This section is from the book "A Financial History Of Texas", by Edmund Thornton Miller. Also available from Amazon: A Financial History Of Texas.
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, and the policy which was followed in the disposal of it is an interesting study, but only the outlines of the policy can be given here.1
The policy of rewarding service in the army and navy which had been adopted by the provisional government was continued under the republic.2 In order to put an end to the conflicts in preceding laws in defining bounties for service, the acts of December 4 and 14, 1837, provided that those who had served for three months should receive 320 acres; for six months, 640 acres; for nine months, 960 acres; for twelve months or more, 1280 acres.3 Warrants issued for bounty lands were called "bounty warrants." Additional grants were made to those who had participated in the conflicts of the Texas Revolution and to all who had become incapacitated for labor in the service of the republic.4 The warrants issued for these grants were called "donation warrants."
The policy begun during the Mexican period of granting land free to immigrants was also continued under the republic. The constitution of the republic contained the provision that every head of a family residing in Texas on the day of the declaration of Texas independence should be entitled to one league (4428 acres) and one labor (177 acres) of land, and that every single man of the age of seventeen and above should be entitled to one-third as much. All who came to Texas between March 2 and August 1, 1836, and volunteered for the army within that period were treated in a like manner.5 Certificates issued in accordance with these provisions were called "first class certificates." It was enacted in 1836 that those who had immigrated after the declaration of Texas independence and prior to October 1, 1837, should receive, if the head of the family, 1280 acres; if a single man, 640 acres; but it was required that the grantee be a resident of the republic for three years and that he pay land-office fees and expenses of survey.1 Certificates issued in accordance with the terms of this act were called "second class.' Free grants were discontinued by the act of June 12, 1837, to become effective October 1, but this policy was short lived, and the act of January 4, 1839, and January 4, 1841, provided that heads of families should receive 640 acres and single men above seventeen years of age, 320 acres.2 Certificates issued to those immigrating between October 1, 1837, and January 1, 1840, were called "third class," and those to persons coming in between January 1, 1840, and January 1, 1842, were called "fourth class.' The same conditions of residence in the republic and payment of fees attached to these certificates as attached to second class certificates. The act of January 4, 1841, required the immigrant to reside upon the land for three years, cultivating not less than ten acres, but this condition was repealed by the act of February 4, 1842.3 Though this method of giving away land was discontinued in 1841, another method was introduced.4 The old policy of making contracts for the colonization of families was reintroduced in 1841.5 Colonists received 640 or 320 acres, according as they were married or single; and the contractor, or the one responsible for the introduction of the colonists, received 6,400 acres for every one hundred families and 3,200 acres for every one hundred single men introduced. The law was repealed in 1844, but under it contracts had been made with several colonizers, and 4,494,806 acres were given to colonists and contractors.6
1 See Wooten, A Comprehensive History of Texas, vol. 1, pp. 748-848. J. and H. Sayles, Laws of Texas relating to Real Estate, vol. 1, passim. 2Gammel, op. cit., vol. 1, pp. 1094, 1323, 1412. 3Ibid., pp. 1368, 1404.
4 Ibid., p. 1435. Ibid., p. 1450. Laws of 1860, p. 117. 5Ibid., p. 1414.
The homestead donation policy had its beginning in Texas with the act of December 21, 1838, which granted 160 acres of land to settlers along the military road from the Red River to the Rio Grande.1 The conditions were settlement and two years cultivation. In 1841 grants were made for settlement along the northern military road, but with the condition of five years settlement.2
1 bid., p. 1283.
2 Ibid., p. 1323. Ibid., vol. 2, pp. 35, 554. 3Ibid., vol. 2, p. 777. 4Ibid., vol. 1, p. 1324. 5Ibid., vol. 2, p. 555.
6 Land Office Report, 1910-12, p. 24. Wooten, op. cit, vol. 1, p. 824. Gammel, op. cit., vol 2, p. 958. Sayles, op. cit., vol. 1, pp. 182-206.
In addition to the above ways of disposing of the public domain, a liberal land endowment of public education was provided. By the acts of January 26, 1839, and February 5, 1840, four leagues (17,712 acres) were given to each county for the establishment of a primary school; and fifty leagues (221,400 acres) were set apart for the establishment and endowment of two universities.3
It was not a feature of the land policy of the republic, however, to make land grants in aid of internal improvements. The only subsidy in land which was given appears to have been to the surveyors and commissioners of the "Central National Road of the Republic of Texas," which was a turnpike projected to extend from the Trinity River near the mouth of Elm Fork to the Red River opposite the junction with the Riamisha.4 The road was never built, but the state parted with 27,000 acres for the purpose.5
Beneficiaries of the republic accepted land as headrights, bounties, donations, subsidies, and so forth, but the creditors of the republic were not so ready to accept land in discharge of their claims. The act of 1841 which permitted the creditors of the republic to exchange their claims for land scrip at the rate of $2.00 an acre was repealed in 1845.6 The Triplett and Erwin loans were so discharged in 1837 and 1838, and in 1844 a debt of $54,408 to Thomas McKinney and S. L. Williams was paid in land scrip.
