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32p CONG.....20 Sess.
Tehuantepec Grant-Mr. Seward.
competent to decide that question as the Senate of guished Secretary of State. What is the opinion || sacredly madem.then it is consistent with the duty the United States ?
of the New Orleans company upon that subject ? | of the United States, and it is their bounden duty, Mr. SEWARD. If my honorable and very Mr. Hargous tells us, in his letter to the late Sec either to tender to. Mexico, or to wait till Mexico esteemed friend from Louisiana, who argued this retary of State, Mr. Webster, when invoking the shall tender to them, a proposal to submit this case with great ability the other day, had not had intervention of the Government:
dispute to an arbitration consisting of two perhis attention diverted, he would have seen that I “They are aware that in ordinary cases it is not the prac sons, one of whom shall be named by each Power, have already anticipated the question which he has tice of the United States Government officially to interfere or to the arbitration of a foreign nation. This propounded to me. I threw out this view of the
in behalf of citizens of the United States, who may com.
disposes of the resolutions of the committee. subject to show that what Mexico insists upon
entered into with a foreign Government; but inasmuch as Mr. President, I am approaching the end of this has at least the merit of plausibility: I ask only all general rules have their exceptions, and as the interest long discussion, and I shall dismiss now Don José that it be so considered. It is enough for my pur
of the American Government and public, and especially | Garay, his grant, his assignment, his assignees, pose that according to the view which I have taken,
those of the citizens of the West and Southwest, are largely
and their grievances. I come to a second ground, the committee have not shown the validity of the Hatter themselves that in any just complaint they may have which has been assumed, not so much in the report, assignment, and the validity of the title of the cause to prefer against the Mexican Government, they shall as in the speeches of the honorable Senators who claimants.
receive the hearty protection of their own. I ask you now to consider what are the un “ Your answer upon this point especially is respectfully
support these resolutions, viz: That the United reasonable demands which Mexico makes, and solicited, and will be anxiously awaited."
States have a publicinterest in opening the Tehuanwhich it is supposed that we cannot allow; and I
Here are these proprietors telling the Govern- | tepec communication as an oceanic connection, shall take that in the words of the honorable
ment of the United States that they know that which renders it the duty of the United States on chairman of the Committee on Foreign Relations, nations, as practiced by this Government. There what they ask for is an ezerption to the law of
this occasion to adopt the resolutions submitted to (Mr. Mason:)
us upon this subject. I have to say, in the first is the honorable Committee on Foreign Relations place, that as any defect in the Garay claim, or in “In all the propositions which have since einanated from the Mexican Government, in their proposals inviting new
telling us that the rule is universal. I shall sub the assignments of it, cannot be cured by the companies to construct this work, they have imposed limitscribe to this rule with some qualifications, which
existence of a coincident public interest on the ations and restrictions which must discourage all from at I will submit to the consideration of the Senate. part of the nation, so also this public interest tempting it, or which would have the effect, if complied The first qualification is, that the rights of a citi
which is thus brought before us is not aided at all with, of leaving that work exclusively in the charge of the Mexican Government. The propositions are of this char
zen, which the Government is bound to protect, ll by the Garay claim. If it is the right of the Uniacter: the contractors are required, in the first place, to are just rights-not unjust ones; that they are not
ted States to compel Mexico to enter into a stipu. acknowledge the unqualified sovereignty of Mexico over unjust, unconscientious, or immoral righis. lation to open the way, that right is absolute and the transit, and her right to impose any political charges Mr. MASON. What is an unjust right? independent of the Garay grant, whether that whatever upon persons or property passing over it. They are required to acknowledge a concurrent right in the Gov. Mr. SEWARD. I say just rights in distinction grant be valid or otherwise. Upon what ground ernment of Mexico to fix the corporate charges. They are from legal rights. According to the honorable
is it that the Committee on Foreign Relations required to agree to place their mail steamers under the Senator's notions and mine, there are things that
claim this right? Hear the honorable chairman national flag of Mexico, and all their vessels are to be subject to tonnage and lighterage duties. They are required
are right because they are declared by law. There of that committee. to agree to transport no troops or munitions of war across
are things that are right whether they are declared “ I come now to look at this question in another point of the Isthmus, except with the express permission of Mex
view. I lay it down, without hesitancy and without fear, by law or not. The second qualification is, that ico. They are required to discriminate in favor of such na
that we have a right to a way across Tehuantepec. Accordthe rights which the Government is bound to protions as shall guaranty this monopoly, by deducting twenty
ing to public law, this Government may demand of Mexico five per cent from the corporate charges in their favor; tect, must be certain and absolute, not uncertain
a way across Tehuantepec; and Mexico cannot refuse it they are required to transfer the work at cost to Mexico,
or doubtful. Third, that the right of the individ unless she becomes disloyal to the general compact of naand, more than all, those who are there coustructing this
tions. What is a right of way? Every one is familiar ual to the protection of his Government is subor
with that. work are required to renounce their right to the protection
It pertains to individuals in life as it pertains dinate to the general welfare and interest of the of their own Governments, and become de facto Mexican
to nations. I understand that writers upon public law decitizens."
State. Upon this point, as the honorable chair. rive it from that primitive state, when the entire carth was Now, sir, you see what the whole difficulty is; || will repose myself on Mr. Webster's reply to the man of the committee will give some authority, I common to all men, and passage over it was free to all, ac
cording to their varied necessities. Sucb was the nature that what is claimed for these American proprietors | letter of Mr. Hargous, which I have already sub
of this right before Government was formed, or the instiis that they shall not be obliged to denationalizemitted:
tution of separate property ordained. By these, the right
in question was only limited in its exercise ; it was not dethemselves, but that Mexico shall be obliged to
“ Should the event prove otherwise, however, it cannot
stroyed; and it revives and resuscitates whenever there is denationalize herself; that the Congress of the be doubted that in such a case, in which the interests of in
a necessity making the way indispensable. It is illustrated United States, or the citizens of the United States, dividuals would be obviously subordinate to those of the public,
in familiar life every day. If I purchase a piece of land shall have control over the commerce of the Isth any other means whieh might be necessary for your protec
so surrounded by the possessions of him from whom it is mus in all the particulars which have been read tion would be authorized and employed."
