Columbia Novr. 19. 1836
Gentlemen,
Your letter of October 14th was delivered to me by Cap. Henry Austin.
The President ad interim laid the papers relative to the two loans
negotiated in N. Orleans last winter by Archer, Wharton and Myself before
Congress and I have delayed answering your letter untill some definite
action took place on the subject—
There is a determination to act in the most liberal manner towards the
lenders. This Govt, have already manifested their liberality by agreeing
to give a bonus of thirty leagues to settle this matter finally on the basis of
a relinquishment by the lenders of the right of priority in locating. And
it was and still is considered that the arrangement made with Mr Triplett
was definitive and clearly relinquished all right of priority in the
locations— The lenders understand the matter differently and thus it remains
suspended
There has been no bad faith on the part of the Commissioners who
negotiated that loan, nor on the part of the Govt. of Texas—On the contrary this
Govt has manifested its desire to satisfy the lenders by allowing them thirty
leagues of land for the relinquishment of a condition that is really not
worth the third of that bonus, but which the Govt, found it inexpedient to
comply with.
The lenders would make more money by taking the bonus, than they
could do by the original contract—
I have no doubt this Govt, would fund the debt, so far as paid in, and
issue certificates of Stock at a high interest—say twelve per cent, in order
to close the matter The annexation to the U. S. I think is very certain and
then twelve pr. cent Stock would be very valuable.
I think that if an authorized agent of the lenders were to be sent here,
this matter could be satisfactorily arranged and definitively settled on an
equitable basis and to the satisfaction of the lenders—
I assure you, that on my part, every thing will be done that is consistent
with my duty—
S. F. Austin
Messrs Thos. O. Meux Jas. W. Breedlove and Alfred Penn