Texas State Gazette. (Austin, Tex.), Vol. 5, No. 50, Ed. 1, Saturday, August 5, 1854 Page: 3 of 8
eight pages : illus. ; page 28 x 42 in. Digitized from 35 mm. microfilm.View a full description of this newspaper.
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1854.
TEXAS STATE GAZETTE.
366
U. S. Senate Report on the Bill to pay the Texas Debt.
The following bill has been reported to the U. S Senate by the
CJtairman of the Finance Committee Mi Bright :
Tho Committee on Finance to whom was referred the snbjef t
of the debtol the Into Republic of Texas begs leave to submit
the following report:
That after a very thorough investigation of this complicated
subject they have determined upon an adjustment between the
United States Texas and her creditors which they think should
command the approval of both Houses ol Congress. By the
amendments offered in the shape of a new bill as a substitute to
that recommitted to the Committee on Finance it is proposed to
release the United Slates from the obligation to deliver five mil-
lions of stock bearing an interest of live per centum duo in
eighteen hundred and sixty-four and amounting on the first day
of January eighteen hundred and fifty.fivo principal interest
and premium to six millions five hundred thousand dollars
and in lieu thereof to pay oight millions five hundred thousand
dollars pro rata amongst the creditors of Texas upon their fil-
ing full and final releases to the United Slates.
The great diversity of opinion thai exists among the first states-
men and legal minds ol tho counirv as lo the extent of the lia
bility of the United Slates for the debt of tho late Republic of
Texas upon its incorporation into the confederacy of States
makes it eminently proper that a few of the arguments used in
support of that liability should be embodied in' this report ; and
your committee consider that this can piobably be best done by
introducing into this report as a part thereof a memorial sLned
by 13. -1. May and others in behalf of the creditors of Texas as
i follows :
The memorial of the creditors of the late Republic of Texas to jlluJ U"ited.Staies was bound to see this trust faithfully execn-
atiqn as to the particular debts lo which the limited terms of tho
act of 9th September 1850 applied.
2d. There is another ground on which they base their claim
to full payment by the government of ihu United Stales and up-
on which they would willingly stake their case in she Supreme
Court or beloreany other honest and intelligent tribunal.
By the compact of annexation it was provided that Texas
should cede 1o the United Slates "all public edifices fortifica-
tions ports barracks and harbors navy and navy yard docks
hiagaziues and armaments and all other moans pertaining to the
public defence" and that Texas should retain u nil tho vacant
and unappropriated lauds lying within its limits to be applied to
the payment of the debt and liabilities of said republic of Texas
and the residue of said lands alter discharging said debts and
liabilities to be disposed of as said State might direct."
On the 9th September 1850 the government of tho United
States by solemn act of Congress proposed to the State of Tex-
as to pay ten millions of dollars in live per cent bonds for all
her territory exterior to certain boundaries therein specially des-
cribed which proposition was unanimously accepted by the
Texas legislature on the 24 th of November 1851). The one
sovereign power selling and tlu other purchasing a portion of the
very " vacant and unappropriated lauds" the proceeds ol which
both had agreed should be sacredly "applied to the payment
of the debts and liabilities of said republic of lexas." Now
your petitioners respecllully submit that according to every es-
tablished principle of law and eqnily they were tho beneficiaries
in this codtraci and their debts ought to have been fully paid be
fore any part of said ten millions of dollars could bo properly
disposed of for any other purpose and that the government of
the Gonqress of the United States:
1st. rhey respecllully represent thai on the 3d of March 1845
the government of the UnitedStates proposed to the Republic of
Texas certain terms of annexation which weie accepted on the
4th of July following by the unanimous voice of a convention
nt Austin assembled for that purpose.
The effect of this act was to destroy the national sovereignty
of Texas and to incorporate her asoue of the Stales of our Union
at the same time that it rendered the United States responsible
lor thedebt of Texas as well as for her existing war with Mexico.
The last obligation has been lully discharged by a succession of
.glorious vicioucs won upon the soil of the enemy and terminated
by an honorable peace.
Bur eight yems have passed away eight long years of" Hope
deferred" and no part of the debt due your memorialists hits
been paid. The liability of ihegovennneiit of he United States
to pay them as I'aras their debts were secured by a pledge of the
li duties on imports" cannot they believe be successfully ques-
tioned before any judicial tribunal on earih ; and it has been re
peatedly recognized by Congress as well as by the executive de-
partment of tho government : 1st. By the compact of annexation
in 1845; 2d. By ihe boundary act of 9th September IS50. The
following extract from the official report of the late Secretary of
the Treasury is submitted as conclusive on this point :
"It is obvious lrom the most careless perusal of ihe law (ihe
net of the lJth September IS50) that Congress (
United Stales as liable to pay all that portion of the debt of Texas
for the redumption of which 'duties on imports' had been pledged
by ihe laws of Texas.
