The daily union., 1854-07-25
THE TEXAS DEBT.

The bill for the adjustment and satisfaction of the claims
of the Texas creditors which have already advered
proposes final settlement of subject which has been
pending for eight years. and which has proved to be full of
embarrassment to all concerned. When Texas was
nexed the Union, her revolutionary debt unpaid
its amount being according to recollection something
than millions of dollars and for the of
it her specifically pledged. 1t has been
maintained by very many eminent statesmen and uriss
that of the legal consequences of the incorporation of
Texas into Union was that the government of the Uni
ted States became responsible for the payment of this debt
II certain however, that the pledged there
by made inurc the United States and to the State
of Texas When the question the boundary of Texas
was adjusted in 1850 the United States agreed pay ten
millions of dollars in bonds bearing FIVE per cent interest
and payable in 1864 for REIMBURSEMENT by Texas of
her claim the territory in dispute five millions of which
bonds were to be held by the United States until the
creditors of Texas filed full releases of their claims
The creditors declined file releases because their claims
amounted to more than double tie SUMS held by the
United Saes On the other hand the State of Texas de-
cned recognise the claims of her creditors their full
amount, but insisted scaling them and making pro
payment according fixed rate of scaling The
bonds have been retained by the in consequence
teresta and premium amount the st of January, 1855
six and ahafmions fdoars Thsamount ii is UNIVERSAL
ly conceded the United States bound to pay either to
Texas or her creaors and the payment is deferred
until 1864 when the bonds payable il is conceded by
all that the United States will have pay eight and half
millions This is the amount which the bill proposes to
pay now in lieu of issuing the bonds and deferrng their
payment until 1864,
,barra ppft ta
bill as far as advised arises from proposition
pay eight and half millions instead of the six and half
millions already due The reasons on which the Senate
bill was passed in its present shape gather from the
report of the Finance Committee and from the debates
the measure the Senate may be stated in brief as fol-
lows:
controversy between Texas her creditors and the
United States Texas is unwilling 10 satisf the claims al
their nominal amounts but insists on scaling them The
creditors refuse submit TO the of scaling So long
this controversy continues the United States hold
the five millions of bonds bearing annual interest Of
five per cent The government cannot hand them over
until releases fled and releases cannot be fled except
upon agreement between Texas and her creditors Be
sides these difficulties Texas her creditors maintain
and with force of legal and moral persuasion which it is
very difficult resist hat the government of the United
States is responsible only for the five millions but for
the entire debt which TO eleven and half mil
lions
In this of things is believed to be morally GER
tain that Texas win not give her assent to any measure
which merely distributes the FIVE millions and leaves her
liability for the remaining ak and half millions unset
tied On the other hand IT equally certain that the
creditors will not rehnqush their entire claims upon the
payment of less than half their amount They believe that
the United States responsible for ie entire amount
end in this opinion they sustained by who
have examined the whole question: and they therefore
unwilling TO lose than half their claims The case