Today in Texas History – October 21

From the Annals of Money –  In 1822, the first Texas bank was established by Governor José Félix Trespalacios. The Banco Nacional de Texas, or Texas National Bank, is reputed to be the first charted bank west of the Mississippi in what is now the United States.  The initial officers were members of local government and the bank was created primarily to provide funds to pay Mexican officials and soldiers.  The bank was short-lived but issued approximately 12,000 pesos in two installments on November 1 and December 1, 1822 to be backed by the specie due from the central government. The bank’s notes were declared legal tender for public and private debts, but trust in the currency was lacking. Citizens readily paid their taxes to the municipality in the notes, but many individuals had to be forced to accept the paper money.  After which the bank was suspended, most noteholders refused to accept Mexican paper currency in exchange and held out for payment in specie.  Finally, in 1830 the bank notes were finally exchanged in Saltillo for coin provided by the customhouses of Matamoros and Tampico.

Image of José Félix Trespalacios from http://www.snipview.com.

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