The Southwestern Historical Quarterly, Volume 16, July 1912 - April, 1913 Page: 183
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Repudiation of State Debt in Texas Since 1861
action of Texas in 1866 providing for its ascertainment was nulli-
fied, and Texas may be said not to have had any known valid debt
until 1871. As soon as the valid debt was determined, payment
of accrued interest was promptly made, and interest thereafter on
it and on all other debt was always promptly paid.
It may be asked, finally: Was the principal of the valid debt
promptly paid at maturity? The bonds issued under the Act of
March 20, 1861, were payable July 1, 1871. Because these bonds
were issued during the war period, though to fund floating liabil-
ities incurred before the war, they were subject to auditing before
their validity could be established. In view of the Reconstruction
Acts of Congress, there was no legally constituted body that could
finally determine their validity until 1871. By the Act of No-
vember 13, 1871, appropriation was made for the audited and
valid portion of this debt. The bonds issued under the Act of
April 8, 1861, were 'due sixteen years from their date. Such of
these as were valid and were exchanged for the bonds issued in
1866 were paid at maturity; those valid and which were not ex-
changed for the bonds of 1866 were either exchanged for bonds
authorized by the Act of May 2, 1871, or were paid before their
maturity. The principal of the bonds issued under the Act of
November 9, 1866, and which were due January 1, 1877, was also
paid at maturity. Except in the cases described above; namely, the
repudiation of the debt incurred in aid of the war, and the delayed
payment of the interest and principal of the bonds authorized in
1866 and of the bonds issued to the school and university funds,
the State of Texas has always since January 1, 1861, either paid
or refunded its bonded debt at maturity, and met the interest
charges on the date stipulated in the bonds.
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Texas State Historical Association. The Southwestern Historical Quarterly, Volume 16, July 1912 - April, 1913, periodical, 1913; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth101058/m1/191/: accessed June 23, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting Texas State Historical Association.