Philadelphia April 9th 1836
Hon. N. Biddle
Sir,
As the enclosed memorandum embraces the general outlines of the loan
for Texas on which I conversed with you this morning, I take the liberty
of handing it to you.
I should esteem it as a favor if I could be informed within a Short time,
Whether you think any thing could be effected in this Matter—
I consider that the cause of Texas, is the cause of freemen and of
mankind, but more emphatically of the people of the United States, than any
other. I flatter myself that you view it in the same light, and that the
security we offer is good, and therefore have no doubt you will give to it
the attention which its importance merits—
The leading men of all parties in Washington are favourably disposed
towards Texas—a reference to them will I think satisfy all persons as to
this fact—
S. F. Austin [Rubric]
[Enclosure]:
It is proposed to negociate a Loan of $500,000 for the Government of
Texas on the following basis,
The Commissioners of Texas, shall assign to the Bank of the United
States at Philadelphia, The Bonds of the Government of Texas, which they
have in their possession for the sum of $500,000, payable in not less than
5 years and bearing an interest of 8% per annum, to be held in Trust by
said Bank, for the benefit of the holders of a Scrip to be issued by the
Commissioners, based on said Bonds.
Books of subscription shall be opened in the Cities of Boston, New York,
Philadelphia and Baltimore for a scrip to be issued by the Commissioners,
in shares of $100, each, which said scrip shall entitle the holder to an
interest in said Bonds, equal to the amount of the scrip thus held by him and
said scrip shall be payable as follows:
of all purchases of lands at the land offices of Texas, 20% of the Sums
due may be paid, and shall be receivable in said scrip. Of all customs due
at the Custom Houses of Texas 20% of the sums due may be paid and shall
be receivable in said scrip. The holder shall be entitled to an interest of
8% per annum, payable at the Bank of the United States in Philadelphia,
on all portions of said scrip unpaid, and the Govt. of Texas shall have the
privilege of paying the whole amount of said scrip and redeeming these
said Bonds by paying 20% of the principal annually after the expiration
of 5 years, or the whole payable at 6 months notice, after the expiration of
10 years.
The payments of the subscribers to said scrip shall be made, 25% at the
time of subscription and the remainder in 3 equal payments at 60, 90 and
120 days thereafter, to be secured at the time of subscription, by the notes
of the subscribers, endorsed to the satisfaction of the Directors of the Bank
of the United States, or persons appointed by them and payable at such
place, as said Directors shall designate, provided the same be in the Cities
where said Stock is subscribed.
The Bank of the United States shall discount the notes thus paid in, and
pay over the whole amount of the proceeds thereof and the amount of the
first instalment thus paid in, to the Commissioners of Texas, and hold said
Bonds as an additional guarantee for the payment of said notes.
S. F. Austin
Phia. April 9. 1836
Sir,
I have taken the liberty of submitting to you a proposition for the
negotiation of a loan of $500,000 for the Government of Texas, to which I would
respectfully ask your consideration, provided no arrangement can be made
on the basis of which we conversed today.
The personal interest you were kind enough to express for the welfare
and success of my struggling country, together with your intimate
knowledge of such operations have induced me to make this communication.
Your answer as to your opinion of its practicability, the amount that could
probably be obtained in this City, the manner in which the subject should
be presented, and the willingness of the Bank to accept the Trust, and
negotiate the paper, with such other suggestions as you may think important,
would greatly add to the obligation, I feel under to you for kindness and
attentions already received.
S. F. Austin