Currency of the Republic of Texas
Texas dollar
![](//upload.wikimedia.org/wikipedia/commons/thumb/4/4d/Republic_of_Texas_Fifty_Dollars.jpg/252px-Republic_of_Texas_Fifty_Dollars.jpg) Fifty-dollar bearer note
|
|
Banknotes
| $1
,
$2
,
$3
,
$5
,
$10
,
$20
,
$50
,
$100
,
$500
|
---|
|
User(s)
|
Republic of Texas
|
---|
This infobox shows the latest status before this currency was rendered obsolete.
|
The
Texas dollar
was the currency of the
Republic of Texas
. Several forms of currency were issued, but an ongoing economic depression made it difficult for the government to provide effective backing.
[1]
The republic accepted the standard gold and silver coins of the
United States
, but never minted its own coins.
[2]
Negotiable promissory notes
[
edit
]
During the
Panic of 1837
, the
Texas Congress
authorized the issue of interest-bearing
promissory notes
to pay expenses and sustain commerce. These notes were known as "star money" after the prominent five-pointed star printed on the front. They had to be passed by endorsement and therefore were held mainly as investments rather than public currency. Additional promissory notes issued in 1838 did not bear interest and
depreciated
rapidly.
[1]
Redbacks
[
edit
]
Three-dollar change note
"Redbacks" were
bearer
promissory notes issued between January 1839 and September 1840 by
Mirabeau B. Lamar
to fund the national debt during his
presidency
of the republic.
[3]
Inflation
, due mainly to overprinting, devalued the notes substantially, making 15 redbacks equal to one
United States dollar
.
[
citation needed
]
This debt of over
$10
million was an important factor for
annexation
into the
United States
.
The redbacks were issued in the denominations of
$5
,
$10
,
$20
,
$50
,
$100
, and
$500
bills. There were also “change notes” issued at the time of
$1
,
$2
, and
$3
bills that had a blank back.
[
citation needed
]
All of these notes were issued from
Austin
. Many of the notes appear as orange-colored because of the quality of the ink. Several people
[4]
have suggested that the “burnt orange” color of
The University of Texas at Austin
came from this coloring, but it cannot be proven.
The government cut-cancelled redbacks and change upon redemption to keep them from being fraudulently redeemed again. The cancelled notes are highly sought after by
collectors
. A few notes were never redeemed or cut-cancelled; those notes are valued more highly.
[5]
[
citation needed
]
Two early Republic of Texas heroes are found on redbacks. Both had died prior to the issuance of the notes.
Deaf Smith
is found on the
$5
redback, while the "Father of Texas,"
Stephen F. Austin
, is found on the
$50
note.
Congress acknowledged the redbacks' collapse in 1842 by refusing to accept them at face value for payment of taxes. Texans increasingly relied on United States currency,
shinplasters
and private obligations.
[2]
[1]
Exchequer bills
[
edit
]
The end of the redback coincided with the presidency of
John Tyler
in the United States, who had proposed a regulated paper money system called the Exchequer plan. Upon resuming the Texas presidency,
Sam Houston
attempted to restore the negotiable note system under the name of "exchequer bills." This effort had little success until the following year, when economic conditions throughout North America began to improve. By 1845 the bills were passing at par value.
[1]
Under the
Compromise of 1850
, Texas was given
$10
million for all the land it had claimed outside its present state boundary. With this money, Texas paid off all its debts, including the redemption of its notes.
See also
[
edit
]
References
[
edit
]
External links
[
edit
]
|
---|
Circulating
| |
---|
Circulating,
but renamed
| |
---|
Defunct
| |
---|
Noncirculating
| |
---|
Conceptual
| |
---|
Virtual
| |
---|
Fictional
| |
---|
Private
| |
---|
See also
| |
---|