Mises Daily
Author:
Clifford F. Thies
Online Publish Date:
In 1840, the state of Mississippi defaulted on interest payments on $2 million of Planters Bank bonds and $5 million of Mississippi Union Bank bonds. About the same time, seven other states and one territory (later granted statehood) defaulted on their debts, as did the Republic of Texas (later annexed as a state). Most states later reconciled