Texas had received $10 million in United States bonds in settlement of border claims as a part of the Compromise of 1850. While many of the bonds were sold, there were still some leftover in 1861. Needing money, the legislature authorized the sale of the remaining bonds. Existing state law required the Texas governor to sign his endorsement on any bonds which were sold, but the state feared that the sale price would be depressed if the United States Treasury refused to honor bonds sold by a Confederate state. The legislature therefore repealed the requirement for the governor's endorsement in order to hide the origin of the bonds.