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A Financial History Of Texas | by Edmund Thornton Miller



The increasing number of histories of Texas and of books about Texas testify to the| appeal which the history of the state lias alike to its sons and daughters and to those who are foreign to its soil. Texas has been under the flags of France, Spain, Mexico, the Republic of Texas, the Confederate States of America and the United States, and the scroll which records these changing fortunes has attracted the novelist, the political historian, the student of imperialism and of colonizing movements, and finally the economic and financial historian. Just as its political history is the most fascinating of any of the American states, so its financial history is varied, frequently spectacular, usually interesting, and always illustrative of either the principles or the fallacies of public finance.

TitleA Financial History Of Texas
AuthorEdmund Thornton Miller
PublisherThe University Of Texas
Year1917
Copyright1916, The University Of Texas
AmazonA Financial History Of Texas

By Edmund Thornton Miller, Adjunct Professor of Economics in the University of Texas

-Publications Of The University Of Texas
Publications Committee: A. C. Judson B. C. Barker J. M. Bryant G. C. Butte R. H. Griffith The University publishes bulletins six times a month. These comprise the official publications of the Univ...
-Preface
The increasing number of histories of Texas and of books about Texas testify to the| appeal which the history of the state lias alike to its sons and daughters and to those who are foreign to its soil...
-Part I. Chapter 1. The Spanish-Mexican Period
On January 17 1821, when Moses Austin was given permission by the Spanish authorities to introduce three hundred families into Texas, that Spanish colonial possession was a wilderness except for rovin...
-Chapter 2. The Revolution
From October 11, 1835, the date of the formation of the Permanent Council, to October 22, 1836, when the permanent government of the Republic of Texas was inaugurated, governmental functions were perf...
-Part II. The Republic, 1836-1846. Chapter 1. Expenditures
The convention which at Washington, on the Brazos, declared independence, also established a government ad interim, and, on March 17, 1836, adopted a constitution. The battle of San Jacinto was fought...
-Part II. The Republic, 1836-1846. Chapter 1. Expenditures. Part 2
President Houston's first administration extended from October, 1836. to December, 1838. The total expenditures from January 1, 1837, to September' 30, 1838, the close of the fiscal year, were $1,777,...
-Part II. The Republic, 1836-1846. Chapter 1. Expenditures. Part 3
The three years of the Lamar administration saw an increase in treasury notes and in expenditures that was unparalleled in any former or succeeding administration. The debt was more than tripled and t...
-Chapter 2. Receipts
Morfit, the agent sent by President Jackson to Texas to report on its condition, wrote in September, 1836, that the present resources of Texas are principally derived from the sympathies of their nei...
-A. The Tariff
The first general tariff was that enacted December 20, 1836.3 It levied only ad valorem duties, which varied from 1% on bread-stuffs to 50% on silk goods. Sugar and coffee were charged 21/2%; coarse c...
-The Tariff. Continued
The weight of the tariff lay upon the necessaries of life, such as breadstuffs, meats, sugar, salt, assorted groceries, boots and shoes, dry goods and wearing apparel, household furniture, tools, and ...
-B. To Image Dues And Port Fees
The several acts to levy customs duties imposed also tonnage duties, and entrance, clearance and other port fees. These were reported by collectors along with customs receipts, and commissions, when t...
-C. The Property Tax
No direct taxes were levied by any of the revolutionary governmental bodies, because of the delay involved in their establishment and operation, the state of confusion existing in the country, and the...
-The Property Tax. Continued
Up to 1840 it was the rule to assess property, both real and personal, at the place where the owner, agent, or administrator resided. A change was made by the act of January 16, 1840, which provided t...
-D. Business Taxes
The taxation of business took the form of license and excise taxes, and taxes upon gross sales of merchandise. There were no taxes of this character until June, 1837, and from then until 1840, merchan...
-E. The Poll Tax
A poll tax of $1 was levied from 1837 to 1845, when it became 50 cents. By the act of June 12, 1837, it was levied on all males, not slaves, between the ages of twenty-one and fifty-five. The act of J...
-F. The Characteristics And The Operation Of The System Of Property And Business Taxes
The distinctive features in the taxation of property by the republic were the employment of specific duties, the fixing of a minimum valuation of land, and the discrimination against the property of n...
-The Characteristics And The Operation Of The System Of Property And Business Taxes. Continued
There were defects in the system of collection. The sheriff performed this task of collection of. taxes in addition to his other duties. He was frequently derelict not only in making collections but a...
-G. Land And Land Dues
The estimated area of Texas at the beginning of the republic was 242,594,560 acres, and the most of this vast area was not only unoccupied but unclaimed. Land was the one thing in which Texas was rich...