derived that I have no way out to mill or to market, I may
take it, as a right incident to the acquisition. It is a prinfrom the speech of the honorable Senator. Now,
The protection which a Government owes to ciple resulting from necessity, and is modified as circumconsider the condition of the United States, which
its citizens is a protection according to circum stances may require. A way impracticable in its use is the I will not portray; consider the present condition stances—a protection consistent with public jus
same thing as no way at all; and such is the exact postitre of Mexico, which I need not describe; consider tice and the public welfare. The Government may
of our present way across the northern continent. We
purchased California from Mexico, paid a large equivalent the character of the population of the United States discharge itself of its obligations in some cases, by for it, and we have in fact no way across our own contiand of Mexico, which I need not illustrate; con- || leaving the individual to maintain his domestic nent to get to it.", sider the extent of the franchises thus insisted | rights in the domestic courts, and it may leave the That is, the law of nations gives us the right to upon, and tell me what result can happen to Mex- citizen who has rights under a foreign Government
cross the Isthmus of Tehuantepec, and it is an abico, by her conceding what is demanded of her,
to seek redress from that Government in its courts solute right. As it is by virtue of the higher law, short of a dismemberment, sooner or later, of the
or otherwise. There never was, and never will higher than treaties, higher than the Constitutions Mexican nation, adissolution of the Federal Union
be a Government which can be under an obliga- || of the United States and of Mexico, the law of of the States, and the extinction of the Republic of || tion to its citizens by which one of them, having, i God, which is the law of necessity, it is a perfect Mexico, even if, while we are here, that extinc for the purpose of commerce or speculation, || right. I have to say on this argument, in the first tion has not already come about. Sir, in that case
made a contract with the subjects of another coun- | place, that when we had such a right, one so perfect, Mexico will not be a self-sustaining Power. She try, or with the Government of another country, and descending to us so directly from Almighty must be sustained by somebody. Except the can ipso facto involve the nation to which he be
power and Divine justice, it was most bungling diUnited States, there is no American power that can longs in reprisals or war, to compel that Govern- || plomacy to rest that right
upon the grant of the guaranty the maintenance of a Government in ment to execute its contract. . That would be to
Mexican Government to Don José de Garay, I Mexico. The United States will not consent that enable one citizen, at the suggestion of his own have to say, in the second place, that while I might any European Power shall guaranty the preserva- | interest or caprice, to put in jeopardy the interest, not deny that we have the right to a way across tion of a Government there. The Monroe doc- l welfare, happiness, or safety, of all other citizens. Mexico, there is still another question which the trine, and the traditions cherished by us, prohibit Least of all can there be any such principle of the honorable Senator has not disposed of. I remember that. What then? As a consequence of making law of nations applied in a case where the con a comedy which I saw acted once, in which the pathese concessions, Mexico must fall into the Uni- | tract is disputed, or of doubtful morality or valid rents of iwo lovers sought to oppose their union unted States.
ity. This disposes of the first proposition of the der a mutual mistake. It resulted in their flight and Mr. President, I began this examination, if not committee.
marriage, and when they presented themselves for in favor of the propositions of the committee, at
Their second proposition is:
forgiveness, the parents found that just exactly « That should Mexico within a reasonable time fail to
the union which they had desired and studied to to support these claimants. The result is not
reconsider her position concerning said grant, it will then
bring about was what had taken place, and which satisfactory. I am obliged, therefore, to say that relations with that Republic, and to demand such measures
they had opposed, under the supposition that each I cannot vote to sustain the resolutions. I will as will preserve the honor of the country and the rights of had some other party in view. The father of the now briefly review the points made by the comits citizens."
groom was obdurate. The father of the bride said, mittee, in my own order. And first, this point is
This is a corollary from the first proposition, l 'Well, now, will you not forgive your son? Have made by the committee:
and falls with it. Their third proposition is: you not got your own way after all ?" The inflex" That the United States stands committed to all of its
"That in the present posture of the question, it is not ible parent replied,“ Yes, I have got my own way, citizens, to protect them in all their rights abroad as well as
compatible with the dignity of this Government to prosecute at home, within the sphere of its jurisdiction.” the subject further by negotiation. If Mexico, iherefore,
but I have not got my own way of having it.” shall offer further negotiation, it shall be declined, unless it
Now, I ask the honorable chairman of the commitI hope the Senate has considered the length and shall be offered based upon our own terms."
tee, whether besides having an absolute right, by the breadth of this proposition. I am obliged to This, also, is a corollary from the first propo- | the higher law, to the road across Mexico, we ask some modification of it. I am glad to know | sition, and falls with it. Moreover, if it be con have a right to our own way of having it? I think that I have the support of Mr. Hargous, who has sistent with the dignity and honor of this nation
not. charge of this claim, and also of the late distin-ll to abide by its treaties-treaties solemnly and
But, sir, the honorable Senator supposes that New SERIES.No. 10.
32D CONG.....20 Sess.
Tehuantepec Grant-Mr. Seward.
this right of way over Tehuantepec inures to us place in no other way, except under the privilege granted If you will be the carriers of Europe and of Asia, by virtue of a higher law, upon the ground, that
to Don José Garay. This pretension (which Mr. Letcher
if you will be the carriers in even your own ina portion of our territory is behind Mexico and utter failure of all pending negotiations by blocking up all
teroceanic commerce, you must receive, you must another portion before Mexico, and it is necessary the doors to a prudent compromise; it is altogether incom- convey, you must deliver merchandise within your for us to pass through Mexico in order to go from patible with the decree of Congress, which declares the own temperate zone, not within that torrid zone
privilege of Garay to have become extinct, in consequence one part of our possessions to another, like a far
whose heats are noxious to animal and vegetable of the illegality of its extension ; under such circuinstances mer who has a right to go to another part of his
it was impossible to negotiate a satisfactory treaty, and if | productions, and while so deleterious to the artiown farm over another man's lands, [remind the negotiated, nothing would have been gained by it, for Con cles most abundant and most essential to the subSenator that we voluntarily placed ourselves be- gress was determined to reject it."
sistence of man, pestilential also to human life hind Mexico; and I think that if I go and take a Now, sir, you have only to contemplate one
itself. This is the communication across this confarm behind another man's farm, or the soil under
more grade in the humiliation to which you have tinent which you want. his farm, I have no right to reach that new pos- brought Mexico, to bring compunction to your
But I shall be told, as I have been told by the session by going across, and over, or upwards, heart. Here it is: Mexico has not only offered advocates of these ill-starred resolutions, that a and through his farm.
you this very right on the condition that you railroad across our own domain is not feasible. I Fourthly: At the time we acquired our posses- would relinquish the Garay grant, but she has shall give but a brief answer to that—an answer sions on the Pacific, we applied to Mexico to give offered to indemnify-ay, to indemnify the as
in the letter of an illiterate man, whose experience us this very right of way across the Isthmus of signees of the Garay grant for pecuniary losses:
enables him to bear conclusive testimony: Tehuantepec, and she gave us good reasons why “ In answer to a suggestion or two I had the honor to
Washington, February 4, 1853. / she thought she had rather not. We assented
offer, I understood bis Excellency to say, in so many words, Sir: I have the honor of replying as follows to your note and waived the demand, and permitted her to rise in order to avoid all difficulties that may probably arise, in of the 2d instant, making certain inquiries regarding the from the earth, upon which we had prostrated case the treaty shall be rejected, Mexico is willing to indem- practicability of building, and the best location for the pro.
