liginle without a somewhat specific account of the system and of the management of the finances of Texas, under, and, in no inconsiderable measure, by President Houston. Such account is necessary to understand that powerful hold which he had on the confidence of the people; that strong popularity of his with the masses, which always triumphed over the fierce, unrelenting opposition of political leaders of great ability. It will be necessary to advert, only cursorily, to a different financial system pursued during the presidential term intervening between the two terms of President Houston's administration. In order to appreciate the importance of the financial system perseveringly carried on by President Houston, we must bear in mind that the financial prosperity of any Government is the sure index, the sure measure, of the prosperity of its people. It is doubly true of an infant nation, of a nascent Government, such as Texas then was, before time had intertwined interests and consolidated institutions.
Under the Council, the Consultation, the Provisional Government, which were the successive forms of administering public affairs of Texas during the Revolution which severed it from Mexico, and until the achievement of independence at San Jacinto, current expenses were provided for as best they could be. This was done, or attempted to be done, by borrowing from private individuals; by generous gifts of small sums—sums so small, indeed, that the mention of them is calculated to raise a smile; by commissioners empowered to negotiate loans; and by offers of sales of land. The slender contributions from these sources were of inappreciable value to the infant cause. During that revolutionary period, Texas lived, in the language of proverb, from hand to mouth. It was not known to-day where the means for carrying on affairs on the morrow were to be found. There was no financial system; there was no system of public, organized finance; there could be none in the circumstances of the hour which deserved the name.
Freedom from Mexican rule being achieved at San Jacinto, the President, Vice-President, and members of Congress were elected. At the first session of the first Congress in the fall and winter of 1836, the organization of the essential functions of the new Government claimed absorbing attention. Concurrently, means to carry on government were also of immediate necessity to be provided for. Several tentative projects of finance were presented. Two bank charters were passed. One of them will be more particularly mentioned further on. But no financial system was adopted, no financial policy inaugurated. The first substantive act of a definite system was passed at the second session of this first
