Question: why did the panic of 1837 in the united states have an effect on texas

title: Panic of 1837
text: The crisis followed a period of economic expansion from mid-1834 to mid-1836 . The prices of land , cotton , and slaves rose sharply in these years . The origins of this boom had many sources , both domestic and international . Because of the peculiar factors ( Specie Circular ) of international trade at the time , abundant amounts of silver were coming into the United States from Mexico and China . Land sales and tariffs on imports were also generating substantial federal revenues . Through lucrative cotton exports and the marketing of state - backed bonds in British money markets , the United States acquired significant capital investment from Great Britain . These bonds financed transportation projects in the United States . British loans , made available through Anglo - American banking houses like Baring Brothers , fueled much of the United States 's westward expansion , infrastructure improvements , industrial expansion , and economic development during the antebellum era .