nify the holders of the Garay grant, and also the New Orher, without surrendering this right." Now, I
posed Pacific railroad, that I think it is perfectly practicaleans company, for the money they have heretofore ex- ble, and the best route will be found by going into the valthink it is too late to insist upon it. pended in the enterprise.
ley of the Rio Grande at Albuquerque, and thence crossing Fifthly: If our real object in obtaining the right “In my dispatch of the 29th of October, I mentioned that over by the Moqui villages and Little Colorado river to of way across the Isthmus of Tehuantepec is to
the minister had used this remark, in substance: Mexicn Walker's Pass in the Sierra Nevada, and from there down open an interoceanic communication for our own
is prepared to stand all the consequences that may result the San Joaquin valley to San Francisco.
from a rejection of the treaty.' I am now preuy well satis- I have crossed from New Mexico to California by four benefit, and for the welfare and benefit of man
fied he meant pecuniary consequences, and nothing more.” different routes, namely: Cook's Sonora route, the Sali river kind, the right has already been offered for our -Letter of Mr. Letcher.
route, that recenuy followed by Captain Sitgreaves's party, acceptance, and the offer is still open. What has Senators, behold here the fundamental error in
and the old Spanish trail; and the one I have before de
scribed (Captain Sitgreaves's) is, in iny opinion, decidedly been already quoted proves this. But for greater all these transactions—the error which might have
the best. It is shorter, more direct, and has more timber certainly, hear your Minister, Mr. Letcher: been, and ought to have been, perceived a private and level country, fewer mountains, inore cultivated, and
“ Recently I have had several earnest conversations with speculation with which the Government had noth- perhaps more cultivatable land than any other route. Mr. Ramirez, regarding the treaty of Tehuantepec. Our ing to do, combined, mingled, confounded with a
I have trapped on nearly every stream between Cook's
route and the Gwat Salt Lake, and am well acquainted interview two nights ago lasted upwards of four hours. great national enterprise-a private speculation, with the region of country between these places. His Excellency, upon each occasion, manifested great concern upon the subject, and was evidently very much sur
undertaken on public account. A great national Very respectfully, your obedient servant, prised at my apparent indifference. It is quite obvious he interest, brought down to the mire, and polluted | Hon. William H. Seward.
ANTOINE LEROUX. now feels sensibly the responsibility of his position. Uist- by contamination in an association with private ened calmly and patiently to all he had to say. He reit.
speculation. Now I ask, is it not about time to I shall be told that if it be feasible, the length of erated, in strong language, what he had often previously declared, that the treaty, in its present form, could never
separate this private speculation from this great the road is so great as to deter us from attempting be ratified by the Mexican Congress; that any attempt on
national world-wide important concern? Sir, our it. What is it? Two thousand miles. What the part of the Government to favor its approval, would end dignity as well as our interest requires us to review are two thousand miles of railroad for the people in nothing but its own immediate downfall; that he was our own position, and not to ask Mexico to recon
of the United States to make, who, within eighteen sorry to say the feeling of his country, at the present time, against the United States, was exceedingly strong; so much
sider hers—to retrace our own steps—to dissolve years past, have made twelve thousand miles? The 80, that no one in power could venture to advocate a more our connection with this New Orleans company; | railroads which have been made in the State of intimate association with that country; that he was alto- to dissolve the connection of our Governmeni with New York alone have an aggregate length of two gether satisfied the interest of Mexico, and in fact that of speculators-speculators whether upon the levee thousand three hundred and one miles, exceeding connection between the two oceans; that so far from throw
upon the Mississippi, or upon South street on the the distance from lake Erie to the Pacific ocean. ing obstacles in the way of that connection, Mexico was Last river; to dismiss them to the remedies af- And if you add the canals, the chain would reach fully prepared to go every reasonable length to secure that forded by the nation with which they have con- from the banks of the Hudson river to the shores great object; that Mexico was poor and oppressed, but so far as he had it in his power to guard and protect her honor,
tracted—which remedies are the only ones they | of the Pacific ocean. The railroads already made he was determined she should not only be free from just
have a right to expect, or in making their con- in the United States, if drawn out into one lengthreproach, but should stand upon elevated grounds before tract could have contemplated. Then prosecuteened chain, would reach from Liverpool to Canthe world, in every particular, in reference to a matter of so much importance; that although she had been and was
this great design of interoceanic communica- ton. The railroads which have been made and are at this moment badly treated by many of my countrymen,
tion across Mexico, by fair, open, single handed, now being made in the United States, if stretched still, from motives of sound policy, she was disposed--and single-hearted diplomacy. The Isthmus of Tehuan continuously along, would more than encircle the such was bis own sincere wish-to concede to the United tepec will be opened in good time. It cannot long globe. Again, I shall be told of the cost of this States, in preference to any other Power, all the privileges remain closed against the spirit of the age. The
railroad. And what will be its cost? One hunwhicb' miglit be necessary to accomplish the greatest enterprise of the age; but that, in the event of such concession,
advance of our country, and of civilization through- dred millions of dollars. A cost not exceeding no allusion must be made to the Garay grant.
out this continent sures us that it will be opened. || the revenue of the Government of the United States “Leave out that grant- say nothing about it, and I am But you want it opened now you cannot wait. for two years only—a cost not exceeding the revready,' said he, to enter into a treaty with you wbich I think will be satisfactory to both countries." ".
There is no urgency, there is no haste for Te- enue of the Federal and State Governments for one
huantepec. You want first and most, a com- year. One hundred millions of dollars; why we Hear, also, the letter of President Arista, of the munication which shall bind New Orleans, and have offered that sum for one island in the Carib15th of April last, to President Fillmore:
Washington, and New York on the Atlantic, bean sea! One hundred millions of dollars; why " Among the differences enumerated by your Excel- with San Francisco on the Pacific. The safety New York city spent one sixth of that sum in lency, there is no one which can produce any serious difficulties between the two Republics; for Mexico has always
of your country, the safety of its Pacific posses- supplying itself with water, and grew all the while!
