Texas Redbacks

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Texas Redbacks were the informally named paper money issued between January 1839 and September 1840 by Mirabeau B. Lamar to minimize national debt during his Presidency of the Republic of Texas.^[1] They are named so because 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.

1 History
- 1.1 End of Circulation
2 See also
3 References
4 External links

[edit] History

[edit] End of Circulation

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. A lot 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 have come from this coloring but it cannot be proven.

By 1842, the government of the republic of Texas would not accept the bills for repayment for taxes. The currency regained some value before Texas was annexed by the United States.

Under the Compromise of 1850, Texas was to be given $10 million dollars for all the land she had claimed outside her present state boundary. With this money Texas paid off every conceivable debt that the Republic had owed to its citizens and others, including the redemption of all Texas paper money.

The redbacks and change notes were redeemed and cut-cancelled. These notes are highly sought after by collectors. A few notes were never redeemed and therefore not cut-cancelled and garner a higher premium when sold. Two early Republic of Texas heroes are found on redbacks. They had both died previously to the issuance of the notes. Deaf Smith is found on the $5 redback while the “Father of Texas,” Stephen F. Austin is found on the $50 note. Collectors must be made aware that reproductions do exist of all the notes. The original notes were hand-signed in brown ink while the reproductions all are in black ink.