And adds:—
“If they be recognized, and the principle of paying interest be adopted throughout, the fund will be exhausted. If they be disallowed, though interest be paid to all the other claimants, there will be a surplus at the disposition of the Government.”[116]
Thus early was there anticipation of a surplus.
At the same time the Minister suggested that Congress should provide for the adjudication of the claims and a dividend among claimants. This was done by the Act of March 3, 1859, entitled “An Act to carry into effect the Convention between the United States and China, concluded on the 8th of November, 1858, at Shanghai,”[117] authorizing the appointment of commissioners “to receive and examine all claims which may be presented to them under the said convention, according to the provisions of the same, the principles of justice and International Law,”—and further providing “that the said commissioners shall report to the chief diplomatic officer in China the several awards made by them, to be approved by him,” which are to be paid out of the revenues set apart for this purpose, in ratable proportion, “according to the direction of the said diplomatic officer.”
The examination of the claims was completed in January, 1860, and the payments directed by the Commissioners were duly made. Then occurred a condition of things almost without precedent in the relations of nations. After all the payments directed by the Commissioners, a large surplus was found in the custody of the legation at Peking, which was subsequently transferred to the United States. This surplus, with accumulations of interest and gain by exchange, less an amount paid under authority of an Act of Congress approved February 22, 1869,[118] has been invested in Ten-Forty bonds, which are now held by the State Department, amounting at par to $386,000. Another amount of $206.87 in cash is also in the possession of the Department; and about $2,000 remain in the custody of the Minister to China, who has been directed to make remittance of the same.[119]
The Secretary of State, in his Report on this subject, as late as March 10, 1870, says that he “is not aware of any claims against this fund which have not been considered by the Commissioners and determined by them.”[120]
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]