Chubb & Schenck to Bell, September 7, 1850

On September 6, 1850, the United States Congress passed a bill that settled the long-running dispute over Texas' western boundary. This act provided that Texas would be paid $10 million in 5% U.S. bonds in exchange for ceding the disputed territory to the national government. At least half the money was to be used to pay off the debts of the Republic of Texas.

The day after the bill's passage, the Washington banking firm of Chubb & Schenck sent Bell this letter, complete with references, offering to help Texas handle its new-found riches.

"Early Statehood "

Chubb to Bell

Office of Chubb & Schenck,


Washington, Sep 7th, 1850

His Excellency P.H. Bell


Gov of Texas

Sir


We wrote you on


the 19th ultimo offering you our services for the negotiation


of the ten million U.S. Stock offered to your State by


the Government of the United States

We would respectfully suggest that if this Stock be


disposed of in New York and London in such amounts


as the market will bear, will command a premium


of from 3 to 4 per cent thus netting to your state


a large profit, provided there will be no monetary chan-


ges at present unforeseen.

Should the State issue proposals for the whole


amount at once, it is evident that it would depress


the market, and afford very little if any premium.

We respectfully refer you to the enclosed letters from


the Hon. Geo. W. Jones and the Hon. R.W. Thompson.

Your Obt Servants

Chubb & Schenck

"Early Statehood "

Chubb & Schenck to Bell, September 7, 1850, Records of Peter Hansbrough Bell, Texas Office of the Governor, Archives and Information Services Division, Texas State Library and Archives Commission.

Page last modified: March 30, 2011