Texas treasury notes and market manipulation, 1837–1842

• Published in: Explorations in economic history Vol. 44; no. 1; pp. 81 - 99
• Main Authors: Pecquet, Gary M., Thies, Clifford F.
• Format: Journal Article
• Language: English
• Published: Madison Elsevier Inc 2007; Elsevier; Elsevier BV
• Series: Explorations in Economic History
• Subjects: American history; Currency transactions; Economic trends; Foreign exchange; French loan; Information; Lamar; Loans; Market manipulation; Medium of exchange; Misinformation; Misinformation modeling; Monetary history; Money; Money market; New Orleans markets; Red backs; Republic of Texas; Repudiation; Sam Houston; Tax backing; Texas; Texas treasury notes; Time series; Treasury notes; Value; New Orleans Louisiana; United States > US; Texas; Tax backing; New Orleans markets; Republic of Texas; Red backs; French loan; Misinformation; Repudiation; Medium of exchange; Lamar; Market manipulation; Sam Houston; Misinformation modeling; Texas treasury notes
• ISSN: 0014-4983; 1090-2457
• DOI: 10.1016/j.eeh.2005.10.001

This paper examines the course of the value of the paper money issued by the Republic of Texas in New Orleans, from 1837 to 1842, using a newly-constructed weekly time series of quotations, and focusing on the possibility of market manipulation. Specifically, during 1841, misleading information concerning a possible foreign loan reached New Orleans three different times. The first time, the information substantially raised the value of Texas Treasury Notes. The second time, the information raised the value, but to a lesser extent. The third time, the information had no impact.