The daily union. [volume] (Washington [D.C.]) 1845-1857, 1853-02-13
CREDITORS OF TEXAS.

tlon, II was agreed TO-
CREDITORS TEXAS.
The Senate then resumed the consideration in commit
tee of the whole OF the bill to provide for the payment OF
such creditors OF The late republic OF Texas are com
pretended in the act OF Congress OF 9th September,
$50.
Mr.. HOUSTON. Mr. President, am very reluctant to
occupy moment OF the precious time of the Senate, and
particularly when other matters, which IN the est
nation OF honorable gentlemen, OF so much urgency are
pressed upon the attention OF the body But the bill be-
lore Inc Senae seems TO mpcate the character OF the
Slate OIL wnch am IN part the representative on this
fioor and demands OF her senators least explana-
uon II they are incapable OF vindicalng her reputation;
II she cannot be justified in the which she has
adopted, excuse will be rendered for il aud to deter
mine upon the merits OF her claim TO consideration and
10 The due regard OF her sister States proper that we
should advert TO the circumstances under which those
debts originated, and under which they held by the
present claimants.
did not much than ~, 600 00O and more con
Cured in the opinion that she owed but million and
half than that her debt exceeded two millions. This
stued the amount OF her entire Liabilities that me
aud up to the year 1885 From the period of the com
nencenen OF her separate government, in the fall of
1885, down 10 the winter OF 1888, her entire debt did
exceed So 500 000 embracing all her liabilities; and her
entire currency in circulation less Than half mil
lion. 1t was from 1893 up 10 the end of 1S4l, that the
debt accumulated from two and half millions to the
enormous sum OF twelve millions of dollars This
moi, as gentlemen understand in instances,
debt created by the sale Of bonds pledgng the faith of
Texas for their redemption; for little than one mil
hon OF bonds are all that outstanding against Texas
The other debts have resulted from her currency The
impression has gone abroad that Texas was placed on
footing with other States, Indiana, Illinois. Pennsyva
MIA, Mississippi, and others, who sold their bonds at
depreciation, and that therefore, the question would not
arise whether she received the full value of those bonds
not but that she was bound TO pay them at their face
that she had received the most that could be obtained for
them and that the risk Justified the depreciation Of price
at which they purchased.
| know that these the impressions which have
gone abroad throughou the community; and if Texas,
when her credit low and depressed, had been
peed TO raise for the support of her armies and
for the expenses Of her civil list and had for that pur
pose sold bonds calling their face Tor hundred
TO the dollar, and had only received fifty cents she
would yet have been bound in good faith TO redeem em
according TO the letter of the liability and would have
had for shrinking from punctualy meeting her
obligations but inability TO pay her debts But when we
look into the OF the liabilities OF Texas, find
that, with the exception OF about million of dollars,
they of very different character from what has been
generally supposed Texas issued promissory notes.
Up to 1888 these passed currently at par change in
the administration OF the government then took place,
and the first ac OF the new administration TO raise
for the purpose of defending the frontiers
II said and then, although the previous amount
allowed TO the executive for frontier defence had been
nconsderab e. IT was swelled up by approximations to
the amount OF million and half of dollars and the
civil list had no less than halt million appropriated to
support II.
The throwing of these two millions of dollars of prom
ssory into circulation had the effect OF lowering
the value OF the former currency and the whole depre
ciaed at least fifty cent and gradually declined from
that the lowest point OF depression Successive is
made, and the depreciation continued during
the years 1889, lSi0 and S4l and in proportion the
issues were increased the depreciation went During
that period immense expenditures incurred and liza
blies issued, tor which there not the semblance
OF authority The Santa Fe expedition fitted out,
and must have cos, more than million of dollars;
and that expenditure incurred, not only without
authority, but positive violation OF the expressed
will OF The two houses of the Texan Congress, by
a dictum of the executive. The and mu-
niioHs OF OF the country entirely expended in
that expedition; aud accumulated expenditures be-
queathed 10 the succeeding administration, Thus issues
TO The amount OF millions made without authority,
and they became vaueless. In December, 1s4l, Texas
suspended payment because she then unable 70 pay
her debts.
But here let me ask Who are these creditors who now
come forward with such plantive appeals to this body
Who they who impoTing the commiseratcn OF
senators: " Help us sink !" Are they who
sufferers by the Texan revolutionary struggled or
they who specuated upon the individuals who
went through the tolls and dangers OF that revolution
These promssory notes deprecated in the hands OF
who had loiled and fought IN the revolution men who
had there given their services and their energies the
of Independence. In their hands the notes depre
cisted until they became valueless. They then
thrown upon the market they seized upon by spec
ulaors AT auctions, the streets OF cities aud vii
ages, they submitted TO public sale and cried of at
from three cents TO five cents, "Going going, gone"
Then was that these specua,os came IN and secured
their claims 10 the generosity and elemency OF Texas,
and the feeling and commlseraon OF this body There
bonds sold IN market Tor what they would bring;
but these promissory notes sold or song
der the auctoneers hammer, aud IN quantities TO suit
purchasers for they piled up large cotton
bales When they were cried up t they reached about
three cents the dollar, they wosld be knocked down
The bidder and he would be told TO 90 and select from
the pile many as he wanted he might take bundle
| as large a cotton bale. lLsugher.l
That is the way in which these evidences OF debt
obtained. These the Liabilities for which gen
temen claim hundred cents on The dollar and which
acquired at the rate ot from to three or hve
cents on the dollar. No doubt gentlemen in the United
States thought the prospect very fine; they knew
that the Texans descended from the Angle Saxon
stock, and that they weuld maintain their liberty in de-
hance of every difficulty for the American
retreated, took step Backwards and that from
the day they bad impressed their footsteps upon peous
SOIL they would 90 Such gentlemen, perhaps,
thought that ii the Texans involved in difficulties,
they might venture sell real estate and get money when
there prospect OF investing II in Texas deprecated
paper to much advantage No doubt under these CIR.
cums,ances, gentlemen the United States purchased
large OF the promissory notes Of Texas at ten
cents the dollar, and come forward and claim one
hundred cents on the dollar To exempty more par.
ticulay will state that such was the depreciation OF
Texas currency, that, for instance, Judge, getting
salary OF 50 000 forward TO receive It, and his de-
mand was exhibited, he would receive IN treasury notes
$50 000 based upon issue OF bonds but upon credit
In his hands the money deprecated until perhaps, il be-
came worthless and then II was thrown into the market
in village, and purchased up by specuators from
one to three or five cents
This is the character of the Texas liabilities This is
the manner in which they have been bought What ius.