The Southwestern Historical Quarterly, Volume 16, July 1912 - April, 1913

Repudiation of State Debt in Texas Since 1861

REPUDIATION OF STATE DEBT IN TEXAS SINCE 1861
E. T. MILLER
On January 28, 1861, at the assembling of the convention which
adopted the ordinance of secession,, Texas had no bonded debt. As
early as January, 1860, however, the State treasury had been experi-
encing difficulty because of insufficient taxation and increased ex-
penditures for frontier defence; and United States bonds were
transferred from the university fund to provide the State revenue
account with cash. But despite this transfer State warrants were
outstanding and there was no cash to pay them. The State was
not responsible for any of the funded debt of the Republic of
Texas which may have been outstanding on January 28, 1861, for
though the State assumed at annexation the debt of the Republic,
the United States government by the acts of September 9, 1850,
and February 28, 1855, provided for the payment of all of the
funded debt.
The first official statement of the debt incurred during the war
was made in October, 1865. A. J. Hamilton was appointed pro-
visional governor of Texas by President Johnson on January 17,
1865, and ex-Governor Pease and Swante Palm were appointed by
the provisional governor to report on the finances of the State
since secession. Their report was made under date of October 30,
1865.1 The following analysis of the debt is based on their re-
port and on the State statutes:
Item I. 8 per cent State Bonds. Authorized by the
Act of March 20, 1861, entitled "An Act to pro-
vide for the funding of the debt contracted for the
protection of the frontier2 ................... $ 16,000.00
1Executive Record, No. 281, Archives of the State Department of
Texas. The report is abridged and printed as an appendix to the House
Journal, 1866.
'General Laws, 8th Leg., Extra Session, Chap. 28; repealing Act of
January 11, 1862. General Laws, 9th Leg., Chap. 63.

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Texas State Historical Association. The Southwestern Historical Quarterly, Volume 16, July 1912 - April, 1913. Austin, Texas. The Portal to Texas History. http://texashistory.unt.edu/ark:/67531/metapth101058/. Accessed November 28, 2014.