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

Question

Responses

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 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 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 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 most accurate response regarding how public debt became an issue prior to the annexation of Texas is:

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

Before and after gaining independence from Mexico, the Republic of Texas found itself in a precarious financial situation. The costs associated with fighting the Mexican-American War and maintaining its governance led to significant loans being taken out, and the government also resorted to printing more currency, which further exacerbated the economic challenges and inflation. This mounting debt was an underlying issue that influenced Texas's consideration to join the United States.