242 



CONGRESS. (FRENCH SPOLIATION CLAIMS.) 



of said fund, if any, be covered into the Treasury of 

 the United States : 



Provided, That before the payment to China, the 

 Secretary of State shall pay from said fund to the ex- 

 ecutors of Charles E. Hill the sum of $130,000, upon 

 receipt of a release in full for all claims upon China 

 for the use and loss of the steamer Kenjeor, in or 

 about the year 1863. 



Mr. Wait said, in explanation of the measure : 

 "The bill now under consideration provides 

 for the return, to the Government of China, of 

 certain funds, now in the hands of the Secre- 

 tary of State, known as the * Chinese indem- 

 nity fund.' 



" In order that the House may fully under- 

 stand the reasons which influenced the Com- 

 mittee on Foreign Affairs to report the bill 

 with a favorable recommendation, I will, as 

 briefly as possible, review the circumstances 

 under which this money came into the custody 

 of the United States. Under the privileges 

 granted by the treaty of 1844, between the 

 United States and China, known as the ' Trea- 

 ty of Wanghia,' a large number of American 

 citizens took up their residences in China, and 

 engaged in various pursuits. 



"The opening of the empire to foreigners, 

 under the provisions of the various treaties 

 with foreign countries, created a very hostile 

 feeling among a large class of the Chinese 

 people. 



"Between the years 1844 and 1858 numer- 

 ous losses were sustained by American resi- 

 dents of China by reason of the destruction of 

 their property through the acts of lawless 

 bands of Chinese; the greatest number and 

 the heaviest losses occurring after the year 

 1850, when the powerful revolt known as the 

 Taeping rebellion broke out, which continued 

 to render the power of the central Government 

 nugatory in a large section of the country for 

 a number of years. 



"In 1858 these losses were scheduled by the 

 United States minister in China, and a demand 

 was made by him upon the Chinese Govern- 

 ment for their payment. After some delay, 

 and a reduction of the amount demanded to 

 500,000 taels ($735,258.97), a treaty was con- 

 cluded between the two governments pro- 

 viding for the payment of this sum from the 

 customs receipts at the three principal open 

 ports of the Chinese Empire. 



" Under the provisions of an act of Congress 

 two commissioners, Messrs. Charles W. Brad- 

 ley, United States consul at Ningpo, and O. 

 E. Roberts, United States vice-consul at Hong- 

 Kong, were appointed to adjust the claims and 

 award such sums as might be found to be justly 

 due ; their decisions to be final. 



"The commissioners appointed were both at 

 the time residents of China, and familiar with 

 all the circumstances under which the claims 

 arose. 



" They met at Macao, in China, Nov. 18, 

 1859, and concluded their labors on the 13th 

 day of January, 1860. 



"Upon examination, all the claims were 



found to be more or less exaggerated, and 

 some to be entirely groundless; while others 

 were presented by persons not citizens of the 

 United States. 



"After paying all the claims, to the apparent 

 satisfaction of the claimants no protest being 

 filed in any case with interest for five years 

 at the rate of 12 per cent, per annum, there 

 remained a surplus of more than one third of 

 the gross sum received from China. 



" As the money was paid upon the repre- 

 sentations of tLe United States Government 

 that it was required to cover losses arising 

 from the destruction of private property of 

 Americans resident in China which occurred 

 prior to 1858, and as the terms of the treaty 

 expressly specified that it was to be applied to 

 that purpose, it followed as a matter of right 

 and justice that the surplus should have been 

 returned to China as soon as its amount Lad 

 been ascertained. This course was recom- 

 mended by President Buchanan, and has been 

 repeatedly urged by every succeeding Execu- 

 tive, including President Arthur, yet no con- 

 clusive action has been taken by Congress to 

 carry these recommendations into effect. 



" In consequence of this inaction on the part 

 of Congress, the Secretary of State was con- 

 strained to direct the money to be sent to 

 the United States for safe-keeping, and it was 

 deposited in the vaults of the State Depart- 

 ment. 



"In the exigency of the stringent money 

 market during the civil war, the money was 

 used by the United States Government, and 

 bonds of the Government were deposited with 

 the Secretary of State to represent it. 



" The facts, as here outlined, clearly show 

 that this 'fund,' which is still in the custody of 

 the Secretary of State in the form of United 

 States bonds, should be returned to the Chinese 

 Government without further delay. 



" The fund having always been regarded and 

 treated as the property of China as it mani- 

 festly is any increase in the nature of earn- 

 ings which may have accrued during the pend- 

 ency of its return attaches to the principal 

 under the clearest construction of law and the 

 simplest rules of justice and equity. 



"The sum received from China under the 

 provisions of the treaty was $735.238.97. 

 After paying all the claims, there remained 

 $239,165.77 in gold, which, when transferred 

 to the United States and deposited in the 

 State Department, yielded the sum of $390,- 

 223.72. This fund has been invested in United 

 States securities, and at this time, with interest 

 at the rate of 5 per cent, per annum added, 

 amounts to $583,400.90, after having paid 

 from it the Caldera claims, awarded by the 

 Court of Claims." 



The bill passed the Senate March 3, and 

 was approved by the President the fame day. 



French Spoliation Claims. Dec. 9, 1884, a bill 

 to provide for the ascertainment of claims c 

 American citizens for spoliations committed 



