The Southwestern Historical Quarterly, Volume 52, July 1948 - April, 1949 Page: 300
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Southwestern Historical Quarterly
Act of 1850, $1o,ooo,ooo of United States 5 per cent bonds.
The delivery of $5,000,000 was withheld until there was effected
a satisfactory agreement between the state and those creditors
who held the revenue debt of the Republic. The revenue debt
was that for whose payment the import duties of the Republic
were pledged. The Boundary Act contained language that could
be construed to be an acknowledgment by the United States Gov-
ernment of its liability for the revenue debt. After much wran-
gling between the state and the creditors and between the state
and the federal government, and also as a result of pressure put
upon Congress by the creditors, the federal government, by the
Act of February 28, 1855, proposed that $7,750,000 in cash, this
being the principal amount of the retained $5,000,000 bonds
plus accumulated interest and premium, should be apportioned
among the holders of the revenue debt. Texas, on February i,
1856, assented to this proposal. The distribution resulted in the
creditors receiving 76.9 cents on the dollar.
The par amounts of notes, with interest to January 1, 1841,
which were paid in 1856, were as follows: printed io per cent
interest notes, $65,2o8.33; engraved io per cent interest notes,
$451,708.32; red backs (no interest), $2,199,728.64, or a total of
$2,716,615.29. Payment at the rate of 76.9 cents on the dollar
resulted in the noteholders receiving $2,089,100.22. This settle-
ment was very favorable to the speculators who held the notes.
It wrote the final chapter in the history of the "fiat" money of
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Texas State Historical Association. The Southwestern Historical Quarterly, Volume 52, July 1948 - April, 1949, periodical, 1949; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth101121/m1/309/: accessed November 23, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting Texas State Historical Association.