Question

Why did the economy of Texas struggle when it became a republic (after independence)?

Question options:

A. land was not available for settlers who moved to Texas


B. Texas outlawed slavery so there was a labor shortage


C. Texas had so much land that it was tough to trade


D. Texas was in debt

Answer 1

Answer:

D)

Explanation:

Among many things, like military problems and conflictions with the native indians, debt was the main problem the Republic of Texas had because they needed supplies and other services.

Answer 2

Answer:

The correct answer is D. The economy of Texas struggled when it became a republic because Texas was in debt.

Explanation:

During the Texas Revolution, which took place from October 2, 1835 to April 21, 1836 and culminated in the independence of the Republic of Texas from Mexico, the Texan government contracted a series of loans to finance the struggle and provide arms and resources to its forces, which were provided by American banks. In addition, once independent, the Texan government began to issue bonds and debt securities that were acquired by European nations and, mainly, by the United States. The problem was that, at the time of maturity of these bonds and debt securities, the Texas government did not have the money to cover all the maturities. This situation led to a lack of financing from the Texas government, and was one of the reasons why the United States ended up annexing Texas to its territory.