-H. Miscellaneous And Unclassified Receipts
Except for the year 1839, the receipts of a miscellaneous character were negligible. The receipts for this year were large because it was not found possible to classify the amount derived from taxes a...
-I. Character Of Receipts
The bulk of the receipts from taxes and other sources was in the form of treasury notes and audited drafts. It was only at the end of the period that specie to any important amount was received.2 Audi...
-J. Local Taxes
Owing to the lack of statistics of any kind, nothing can be given in regard to county and other local taxes except the provisions in the laws. The act of December 20, 1836, provided that the county bo...
-Chapter 3. The Public Debt
Upon the establishment of the permanent government in October, 1836, the public debt was estimated at $1,250,000; in 1846, the estimated amount was nearly $10,000,000; and the amount for which provisi...
-A. Ten Per Cent Bonds Of The Five Million Dollar Loan Acts
One of the first measures of the First Texas Congress was to authorize the president to negotiate a loan not to exceed five million dollars. The terms offered to lenders were 10% interest, and payment...
-B. Audited Drafts And Audited Claims
The domestic debt was incurred in meeting the ordinary expenditures of the government, although there may be some question about calling ordinary the expenditures on account of Indian and Mexican depr...
-C. Treasury Notes
The history of paper money has been enriched by the experience of the Republic of Texas Excessive issue, depreciation to the point of worthlessness, old and new tenors, varying tender qualities, and, ...
-Treasury Notes. Part 2
Although the outstanding circulation at the close of Houston's administration was over $800,000, he had stood for restriction of issue. Under Lamar, however, there was no restriction of amount. From J...
-Treasury Notes. Part 3
The end of the interest notes and red-backs came in January, 1842, when they lost their legal tender power in payments of customs, direct and license taxes. They remained, however, a tender for land d...
-D. Eight Per Cent Treasury Bonds
The act of February 5, 1840, authorized the secretary of the treasury to issue in denominations of $100, $500, and $1,000, 8% coupon bonds, to an amount not exceeding $1,500,000. Interest was to be pa...
-E. Ten Per Cent Bonds Of June 7, 1837
The rapidly increasing amount of government indebtedness in the form of audited drafts and the existence of many un-audited claims led to the passage of the act of June 7, 1837. It provided for the ap...
-F. Eight And Ten Per Cent Bonds Of February 5, 1840
To succeed the funding act of June 9, 1837, which expired January 1, 1840, and in order to relieve the currency of the plethora of treasury notes, the funding act of February 5. 1840, was passed. It p...
-G. Miscellaneous Debts
Under the ordinance and decree of December 5, 1835, authorizing a loan of $1,000,000, there were two loans made of investors in New Orleans. The history of these loans has already been given,4 and it ...
-H. Recapitulation
The total amount of specie or specie equivalent received by the Republic of Texas from loans was $457,380, and if to this are added the proceeds of loans made by the revolutionary governmental bodies ...
-Part III. The State, 1846-1861. Chapter 1. Introduction
In the general election held in September, 1836, to ratify the constitution of the republic and to elect the national officers, the voters of Texas declared themselves almost unanimously in favor of a...
-The Reconstruction, 1865-1874. Chapter 2. Expenditures
The history of expenditures to 1861 may be divided into the two periods, 1846-1851 and 1852-1860. Down to 1852 the policy of economy followed during the last years of the republic was continued. Annex...
-The Reconstruction, 1865-1874. Expenditures. Continued
Until 1856 the state made no provision for the insane, the blind, or the deaf and dumb, but in that year buildings and maintenance were authorized for each of these, and each of the institutions was e...
-The Reconstruction, 1865-1874. Chapter 3. The School Funds
No system of public schools arose during the period of the republic, but the liberal land grants to education made in 1839 were recognized and continued by the state. The Constitution of 1845 containe...
-The Reconstruction, 1865-1874. Chapter 4. Receipts
The provisions in the Constitution of 1845 relating to taxation were: (1) Taxation shall be equal and uniform throughout the state. All property in this state shall be taxed in proportion to its valu...
-The Reconstruction, 1865-1874. A. The Property Tax
A direct ad valorem tax was levied on all real and personal property except that exempted. The laws were content with the general statement that all property should be taxed, and entered on no definit...
-The Reconstruction, 1865-1874. The Property Tax. Part 2
In the act of 1846 provision was made for the assessment of the unrendered property of non-residents only. It was assessed to the owner, if known, otherwise by description, and it was assessed for its...
-The Reconstruction, 1865-1874. The Property Tax. Part 3
The legislation of 1846 and the years closely following- has been' given in considerable detail in order that there might be a full understanding of the system of property taxation established at the ...
-The Reconstruction, 1865-1874. The Property Tax. Part 4
The weakness of the tax system was not the failure to tax corporations or to reach personalty, but it was the escape of land both from assessment and from proper valuation. The difficulty that existed...
