USA > Alabama > Reminiscences of public men in Alabama : for thirty years, with an appendix > Part 43
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nent, (naming him,) the Bank swindler. So choose between my opponent and myself. Both remind me of a man I know in Linkhorn, Tennessee, who never had any character until he stole a side of sole-leather, and he always had a very bad character after that.
In such assaults as these, in which he always included himself, he made his antagonist feel the blow, and he got the benefit of it.
In the Wetumpka District, Mr. Yancey was elected over Mr. Daniel E. Watrous, his Whig opponent. All of these gentlemen have been previously noticed in this work.
While the Democratic party was considered defeated in the Gu- bernatorial contest, the Legislature elected at the same time was true to the old party landmarks. The masses had been prevailed upon to bolt the nomination, and here and there a leader of his county had also bolted; but, as a general thing, the captains of fifties and hundreds stood firm to the organization; and when the Legislature met, it was found that the effective strength of the party was not impaired, but rather intensified. Gov. Martin, him- self, avowed his adherence to the life-principles of the Demo- cratic faith, not only in his interviews with the members as they arrived, but he put it into his inaugural address, to the disappoint- ment of the Whigs. But the old leaders of the Democratic party, who were smarting under the defeat of the party organization, were slow to become reconciled, politically, to the Governor elect; and while they determined to make no war upon his administration, stood aloof from a recognition of him as the exponent and leader of their party.
Two important questions were voted upon by the people this year, to-wit: An amendment to the Constitution of the State, pro- posing to have Biennial Sessions of the Legislature, and to strike from the Constitution the section under which the Seat of Govern- ment was located at Tuskaloosa. These two questions were sub- mitted separately; and in order to secure the most correct returns, the Secretary of State issued blank forms to be used throughout the State. In this way, the returns were made with remarkable correctness, and the result will appear in this chapter.
The two Houses assembled at the Capitol, on the first day of December, 1845, and the attendance was large. In the Senate, 30 out of 33 members, and in the House 86 of 100, answered to their names. In the Senate, John A. Winston, of Sumter, was elected President over Benjamin Hudson, of Franklin-the vote being 15 to 13. Pleasant Hill, of Bibb, was elected Secretary, without opposition, and Wilson M. Kidd was elected Assistant Secretary, after about 25 ballots; A. R. Thomas, Door-Keeper.
The leading men of the Senate may be seen by glancing at the principal Committees, the Chairmen being:
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On the Judiciary, Mr. McClung, of Madison; On Federal Relations, Mr. Joseph Seawell, of Mobile; On Education, Mr. John Gill Shorter, of Barbour; On the State Bank and Branches, Mr. Walker, of Lawrence; On Military Affairs, Gen. Huey, of Talladega; On Internal Navigation, Mr. Wilson, of Jackson; On 16th Section Fund, Mr. Posey, of Lauderdale.
In the House, Andrew B. Moore of Perry, George W. Gayle of Dallas, and Green P. Rice of Morgan, were placed in nomina- tion for Speaker, when the vote stood, respectively, 53, 15, and 17, in the order of their names. Mr. Moore was elected Speaker of the House, a position which he had held two sessions previously. Joseph Phelan was reelected Clerk; A. B. Clitherall, Assistant Clerk; W. C. Bibb, Engrossing Clerk; and James H. Owen, Door-Keeper.
The important Committees were placed in charge of the follow- ing gentlemen, each as Chairman:
On the Judiciary, Mr. Bowdon, of Talladega; On Ways and Means, Mr. Gayle, of Dallas; On Federal Relations, Mr. Hubbard, of Lawrence;
On the State Bank and Branches, Mr. Clay, of Madison; On Education, Mr. Norman, of Franklin ;
On Internal Improvement, Mr. Porter, of Tuskaloosa;
On Propositions and Grievances, Mr. Jackson, of Autauga; On 16th Section Fund, Mr. Watts, of Butler; .
On Accounts and Claims, Mr. Kittrell, of Greene.
Gov. Fitzpatrick's annual message was delivered on Tuesday, by Col. Garrett, Secretary of State. It was short, pointed, and business-like, much after the style of Patrick Henry, when he was Governor of Virginia. As an act of justice to the memory of an illustrious personage, as well as the retiring Governor him- self, the closing part of his message is here given:
Since the adjournment of the last Legislature, the public sympathy has been most painfully excited by the death of Gen. Andrew Jackson. That event, though not unexpected, has nevertheless exerted an influence over the feelings of the great mass of the people which is never exhibited except for the loss of a great public benefactor, whose services, too diffusive to be appropriated by any class of his fellow-citizens, are, at his death, acknowledged by all. With the sin- gle exception of the Father of his Country, no public man, at his death, has re- ceived so general and unequivocal a verdict of heartfelt gratitude from his coun- trymen, and with but trifling exceptions, the acrimony of party violence has been silenced, while men of all parties have paid their tribute of grateful sorrow over the grave of the patriot, hero, and statesman. I feel that I should be remiss to the public sentiment of the State, were I not to urge upon the General Assembly, as the organ of the wishes and feelings of the people, the propriety of taking
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such notice of the death of this great man as is consistent with the veneration and regard which we so justly cherish, not merely for the general services which he has rendered the whole country, but for the hardships and dangers which he encountered in wresting the territory of our now flourishing State from the pos- session of a savage enemy. During his recent political career, while no State in the Union has been more devoted to the policy of his administration, the people of Alabama have rallied to his support with an enthusiasm and fidelity not more the result of political conviction than of popular gratitude. I, therefore, think we cannot acquit ourselves to our constituents without publicly entering and per- petuating on the Legislative Archives of the State, the deep sense the people of Ala- bama entertain for his services, and the sincere regret they have felt for his death.
