Explain how public debt became an issue prior to the annexation of Texas. (1 point)

Question

Responses

Texas started off in debt and continued by taking loans and printing more money to make ends meet.
Texas started off in debt and continued by taking loans and printing more money to make ends meet.

Texas received a charter to open a bank prior to the start of the Texas Revolution, which created more debt for the state.
Texas received a charter to open a bank prior to the start of the Texas Revolution, which created more debt for the state.

Texas owed Mexico a lot of money for allowing Texas to break free.
Texas owed Mexico a lot of money for allowing Texas to break free.

Texas traded land for money owed with the Compromise of 1850, leaving it with less land to trade to get out of debt.

Answer 1

The correct response is:

Texas started off in debt and continued by taking loans and printing more money to make ends meet.

Before its annexation, the Republic of Texas faced significant financial challenges. After gaining independence from Mexico in 1836, Texas was already in a precarious financial position due to the costs of the revolution. In an effort to manage its finances, the government resorted to taking loans and printing currency, which only exacerbated its financial troubles. This cycle of debt became a pressing issue, impacting Texas's ability to function as an independent nation and creating complications in negotiations for annexation by the United States.