sions demands such a communication, not over One hundred millions of dollars; the State of New been disposed to consent to the opening of a communi. cation through the Isthmus of Tehuantepec for the free
oceans exposed to all nations and through a for- | York has already spent, in making canals and and untrammeled commerce of the whole world; in this ! eign territory occupied by a discontenied, ag. railroads, one hundred and thirteen millions, and respect she agrees entirely with the ideas and principles grieved, and probably hostile people, but inland, prospered while spending it as never State or nation expressed by your Excellency in your last message to Congress. Her Government has given assurance of this in all
and altogether through your own country. You prospered before. That one hundred millions of its official acts: the explicit and full confirmation of this want for your own use, for your own commerce, dollars, if it should never be directly reimbursed, intention your Excelleney will have romarked in the projet || and for the commerce of Asia, a road which will be indirectly replaced within ten years by the for a treaty, which the Minister of Relations presenied on shall have the advantage of the best Atlantic and economy which it would enable us to practice in the 3d of January last to the Minister Plenipotentiary of the United States as a substitute for the treaty then pending,
Pacific harbors which can be obtained, with one the transportation of the Army, and of the supbut which presented insuperable difficulties in the way of continuous connection by land, so that there shall plies of the Army and Navy over it, not to speak its being approved. The same feeling now exists-for even be no necessity for reshipment between the Atlan- of the still more important benefits of bringing the after this sentiment had been misunderstood by Mr. Leicher on the one side, and reproved by Congress on the other, (as
tic and Pacific ports; not a way between ports public domain into cultivatien and into increased shown by rejection of treaty,) as late as yesterday, a bill
yet to be artificially made, on the Caribbean sea value, and developing rapidly the mineral wealth was introduced into the House of Deputies inposing on the and on the Pacific coast, with changes from land of California, which can be only imperfectly realGovernment the obligation to proceed immediately to open to water carriage requiring breaking of bulk at ized now, because lahor on that side of the Conthe communication by Tehuantepec, and authorizing it at least twice in the course of transit.
tinent is worth four dollars a day, while it is worth the same time to make use of all the means that it may judge proper and necessary for the attainment of the object.
If you aim to erect a high commercial structure, but one here. These facts, presented in an authentic form, prove most in- you must lay your foundations broadly in agri- I shall be told there are constitutional difficulties disputably that Mexico, far from opposing this great work, culture, in mining, and manufacture; and all there and political dangers attending the opening of this encourages it as much as possible; and most conclusively within your own domain; and use the resources shows that it cannot be a cause for disagreement between
railroad stretching across our own country to San her and the United States.
which God and nature have given to you, and not Francisco. Does, then, our Constitution authorize “ But hy the side of this merely apparent difficulty there is
those which Providence has hestowed upon your us to make a canal or a railroad through a foreign one which is so in reality. not from its own intrinsic char- neighbors. And you want, for the same reason, country, and inhibit such a work in our own? If acter, but from the circumstances which are connected with itse These are found in the pretensions advanced by the shared with any foreign Power, and through your why is there not for this? What new gloss of the
a passage across the continent of your own, not there is a right under the Constitution for that, termined that the opening of the communication shall tako own domain, and not through a foreign domain. Il Constitution or the resolutions of 1798 invests us"
320 CONG.....20 Sess.
Texas Debt-Mr. Pearce.
with the one power and deprives us of the other? most precious hopes, and with compunctions on and called upon the Senate to mark its terms, to Political danger! Is there less political danger in our part, never before and nowhere else betrayed notice the pledge which it made of the revenues opening a passage through a foreign country, ex in our diplomacy, so solemnly enjoins.
from duties on imports, and bade them beware posed to the hostilities of an armed people and of I submit the following as a substitute for the res how they entered into an arrangement which would rival nations, than in peaceably opening a passage olutions:
inevitably charge the Treasury of the United States through our own possessions, beyond the reach
Strike out all after the word “Resolved," and insert: with the payment, at all events, of that class of of foreign Powers, and even unobserved by them? That the United States cannot suspend diplomatic ne liabilities. It was certainly, to say the least, to But grant that a railroad can be made through the gotiations with Mexico without tendering to that Power, or Isthmus of Tehuantepec; can you manage and waiting a reasonable time to receive from it, an offer of ar
guard against the apprehension of this liability, bitration, according to the terms of the treaty of Guadalupe
that this provision was inserted. If the United control that road, as you demand that Mexico Hidalgo
States were under no liability, if the resolutions shall permit you to do, without overturning, soon
of annexation could impose no charge upon the er or later, the States of Vera Cruz and Oaxaca
Treasury of the United States, the provision in through which it will pass? Can you do that
the articles of annexation, that in no event should without breaking your treaty obligations to Mex
the debts and liabilities of Texas become a charge ico? No, sir; the national power which controls SPEECH OF HON. J. A. PEARCE,
upon the Government of the United States, was and manages that road, with only the small States of Vera Cruz and Oaxaca on the route, will soon
evidently nugatory. A liability created by the act overcome them. If you take those two States, IN THE SENATE, February 10, 1853,
you were about to perform by the new associations will you leave the remaining twenty States of On the bill to provide for the payment of such
into which we were preparing to enter with Texas, Mexico? Will the other twenty consent to re
would not be avoided by the mere declaration of
creditors of the late Republic of Texas as are main out of the American nation, when you have
the will of this Government, that it should not
comprehended in the act of Congress of Septem operate such a change. The very attempt to rid taken the two principal States, and have cut off ber 9, 1850.
ourselves of a liability thus apprehended, is pretty their communications with the Caribbean sea and
Mr. PEARCE said:
good evidence of a conviction that such a liability the Pacific ocean? Not a day. Will you consent
Mr. PRESIDENT: This bill has been introduced would attach. that anybody else shall have them? Not you.
