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Texas Treasury Warrants, 1861-1865: A Test Of The Tax-Backing Of Money


  • Gary M. Pecquet

    () (Department of Economics, Central Michigan University)

  • Clifford F. Thies

    (Shenandoah University)


vThe Confederacy relied heavily on inflationary finance. Of the states of the Confederacy, only Texas was able throughout the war to enforce mandatory tax payments. In November 1864, Texas enacted fiscal measures designed to support the value of its state-issued currency, while it was increasing the amount in circulation. These measures were effective in doubling the value of the Texas warrants. As a result, Texas was able to continue to operate even after the defeat of the Confederacy elsewhere, until the state was overrun by Union forces. These results strongly support the tax-backing theory of money.

Suggested Citation

  • Gary M. Pecquet & Clifford F. Thies, 2006. "Texas Treasury Warrants, 1861-1865: A Test Of The Tax-Backing Of Money," Eastern Economic Journal, Eastern Economic Association, vol. 32(2), pages 191-203, Spring.
  • Handle: RePEc:eej:eeconj:v:32:y:2006:i:2:p:191-203

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    References listed on IDEAS

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    1. Gary Pecquet & Clifford Thies, 2010. "Money in occupied New Orleans, 1862–1868: A test of Selgin’s “salvaging” of Gresham’s Law," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 23(2), pages 111-126, June.

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