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 neighbors and friends in the United States, and by loans upon the credit of the State."1 With the establishment of the permanent government in October, however, this partial dependence upon philanthropy was outgrown, and a system of taxation was adopted, which, with the sale of the public domain, was expected to provide an ample revenue.

The system adopted was one of direct and indirect taxation. Direct included the general property tax, the poll tax, and license taxes. Indirect consisted of customs duties and an excise tax.2 Of these taxes, customs are first in importance.