-The Reconstruction, 1865-1874. B. Business. Taxes
The property tax was a business tax inasmuch as it applied to the real and personal property which was employed in any business. In fact, the property tax was the only business tax. except license or ...
-The Reconstruction, 1865-1874. C. The Poll Tax
From 1846 to 1848 a poll tax of $1.00 was levied upom every free male person between the ages of 21 and 60, Indians and persons non compos mentis excepted.3 In 1848 the age limits were made 21 and 55....
-The Reconstruction, 1865-1874. D. Receipts From Other Sources
Of great importance to the state in the first year of its history were the receipts on account of the revenue due the Republic of Texas. They amounted to $125,993, and are to be compared with about $5...
-The Reconstruction, 1865-1874. Chapter 5. The Public Debt
The controversy over the settlement of the debt of the Republic of Texas which was inherited by the State of Texas is one of the most spectacular features in the whole financial history of Texas. The ...
-The Reconstruction, 1865-1874. The Public Debt. Part 2
The scheme of scaling, or, as it was more euphemistically called, classification of the debt, which was adopted by Texas, and the plan for payment in land were not acceptable to the creditors. They co...
-The Reconstruction, 1865-1874. The Public Debt. Part 3
The interpretation by the officials of the United States of the proviso in the Boundary Act and the report of the auditor and the comptroller of the debts as ascertained to November 12, 1851, were fol...
-The Reconstruction, 1865-1874. The Public Debt. Part 4
The $7,750,000 was to be pro-rated among the holders of the debt reported to be within the provisions of the act of September 9, 1850, by Secretary Corwin and Attorney General Cushing. Thus the differ...
-The Reconstruction, 1865-1874. The Public Debt. Part 5
The refusal of Texas to fulfill to the creditors who lost the $123,217 which she had previously acknowledged was due them is an illustration of the hostile attitude of the state towards the holders of...
-The Reconstruction, 1865-1874. Summary
The first period of statehood began and ended with the general treasury in financial difficulties, and but for the opportune receipt of the $5,000,000 of United States bonds and the assumption of the ...
-Part IV. The Civil War, 1861-1865. Chapter 1. Expenditures
Texas was perhaps the most fortunate of the Confederate States during the war. Her territory was not a battleground and was free from devastating invasion. That part of her population which was not in...
-The Civil War. 1861-1865. Chapter 2. Receipts
Texas entered upon the war period in an unsatisfactory financial condition. In 1860 the means for defending the frontier against Indian uprisings were largely provided by the use of the United States ...
-The Civil War. 1861-1865. A. The Property Tax
The ad valorem rate of the general property tax remained, against the counsel of the governor, at 12 1/2 cents in 1861, with an additional 4 cents, collectible in specie, to meet the interest and prov...
-The Civil War. 1861-1865. B. The Poll Tax
By the act of January 13, 1862, the poll tax was raised from 50 cents to $1.00, and was assessed throughout the war on all male persons over 21 years of age.4 The assessments were as follows: 1...
-The Civil War. 1861-1865. C. Business Taxes
An extensive system of occupation taxation was begun by the act of January 13 1862.1 Some features of this act were the reimposition of a license charge upon doctors, lawyers, and dentists, - a practi...
-The Civil War. 1861-1865. D. Income Taxation
Under the amended Constitution of 1861, as under the original of 1845, the legislature had the power to. lay an income tax. A Beginning of income taxation was made in the act of January 13, 1862, whic...
-The Civil War. 1861-1865. E. Receipts From Taxes
The financial reports of this period do not classify the receipts from the several taxes, and for the general property tax and the poll tax one must rest content with the assessments to get an idea of...
-The Civil War. 1861-1865. F. Public Lands
There was little demand for the public lands during the period of the war, and the receipts from sales were almost entirely in the form of treasury warrants. The act of January 1, 1862, made two impor...
-The Civil War. 1861-1865. G. Character Of Receipts
The act of February 9, 1861, authorized the receipt of 10 per cent interest warrants in payment of land and the 2 per cent sinking fund of railroad bonds held by the school fund, and the act of Januar...
-Chapter 3. Public Debt
From the beginning of statehood to 1860 Texas had no public debt other than that inherited from the Republic of Texas. The inadequacy of the revenue system and the increase in expenditures due to fron...
-Chapter 4. School And University Funds
The amount due the school fund at the close of the war was $1,137,406.65. $766,700 of this was for United States bonds and interest coupons transferred to the Military Board in August and November of ...
-Chapter 5. Condition Of The Treasury At The Close Of The War
On June 8, 1865, the total cash balances on hand amounted to $3,368,510.07. This was made up of $2,908,038.34 in Confederate notes, $445,074.37 in state paper, and $15,397.36 in specie. Only $362,548....
