Texas Treasury Notes after the Compromise of 1850
By Gary M. Pecquet
Clifford F. Thies
This article appeared in the Winter 2009 issue of The Independent Review
After the election of 1844, the U.S. Congress agreed to annex Texas on the condition that the new state assume the debt of the Republic of Texas and pledge its vast public lands against this debt. By 1850, however, the state of Texas had redeemed only a tiny fraction of the debt, and subsequent political developments left clear imprints in the financial markets.