FINANCES. The fiscal history of the Republic of Texas was mainly a record of debts, as the strained relations with INlexieo demanded a great er expense than the taxable property of the young Republic could bear. The issue of loans, was only stopped by the inability to float them. An in vestigation by the Legislature of the State in 1S4S ascertained the nominal debt to be $9,677, 253, to which the value of $4.807.764 was as signed, as Texas decided to redeem its debt at its actual value when issued. By 1S50 the nominal amount and assigned value of the debt were re spectively $12,322,443 and $6318.79S. The sum of $10,000,000 which the State received from the Federal Government canceled the debt and left a surplus. By 1856 there was no State debt, and the surplus was over $1,000,000. Several loans were made during the Civil War, but the war debt was repudiated by the first 'reconstruction' Legislature. The disarranged condition of the finances necessitated the issue of new bonds in 1870 and the following years. Six railroad com
panies were assisted by loans aggregating $2, 000.000. By 1875 there was a debt of $4,644,000. But the overthrow of the reconstruction forces in 1875 caused a radical change in the financial policy of the State. The Constitution of that date prohibited any further issue of bonds, except for war purposes, as well as the lending of the State's credit to private enterprises. Because of the difficulty of paying the interest, the debt continued to grow for some time and in 1880 reached its maximum of $5,566,92S, after which it steadily declined. The policy of the State has been to buy its own bonds for investment of the school and university funds. The income of the State is derived mainly from a general property tax and sale and lease of public land. Total re ceipts in 1902 amounted (as far as can be cal culated from the accounts of 30 different funds) to about 88.744.000. and disbursements to about $7.104.000. The cash balance was $2,200,000.