-Part V. The Reconstruction, 1865-1874. Chapter 1. Introduction
Although General Lee surrendered early in April, 1865, the break-up of the Confederacy did not occur in Texas until the end of May. Disorganization of all authority followed, and in the general confus...
-The Period Of Recovery, 1874-1880. Chapter 2. Expenditures
The character and amount of expenditures are exhibited in the appendix. The table there presented shows only the amount of warrants drawn during each fiscal year; and, owing to a continued treasury de...
-The Period Of Recovery, 1874-1880. Chapter 3. Receipts. A. The Property Tax
The chief source of receipts during this period was taxation, and the main tax was, as in previous periods, the ad valorem tax upon real and personal property. The work of assessment and collection wa...
-The Period Of Recovery, 1874-1880. B. Income And Salary Taxes
The income tax levied during the war was not an income tax in the strict sense of the term, but was really an occupation tax. Governor Throckmorton recommended certain changes in it, the chief ones be...
-The Period Of Recovery, 1874-1880. C. Business Taxes
The business taxes levied during this period were the customary specific occupation taxes, the income tax as described above, and the special tax upon the receipts of railroad, telegraph and insurance...
-The Period Of Recovery, 1874-1880. D. The Poll Tax
A poll tax of $1 was levied throughout the Reconstruction period. Until 1871 it applied to all males over twenty-one years of age, thereafter to those between twenty-one and sixty years, with the usua...
-The Period Of Recovery, 1874-1880. E. Other Receipts
Next to taxation the chief source of receipts was the sale and hypothecation of bonds. The attempt was made during the Throckmorton administration to issue frontier defence bonds, but it was unsuccess...
-The Period Of Recovery, 1874-1880. Chapter 4. Educational Funds. A. The School Fund
At the beginning of this period the assets to the credit of the school fund were $1,753,317 of 6 per cent railroad bonds, $320,-367.13 of 6 per cent state bonds, and $19,474 in state warrants. The am...
-The Period Of Recovery, 1874-1880. B. University Fund
The university fund had been depleted of its assets by the legislation of 1860 and was possessed of nothing at the beginning of this period except some state warrants and a comptroller's certificate o...
-The Period Of Recovery, 1874-1880. C. Agricultural And Mechanical College
By the act of Congress of 1862 and the supplementary act of 1866, Texas received from the United States land scrip for 180,000 acres for the purpose of establishing an agricultural and mechanical coll...
-The Period Of Recovery, 1874-1880. Chapter 5. Public Debt
The first official statement of the debt incurred during the war was made in October, 1865. A. J. Hamilton was appointed provisional governor of Texas by President Johnson on January 17, 1865, and ex-...
-The Period Of Recovery, 1874-1880. Public Debt. Part 2
The convention appears to have acted, however, in accordance with what it conceived to be the President's restoration policy. We have by ordinance declared the entire debt growing out of, and accrui...
-The Period Of Recovery, 1874-1880. Public Debt. Part 3
(1) That All debts created by the so-called State of Texas, from and after the 28th day of January, 1861, and prior to the 5th day of August, 1865, were and are null and void; and the Legislature is ...
-The Period Of Recovery, 1874-1880. Public Debt. Part 4
All of this legislation of the state and all the acts of the auditorial boards related to the debt of the state to individuals. The 5 per cent bonds, amounting to $82,168.82, issued under the act of N...
-The Period Of Recovery, 1874-1880. Public Debt. Part 5
It may be asked further, Was the principal of the valid debt promptly paid at maturity? The bonds issued under the act of March 20, 1861, were payable July 1,1871. Because these bonds were issued duri...
-The Period Of Recovery, 1874-1880. Public Debt. Part 6
The result of the large floating debt was injustice to creditors, an added cost to the state for supplies purchased, and collusion between officials and creditors in the payment of warrants.1 The disc...
-The Period Of Recovery, 1874-1880. Conclusion
The salient features of the Reconstruction financial period of Texas history are the large growth of expenditures, the great increase in taxation, and the rapid accumulation of a comparatively heavy d...
-Part VI. The Period Of Recovery, 1874-1880. Chapter I. Introduction
Richard Coke was inaugurated governor on January 15, 1874, which event marked the political end of the Republican regime and of the Reconstruction in Texas. Although a tax rate of fifty cents had bee...
-The Period 1881-1915. Chapter 2. Expenditures
The period from 1874 to 1880 was one unusually full of influences conducive to economy in public expenditures. The panic of 1873 cast its shadow of depression over the country until 1879, and this alo...
-The Period 1881-1915. Chapter 3. Receipts
The revenues accruing during this period were of two classes, ordinary and extraordinary: the latter came from the sale of bonds, the former from taxes, fees, interest on investments, and the like. Th...
