The daily union. [volume] (Washington [D.C.]) 1845-1857, 1853-02-16


Glass ID l,4729lS 80
Class 25S6,5 90
Ss293, ,957 SO
If there be any error in this statement it probably too
large by forty fifty thousand dollars take II,
however, find it in the Secrearys report, based upon
the statements of the auditor and comptroller OF Texas
These are the four classes which were recognised by
the Secretary OF the Treasury and by the President OF The
United States, and they, with the full amount OF interest
on them up to July, 1850, amounted to about
The whole amount of the debt of Texas is about Sl2
100000 So much comes within the principle assumed
by this bill is, at the time have indicated,
about IS, ,294 900.
The legislature of Texas. having this report Of
the Secretary OF the Treasury approved by the President
have passed act by which they seem TO have recog
nised the soundness OF the principles assumed by that re-
port and they have provided out OF the IS 100000 which
have already been paid TO them from the treasury OF the
United States, Tor the two classes excluded by me in the
enumeration which have mentioned, and excluded by
the President and the Secretary OF the treasury They
have provided for their domestic debt class and they
have provided for the class called c, the eight and
per cent funded debt OF 5h February 1st0 and under
stand that many instances claims under those two
classes Of debt have beea presented at the treasury of
Texas and actually paid and receipts filed For the other
four classes they have provided condonaily; and here
the difficulty which has rendered necessary to in
troduce this bill They have provided for the payment
OF OF these claims at par OF some at elghlyseven
and half cents 10 the dollar OF some at fifty cents, and
OF some at twenty cents on the dollar The whole
amount OF these four classes scaled by the act OF the
State OF Texas, is something less than S4Ooe,ooo, in-
Guiding principal and interest.
The creditors OF Texas are not willing to accept the
terms thus offered them by that State They contend for
the payment OF their claims, dollar Tor dollar While
Texas alleges that she has scaled these claims according
to the rates at which she actually received value for
them the creditors contend that tha, was no part o the
contract Their contract TO be paid much as the
obligation lis face states 10 be due and they deny the
rgh OF the legislature OF Texas to reduce the amount OF
their obligation from It's face value to that which the
State alleges actually received, 10 that which II al
leges TO have been the average OF what il actually
cEiV Vpl N sDm
tell what was received by the State, on the particular
bond, or evidence of debt the auditor and comptroller of
Texas have averaged the whole class. Texas has also
provided that these four classes OF debts which she has
thus proposed pay according to the scaled rates shall
not be paid until the United States shall have modified
their proviso IN the boundary act Annexed TO her
scaling act is this proviso;
Pror,dsd That payment shall be made on any claim
against the State, included in forming part Of articles
st, 2i 9th, 6h 7th 9th, and llth, for Interest which
may have accrued theron ncluded in articles l2h and
3h the first section Of this act when the governor Of
this State shall be notified by the President Of The United
States that the Secretary Of the Treasury Of the United
States has been required by law to issue to the State OF
Texas the five millions OF dollars Of stock withheld under
the provisions of said act, approved September g. 1850,
until cean creditors shall have filed releases at the treas
ny OF the United States as therein required or that said
Secretary has been required by law to issue 70 tue state Of
Texas Of said stock equal TO the sums for which the
State may al any time present me 'eqnted releases from
States after which notice such claim claims shalt be
paid as provided Tor IN other cases
Texas, therefore, requires the government of the Uni
which the five millions were retained IN the treasury OF
the United States before any portion OF these claims
be paid under her liquidation act In ls4S Texas
passed act "lo provide Tor asceralnng the debt of
the late republic OF Texas, by which she required her
creditors TO present their claims TO the auditor and comp
troer OF public accounts on or before the second Mon
day OF November Sf9, and declaring that all claims not
then presented shosd be postponed" The government
of the State subsequently passed another act extending
the time within which those claims should be produced at
the treasury of Texas and provided that all not produced
by the first Monday OF September, 1851 should be for
ever :" barred" Then followed the liquidation act, the
terms OF which have endeavored TO state TO the Senate
! The senator from Virginia, Mr. Mason, in the sub.
sllute which he proposes TO offer, and which has been
printed and laid upon tables proposes far TO adopt
the action of Texas 10 authorize the creditors who hold
these claims 10 receive at the treasury OF the United States
the payment of the amount at which their debts have been
scaled by Texas II is very unpleasant for me to say
anything upon this subject and would very gladly avoid
it II could but am bound to say, while endeavor
far possible TO avoid casting any repoach upon Texas,
that seems TO the government OF the United States
owes 10 IFS reputation not 20 participate IN lha act by
which 1t is proposed to reduce the claims OF these cred
tors below the value stipulated their face THIS gov.
has done except under the influence OF
| an inexorable necessity.
| We negotiated loans during The war OF 1912, when
Tor every hundred dollars OF stock issued we received
only eighty dollars and that in deprecated paper be-
leve that according to the calculations OF former Sec
resry OF the Treasury, [Mr. Walker the depreciation
OF the bank paper IN which we received the money Tor
which we issued the stock was great that eighty
millions OF stock and treasury only yielded the
I
being less than hfy per cent. Tne British government
and almost every government under the sun, has nego-
tated loans AT less than par. Great Britain during the
which followed 1893, and between that period and
1875 negotiated enormous loans al rates which yielded
her. only sxtysix dollars, sixty dollars, and
one loan oil thirty millions sterling only fifty per cent In
that one instance she received only ElS,000 900 for
E30 600 900 OF stock issued yet heard any
objection paying the foil amount Of the obligation
stated upon It's face. So sacred has the public faith
been held. and important the maintenance of public
credit
shall probably be told that revolutionary debt was
not paid at par That is Of part of but il must
be recoected that paid all foreign revolutionary
debt par without reference TO the amount received
from The stock which issued That debt in the year
1890 was including principal and interest about Sl2
900 oOO every dollar OF which, including the three
per cents paid according 10 the value upon It's face
Il is true had incurred enormous domestic debt by
the issue of continental money, which think Secreta
ry oil the Treasury stated many years ago IN report TO
TO about S2i2 900 000 and this, with the issues
OF the States durag the revolution, amounted to over
Si00, 900 900 is very true that these issues OF cont
mental money had been promised TO be paid at par but
very after they had been issued to amount more
than sufficient to supply all the purposes OF currency
they began to decne and the issues were enormous
increased the depreciation went on until finally they
tell from par, at which the was received on ITS
first issue down low $500, and in some States
to 81 900, for OF specie II ~ true that good deal
this money afterwards funded at the rate oil iorty
dollars for one and of it, believe, was funded, un
der the OF i79 at the rate of 800 to but that
was not because considered that we had right to