San Fernando de Béxar

During the War of Independence San Fernando de Béxar was the capital of Texas, a province of New Spain, and the headquarters for the military commander and the Governor of the Province.

For many years there had been a shortage of minor coinage throughout New Spain. This was mainly caused by the mint's failure to coin a sufficient quantity, and most that were coined were shipped to Spain. The nearest treasurer's office was located some three hundred miles away. The only new money coming in was the situado (subsidy) for the payroll for the military, and the government, which amounted to about five to fifteen thousand pesos. When a military bought merchandise, or paid his bills, the merchant would quite often not have the exact change, and gave him credit, or tokens of some type, which other merchants would not accept. The shortage of small coins soon spread to the whole community, resulting in hardships for many. It also led to many hoarding any good money

So, citizens and business owners in and around San Fernando de Béxar at first resorted to issuing paper scrip. These notes failed to gain widespread public acceptance, however, which meant that another alternative had to be found and in 1817 the Texas jolas were produced.