Charles Sumner: his complete works, volume 18 (of 20)

by Charles Sumner

PROPOSITIONS WITH REGARD TO SURPLUS.

This surplus has been the subject of discussion for more than a decade of years. During all this time it has been before Congress without any definitive action. As long ago as December, 1860, it was thus noticed by President Buchanan in his Annual Message:—

“After the awards shall have been satisfied, there will remain a surplus of more than $200,000 at the disposition of Congress. As this will in equity belong to the Chinese Government, would not justice require its appropriation to some benevolent object in which the Chinese may be specially interested?”[121]

Nothing was done by Congress, and President Lincoln, in his Annual Message of December, 1861, thus followed in the footsteps of his predecessor:—

“I repeat the recommendation of my predecessor, in his Annual Message to Congress in December last, in regard to the disposition of the surplus which will probably remain after satisfying the claims of American citizens against China, pursuant to the awards of the Commissioners under the Act of the 3d of March, 1859. If, however, it should not be deemed advisable to carry that recommendation into effect, I would suggest that authority be given for investing the principal, over the proceeds of the surplus referred to, in good securities, with a view to the satisfaction of such other just claims of our citizens against China as are not unlikely to arise hereafter in the course of our extensive trade with that empire.”[122]

The subject was at this time considered by the Committee on Foreign Relations, aided by the Secretary of State, who laid before the Committee all the original papers relating to the proceedings of the Commissioners. In a communication to the Committee,[123] Mr. Seward stated the case as he understood it, recognizing “the refunding of the whole amount to the Chinese” as one of the methods which “suggest themselves.” This was in the summer of 1862, at the most critical period of the war for the suppression of the Rebellion, and the Committee did not feel disposed at that time to make any recommendation with regard to the fund.

Meanwhile the disposition of this fund was discussed elsewhere. Our distinguished representative in China, Mr. Burlingame, entered upon it with characteristic ardor. Regarding the fund as essentially Chinese in character, if not belonging in equity to China, he urged that it should be devoted to the foundation of an institution of learning at Peking, which he proposed to call The American College, or Ta-Mei Kwoh Hioh-kung: first, to teach Americans the language and literature of China, so as to fit them to be interpreters and consuls; and, secondly, to educate Chinese in English studies and in their own literature, with a view to employment by their own rulers or by the United States. The usefulness and practicability of such a college were developed in two elaborate dispatches,—one bearing date Shanghai, May 19, 1862,[124] and the other, Peking, November 18, 1863,[125] in the course of which Mr. Burlingame said that he was “disposed to urge the adoption of this proposal more with a reference to the benefit such a college would be to the Chinese than to ourselves.”[126] Not content with thus declaring his desire to make this fund of benefit to them, he says, “In equity the balance appears to belong to the Chinese, but they have no voice in its disposal.”[127] His eloquent appeal has thus far been without effect. Nothing has been done to carry out his recommendation, and the question still remains, What to do with the fund?

It is sometimes proposed that this fund should be reserved for the satisfaction of possible claims hereafter. But this would be contrary to the terms of the convention, which expressly provides for the “claims of American citizens at the various ports to this date,”—thus positively limiting the disposition of the fund. Mr. Burlingame, without referring to the terms of the convention, objected to any such reservation as calculated to produce embarrassment in our relations with China. According to him, “it would be preferable to return the whole to them, or distribute the money, as it accrues, to the disappointed claimants, and those Chinese in the employ of our citizens who suffered severe losses in consequence of their connection with them, than to lay it aside for future contingencies to settle with a government like the Chinese.”[128] His authority on this proposition may be considered decisive.

But there is another consideration which leads to the same conclusion. Any retention of the fund to meet possible future claims is a plain recognition of the interest, if not the proprietorship of China; and since there is no authority under the convention for its application to possible future claims, it will be at least questionable whether the Chinese Government should not have a voice in the adjudication of such claims. At all events, we shall assume a peculiar responsibility, if we undertake to apply this fund to claims not contemplated by the convention. Nor is there any reason of expediency which can justify such an assumption on our part. China has evinced no disposition to be otherwise than just to American citizens. Although twelve years have elapsed since the date of the convention, there are no outstanding claims against China which have received the sympathy of our Government. Should any such claims arise, it were far better that they should be presented directly, and be satisfied by an award in their favor. Meanwhile the old account should be closed.