The consequence was, that almost as soon as Will they consent that anybody else shall have by the Committee on Finance in consequence of them? Not they. So you will have Mexico. various memorials from the creditors of the late the annexation of Texas had been completed, and
she had become a member of this Union, certain Well, before you conclude upon this important Republic of Texas which were referred to that commatter, consider well whether you have settled the mittee at the last session of Congress. In order
of her creditors petitioned this Government for the preliminaries and prepared the way for receiving to understand this whole subject fully, it is neces
payment of her debts to them. In 1846, several ihe twenty-two States of Mexico. If you have,
sary to go back to the period of the annexation such petitions were presented, upon which, in one of Texas. It will be recollected that by the reso
case, at least, a bill was introduced and debated. pray enlighten me. Will they come in slave States, or will they come in free States? Can you adopted by the convention of the people of Texas, lutions of annexation passed by Congress, and So things remained until 1850, when the boundary
act was passed, by which we agreed to give to
Texas ten millions of dollars, in consideration of in as free States? Can you adjust the balance be sundry conditions were agreed to by this Governtween slavery and freedom? If not, can you evas
ment and the people of Texas. By those condi the cession by her of her claims to territory extethe Union from convulsion? And if you plunge its property were divided between the Government tions the powers of the Government of Texas and rior to her present limits, and of her relinquishment
of certain other claims upon the United States, the Union into convulsion, can you tell me whether you can bring us out in safety? Well, suppose
of the Union and the new State of Texas. The including a liability, or a supposed and alleged that these preliminaries are all settled. Those
late Republic of Texas ceded to the Union its ex- : liability, on the part of the United States for cerStates cannot govern themselves now; can they
ternal sovereignty, but retained its internal sover tain debts of Texas. Of these ten millions, the act govern themselves better after they are annexed to
eignty, modified, to be sure, in some particulars, stipulated that no more than five millions should the United States? No. Will you govern them? by the operation of the Constitution of the United be issued to Texas until releases should be filed at Pray tell me how. By admitting them as equals, Government of the Union all its military and naval claims by a certain class of creditors, to wit: those
States. As to the property, Texas ceded to the the Treasury of the United States of all their have an army perpetually there to suppress insur- property, forts, arsenals, navy-yards, dock-yards, creditors who held claims against Texas secured rection. If the other, still you must have a stand
&c. It yielded up also to the Government of the by a pledge of revenues derived from duties on ing army in the provinces, últimately to come back
Union its revenue from duties on imports, and it imports. This reservation sufficiently signifies the and open the same disastrous drama of anarchy, retained full right to all its public lands. 1 pro- opinion of Congress at that time, that the United civil war, desolation, and ruin at home, which the
pose to read from the articles of annexation a sin- States, if not under an absolute and perfect obligaarmies of Mexico have enacted there. If you gle passage:
tion to pay that class of debts due by the late Rebring them in as States, have you settled the ques
“Said State, when admitted into the Union, after ceding public of Texas, were, at all events, under some tion whether you are to govern them, or whether
to the United States all public edifices, fortifications, bar sort of obligation, liable in some way-only equi
racks, ports, and harbors, navy and navy-yards, docks, magthey are to exercise self-government, and so gov
table if you please--to a charge upon their Treas. azines, arins, and armaments, and all other property and ern you? Have you reached that point in your
ury in respect to these debts. There could not be means pertaining to the public defense belonging to the said charity that you will be willing to be governed
Republic of Texas, shall retain all the public funds, debts, any, pretense for retaining in the Treasury of the by five millions of Indians in Mexico ?
taxes, and dues of every kind, which may belong to, or be United States any part of the stipulated sum, if it
due and owing to the said Republic; and shall also retain These are no idle questions. They are coming all the vacant and unappropriated lands lying within its
were not that the Treasury of the United States upon us, and they will be here when Mexico, limits, to be applied to the payment of the debts and liabili.
was supposed to be either primarily or eventually exhausted by internal factions, and by resistance ties of said Republic of Teras; and the residue of said lands,
liable for a part of the obligations which Texas after discharging said debts and liabilities, to be disposed of had incurred in the days of her separate existence. to your own aggressions, shall implore you to give
as said State may direct; but in no event are said debts and And, sir, if we look back to the debates which her rest and peace and safety, by admitting her liabilities to become a charge upon the Government of the to your Confederacy, as, before long, in any event, United States."
took place in the Senate at that time, this view she surely must and will do. That time is coming The Senate will perceive that when the Gov
will be amply confirmed. I recollect that before soon enough without hastening it. Why hasten ernment of the Union took from Texas that which
that time, when Mr. Clay introduced his celebrait? You answer that you want a passage across was ceded to her by the articles of annexation, the ted resolutions, he proposed to provide for the paythe continent by way of Tehuantepec. Have you remaining property was not left solely to the fu
ment by the United States of that portion of the
debt of Texas to which this bill applies. His not more passages already across your own domain ture operation of the dominion of Texas, but a to open than you can open in twenty-five years ? stipulation was made that the public lands of fourth resolution was in these words: Have you not more land already than you can Texas should remain to it, to be applied by it to the
“ Resolved, That it be proposed to the State of Texas, that
the United States will provide for the payment of all that people in fifty years? Have you not more gold payment of its public debts; and then there was a
portion of the legitimate and hona fide public debt of that and silver than you an dig in an hundred years? further stipulation, that in no event should the State, contracted prior to its annexation to the United States, These dangers are real, but only real if precip- Government of the Union be liable to be charged and for which the duties on foreign imports were pledged by itated. Time will speedily fill the regions which for those debts. Now, sir, this seems to be a
the said State to its creditors, not exceeding the sum of
in consideration of the said duties so pledged having. you already possess with a homogeneous popula- | little extraordinary, upon the supposition that the
been no longer applicable to that object after the said antion and homogeneous States; yet even long before effect of annexation by itself would create no such nexation, but having thenceforward become payable to the that event, so soon to arrive, shall have come, this liability on the United States. Why, provide United States; and upon the condition, also, that the said nation will have acquired such magnitude, such against a liability which by no possibility could
State of Texas shall, by some solemn and authentic act of
her Legislature, or of a convention, relinquish to the Uniconsistency, such strength, such unity, such em arise from the act which you were aboui to do?
ted States any claim which it has to any part of New Mexpire, that Mexico, with her one million of whites, Certainly the least that could be said would be her two millions of mixed races, and her five mil that it was supererogatory, that it was a very un In the course of his remarks on this resolution, lions of Aztecs and other aboriginals, can be re necessary course.
Mr. Clay said: ceived and absorbed without disturbing the na But we know the fact to be, that when these res
“ It proposes that the Government of the United States tional harmony, impairing the national vigor, or olutions of annexation were pending, many mem will provide for the payment of all that portion of the debt even checking for a day the national progress. bers of the Senate not only entertained the idea, of Texas for which the duties received upon imports from Wisdom, justice, and magnanimity, combine in but avowed it in argument, and maintained with foreign countries were pledged by Texas, at a time when
she had authority to make pledges. How much it will recommending to us the moderation, the forbear- great force and vigor, that the operation of the
amount to, I have endeavored to ascertain; but all the ance, the pity, which Mexico, exhausted by efforts, resolutions of annexation would be to transfer to means requisite to the ascertainment of the sum have not simple, sincere, and earnest, at once to imitate our the Government of the Union a part of the obliga been received, and it is not very essential at this time, bepolitical virtues, and to defend herself against our tions of the late Republic of Texas. I very well
cause it is the principle, and not the amount, that is most hostile encroachments, so touchingly implores, recollect that a member of this body on that occa
worthy of consideration. Now, sir, the ground on which I
base this liability on the part of the United States to pay a porand which our faith, plighted amid the ruin of her li sion exhibited one of the revenue bonds of Texas, tion of the debt of Texas, is not new to ine. It is one which
32n Cong....20 Sess.
Teras Debt-Mr. Pearce.
