The Southwestern Historical Quarterly, Volume 71, July 1967 - April, 1968 Page: 423
686 p. : ill. (some col.), maps, ports. ; 23 cm.View a full description of this periodical.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
Notes and Documents
bearing an interest of io per cent per annum." A similar 8 per cent stock
was afterwards created, in i84o.10 In these two stocks that is in Bonds of
the same, besides large transactions negotiated in them, these . . . ab-
sorbed considerable amounts of Promissory Notes. Still the amounts of
these Notes floating about, we cannot say in circulation, was immense
and always increasing until their further issue utterly ceased.
The first Promissory Notes, or Star Money, were printed with common
type on common paper. With the first increased issue they were engraved
and printed on bank paper, and presented quite a bank-note appearance.
In 183-9 to respond to the demand for Notes to meet the large appro-
priations adverted to above, large supplies of blanks were necessitated,
new plates were engraved and for . . . appearance and as a matter of
taste, paper of a pale red color for the blanks was adopted--similar in
this respect of color to the greenbacks of today. From their red color
these Notes of Texas were called Redbacks; and in this respect no change
was ever made, for the quantity of Redback blanks was simply enormous.
Nor did the name Redback impart any character differentiating them
from other paper currency; they were simply non-interest paying Prom-
issory Notes, called Redbacks from their color. They were issued on the
faith and credit of the Republic of 'Texas.
I shall for brevity in the balance of this letter speak of the Promissory
Notes as Redbacks. I have adverted to the large emissions of Redbacks
in accordance with appropriations by Congress made in the spring of
183.9 and thereafter until the change of administration in December
1841.11 With these successive large emissions Redbacks declined in value
until they ceased to have any purchasable quality or any circulation as
money; though they sometimes figured in the way of trade or barter.
During the third or last year of their issue, the year ending in Dec. 1841,
they were rated in such trade or barter ordinarily at 6 or 8 cts of their
face value. Frequently I knew them sold, shoved off at 3 or 4 cts on the
nominal dollar. Payments out of the Treasury of the Republic were not
infrequently made at eight dollars of Redbacks for one dollar of money
and at similar disastrous rates. The condition of Texas was disastrous;-
no money in the Treasury, no currency for the transaction of business.
The financial gloom cast its baleful influence over all labor, business and
industry. The minds of the people were restless; they seemed ready and
casting about for change. This period is rich in reminiscences and if
understood, rich in instruction.
I have spoken of these things as having taken place during the Admin-
'See "AN ACT, To authorize the Consolidation and Funding of the Public Debt,"
ibid., I, 1301o-133.
1oSee "AN ACT, To provide for the redemption of the Promissory Notes of the
Government now in circulation, and for funding other liabilities of the Government,"
ibid., II, 453-454.
"As an example, a congressional law of January 24, 1839, entitled "AN ACT, Ap-
propriating money to defray the expenses of the various departments of the Government,"
directed the Secretary of the Treasury to issue $311,ooo in promissory notes to defray
governmental expenses. Ibid., II, 82-83.423
Upcoming Pages
Here’s what’s next.
Search Inside
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Periodical.
Texas State Historical Association. The Southwestern Historical Quarterly, Volume 71, July 1967 - April, 1968, periodical, 1968; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth117145/m1/473/: accessed April 30, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Texas State Historical Association.