-The Period 1881-1915. A. The Property Tax
The scope of this tax remained what it had always been, and it is described in article 8, section 1, of the Constitution of 1876 to be as follows: All property in this state owned by natural persons ...
-The Period 1881-1915. The Property Tax. Part 2
Paschal said of taxation in this state during the Civil War and the Reconstruction that it was another of those subjects upon which legislation has been feverish, restless, changeable, and almost irr...
-The Period 1881-1915. The Property Tax. Part 3
A frequent complaint met with in this period of the state's financial history, and especially before 1876, is the non-rendition of land. This resulted in inequality of taxation, but the explanation fo...
-The Period 1881-1915. The Property Tax. Part 4
It was also provided in the Constitution of 1876 that the legislature might constitute any city or town a separate and independent school district, but the tax limit was not fixed.3 The statute relati...
-The Period 1881-1915. B. Business Taxes
Under business taxes are included the general propery lax modified in administrative details to suit the special conditions of business, the ordinary occupation taxes, and the special occupation taxes...
-The Period 1881-1915. Business Taxes. Continued
An important change in the administration of occupation taxes was made in 1879. Until 1879 collectors were charged on the books of the comptroller's office with only such taxes as they reported collec...
-The Period 1881-1915. C. The Poll Tax
Section 1 of article 8 of the Constitution of 1876 provides that the legislature may impose a poll tax, and section 3 provides that there shall be set apart annually a poll tax of $1 on all male in...
-The Period 1881-1915. D. Miscellaneous Receipts
Miscellaneous receipts were mainly from fees, interest on investments, and land sales.1 The bulk of the fee revenues came to the general land office for work done by it in connection with the administ...
-The Period 1881-1915. Chapter 4. Public Lands
The legislation of April, 1874, provided for the sale of the school, university and asylum lands.1 Preference in purchase was accorded actual settlers, they being given six months from the date of the...
-The Period 1881-1915. Chapter 5. School And University Funds
During this period there existed the same division of the school fund into a permanent and an available fund which had been made in 1870. The principal of the bonds and other funds and the principal o...
-The Period 1881-1915. Chapter 6. Public Debt
The public debt constituted the liveliest of the period's financial problems. When the Coke administration succeeded the Davis on January 14, 1874, the general revenue account was confronted with esti...
-The Period 1881-1915. Public Debt. Part 2
Western Texas took a vital interest in the construction of the road, which caused strong resentment to be expressed against the legislature and the governor, and the old talk of dividing the state to ...
-The Period 1881-1915. Public Debt. Part 3
This bond issue represented in the main only a change in the form of the state debt. Only $200,000, or the par value of that sold to meet current deficiencies in the ordinary revenue, was an addition ...
-The Period 1881-1915. Public Debt. Part 4
The Constitution of 1876 does not require that the establishment of a sinking fund shall accompany the creation of a debt. It merely states that the legislature shall have the right to levy taxes for ...
-Part VII. The Period 1881-1915. Chapter 1. Introduction
By 1880 Texas had emerged definitely from under the spell of depression cast by the Civil War, the Reconstruction, and the panic of 1873. Conditions which trace their origin to these unhappy periods p...
-Chapter 2. Expenditures
An index of the development of a state is the growth and character of its public expenditures. The eminent German economist, Adolph Wagner, has stated what he calls the law of the increase of public e...
-Expenditures. Part 2
In 1907 a state mining board was established and provision was made for the inspection of mines by a state inspector for the purpose of securing the safety of those engaged in the mining occupation.4 ...
-Expenditures. Part 3
In 1895 the Confederate veterans' home which had been conducted by the John B. Hood camp of Confederate veterans and maintained by private aid was taken over by the state, and in 1911 the Confederate ...
-Expenditures. Part 4
Since 1880 expenditures for the volunteer guard have increased, and after 1890 the cause of the increase has been the cost of transportation and subsistence of the guard on the occasions of annual enc...
-Expenditures. Part 5
The possession of large industrial and agricultural properties and the frequent undertaking of various industrial experiments have complicated the finances of the system and have proved costly to the ...
-Expenditures. Part 6
Besides the industries described above, the penitentiary system owns and operates with convict labor a number of farms. The legislature in 1885 authorized the purchase of a farm or farms for the penit...
-Chapter 3. Receipts
Equally noteworthy with the growth of expenditures is the growth of receipts, and this is proof of the state's remarkable material development since 1880. The net receipts of the state government, inc...
-Chapter 4. The Operation Of The Property Tax
No modification of this tax in any of its essentials has taken place since 1880. It remains a tax on property, applying an equal and uniform rate to all real and personal property, except such as is e...
-The Operation Of The Property Tax. Part 2
The amount bid in each year by the state is affected somewhat by commercial conditions; but for years the laws were unquestionably impotent, and the amount of taxes for which land was taken over by th...
