Henry Austin to Stephen F Austin, 10-10-1836

Summary: Suggesting compromise; with Texas creditors. Texas in English parliament. Financial crisis in the United States

New Orleans 10th Oct /36

Genl S F Austin

My dear Sir

I wrote you on Friday since then I have had a sitting with Breedlove and D Mieux agents for the contractors— I apprised them distinctly that I had nothing to do with the Govt—but would take and deliver to you any distinct proposition which they might think proper to make, defining in terms not to be misunderstood what they understood the compromise to entitle them to, and that they would consider the compromise binding if the govt Acceeded to those terms to pay the 180.000$

Dr Mieux stated that the issue of Scrip in conformity with the compromise without the proviso introduced by the Cabinet, that is to say with liberty to locate at their own expense when they please, would be satisfactory but as few of the parties were here they could only make the proposition binding on those here and give an assurance of their belief that the others would concur— Dr Mieux will prepare the paper and address it to you, by me. As I have been denounced as a cracked brained old citizen, for apprising Burnet as an individual acquaintance of the impending danger of a total prostration of public credit, it is not proper for my name to appear in any public matter, but the fact that not a dollar can now be had either on public or private credit of Texas will enable any one to judge whether I was or not cracked brained when I anticipated this result from the course pursued and did what as a Citizen I was bound to do; all in my power to avert it?

Nothing can resuscitate the public credit but redeeming the public faith by compliance with contract as compromised, The bonds of the new loan will not command money until confidence in the Moral integrity of Govt shall be restored by sound legislation.

I have offered my best land at 2$ pr Acre with bond to repay the Money and 20 pr Ct if the party shall be disatisfied with his purchase at the end of 12 months I cannot get a dollar neither up country or here, and have my family unprovided

Cracked brained or not I have taken measures to counteract the impression made in England by the debate on Texas in Parliament, by sending to Mr. Gordon and the Editor of the London Atheneum each a copy of Mrs Holleys book with my view of the effect of the revolution in Texas upon British interests, they are both old correspondents

Mr Beal and Mr Ringold come out with me whether in the Independence or Fannin undecided—

you can subscribe 5,000 Ds for me to the new loan as stated in the Telegra[p]h of 13th Sept if you think proper

There is a frightfull collaps in the circulating medium, the Western Banks will in all probability be compelled to stop before christmas and there are fears for the Banks of this City None of them discount a dollar but for the debtors of the Bank, Not even exchange unless the money is to be paid to the Bank, save in N York, best security 3 or 4 prCt pr Month here and there— Respectfully

H Austin

[Addressed:] To Genl. S F Austin Columbia Texas