Houston�s administration had little success in dealing with Texas� financial crises. The administration�s remedy was to print more paper money and collect various revenues. Both methods were ineffective. The government was spending more money than it raised in revenues. The new government also faced growing problems with Native Americans living in Texas. Houston, considered a friend of the Indians, was lenient toward them, especially the Cherokees in East Texas. Houston believed war with various tribes would only bring further financial trouble for his young nation, and he also believed that the Native Americans would live peacefully with Anglos if given the opportunity.

In September of 1838, the voters of Texas once again went to the ballot box to elect a new national leader. The Constitution of 1836 prohibited it a president from serving consecutive terms. Therefore, Houston was not permitted to run for the office again. As a result, Mirabeau B. Lamar was elected president and David G. Burnet was chosen as vice-president. Both men were political and personal enemies of Sam Houston. Texans knew that changes were coming.

Lamar is best known for his commitment to public education. He also moved the republic's capital from Houston to Austin. He was on record as wanting to remove all Native Americans from Texas. Financial problems continued through Lamar�s term, partly due to the president�s costly Indian wars. Lamar, like Houston before him, attempted to combat the financial problems of the country by issuing more paper money called "redbacks." The value of Texas paper currency continued to fall. In 1841, a Texas dollar was worth about twenty-five cents in comparison to the United States dollar.

In the fall of 1841, Texans returned to the polls to choose a new president. This time Sam Houston was once again eligible to run for president. Houston won an easy victory over David G. Burnet with Edward Burleson becoming the new vice-president. During his second term in office, President Houston set out to reduce the Texas debt by decreasing the overall size of the Texas government. The Texas army and the famous Texas Rangers were reduced in size. Congressmen also contemplated selling the Texas navy to save on the cost of maintaining its ships. In addition, limits were established on the amount of paper currency that the government could issue. The second Houston administration is also known for its attempts to restore peace with the Native Americans, the settling of the conflict between the Regulators and Moderators in Shelby County, Texas and his efforts at administering foreign diplomacy.

The last president of the Republic of Texas was Dr. Anson Jones from Brazoria County. Voters elected Jones in 1844. Prior to being elected president, Jones served as Houston�s secretary of state. He was also a veteran of the Battle of San Jacinto, a practicing doctor in his home county and had served as a senator in the Texas Senate. Kenneth Anderson was elected to serve as Jones� vice-president. During his term as president, Jones continued to carry out many of Houston�s former policies, establishing peace with the Native Americans and limiting government spending.

Additional Resources

1. Who was Albert Sidney Johnston and what happened to him?(7.4:A)
2. What was done to combat the financial crises that existed in the Republic of Texas during Sam Houston's first term? Were the methods effective in solving the crises?(7.4:A)
3. For what is President Mirabeau B. Lamar and his administration best known?(7.5:A)
4. What were President Houston�s main goals during his second term?(7.4:A)
5. Who were the Texas Rangers?(7.4:A)
6. Who was the last president of the Republic of Texas? What policies did he pursue?(7.4:A)