329
THE AUSTIN PAPERS
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 LQan 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 Com- missioners, 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 SIO0, each, which said scrip shall entitle the holder to an in- terest 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 an~ 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 satisfac.tion 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
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