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or no opposition, the Texans were surprised by General Ampudia before they reached Mier, were surrounded, and forced to surrender on Decem- ber 26, 1842. While being conducted to Mexico as prisoners, they made a break for liberty but were soon recaptured. There followed the famous 'drawing of the black beans incident,' the execution of every tenth man, and the march to Perote, where the survivors were imprisoned with the other Texans of the Santa Fe expedition together with the prisoners brought back from San Antonio by General Woll. 32 Houston's determination to avoid open war with Mexico was not just a whim. He earnestly regarded as impracticable an invasion of Mexico by the young Republic. As a military man he knew that such an undertaking required a force more formidable than Texas could muster. To start a war without the necessary men and means for its prosecution was, in his opinion, suicidal. The truth is that neither Mexico nor Texas had the means to carry on a formal war at this time. 33 But Mexican hostil~ties were not the only problem facing Houston in his second administration. The solution of the economic crisis brought about by the expenditures of Lamar's administration was equally im- portant. From its very inception the new administration directed all its energies to a strict program of economy. Unnecessary offices were abolished, public servants were reduced to the minimum, and all salaries were cut to the limit. As no appropriation for the regular army had been made, the military expenses after 1841 were reduced to the maintenance of a few companies of Rangers. 34 The enormous and unjustified expenses of the navy were ended by a secret act of Congress in January of 1843, ordering its sale. To put the depreciated currency of the Republic on a sound basis, all currency laws were repealed and a new issue, not to exceed two hundred thousand dollars in "exchequer bills," was author- ized. The new currency was to be the only legal tender for the payment of taxes. 35 Houston, likewise, reversed the Indian policy of his predecessor and adopted a peace policy towards the red man. Indian talks were renewed, inexpensive baubles were distributed as gifts, and peace treaties were 32 For an account of the Mier expedition and the Perote prisoners, see Kendall, Tlte Santa Fe Expedition, and Chabot, Tlte Perote Prisoners. 33 For a detailed discussion of Mexican hostilities at this time, see J. H. Smith, Tl,e Annexation of Texas. 34 For the best account of the Rangers, see W. P. \Vebb, The Texas R1111gers. 35 For the best discussion on the finances of the Te."tas Republic, see E. T. Miller, A Financial History of Te:ras.
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