I have again and again announced to be an opinion enter “ But in that case the conqueror acquires no rights but Texan act of 1837, called, I believe, the ten per tained by ine. I think it is founded upon principles of eter those of the State with which he is at war, and takes sub cent, consolidated fund. There is the debt comnal truth and justice. Texas being an independent Power, ject to all absolute or qualitied alienations previously made. recognized as such by all the great Powers of the earth, in Thus the King of Prussia, when he acquired Silesia hy | monly known as the five million loan, all of which vited loans to be made to her to enable ber to prosecute the conquest and cession, bound himself by treaty to pay the was not issued, created under the authority of then existing war between her and Mexico. She told those debis for which that Province bad been mortgaged io Brit various laws of Texas. There was another class whom she invited to make these loans, that 'if you make
But without such express stipulation, Silethem, the duties on foreign imparts sha
of debt created under one of the acts of February 5, be sacredly
sia would still have remained subjeci to the mortgage, for pledged for the reimbursement of the loans.' The loans
1840, called the eight and ten per cent. funded debt; he could conquer no rights but such as were vested in his were made. The money was received and expended in the enemy.”
and there was another debt created under another establistinent of her liberty and her independence. After
This mortgage of the revenues of Silesia was act of February 5, 1840, called the eight per cent. this she annexed herself to the United States, who thenceforward acquired the right to the identical pledge which she made by Charles VI., Emperor of Germany, in treasury bonds. Then there were Treasury notes had made to the public creditor to satisfy the loan of money the year 1734, I think.Its conquest by Frederick of three different classes, and finally another item which be had advanced to her. The United States became was consummated in the time of his daughter, of public debt which consisted principally of drafts, fire owner of that pledge, and the recipient of all the duties
Maria Theresa, and the cession was made by the audited and unaudited, which were, in fact, drawn payable in the ports of Texas."
“Now, sir, I do say that, in my humble judgment, if there | preliminary treaty of Breslau, in 1742, the seventh | upon the Treasury of Texas for the current exbe honor, or justice, or truth among men, we do owe to the article of which treaty provided that the King of penses and supplies of the Government, and somecreditors who thus advanced their money upon that pledge Prussia should pay those debts for the revenues
times properly called the domestic debt. Of these the reimbursement of the money, at all events to the extent that the pledged fund would have reimbursed it if it had
of which the Province of Silesia was mortgaged six classes, two did not appear to the President and never been appropriated by us to our use.
the Secretary of the Treasury to come within the We must recol. to certain English merchants. lect, sir, in relation to thai pledge, and to the loan made in One would suppose that that analogy was toler- || principle assumed by the bill. The eight and ten virtue and on the faith of it, there were three parties bound: ably perfect; but I may be told that there was a percent. funded debt of February 5, 1840, called in the United States, Texas, and the creditor of Texas, who had advanced his money on the faith of a solemn pledge
very great difference; that the mortgage of the rev ibe report of the Secretary of the Treasury “class made by Texas."
enues of Silesia included all the revenues of Si- | C,” was one of those which did not come within When the boundary bill was introduced, after
lesia; that it was equivalent to a surrender of the the principle assumed by the boundary act, be. the failure of Mr. Clay's project, called the omni- | her union with the United States given up the whole taxing power, and that Texas has not by
cause by the act which created that debt, ihere was
no pledge given of revenue from imports either for bus bill, similar arguments were addressed to the Senate, which gentlemen must well recollect. The
whole of her taxing power. But let us look at it the payment of principal or interest, or any pro
a little further. When Silesia was ceded to Prus- vision making this debt receivable for public dues. retention of five millions in the Treasury was vin: sia, the contracting party that had engaged to pay Class F, consisting of audited and unaudited padicated, upon the ground that it was the duty of this debt, was the head of a great subsisting emthe United States to protect their Treasury from liability which might thereafter be brought against pire; shorn, indeed, of a very small part of her im- put
into the shape of stock, bonds, Treasury notes,
or promissory notes of any sort, had no pledge of it, upon the supposition that Texas might possibly territory, and with most ample resources. While
duties on imports, and, of course, it was decided apply the money which she was to receive under Silesia could no longer be taxed by the Empress | had, in some way or other, a pledge of the reve
not to be within the bill. All the other classes that boundary act, in a manner not satisfactory to
Queen, all the rest of the vast possessions over her creditors, and that if she did not satisfy her creditors, this Government would be liable to per- taxed. which her sovereignty remained intact, could be
nue from imports for their payment. Class A,
which amounts to $1,651,590, principal and interpetual demands by those creditors for the payment of their claims.
It was not, therefore, anything but the transferest, on the 1st July, 1850, had a pledge on import
of the thing pledged which made the King of duties for the perpetual payment of interest. This In the remarks with which I introduced the Prussia liable. The ability to pay remained in special pledge, being a perpetual one, for the pay. boundary act I présented similar views, acknowlthe original contracting party, almost, if not quite
ment of the interest, is, of course, equivalent to a edging at the same time the reluctance with which undiminished ; for, in comparison to the revenue of pledge for the payment of the principal; and that I had come to such conclusions. I justified the such an empire as that of Maria Theresa, the rev
class, therefore, comes within the provisions of the large sum which that bill proposed to give to enue of Silesia must have been inconsiderable, and
act of 1850, according to the report of the SecreTexas, by the consideration that we had absorbed scarcely worth mentioning. But not so with Tex- tary of the Treasury, as approved by the Presithat source of revenue to whose future productiveness her creditors had looked for relief and
as. In surrendering up her revenues from imports, dent. The loans designated in “ schedule B” of she surrendered that which was the principal
the report made under various acts, amounted to payment. source of her revenue; she gave up more than
about $2,582,000. I held that it was not “a sufficient answer to four fifths of all her annual income.
By a section in the Texan act of January 14, 6 say that, without annexation, Texas would have I find, by reference to a tabular statement which
1840, the revenues of Texas generally were pledged had no security, and therefore no increase of || I have examined, that in the year 1844, the reve
for the redemption of all loans negotiated by the . commerce, for we know that her independence nue of Texas from imports amounted to $177,000, authority of the Republic; and although the reve would have been acknowledged by Mexico on and that her revenue from all other sources was
enues from customs were not mentioned ea nomine the condition of eternal separation from the | less than $50,000. Besides, we know that in mod
in that pledge, yet as the pledge was a general one • United States; and that if this scheme guaran ern times the principal source of revenue to all na- of all the revenues, it was considered by the See
lied by England and France had gone into oper- tions, certainly to all maritime nations, is revenue retary and President to include, and to be, in effect, ation, she would soon have gathered strength from duties on imports. Why, sir, it was the
a pledge of the revenue from the customs, since, if ' and grown in prosperity.”. I did not propose, surrender of the duties from customs by the States it did not pledge each and every item or source of as some did, to reserve to the United States the of this Union, upon the formation of our Federal revenue, it did not pledge any, and did not amount right of distributing the money among the cred- | Constitution, which was itors of Texas, partly because I was unwill- grounds for the assumption of the debts of the
one of the principal to any pledge at all; and, therefore, if it had any
operation or effect at all, it must be considered as ing to seem to cast any reproach upon the State, State governments by the Government of the
a pledge of the revenue from customs. and in part because
'Class D, as it is called in the report of the Secherself better settle with her creditors. But as In the case of Silesia, to which I have referred,
retary of the Treasury, consisted of eight per cent. the money voted to Texas was given with the the liability of the imperial head of the Germanic
Treasury bonds ereated under one of the acts of view of enabling her to discharge those obliga- | Empire remained, and the ability of the Empress
February 5th, 1840. That act provided that those tions which seemed to be also a charge upon the to pay the debt, which had been contracted to
bonds of the Republic should be at all times reUnited States, I endeavored to guard the Treasury || these British merchants, remained, but the thing
ceivable by any collector of revenne or at the of the Union against the contingencies which pledged having been assigned to the King of Prus
Treasury Department in payment of any debt to might flow from the measure by the proviso which sia, that monarch took it with the burdens upon the Government, or of any duties on imports, reserves five of the ten millions until the revenue it, and therefore bound himself to pay, and, after
This quality of receivability in payment of all creditors have filed at the Treasury releases of some very curious controversies, did finally satisfy
public dues, including duties on imports, is in eftheir claims. the claims of the British merchants.