-The Operation Of The Property Tax. Part 3
The waste, loss, and cost incident to assessment and collection of taxes - including poll and occupation - was 18 per cent of the taxes assessed in 1882; 19.6 per cent in 1887; 18.4 per cent in 1891; ...
-The Operation Of The Property Tax. Part 4
The escape of money, credits and securities from assessment can not be statistically shown, though it can be roughly established in the case of money. The law considers deposits subject to sight check...
-Chapter 5. The Rates Of The Property Tax
(1) State Bates. One of the theories advanced in explanation of the breakdown of the general property tax as applied to intangible property is that the high rates induce many owners of such property ...
-The Rates Of The Property Tax. Continued
The taxing power of counties has been increased considerably since 1883, In 1890 article 8, section 9 of the constitution was amended so as to empower the legislature to authorize an additional road a...
-Chapter 6. Business Property Taxes
The general property tax applies to business property, but in the cases of the property of railroads, insurance companies, and banks, rules of administration differ from those applying to other proper...
-B. Insurance Companies
Insurance companies, both domestic and foreign, are, except fraternal or benevolent companies, subject to taxation by the property tax on their real and personal property; but on account of the need o...
-C. Banks And Bankers
Until 1905, when as a result of an amendment to the constitution state banks were authorized to be incorporated, the only banks in the state were national banks, private banks, and the state banks cha...
-D. Other Businesses
The intangible assets tax of 1905 was made to apply not only to railroad, ferry, bridge, and turnpike or toll road companies, but also to wharf, telegraph, interurban railroad, express, packing house ...
-Chapter 7. General Occupation Or License Taxes
Until 1907 Texas had a very extensive system of license taxes. There was considerable increase of these taxes in 1879 over the rates prevailing in 1876, and in 1881 when a reduction of taxation became...
-General Occupation Or License Taxes. Continued
(3) Those on persons engaged in the commission business, on cotton brokers, merchandise brokers, electric light companies, gas companies, ice dealers, credit associations, insurance adjusters, industr...
-Chapter 8. Corporation Occupation Taxes
The development of special taxes applying to corporations or to businesses conducted customarily under the corporate form is the most striking feature in the history of taxation in the state since 188...
-B. Sleeping, Palace, And Dining Car Companies
In 1880 these companies were subject to an ad valorem tax of one-half of one per cent upon the value of their property in the state. In 1881 it was provided that from every person, firm or associatio...
-C. Express Companies
In 1880 an express company was subject to a fixed annual occupation tax of $750, but $250 of this amount was apportioned by the comptroller among the counties according to the business done in each, a...
-D. Telegraph Companies
In 1880 the occupation tax on a telegraph company was one cent for each full rate message and one-half cent for each message less than full rate. Railroad messages in operating trains and company mess...
-E. Telephone Companies
The first occupation tax imposed by Texas on telephone companies was in 1882, and was a state tax of $50 and a county tax of $10. The state tax was, unlike the other corporation occupation taxes, coll...
-F. Steamboats And Stage Coaches
In 1880 there was a tax of 1% on the gross passenger receipts of steamboats and stage coaches. In 1882 it was reduced to three-fourths of 1%, but was increased to 1% in 1889. The stage coach tax disap...
-G. Street Railways
The first occupation tax laid by Texas upon street railways was in 1897 and was one of $2 per mile of track owned. It was collected by the county collector and total receipts were $567 in 1906. In 190...
-H. Gas, Water, And Electric Companies
Only gas companies were subject to an occupation tax in 1880. It was one of $50 and applied only to plants in cities of 10,000 or more inhabitants. It was collected by county collectors, and its use w...
-I. Insurance Companies. (A.) Life
In 1880 life insurance companies were subject to a state occupation tax of $300, payable annually to the comptroller, and to a county tax of $10. The county tax was reduced to $7 in 1882, but was incr...
-(B.) Other Insurance Companies
Fire and marine insurance companies were subject until 1882 to a state annual occupation tax of $200 and to a county tax of $10. In 1882 guaranty, accident, health, and livestock insurance companies w...
-J. Other Occupations
Credit agencies were first taxed by Texas in 1889. and the tax was $250 annually, but no county or city taxation of them was permitted. This was increased to $300 in 1897 and remained at that amount u...
-Chapter 9. Corporation Franchise Taxes
Prior to 1893 there was no special taxation of franchises, but they were subject to taxation as property under the property tax. Governor Hogg suggested in 1891 an annual franchise tax, but it was not...
-Summary Of Corporation Taxation
The history of special corporation taxation in Texas reveals that until 1893 only railroads, steamboats, and stage coaches were taxed by the gross receipts method, while other corporations were taxed ...