A remark of Mr. Burlingame, already quoted, requires one word of comment. He mentions, as a possible course, the distribution of the fund among “disappointed claimants, and those Chinese in the employ of our citizens who suffered severe losses in consequence of their connection with them.” Of the Chinese mentioned the Committee know nothing. No claims in their behalf have been presented. But since the award of the Commissioners three different cases have occurred, coming under the head of “Disappointed Claimants.” The disposition of these is mentioned at the end of this Report.[129] It does not seem advisable that the fund should be kept to meet such applications. The awards of the Commissioners have been approved by our Minister in China, and the proceedings closed. If they were opened in the case of the Neva, it was because the claimants there had not been heard in China. It is not supposed that any other occasion can arise to open these proceedings. The fund in question cannot be regarded as a charity or largess for the gratification of “disappointed claimants,” nor would it be proper for the United States to play such a generous part at the expense of China.

Our country has no house for its legation at Peking or for its consulates in other places, nor does it possess any buildings in China which it might use as courthouse or jail; and latterly there has been a strong disposition to apply this fund in this direction. Mr. Seward seems to have inclined this way, as appears from his Report to Congress,[130] and Mr. Fish also, as appears from his Report to Congress.[131] But this disposition proceeds on the admission that the fund differs materially from other moneys of the United States,—that, if it does not belong to China, it bears the Chinese earmark so strongly that it cannot be treated as belonging to our national assets. In point of fact, all attempts to cover it into the Treasury have proved unsuccessful.

Petitions from opposite quarters with regard to the disposition of the fund attest a prevailing interest.

At a meeting of citizens in New York, March 11, 1870, a distinguished committee was appointed, with Isaac Ferris, Chancellor of the University, as chairman, with whom as associates were William E. Dodge, President of the Chamber of Commerce, Frederick S. Winston, E. D. Morgan, E. C. Benedict, A. A. Low, John C. Green, James H. Taft, Stewart Brown, and William P. Jones, many of them having large interests in China, who adopted resolutions on this subject to be forwarded to Congress. The first resolution declares,—

“That this Committee is of opinion that the surplus of the Indemnity Fund received from the Chinese under the Convention of 1858, referred to in the Annual Message of President Buchanan to the Second Session of the Thirty-Sixth Congress, and of President Lincoln to the Second Session of the Thirty-Seventh Congress, with the accumulation thereon, certainly does belong in equity to the Chinese Government, as the Presidents therein declare, and should be returned to it.”

The Committee then proceed to say, that, if such surplus shall be declined by China, it should be expended, according to the recommendation of Mr. Burlingame, in founding a literary institution for the equal benefit of Chinese and Americans.

Chicago responded to New York. At a meeting of citizens March 31st, another committee was organized, with R. B. Mason, the Mayor, as chairman,—and among the members were William Bross, Lieutenant-Governor of Illinois, Thomas Drummond, Judge of the United States Circuit Court, James E. McLean, Collector of Customs, N. S. Davis, Professor of Surgery in the Medical College, Samuel M. Wiseman, President of the First National Bank, J. C. Burroughs, President of the University of Chicago, and E. D. Haven, President of the Northwestern University, with others,—and adopted resolutions, where, after approving those of New York, they declare,—

“That it seems to us eminently fitting and fortunate that this money, which distinguished representatives of the United States have asserted belongs in equity to the Chinese Government, though that government is disposed to waive its right to it, should be employed in some way to the common advantage and honor of both nations.”

The committee then proceed to resolve further,—

“That in view of the impression conveyed by Secretary Seward’s Report to the Third Session of the Fortieth Congress, that the Chinese authorities are unwilling to receive this money, this Committee respectfully memorializes Congress to cover it into the United States Treasury as a special fund, to be returned to the Chinese Treasury, or hereafter appropriated to the establishment of the proposed institution of learning at Peking, as the Chinese Government may elect.”

These two weighty committees concur in recognizing the equity of China, if not her proprietorship, in this fund. If it be true that the surplus belongs to China, or that it is hers in equity, it will be difficult to defend any proposition to return the amount indirectly, as in a college or buildings for the accommodation of the United States on Chinese soil. If returned at all, it must be directly, and in the form of money. What right have we to determine how to expend in China or for China that which is hers? To do so would not be generous, even if it were just. It would be ostentatious, and might be offensive. It would assume that we can employ the money of China, even in China, for her own benefit, better than she can herself. At all events, it would recognize an undefined title in China, to which we deferred.