The initiative in annexation proceedings now lay with Texas. President of the Republic Anson Jones called a convention to meet at Austin on July 4, 1845, to decide whether or not Texas should accept the proposal. The decision being in the affirmative, the State of Texas was admitted into the Union on December 29, 1845, and the State government was formally installed on February 19, 1846. Thomas Wm. Ward, who had been Commissioner of the General Land Office under the Republic, assumed the same position in the State government. His duties remained essentially the same. Shortly after Texas was annexed by the United States, war broke out between Mexico and the Union over the newly-acquired territory. Mexico had never relinquished her claim to Texas, and had repeatedly warned the United States that annexation of what she considered a rebellious province would mean war. From the beginning of hostilities, however, the United States experienced a minimum of difficulty in subduing her southern adversary. Less than two years after the war began, it came to a conclusion with the Treaty of Guadalupe-Hidalgo, signed February 2, 1848. Among other provisions, Mexico gave up her claim to Texas. Hardly had the war come to an end than a dispute arose between the United States and Texas over 78,892,800 acres of land claimed by Texas. When Mexico concluded the Treaty of Guadalupe-Hidalgo, she sold this and other land to the United States for $15,000,000. Mexico had never recognized Texas’ claim to the land in question, which included parts of what is now New Mexico, Kansas, Colorado, and Wyoming. However, when the United States began taking possession of this land, anger in Texas mounted. The Legislature passed a resolution renewing Texas’ claim to the disputed area. A solution to the problem was worked out in the Compromise of 1850 by which the United States was to pay Texas $10,000,000 for the area. On February 28, 1855, Congress paid Texas an additional $5,496,477.77 for this land. Therefore, Texas profited handsomely by some shrewd bargaining on the part of its early leaders. Not only was Texas able to pay its public debt, but the State reserved its present domain to itself as well. This public domain of land has been the basis of growth for the State’s two big educational funds, the Permanent School Fund and the Permanent University Fund, as the result of mineral exploration within Texas and especially because of oil development on public land set aside for the benefit of these funds. As a result, the history of oil exploration and development within Texas is directly related to the story of Texas land. For that reason, it is briefly told here.