-Chapter 10. The Poll Tax
In 1881 the poll tax levied by the state was $2, $1 of which was for general revenue purposes and $1 for the benefit of the public free schools. Counties and cities were each permitted to levy a tax o...
-Chapter 11. The Inheritance Tax
The taxation of inheritances was adopted by Texas in 1907. The tax applies to all property within the jurisdiction of this state, real or personal, corporeal or incorporeal, any interest therein, whe...
-Chapter 12. Fees
There are administrative, judicial, and educational fees collected. The departments or branches of the state government which receive fees which accrue to the general treasury are the state, comptroll...
-Chapter 13. The Public Lands
The history of the public lands since 1880 is difficult to follow because of the frequent changes in the land legislation, the complexity of such legislation, and the numerous court decisions affectin...
-A. The Unappropriated Lands And The Debt And Capitol Reservations
Under the policy of free grants to railroads, war veterans, homesteaders, and to the public free school fund, the unappropriated public domain was rapidly passing from state ownership. During the year...
-B. Lands Of The Public Free School Fund
The bulk of the landed domain of the state has gone to an endowment of education, and it has been in connection with the administration of this land endowment that the most serious problems of adminis...
-A. Agricultural Lands
Until 1883 there were two sets of acts governing the sale of school lands; one act related to the alternate sections which had been surveyed by railroad companies and other agencies of internal improv...
-Agricultural Lands. Part 2
Another abuse during the period was the free use of the school lands for pastures. This was the free grass policy which had always been followed in Texas. An unsuccessful attempt was made in 1881 t...
-Agricultural Lands. Part 3
It limited to 1,280 acres the amount of pasture land which one person could purchase. The first leasing of the public lands took place in January, 1884, and was at the minimum rental of four cents an...
-Agricultural Lands. Part 4
Other features of the land legislation of 1889 were the lowering of the minimum of agricultural land purchasable from 160 acres to 80 acres and the repeal of the pre-emption law.1 As the privilege of ...
-Agricultural Lands. Part 5
Under the laws of 1895, 1897, and 1901 the lessee had at the expiration of his lease a, prior right to purchase as a settler the land which he had leased. This gave lessees an advantage over others, a...
-Agricultural Lands. Part 6
In 1882 it was enacted that no pine timbered land should be sold for less than $5.00 an acre.4 This land had been selling at $1.00, $1.50, and $2.00 an acre, and the school fund had been the sufferer ...
-C. Mineral Lands And Minerals
The mineral resources of Texas are varied and rich and since so much of the land in which minerals have been found belonged at one time to the school fund, and since there is left so much unsold miner...
-D. Summary
The advertising and bidding methods introduced in 1905 resulted in an estimated gain of $20,783,882 to the school fund during the seven years 1906-1912 over the old methods of sale.2 Some land which w...
-C. University Lands
Until 1895 the university lands were administered by the general land office, and their administration was characterized by the merits and shortcomings of the public land legislation and administratio...
-D. Asylum Lands
The asylum lands, granted by the act of 1856, were surveyed in Callahan, Comanche, Eastland, Jones, Shackelford, Stephens, Taylor, and Tom Green counties.4 Instead of there being 100,-000 acres survey...
-E. Conclusion
Since 1880 there has taken place not only the complete appropriation of the free public domain but also the disposal by sale of the easily cultivable school, university, and asylum lauds. On August 31...
-Chapter 14. The Public Debt
The four things which stand out prominently in the history of the public debt since 1880 are the reduction in the amount of the debt, the refunding operations, the acquirement of the bonded debt by th...
-The Public Debt. Continued
There has been no increase in the bonded debt of the state since 1879 except in 1885, when a deficit in the general revenue led to the issue of $200,000 of state bonds.1 Not classified by the comptrol...
-Chapter 15. Public Education. A. The Permanent School Fund
The permanent school fund had in bonds and cash on August 31, 1880, $3,542,126 ; and on August 31, 1914, it had $18,030,326 in bonds and cash, and $47,067,427 of promissory notes of the purchasers of ...
-Public Education. A. The Permanent School Fund. Continued
According to the comptroller's report for 1915 the permanent school fund had on hand August 31, 1915, $1,703,317 of railroad bonds. Of these $1,603,317 were purchased under the act of 1856 and $100,00...
-B. The Available School Fund
The available school fund has had an enormous growth since 1880. In 1880 the receipts to the fund from taxes were only $497,166.40 and from interest on the permanent school fund, $198,317.79; and the ...
-C. The University Of Texas
In 1880 Texas did not expend out of the general revenue as much as one cent on higher education. There was disbursed, however, out of the university land sales fund and the Agricultural and Mechanical...
-D. The Agricultural And Mechanical College
The permanent fund of the Agricultural and Mechanical College has consisted up to the present time of the $209,000 of state bonds in which the proceeds of the sale of original land endowment by the Fe...
