The daily union. [volume] (Washington [D.C.]) 1845-1857, 1853-04-13
CONGRESSIONAL.
Speech OF hon. w. II. SEWARD,
OF NEW YORK;

Mr.. SEWARD said
MIR President. AT the epoch OF annexation, Is IS
the republic of Texas possessed property IN public
deences. large domain OF unappropriated land. and
revenues derived from customs Ii owed considerable
debt which had been incurred in establishing ndepend
and organizing civil government. That debt was
divided into classes first what has been called do
mesc debt not distinctly charged on the revenues from
customs second, what was secured 10 creditors by
pledge of those revenues
Texas came into the Union State. uader sipula-
ons concerning her property and debts namely: She
ceded to the United States all public edifices, forfca
lons, and other property pertaining TO the public de-
fence She retained all her funds and all of her public
domain but under covenant that should be applied to
the payment OF her debts, with the absolute right to any
surplus and ii agreed that in event should thos.
debts become charge The government OF the United
States Thus did the United States, in the very act OF
union with Texas, bind her to pay her creditois at least
as far as her domain would furnish resources for that
purpose.
In 1885, five years after the annexation of Texas the
United States all those debts remained unpaid and add
ing interest thereto they stood, the Ist OF July that
year as follows:
D,me site debt 81 1873 733 80
Debts secured by soms pledged s,29ssi7 SO
s Total sI2 1872 6sl SO
During that intervening period there had been war be.
tween the United States aud Mexico. which had resulted
IN the annexation, by conquest and purchase, OF New
Mexico, Stale adjacent TO Texas border dispute
listed between those States, and II was supposed by Con-
gess to adjust that dispute in order TO restore
civil government in New Mexico and even to prevent
armed collision between Texas and the military force OF
the United Staies which, il apprehended might
terminate in general civil war; subverslve even OF the
union OF the States.
Ia the midst of this dispute the creditors of Texas ap
peared here, and urged the settlement Of thei claims
condition of the proposed adjustment They pleaded that
The United States had become liable for those debts, by
absorbing the sovereignty of Texas, and that at least
they had become liable for them 10 the extent OF the value
of The accruing from mposts, which, although
they had been specifically pledged TO the creditors, had
been diverted into the treasury of the United States by
the act OF annexation. Thus the debt OF Texas became
element OF the controversy which Congress under
took TO settle in 1850 Congress settled. II by compro-
mise:
l. Texas ceded her claim to of the lands before
insisted on and accommodated her boundary TO the de-
mands of the United States.
2. Texas relinquished all claim upon the United
States for the debts OF Texas, all other claims for in
demnity.
8 la consideration of these concessions, the United
States stipulated pay $4,000 TO Texas IN five per cent
stock of fourteen years. But
A. Ii was stipulated that the United States should
pay Texas than IS 00e 900 Of the said
until Inc VINO ad nen Ss o d al
claims against Texas with the Secretary OF the Treasury
OF The United States
compromise-he United States. Texas and the creditors
of Texas The United States and Texas bound them.
selves fhsn The consent OF creditors, whose debts
secured by cusome, although postponed, was neverthe
less necessary and SO they third party, whose
consent was aerward 10 be given by releases The do
mes,ic creditors, who had specific en and in whose
missed 10 the justice OF Texas alone. and they dsap
peared at once and forever from this capital.
This is the starting point in the present case II is
manifest that il a cardinal object and design OF that
compromise that the creditors of Texas, whose debts
secured by pledges OF the customs, should be salts
fed by the gaishmen, Of their claims The way in
which was be done by making that extnguish
men through the agency OF Texas condition precedent
OF the payment her OF the last half OF the $40 100000
1t is manifest. also, now, that the compromise had
inherent defects, which were these, viz
10 be paid TO the cfeditors
2. That II left that amount open 10 dispute between
Texas and the creditors thus preferred
Nevertheless, the ascestainng and establishing this
amount indispensable to the execution OF the CON-
promise. The United States were Obliged to ascertain
II before they could pay the five millions and Texas
obliged 10 ascertain IT, and see 1t extnguished, be-
fore she could demand the last tive millions.
Each party, therefore, undertook to ascertain and x
the amount.
Te1a, ha. asccrained and fxedist- 50 1855. $50 25
Which would leave TO Texas Of the five mil
On the other hand the United States have
ascerts med aud liz ed The amount S,2939 b5
sum exceeding the five millions reserved
And exceeding the sum which it is Fixed
by Texas by ABS, ,5s7 q
II 10 manifest aso that Texas holds the initiative in
the action necessary 10 carry the compromise into effect
She that her creditors release herself and the
United States. Moreover not only cannot the United
States pay all the creditors thus secured, but they
pay any until all OF them SHALL by the agency OF Texas
have been brought TO file releases This dispute, full OF
loss and damage the creditors and OF irritation between
the United States and Texas now two years old The
debt 10 the creditors grows chiefly at the rate OF ten per
cent while the fund in The treasury drawing inter-
against the United States of five per cent 1t is mani
fest that il s time, high time, that the controversy
should be settled and The compromise carried into effect
ia equally clear that unless Congress shall intervene
will not be settled for indefinite period.
The Committee Finance proposes a rlan OF settle
men which is. that in lieu OF the hve millions OF five
per Of fourteen years. the United States shall issue
stock 10 the amount of Ss 33 80 at three per cent
redeemahe in twenty years. and deliver 1T to the credi
tors, TAX assignments for their clams (he small
cess OF their claims being paid IN money al the ,asury
and that the Uaed States shall hold the assigned claims
as bar TO the claim OF Texas for these five millions.
consider this plan commended by its conpsniencs.
l. In the first place the creditors OF Texas, for whose
protection the United States, with her CONSENT has
nlervened. will be promptly paid Their claims will be
extinguished, and this /, cardinal point
3 The whole claim OF Texas on the United States un-
der the compromise OF $780, will be virtually paid, which
Is another cardinal point
In any event, and by her own showing, Texas will be
paid to within the OF SILICA 639 75. The difference
which will remain be adjusted, il any, will be one be-
tween The United States and Texas which will involve
NO injustice 10 NEUTRALITY-SUSPICIOUS. cardinal pont
The expense TO the United States will not be mate
.n' meteased The interest OF s5,0o0,ooo al i've per
i,t "l ot VS. 1893 at three per cent are equal
VIZ 9e shll the difference OF 50 333,333 between
49, ~ faP"a @ sums 10 be borne by the treasury Bat we
surplus in the treasury and 40 can Inv nm ,bese "a
ooo,"VV o, You please the whole $4,000 Oo0 in one
or Two years, and so indemnify ourselves in great
measure. 'or The additional sum advanced to settle the
controversy ''neeu " Se'"e e''
III. consider the plan in the nsv, H.. .a.a
by its harmony with the principles Of he If
1850 " 'e 0o'iWo'nise Vi
The United States, by ,ha, compromiso ,..,,,.a .
guaany ampe eausiscnon 10 The creditors in question