Texas redbacks

Texas dollar
The Front of the fifty dollar note of the Republic of Texas
Denominations
Banknotes	$1, $2, $3, $5, $10, $20, $50, $100, $500
Coins	None
Demographics
User(s)	Republic of Texas

The Texas dollar, informally named the "Texas redback", was the paper money of the Republic of Texas. The Texas dollar was issued between January 1839 and September 1840 by Mirabeau B. Lamar to minimize national debt during his Presidency of the Republic of Texas. The name "redback" comes from the reddish color of the back of the bills. Inflation, due mainly to overprinting, devalued the notes substantially, making 15 redbacks equal to one United States dollar. This debt of over $10 million was an important factor for annexation into the United States.

The redbacks were issued in the denominations of $5, $10, $20, $50, $100, and $500 bills. There were also “change notes” issued at the time of $1, $2, and $3 bills that had a blank back. All these notes were issued from Austin, Texas. Many of the notes appear as orange-colored because of the quality of the ink. Several people have suggested that the “burnt orange” color of The University of Texas at Austin came from this coloring, but it cannot be proven.

By 1842, the government of the Republic of Texas would not accept the bills for repayment of taxes. The currency regained some value before Texas was annexed by the United States. However, Texans used bank notes from other states and shinplasters instead of the Texas money.

Under the Compromise of 1850, Texas was given $10 million for all the land it had claimed outside its present state boundary. With this money, Texas paid off all its debts, including the redemption of all redbacks.