-E. Other Higher Educational Institutions
The other state institutions for higher education, consisting of the Girls' Industrial College, the Sam Houston Normal, the North Texas State Normal, the Southwest Texas State Normal, the West Texas S...
-F. A Special Tax
A special tax for the benefit of all the higher educational institutions has been earnestly urged by the friends of public higher education. The constitution (art. 3, sec. 48) legalizes a tax for the ...
-Chapter 16. Financial Administration
The governor is required by the constitution to present estimates of the amount of money required to be raised by taxation for all purposes.1 It has long been the practice for the comptroller to rec...
-Financial Administration. Continued
No thought was taken until 1907 - or at least none that led to any results - as to whether or not the state's business was organized and conducted as efficiently as its importance and magnitude demand...
-Chapter 17. Conclusion
Attention may now be directed to some of the financial needs of the state. The growing importance of government is shown in Texas in the growth of state expenditures. Though there is complaint about p...
-Conclusion. Continued
Property as a measure of ability to pay taxes is inferior to income, and tax systems will work injustice until income takes the place of property as a basis. An income tax should distinguish between i...
-Appendix. Table 1. Revenues Of The Republic
Direct Taxes Customs Licenses Land and Land Dues Miscellaneous Total 1836-1838.. $ 100,455 S 133.649 ....... $ 21,123 $ 5.552 ...
-Table 2. Expenditures Of The Republic
1836...... $ 495,295 1837........ 945,961 1838........ 831,401 1839........ 1,504,173 1840......... 2,174,752 1841........ ...
-Table 3. Classified Appropriations Of The Republic
Civil Array Navy Judiciary Congress Miscellaneous Total 1837.... $ 150,000 $ 700,000 $ 130,000 ............ ........ $ 33...
-Table 4. Public Debt Of The Republic
1836........... $1,250,000 1837......... 1,090,984 1838........... 1,886,425 1839......... 3,855,900 1840........ 6,241,409 ...
-Table 5. Treasury Note Circulation
1838.................... $ 684,069 1830............... 2,013,762 1840............... 3,287,962 1841.......... 2,920,860 1846.........
-Table 6. Retail Prices In The Houston (Texas) Market
(Compiled from the Telegraph and Texas Register.) Aug. 19, 1837 Sept. 1, 1838 Dec. 25, 1839 Sept. 9, 1840 Oct. 6, 1841 Sept. 14, 1842 Aug. 30, 1843 Aug. ...
-Table 7. Classification Of Warrants Drawn On The General Revenue Fund And Of Disbursements Of Special Funds
Tears General Administration Financial Administration Legislature Public Buildings and Grounds Public Printing Militia Judiciary Education Charities ...
-Table 8
Net Expenditures. Year General Fund Available School Fund Available University Funds All Other Funds Total 1847........ $ 127,677 ...
-Table 9. Expenditures For Higher Education
1883.............................. $ 96,204 1884................. 189,496 1885................. 164,650 1886................. 84,876 1887....
-Table 10. Classified Net Receipts
Year Taxes Sale of Bonds Sale of Land Lease of Land Interest Fees Miscellaneous Total 1847... $ 58,653 ........ ........ .......
-Table 11. Classified Taxes
Year Ad-valorem Taxes Poll Taxes Income Tax Salary Tax General Occupation Taxes Special Occupation Taxes Franchise Taxes Inheritance Tax 1846____...
-Table 12. Tax Rates
Year General Revenue Ad Valorem Cents School Ad Valorem Cents General Revenue Poll School Poll Confederate Ad Valorem Cents 1846.............. 20 ...
-Table 13. Assessed Values Of Property
Year Real Property Negro Slaves Livestock Money, Credits and Securities Merchandise Railways Telegraph and Telephone Other Property Total 18...
-Table 14. General Revenue Fund
Year Receipts Expenditures Transfers Total Disbursements Balance at end of year 1847........... $ 178,915 $ 127,677 ........... $ 127,677 ...
-Table 15 Available School Fund
Year Receipts Ordinary Disbursements Other Disbursements Total Disbursements Balance at End of Year 1847.......... $ 5,885 ........... ........
-Table 17. Public Debt
Year 3% 4% 5% 6% 7% 8% 10% Floating Debt Total 1840............. ............. ............. ............. ................
-Table 18. Ownership Of The State Bonded Debt
Year Owned by Trust Funds in the Treasury Owned by Individuals 1865................ $ 320,367.13 $ 805,762.88 1866............. 320,367.13 ...
-Bibliography
Barker, E. C. The Finances of the Texas Revolution. In the Political Science Quarterly, vol. 19, pp. 612-635. Barker, Potts, and Ramsdell, A School History of Texas. Chicago, 1912. Comptroller's L...









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