Texas History Items: Republic of Texas Money

The first currency authorized by the government of the Republic of Texas circulated in the fall of 1837. People called this "Star Money" because of the star printed on the bill. This money was easy to counterfeit, however, and it was replaced in January, 1838, with a series of engraved notes. Because of difficult economic times, the new money lost value quickly. By May, 1838, a $1 bill issued in January was worth 65 cents. By January, 1839, it was worth only 40 cents.

Each new bill in the 1837 and 1838 series was signed by the Secretary of the Treasury and the President. President Sam Houston did not sign the 1837 series himself, though, because of a physical disability. Instead, his name was signed by William G. Cooke, who was paid 2 cents for each signature.

The government issued a new series of currency in January, 1839. These new billls were called "redbacks" because of the red countermark engraved on the back of the bills. Because the government printed too many r edbacks at once, they also lost value rapidly: by the winter of 1842, they were worth only 2 cents on the dollar. After the value of the redbacks fell, private and local entities issued their own currency that people could use in a local area.

This note was part of a series issued by the City of Austin in 1840 or 1841 and was used in the Austin area.

The Texas Congress issued a new series of money in 1842. Although this new money also lost its value, it gradually regained it as the Texan economy strengthened. When Texas became part of the Union in 1845, the government began recalling all of its money, exchanging it with U.S. currency. The money was cut in order to show that it no longer had value. Though most of the money was destroyed, some has been preserved in museums and private collections.