" Upon no other hypothesis is there any justifiable inoiive f"r
Teauirihir releases to the United Slates to be filed for such claims
betore Texas should receive the last live millions of the stock to
be paid her. In other words Congress admitted the liability of
the general government to pay all that portion of the public debt
' of Texas and laid its hand upon five millions of the stock pro-
vided for as n secnriiy that Texas should pay that portion of her
debt or on her failure to doso the five millions thus withheld
should be a fund out of whicl'Ahot class of ihe creditors ol both
r Texas -and the United States should be paid in whole or in pari
as the relative amount of such debt and the fund reserved should
i determine.
"The history of the debt contracted by Texas while she was
yet an independent power and her subsequent incorporation in
i -the Union as a State of the republic of ihe United Stales it is be-
lieved .makes the United States liable for this portion of ihe Texas
debt.
''The laws of nations which govern the subject are well un-
" .dersfood and of easy application"" to the present qnestioh. These
.liuvs -all proceed upon ihe idea that the moral obligations of in-
dependent Slates are binding when once ihey attach to compacts
between Spiles or between States and individuals and that they
never cease except by the voluntary agreement of the parlies in-
terested or by ll e r fulfilment and complete discharge. Hence
where un independent power contiacis obligations and is after-
wards by ihe act of another power jointly with herself incor-
porated into and subjected to the dominion of the I alter whereby
lie national responsibility of the 'former is destroyed and the
neims ol fulfilling her obligations iransierreu io ine inner an sue
ted. and is responsible accordingly.
Your memorialists have thus again respectfully submitted their
case lo Cougiess and ask for payment. Year after year they
have been postponed until many of them have been forced to
saciifice all iheir property to pay their just debts and some of
them have been utterly ruined. If the government of the Uni
ted States at this late day in ihe face of all authority held sacred
among men refuses to pay them then at least the money duo to
Texas should bo handed over to them to relieve her from res-
possibility. All which is respectfully submitted.
B. H. May of Virginia; James S. llolumn of Texas; Leslie
Combs of Kentucky ; G. B. Lamar of New York; J. Millbank
of New Yoik on behalf of the creditors of Texas.
A majority of the committee concur geheially in the views
expressed in the above memorial whilst n minority of the com
mittee considers that the only liability of the United States to
pay any portion of the debt of Texas arises solely from the
consideration that by the terms of the act of eighteen hundred
and fifty known as the compromise measures the United States
became bound to pay to the State of Texas lor the benefit of her
creditors five millions of a five per cent stock upon the creditois
filing releases to the United States. This sum amounting as
before staled principal interest and premium on the first day of
January next io six millions fivii hundred thousand dollars the
said minority of your committee expresses its eniire willingness
11 1 i. mi . i. . i..r
considered the! I111" " ""J' ulfUinei' mni W1M receiv" iB approoauoo oi i exus.
Socrotnry of tho Treasury to tho Presidont of tho United States
mid approved by him on tho thirteenth day of September
eighteen hundrod and fifty-ono or which como within tho pro-
visions of said act according to tho opinion upon tho Texas
compact of tho present Attornoy Gonoral of tho United States
addressed to tho Secretary of tho Treasury under dato of Sep-
tember twenty-sixth eighteen hundred and fifty-three tho Bum
of eight millions five hundred thousand dollars to bo appor-
tioned among tho said holders pro rata.
Sec. 2. And bo it further enacted That in all cases whero
the State of Texas may have paid any portion of tho debt des-
cribed in this act tho Secretory shall refund to tho proper offi-
cer of said Stato tho amount actually so paid by tho State upon
tho presentation at tho Treasury Department of tlio evidence of
said debt on which tho said Stato may liavo made such pay-
ment : Provided That said sum shall not exceed tho proportion
which would havo been allowed to tho creditor or creditors if
such payment on said ovidenco of debt had not been made by
the State of Texas and whero any original certificates or other
evidences of debt have been surrendered to tlio authority of
tho Stato oi' Texas such now certificates shall be received as
ovidences of tho original amount of the claim. m
Sec. 3. And bo it further enacted That no payment bIioII be
made under this act to any holuor of said certificates or evi-
dences of dobt unless tho said holder shall first oxecuto to tho
United States a receipt for said payment in which said holder
shall forever release all claim against tho United States for or
on account of tho said securities or evidences of dobt and shall
also endorse upon said security or ovidenco of debt a credit for
tho amount so rfceeived by said holder in bucIi form as tho Se-
cretary of tho Treasury may prescribo and tho said certificates
or other evidences of debt shall then bo doposited with the
Ticasury Department for tho bonelit of thoso whom it may
concern until otherwise directed by law.
