Upon the establishment of the permanent government in October, 1836, the public debt was estimated at $1,250,000; in 1846, the estimated amount was nearly $10,000,000; and the amount for which provision was made in 1852 and thereafter was nearly twelve million dollars. The explanation of this increase is to be found in the preceding accounts of expenditure and revenue. The fact that the largest part of the principal of the debt was in the form of audited drafts, treasury notes, and bonds representing the funding of floating liabilities, is evidence of the excess of expenditures over receipts. The funded debt would have been larger if the efforts of the republic to negotiate a foreign loan had been successful. The early Texans overestimated the credit of their government, and their disillusionment soon followed. The following is a descriptive account of the debt: