What was the purpose of Loan Scrip in Texas?

Loan Scrip in Texas was primarily designed to raise money or repay loans. It played a significant role in financing governmental expenditures and fulfilling financial obligations. By issuing Loan Scrip, the state could call upon residents or businesses to invest, effectively using this financial instrument as a means to generate revenue. This was particularly important during times when the state needed funds to support various projects or pay debts.

While the other options touch on various aspects of Texas history, they do not accurately represent the specific function of Loan Scrip. For instance, providing land grants to veterans is related to incentives for military service but does not encompass the economic mechanisms of Loan Scrip. Inviting settlers and establishing new schools address socio-economic development but are separate from the financial role that Loan Scrip served. Thus, the focus on financing through the issuance of Loan Scrip underscores its purpose as a financial tool rather than a direct avenue for economic or social reform.