Sec. 4. And bo it further enacted That before payment of tho
moneys aforesaid the Sv cretary of tho Treasury shall givo no
tice by public advertisement for tho spaco of ninety dayB of
tho time at which said payment will be mado and no payment
shall be mado on tmv bond certificate or other evidenco of
debt which shall not thirty days beforo tho time limited by
said notice bo presented at the Ireasury Department.
Sec. 5. And bo it further onaeted That tho sum of eight
millions five hundred thousand dollars bo and thosamo is here-
by appropriated out of any moneys in tho Treasury not other-
wise appropriated for tho purposo of carrying into effect tho
provisions of this act.
n a i 1 i t it i l mi j. it i i li a
oec. o. ivnu no it turcner enacted i nac mis act simn not
tako eifect until it shall bo assented to by an act of tho legis-
lature of the State of Texas and a copy of tho act of said State
duly authenticated deposited in the Treasury Department at '
Washington.
The Stale of Texas as is well understood by all who will be
called upon to act in the adjustment of this embarrassing ques-
tion proposes to pay her debt m what is known as the scaled
rate. This a large minority ol her creditors retnse to accept
Georgia.
TheMining Excitement. Thero is now a considerabloycuer
in a portion of Georgia and tho eastern portion of Alabama
consequent on recent discoveries of gold silver copper iron
and lead and s'teady old fogy citizens are dropping their
tanning and mechanical implements and going 'a prospecting'
for these metals. As yet this fever has been but sporadic in
Alabama but in Georgia it has become epidemic.
In Lumpkin and adjoining counties wo learn trom tho Sig-
...u-. i ... i..Ko ... . - 7lMf ""' " -Vo! nal. great activity exists among the farmers in raising articles
and the committee think they very properly e use as a manifest . ' nn1wnnnJum lf tun m n Rhltoa nflttn? nVt
obligations
to the extent at least oi tne means mus iransierreu
itinli wiih all their forco to the nation to whom such means
lave been so transferred.
"It will be found that nil writers on public law having any
nithority are agreed upon this point from the lime of Grotius io
tie present. Indeed the proposition thus asserted isso obvious-
.ljjusl that it is not possible for a nation in modern limes tocou--tnvei-t
it without forfoiiiug that character for justice and probity
w'ncli happily for mankind has become indispensable for sove-
Tegn Slates. It was ibis view of the subject which doubtless
dipctcd that provision of the law which I am now considering.
' It was known l'o Congress ihat Texas had cnntraciod debt to
n hvgu amount to individuals while she was an independent
power. It w.is equally well known that revenue arising fioin
"du'ies oniinioii.s' wasamong.-.! all nations in ni deni limes one
resource if not the principal cue for ihe payment of the debts ol
nniiuis. J.i w.is known also by ihe fr.uners of I his act Mini bv
tjle. uinexatioii ol Texas to the United Stales iln- power in levy
dutiiH oil miONts wiilnn the port or leirilorius of Texas was ta-
ken iiway from ihe hitler and transferred to ihe United Stales.
It wis therefore assumed that the United Siale.sshnuldpay.il
5 Vxn diu nor mi mpi pinion ol the l"lii ot I oxas loi which
duties on imports had been pledged for ihe obvious reason thai
thtwn duties ilius pledged were taken from Texas and irim-fer-red
to ihe U uted Stales: and to (bat exieui Hie creditors of Tex-
as by plain principle of justice had become the creditors ol ihe
United Slates."
Tin opinion wa sustained by President Fillmore and has
heon re-ailirnied by the present administration wiih a slight vuri-
iuinstice to the holders of the larger portion of this debt. The
bill further propose to submit this adjustment to Texas for her
assent. This your committee deem respectful to that Slate and
ai the same time believe that the provisions of the bill are so just
and equiiableto all the parlies concerned and so liberal to Texas
that she will not refuse to meet this otter with a prompt uitirmn-tivc-.
response.
The amount of the debt of Texas held by her creditors to be
liquidated under the provisions of this bill principal and interest
is about eleven and a half millions of dollars. These debts were
contracted by Texas when she had entire control of her revenues
and lands. It was undoubtedly the intention of Congress in the
passage of the compromise measures to retain sufficient of ihe
ten millions to pay off these debts of Texas. This bill in pro-
pohing to pay to these creditors eight and a half millions of dol-
lars wtth the assent of Texas in lieu of the five millions of five
per cent bonds is only carrying out that intention without
increasing in the slightest degree what would be the liability of
the. United States af the expiration of the fourteen years which
these bonds have to run. The whole question indeed is narrow-
ed down to Ihe simple proposition whether the United Slates will
wipe out a debtof eleven and a halt millions oidollais lor which
uliimotely they will be held responsible with a heavy accumu-
lating interest by ihe payment of eight and a half millions now
an amount which at the expiration of ten years they have obli-
gated themselves to pay and thus settle a most unpleasant diffi-
cult and embarrassing controversy with one of the Stales of the
Union. I he suhject has neen neiorc Congress since eighteen
hundred and forly-six at the instance both of the cieditor.s of
Texas and of the Treasury Department and it is extremely im-
portant that some fair proper and honorable adjustment sliould
be made. To thisend the committee recommend the passage of
the accompanying bill.