fect as full a pledge of the revenues from customs Then, sir, I hold that Congress, both by the The same principle may be found in Bynker
as if those revenues had been pledged eo nomine, terms of the resolutions of annexation and by the shock's treatise on the Law of War. At page 191
Schedule E comprised the three classes of boundary act of 1850, has recognized that the he says: “ Conquered countries, like lands pur
Treasury notes, all of which were made receivable United States were under some sort of liability for chased, pass cum onere." He illustrates it by
for the payment of public dues, including the duties that portion of the debts of Texas for which her reference to certain territory of the King of Spain
from customs. revenues from customs were pledged. The gen- | conquered by the States General, and which, before
The amounts of these different classes of debt, eral argument as to this liability is stated with that conquest, had been hypothecated by that principal and interest, on the first July, 1850, sufficient distinctness in the remarks which I have monarch. He says that if the States, instead of may be thus stated: read from Mr. Clay's speech. The United States conquering, had purchased it from the King, the
.$1,651,590 02 having taken that fund which was pledged by the creditor would still have been entitled to his pledge,
2,582,902 70 late Republic of Texas for the payment of a cer as he was upon its transfer by conquest.
1,472,918 80 tain portion of her debt, must take it with the ob After the passage of the boundary act of 1850,
2,586,546 00 ligation of satisfying that debt. That is the gen- | the Secretary of the Treasury and the President
$8,293,957 52 eral proposition.
of the United States found that it was their
duty This doctrine is not new. It is not unknown to consider what classes of the debts of Texas If there be any error in this statement it is probto the publicists; on the contrary, it has been well came within the provisions of that act, and the ably too large by some forty or fifty thousand recognized. I find in a book of authority on in- Secretary made a report upon the subject, in which dollars. I take it, however, as I find it in the Secternational law a reference to the well-known case the President concurred.
retary's report, based upon the statements of the of the Province of Silesia. Wildman, in his work The debts of Texas may be divided into six Auditor and Comptroller of Texas. on national law, says:
classes. There is the debt contracted under the These are the four classes which were recog.
32p CONG.....20 Sess.
Texas Debt Mr. Pearce.
nized by the Secretary of the Treasury and by || should be forever “barred.” Then followed the whole exports of the country, in 1790, were only the President of the United States, and they, with liquidation act, the terms of which I have endeav- $15,000,000. All the expenditureof General Washthe full amount of interest on them up to July; lored to state to the Senate.
ington's Administration were only $2,000,000 a 1850, amounted to about $8,293,000. The whole The Senator from Virginia, (Mr. Mason,) in year, and it would have been utterly impossible to amount of the debt of Texas is about $12,400,000. the substitute which he proposes to offer, and pay the current expenses of the Government, and So much as comes within the principal assumed which has been printed and laid upon our tables, also even the fourth part of the interest of this by this bill is, or was at the time I have indicated, proposes so far to adopt the action of Texas as enormous sum of money. The truth is, it was a about $8,294,000.
io authorize the creditors who hold these claims question of possibility, and impossibility. The The Legislature of Texas having seen this re to receive at the Treasury of the United States nation was in a state of bankruptcy, and to this port of the Secretary of the Treasury, approved | the payment of the amount at which their debts | inexorable necessity we yielded, paying, however, by the President, have passed an act by which have been scaled by Texas. It is very unpleas our foreign debt-holders every dollar of their de they seem to have recognized the soundness of ant for me to say anything upon this subjeci, and mands. Such, however, is not the necessity of the principles assamed by that report, and they would very gladly avoid it if I could, but I am the Government now. Such is not the necessity have provided out of the $5,000,000 which have bound to say, while I endeavor as far as possible of Texas at this time; and although gentlemen may alrendy been paid to them from the Treasury of to avoid casting any reproach upon Texas, that it conclude that Texas is able to pay those debts of the United States, for the two classes excluded by seems to me the Government of the United States her own contracting, the fact is, that she has not me in the enumeration which I have mentioned, owes it to its reputation not to participate in the paid them; that she does not propose to pay them, and excluded by the President and the Secretary act by which it is proposed to reduce the claims dollar for dollar; and that the plan upon which of the Treasury. They have provided for their of these creditors below the value stipulated on she proposes to liquidate them is not satisfactory domestic debt, (class F,) and they have provided | their face. This Government has never done so, to her creditors. They are unwilling to accede to for the class called C, or the eight and ten per cent il except under the influence of an inexorable neces- || it, and come back to us, reminding us of our orifunded debt of 5th February, 1840, and I under- | sity.
