Bellringer: Debt Problems

Why did the Republic of Texas borrow money during its war for independence?

• They needed supplies and pay for soldiers

• They wanted to build museums and libraries

• They hoped to lower taxes for ranchers

• They planned to buy land for settlements

What happened when more Redbacks were printed as money?

• Each Redback became worth less in trade

• Farm harvests increased across Texas

• Soldiers received higher wages in gold

• Banks opened new branches statewide

What financial problem did Mirabeau B. Lamar’s spending cause for Texas?

• Immediate debt forgiveness from Mexico

• Balanced budgets and stronger currency

• Growing debt and weaker money value

• Rapid industrial growth without borrowing

Why did many people stop trusting Texas money during the Republic era?

• A one-dollar bill bought only a few cents of goods

• Gold mines closed across the region

• Counterfeit coins replaced all paper bills

• Bank accounts were frozen by the government

Texas leaders wanted to join the United States mainly to solve which problem?

• Too much rain hurting cotton crops

• Not enough fertile farmland

• Arguments over cattle branding

• Mounting debt risking bankruptcy

Which benefit did Texas expect from joining the United States?

• Finding gold quickly

• Independence from other countries

• No paper money allowed

• Military protection and financial support

How did the United States help Texas pay its old debts after annexation?

• Provided money in exchange for some western lands

• Ordered Texas banks to close permanently

• Sent more soldiers without paying any funds

• Raised Texas taxes to collect from citizens

What caused Texas’s early debt?

• War costs and frontier attacks

• Excess rainfall and crop failures

• Trade barriers and closed ports

• Population decline and lost tax revenue

Why is annexation called a “financial rescue” for Texas?

• It allowed Texas to print unlimited Redbacks

• It ended all wars and guaranteed lasting peace

• U.S. support helped pay debts and stabilize money

• It made Texas the wealthiest state overnight

Which of the following best explains why Texas struggled to pay its debts after independence?

• Lack of stable currency and constant conflicts

• Too many gold reserves in the region

• Strong support from neighboring countries like Canada

• High profits from international trade routes to Europe