A KILL
To provide for the pay mint of such creditors of the lale Re-
2?u lie of Texas as are comprehended in the act of Congress
of September vino eighteen hundred and f fly.
Do it enacted by the Senate and House of Representatives
of the United States o? America in Cong. ess assembled That
in lieu of the sum of five millions of dollars payable to Ihe
State of Texas in live per cent. stocK oi ine united urates ny
the act entitled " An net proposing to the State of Texas the j f Memphis ai par.
establishment of her northern and western boundaries the re
mit nt bv the said .State ot all territory claimoi
for the consumption of tho miners. It states that thero are not
less than thirty shafts or tunnels beingoperated upon in Lump-
kin county and a number of them with prospects truly flat-
tering. A lump of lead taken from a mine in Heard county
was found 75 to 80 per cent pure
Oitoi-s. The Athens Watchman says : "Through this re-
gion of the State prospect of an nbundnnt corn crop was never
more favorable; whilst cotton though perhaps iv.i days behind
looks quite promising." The Runner says : 'The seasons have
been as good as heart could desire. It is thought by ninny that
if the present prospects continue corn cun be bought at 30 to 35
cents per bushel in this market."
A lira Lump. It appears that California is not the only Stnte
in the Union in which big nuggets of precious mctnl are found.
A short times since a mass of gold weighing 1480 pennyweights
and worth $1410 was taken from the McCormick mine in
Columbia county Georgia. It was extracted nearly from the
surfuceof the earth from a vein ol great depth and richness.v
South Carolina.
Moan Gold. -The Spartanburg S. O. Spartan has been in-
formed that flattering evidences of the existence of gold hnvo
been discovered on the plantation of Mr. Doguell residing in
the upper part of Laurens district and not far from the road to
Gieenville. A company of gentlemen have leased the premises
and are said to be preparing for bringing the treasure tolight.
(jKOid."Through ihe couiitry from Charleston to Savannah the
corn ol which tin unusually large crop was planted has suffered
from the extremely hot weather which will diminish a crop that
at one ii.uo promised abundantly. Sea Island cotton which also
promised finely has suffer from ihe same cause. The rice crop
is fine and an abundant yield is au'.icipMed.
Arkansas
The President of the Memphis and Little Rock R. K. has just
completed a couiict with John II. Bindley &Co. of Indiana for
ihe con.su notion of this entire road. The eontraetois have largo
means and much experience in road building and have bound
themselves lo put the eais on the road from Ihe city lo Si. Fran-
cis in two yeais from ihe date and are lo begin ibe woik im-
mediately. The remainder of the road is to be completed within
lour yeais I ho contractors agiee to take the Bonds ol the city
it. ..
llinlU-lHIKUL 11V LMU MUW OWiu' ui an auiijiiiij i;uuuiu uy hit
l .' 1 I !!! ! . . il IT
exterior to said hotiudnnes ami oi an uer einiiut upon mo uui
ted State1 and to o-uaiihhh a territorial government lor jew
Alississippi
We see by a Ir-lter from the Stale Geologist ihnt tho recent
discoveries of lead ore in Laudeidale are considered nf no renl
fnvico." nas-Hid Suiireuibor ninth eighteen hundred and fifry . value. He says that the only valuable mineial dennsius in the
the issuin" of which stock was restricted hy the iirst pruvJMi Snue are caibouaie of lime marls and lignite or brown coal
to the ilftfi proportion contained in tho first section of naid act The latter exists in gteat alunidaueo and o( line quality all over
tho Secretary of the Treasury he ami he is hereby authorized i h Koiiheru p it of Mississippi and when wood bhnll be
and directed to pay to the creditors of the late liepublie of i scarce will be n souice of great wealth.
Toxa who hold fe'u eh bonds u' other evidences of debt for . ;
which' tlio revenues of that Rejubl:c were pledged as weie re- Pj Vn" Mitiippi Aver oveillnwed its banks in iiolivnr
norted to be within the provUlojis of tho said net of September county and whole empsof corn nud cotton worosubiuorgod (tuU
tho ninth eighteen hundred and iil'iy by tho report o.r tho Into destroyed. Thy loss cannot be jess ihan $3uOQQP.
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Scurry, William R. & Marshall, John. Texas State Gazette. (Austin, Tex.), Vol. 5, No. 50, Ed. 1, Saturday, August 5, 1854, newspaper, August 5, 1854; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth81146/m1/3/?q=Lamar+University: accessed June 9, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting The Dolph Briscoe Center for American History.