de-
cided 10 be their due"
"Rapacious bondholdersm - Let US look into this
The same paper contains abstract OF the report OF the
auditor and comptroller, from which "t appears that the
whole ostensibe full value of all the claims filed ac
coding 10 law is 9o47253 Ia, of which the par value
is g. 764 81; and the whole amount not filed is
s2,7ss,73s 20, worth S2ol ,5l4 27-making the total
ostensible debt l2,436,ssl 81 or .s2727s AZ par
This includes interest"
Here the auditor and comptroller admit that Texas has
received fifty cents, less fraction, average, for
every dollar OF these claims that have been filed accord
ing to law; and, including those so filed, fifty five
cents less fraction Tor every dollar expressed on the
face OF the obligations.
Well, first sight. il does seem that creditor is sra
naciousb IL he demands dollar when frst advance
but fifty cents; but when consider that the sum
agreed TO be paid for every loan made up partly OF in
teres, strictly called and partly Of insurance. this ra
pacy will disappear These loans were, appears from
the governors declaration, negotiated "n an ex-
ceedingy dark and gloomy PERIOD" when it became
'neeessary issue bonds for nominal amounts. bearing
no OF proportion 10 the amounts actually received"
As well might merchant after engaging TO pay heavy
premium ship at in stormy weather, and in Time
Of war; afterwards dishonor his engagement when the
ship il brought safely into port Texas refuse to
pay The amount she guaranteed by way of insurance
her loans
"Rapacious bondholdsrsr' Yes; they lent TO Texas
at fifty cents in the dollar. when nine capitalists in
would in that dark and gloomy PERIOD have considered
themselves demenied il they had invested their funds in
her securities at the rate OF ten cents in the dollar High
az the rate OF insurance was they would not have regard
ed AZ covering the risk
"Rapacous bondholders!" Yes; in vain did General
Hamilton try 10 negotiate loan both IN England and
France but citizens OF the United States lent the money
and they TO be requited. not by payment but by
reproaches.
"Rapacious bondholdersp Yes the Texans, nation
oi one hundred thousand, contending with the
Nexcans, nation OF six millions. II was doubtful IT,
with all their courage and all their wisdom, they would
be able to Withstand such odds Yet capitalists in the
United States lent money Texas better terms than
the bestestablished governments have in some exigen.
cies been able to Obtain In the year 1897 the British
government negotiated loan for which il had 10 issue
words, got but forty -four and fraction for every
dollar expended the face OF its obligations In 1913
negotiated very large loan, nominaIly for nearly two
hundred millions Of dollars for which i got apparently
about fitysix cents in the Collar; but this was in
bank paper deprecated about IS per cent the actual
par value which realized" was less than fortyfour
cents in the dollar.
Ia the last annual report which Mr., Walker made as
Secretary OF the Treasury is the following passage:
:. BY the report OF The Committee CT Ways and Means
Of the House o Representatives o Congress OF the 30th
OF April, 1880, appears that OF the loans Of the war
the government obtained but thirty tour millions, leaving
q loss OF forty six millions on its transactions"
Here we find that AT the time the British government
realizing oryfour cents in the dollar its loans,
the United States government was realizing less than
orty-one Yet neither Of these governments ac
cused the bondhoders OF rapacity" because they boh
well knew that I'm dark and gloomy periods insurance
must be paid on loans, well as interest
"Rapscious bondboders r. Yes; the value OF bond
depends much the punctuality with which the inter-