The revenue derived from lands came from fees and from the sale of land scrip and town lots. The grantees under the laws of the Mexican period paid the fees prescribed by the laws of Coahuila and Texas. These were for those who immigrated prior to May 2, 1835, $3.50 for each labor (177 acres) of irrigable land, $2.50 for each labor of arable, and $1.20 for each labor of pasture land; for those who came in between May 2, 1835, and March 2, 1836, the amounts of the dues were double.1 The republic did not continue this system of charges for the grants made after March 2, 1836, but adopted a system of government and patent fees. As prescribed by the act of December 22, 1836, the government fees varied from $1.00 to $3.00, according to the size of the survey plot, and the patent fees varied from $5.00 for one league and Labor to $3.00 for one labor. The price of surveying was fixed at $3.00 for every lineal mile.2 In 1841 the patent fees were increased to $15.00 for each patent for one league or more; for more than one-third of a league and less than one league, $10.00; and for one-third of a league and less, $5.00.3
1 Gammel, op. cit., vol. 2, p. 17.
2 Ibid., p. 536.
3 Ibid., pp. 134, 320.
4 Ibid., p. 1013.
5 Land Office Report, 1908-10, p. 25.
6 Gammel, op. cit., vol. 2, pp. 624, 1210.
In 1836 agencies were established in Mobile, Ala., and New Orleans for the sale of land scrip in denominations of 320 and 640 acres. The conduct of the agents and their lack of success excited the displeasure of President Houston and upon his recommendation the further sale of scrip was prohibited.4 The amount of scrip sold by the agents was estimated at 1,220,387 acres.5 In the pre-emption act of 1845 the commissioner of the general land office was authorized to sell land scrip to any actual settler for $2.00 an acre payable in the evidences of debt of the republic or for fifty cents an acre payable in par funds. The east end of Galveston Island was sold for $50,000; and the rest of the island, the east end of Matagorda Island, and the townsite of Austin were sold in lots or small tracts.
The pre-emption policy was adopted in 1845, though before this the actual settler had had preference right of location of his certificate under certain conditions.1 Under the law of January 22, 1845, a person who had settled upon and improved, or who should thereafter settle upon and improve any unappropriated part of the public land, had the right within three years from the beginning of his settlement to locate, if head of a family, any valid land certificate not to exceed 320 acres, if single, 160 acres, in preference to all other claimants. The pre-emptor was required to make oath that he believed he had settld upon vacant land. In lieu of any other valid land certificate, he could purchase at the land office a certificate.
1 Gammel, op. cit., vol 1, p. 1276; vol. 2, p. 1078.
2 Ibid., vol. 1, 1276.
3 Ibid., vol. 2, p. 467.
4 Act of December 10, 1836; ibid., vol. 1, p. 1133. Joint Resolution, December 10, 1836; ibid., p. 1136. Act of December 14, 1837; ibid., p. 1400. Message of President Houston, November 21, 1837. Texas Diplomatic Correspondence, vol. 1, p. 196.
5 Gouge, Fiscal History of Texas, p. 280. The scrip issued amounted to 1,329,200 acres; Land Office Report, 1908-10, p. 23.
The "boundless revenue" which President Houston thought would arise from the opening of the land offices did not materialize.2 Of the total receipts of the republic, those from land and land dues, including town lots, constituted about 15%, and town lots account for about one-half of this.3 The large increase which took place in 1840 is due mainly to the sale of town lots on Matagorda Island and in Austin.4 During 1840 and 1841 also the depreciated treasury notes were receivable at par for all payments on account of land, and this fact, together with the increase in patent fees in 1841, helps to explain, the large receipts of these two years. There are no statistics for receipts after 1841, and their absence is perhaps explained by the act of December 27, 1842, which granted an extension of time for the payment of land dues to January 1, 1846.5 The general land office was established by the act of December 22, 1836, but the opening of it was postponed from time to time, and it was not opened until the spring or summer of 18446
1 Gammel, op. cit., vol. 2, pp. 1073, 554.
2 Message of November 21, 1837. The first general land office was at Houston from June, 1837, to September of October, 1839; Land Office Report, 1908-10, pp. 25-28.
3 The proportion of the total given in the table is 14 per cent, but as some land dues are included among the direct tax receipts of the three years ending September 30, 1838, and among the miscellaneous receipts-of 1839, the proportion is perhaps nearer 15 per cent than 14 per cent.
4 According to Gouge, Fiscal History of Texas, p. 270, the amount derived from town lots in 1S40 was $168,797. He includes, however, some receipts from direct and license taxes, and these have been excluded from the amount given in table I, Appendix.
5 Gammel, op. cit., vol. 2, p. 996.
6 Sayles, op. cit., p. 450.
 
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