Phila April 9/36
Sir
The State of Texas have appointed Messrs____and myself Commissioners
for the purpose of procuring the Loan of One Million of Dollars, upon the
pledge of its resources—at an interest not Exceeding Eight per cent, for a
Term not less than 5 Years and redeemable thereafter at the pleasure of
that State at the rate of 1/5 annually—and if not so redeemed, then after
10 years redeemable wholly after six Months notice—
The Stock May from the first be Made likewise receivable partially in
payment of Imports—Say 1/5 on any Invoice—also in payment for Lands,
Say 1/5 from any purchaser—these provisions will create a demand that
will tend constantly to augment the current price of these securities—
The duties are now $100,000 and boldly encrease— and the Land sales
May reach $1,000,000 soon and annually—
By the advice of friends I ask your consideration of this Subject and
wish you would inquire into probability of our succeeding in this country
in Making such a Loan. I am going to New York where I shall be glad to
receive an answer from you as early [as] you shall find it practicable to
reply with any degree of precision
The Commissioners of Texas propose to negociate a loan for the
Government, for the sum of $500,000 on the following Basis.
The Commrs hold the Bonds of said Govt, for the sum of $500,000
payable in 10 years at 8 per cent annual interest, which they propose to
assign to the Bank of the United States to be held in trust and as security
for the Stock to be issued for a like amount, payable in the Same Period,
and at the same rate of interest.
The stock shall be issued in shares of $100 each payable in 10 years
from date, with interest payable annually at 8 per cent, at such place, as
said stock shall be subscribed, said scrip shall be received also in payment
of one fifth of all monies due by the holders at the land offices of Texas,
and in payment of one fifth of all imposts due at the custom houses of
Texas, and at the end of five years the Government shall have the privilege
of redeeming one fifth of the remainder annually, and at the expiration of
10 years of redeeming the remainder (if any there be) on giving 6 months
notice.
Books of subscription shall be opened for said stock, and the subscribers
shall pay 25% at the time of subscription, and notes for the remainder in
three equal payments at 6, 90 and 120 days, endorsed to the satisfaction of
the Directors of the U. S. Bank, or persons appointed by them to decide,
and the Bank shall discount said notes, and pay the first payment, and the
proceeds of notes to the Commissioners.