ginal obligation, on the transfer of the pledged fund, stand that in many instances claims under those two We negotiated loans during the war of 1812, to apply at least that fund to the payment of classes of debt have been presented at the Trease | when for every hundred dollars of stock issued we their claims. They remind us of our vain endeavury of Texas, and actually paid and receipts filed. received only eighty dollars, and that in deprecia ors to escape from our obligations, by the condiFor the other four classes they have provided con ted paper. I believe that according to the calců- || tions of the resolutions of annexation, of the ad. ditionally; and here comes the difficulty which has lations of a former Secretary of the Treasury, I mission made, at all events, by the boundary act rendered it necessary to introduce this bill. They (Mr. Walker,) the depreciation of the bank paper of 1850; and they make an appeal to us on grounds have provided for the payment of some of these in which we received the money for which we of manifest justice and equity, and make it appaclaims at par, of some at eighty-seven and a half issued the stock, was so great that eighty millions rent that if Texas were now in the possession of cents to the dollar, of some at fifty cents, and of of stock and Treasury notes only yielded the Gov. | the revenues from duties in her own ports, and some at twenty cents on the dollar. The whole ernment about thirty-four millions in specie value, on her own consumption, she would have ample amount of these four classes, as scaled by the act | being less thon fifty per cent. The British Goy means to pay those pledges. The United States of the State of Texas, is something less than ernment, and almost every Government under the are receiving all those duties on imports, to an $4,000,000, including principal and interest. sun, has negotiated loans at less than par. Great amount greatly exceeding the interest upon this
The creditors of Texas are not willing to accept Britian during the wars which followed 1793, and debt, for which it is claimed that they are liable the terms thus offered them by that State. They between that period and 1815, negotiated enormous to the creditors of Texas. For it will be recolcontend for the payment of their claims, dollar for loans at rates which yielded her, some only sixty- || lected that her revenue, in 1844, from customs, dollar. While Texas alleges that she has scaled six dollars, some sixty dollars, and one loan of was $177,000. Her population has been quadthese claims according to the rates at which she thirty millions sterling, only fifty per cent. In rupled since that time, and the capacity of that actually received value for them, the creditors that one instance, she received only £15,000,000 | population for consumption has increased in a contend that that was no part of the contract. for £30,000,000 of stock issued; yet no one ever much greater ratio than the population itself; so Their contract was, to be paid so much as the heard any objection to paying the full amount of that, in all probability, the revenues which this obligation on its face states to be due; and they || the obligation as stated upon its face. So sacred Government derives from the duties on goods imdeny the right of the Legislature of Texas to re has the public faith been held, and so important || ported into and consumed in Texas, are not less duce the amount of their obligation from its face the maintenance of public credit.
than $1,000,000 a year, and they are rapidly in value to that which the State alleges it actually I shall probably be told that our revolutionary creasing. This Government, therefore, has got received, or to that which it alleges to have been debt was not paid at par. That is true of a part from the annexation of Texas and the diversion the average of what it actually received; for, in of it; but it must be recollected that we paid all our to our Treasury of duties on her consumption of some cases, it being actually impossible to tell foreign revolutionary debt at par, without refer- | imported articles, a fund much more than sufficient what was received by the State, on the particularence to the amount we received for the stock which to enable it to pay all this debt of Texas, principal bond, or evidence of debt, the Auditor and Comp we issued. That debt in the year 1790 was, in- and interest, in a reasonable time. troller of Texas have averaged the whole class. | cluding principal and interest, about $12,000,000, It is true that we have provided for the issue of Texas has also provided that these four classes of every dollar of which, including even the three | $5,000,000 of stock to Texas, which has not yet debts which she has thus proposed to pay accord- | per cents., was paid according to the value upon left the Treasury, and which, under this bill, will ing to the scaled rates, shall not be paid until the
its face. It is true we had incurred an enormous not leave it. The condition upon which these United States shall have modified their proviso | domestic debt by the issue of continental money, five millions were to be issued to Texas is, that in the boundary act. Annexed to her scaling act which I think a Secretary of the Treasury stated releases shall be filed at the Treasury of the Uniis this proviso:
many years ago, in a report, to amount to about ted States of all the revenue debt of that Republic. “ Provided, That payment shall be made on any claimi | $242,000,000, and this with the issues of the A literal compliance with this provision is necesagainst the State, included in or forming a part of articles States during the Revolution amounted to over sary before the stock can be issued. When that 1st, 2d, 5th, 6th, 7th, 8th, and 11th, or for interest which
$400,000,000. It is very true that these issues of provision was made, it was anticipated that Texas nay have accrued thereon, included in articles 12th and 13th, in the first section of this act, when the Governor
continental money had been promised to be paid would make an arrangement herself with her credof this State shall be notified by the President of the United at par; but very soon after they had been issued itors, and that was the course of argument used here. States that the Secretary of the Treasury of the United to an amount more than sufficient to supply all the Gentlemen will very well recollect that it was then States has been required by law to issue to the State of Texas the five millions of dollars of stock withheld under
purposes of a currency, they began to decline; and said that the State of Texas could better arrange the provisions of said act, approved September 9th, 1850,
as the issues were enormously increased, so the with her creditors than we could, and that it was until certain creditors shall bave filed releases at the Treas? | depreciation went on until finally they fell from much to be desired that she should make such an ury of the United States, as therein required; or that said par; at which the money was received on its first arrangement. But, sir, she has not made such Secretary has been required by law to issue to the State of Texas sums of said stock, equal to the sums for which the
issue, down to as low as $500, and in some States arrangement. Two years and more have passed State may at any time present the required releases from
to $1,000, for one of specie. It is true that a good away since the passage of the boundary act, and any portion of said creditors at the Treasury of the United deal of this money was afterwards funded at the no progress towards such an arrangement has been States; after which notice, such claim or claims shall be rate of forty dollars for one, and some of it, I made with any of the creditors of these classes. paid, as provided for in other cases."
believe, was funded, under the act of 1791, at the How long is the Government of the United States Texas, therefore, requires the Government of rate of $100 to one; but that was not because we to wait? What is a reasonable time? It seems the United States to modify the proviso of the act considered that we had a right to reduce our lia to me that we have arrived at a period when it is of 1850, by which the five millions were retained | bilities arbitrarily or by the scale of depreciation, || proper, since Texas does not make the arrangein the Treasury of the United States, before any which at any time indicated the market value of ment which was contemplated under the provisportion of these claims can be paid under her our issues, but because inexorable necessity left us ions of the boundary act, and does not thus proliquidation act. In 1848 Texas passed an act “to no allernative.
tect the Treasury of the United States from the provide for ascertaining the debt of the late Re. Had not the continental money, under the ar- | demands of these claimants, that we should now, public of Texas, by which she required her | rangement of 1780, been redeemed at forty dollars || taking care that we do not violate our compact
creditors to present their claims to the Auditor and for one, the Government of the Union, in 1790, | with Texas, make such an arrangement for our• Comptroller of public accounts, on or before the would have found itself encumbered by a domestic selves; and that is what this bill proposes to do. second Monday of November, 1849, and declar- debt, including the issues of the States, of quite This bill, as amended, or as proposed to be ing that all claims not then presented should be $400,000,000, the interest of which, even at three amended by the Committee on Finance, authorizes • postponed.” The government of the State sub per cent., would have amounted to $ 12,000,000. || the issue of this stock to the creditors of Texas, sequently passed another act extending the time it would certainly have been impossible that it and in return we are to take from them assignwithin which those claims should be produced at could have given any additional value to these ments of their claims against Texas. We are not the Treasury of Texas, and provided that all not enormous sums by funding them; because it never to take releases but assignments. Then the conproduced by the firet Munday of September, 1851, II would have been able to pay the interest. The li dition upon which the reserved $5,000,000 are to