The period is near at hand when my official relations to the State will cease to exist, and this is the last annual communication which I shall have the honor of making to the General Assembly. I have been twice elected by my fellow-citizens to the high and responsible trust of the Chief Executive office of the State. At the time when I entered upon the discharge of the duties of my office, the State Banks were a subject of deeply absorbing interest to the public mind. A proper disposition of our banking system, which had been, a short time previous, so en- grafted in the confidence of the people, together with the numerous duties which usually attach to the Executive office, I am frank to say, combined to render the station that had just been entrusted to me by the people, both perplexing and em- barrassing. Time and subsequent events have satisfied me of the correctness of the leading measures which I have urged upon the Legislature for their adoption, in reference to our banking institutions. Its practical operations have so conclu- sively demonstrated the utter fallacy of the whole system, that I can but feel as- sured that the entire action of the General Assembly on this subject merits, at this day, the cordial approbation of a large majority of the people.
I am not so vain as to flatter myself that I have been entirely exempt from error in the discharge of my official duties; but I have the proud consolation to know that, although error may have been the result of my action in many in- stances, it has always been my intention and purpose to promote the interest of the State, and the happiness of my fellow-citizens.
In dissolving our official relations, I can, with pleasure, recur to the uniformly kind and friendly intercourse which has, at all times, existed between us; and I acknowledge, with feelings of lively sensibility, the many acts of courtesy and re- spect which I have received at all times from the members of the General Assem- bly. In that separation, therefore, which is soon to take place, permit me, here, to tender to each member, individually, my high regard; and, through you, to the people of the State, my grateful acknowledgements for the confidence which they have reposed in me.
That the spirit of peace and harmony may pervade your deliberations, and that these may be conducive to the interest of the State, and the happiness and pros- perity of our common constituents, is my most ardent desire.
The message was laid on the table, and on motion of Mr. Rice, 5,000 copies were ordered to be printed.
This was an important session in many respects. Two engross- ing subjects engaged the attention of the Legislature. The first was the ratification of the amendment to the Constitution which in- volved the removal of the Seat of Government from Tuskaloosa; the second was, the Banks and the currency, involving the public credit.
On the second day of the session, the Secretary of State, in pursuance of the law, laid before the House the returns made to his office, of the election on the two propositions, which, upon the motion of Mr. F. W. Bowdon, of Talladega, was referred to a select committee of nine.
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Reminiscences of Public Men in Alabama.
On the 10th of December, under the direction of a Committee of Arrangements, Gov. Martin was inaugurated, and a few days thereafter, Ex-Gov. Fitzpatrick left the Seat of Government for his home in Autauga county.
REMOVAL.
Mr. Bowdon brought in his report from the select committee, on the votes cast upon the amendments to the Constitution, show- ing in the order of the counties the official vote in each, on the respective questions submitted to the people, to-wit: Biennial sessions, and to authorize the removal of the Seat of Government. It would be tedious and uninteresting, to carry the reader through the details of this measure, ending in the ratification of the amend- ments in each House by the requisite majority.
The following are the respective votes:
Biennial Sessions
Yeas. 55,819
Nays. 5,167
Removal of Seat of Government
33,798
27,320
Total number of votes cast for Representatives in the Legisla- ture, 62,558.
Mr. Speaker Moore was called upon in the progress of this con- test to make a decision for which he was much blamed at the time by those opposed to the ratification of the amendments. The facts may be briefly stated thus:
Two distinct propositions had been submitted to the people by the Legislature of 1844, on which a separate vote was taken. It required a majority of two-thirds of each branch of the General Assembly to ratify, so as to incorporate the amendments in the Constitution. The members opposed to removal believed that they had a right to vote for each measure separately, on its merits, and moved a substitute to the report of the select committee to secure that privilege, which, on the motion of Mr. Gayle, was laid on the table-yeas 48, nays 46.
From the Journal of the House, p. 186, the following extract is taken:
Mr. Inge called for a division of the question :
The subject matter before the House, contained a preamble setting forth the amendments submitted to the people last year in regard to Biennial Sessions, and the Removal of the Seat of Government, and concluded with the following reso- lution :
Resolved by the Senate and House of Representatives of the State of Alabama in General Assembly convened, two-thirds of each House concurring, That the aforesaid amendment to the Constitution, proposed as aforesaid, and accepted by the people as aforesaid, be ratified ; and that the same, from and after the passage of this resolution, be and form a part of the Constitution of the State of Alabama.
Mr. Speaker decided that inasmuch as the enacting resolution contained but one proposition, it could not be divided.
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Reminiscences of Public Men in Alabama.
Mr. Inge appealed from the decision of the Chair, and on the question, Shall the decision of the Chair be sustained? the vote stood thus : Yeas 52, nays 44.
The joint resolution was then ordered to a third reading, by a vote of 58 to 41.
On the final passage of the joint resolution, which required 67 votes in the affirmative, there were some defeats, much skirmish- ing, reconsideration of votes, motions to postpone, motions to ad- journ, and a variety of incidental action which would occupy too much space to be noticed in detail here. It all ended, however, in the ultimate ratification of the amendment by two-thirds in both Houses, and on the 28th of January, 1846, the two Houses convened in the Representative Chamber to select a place as the future seat of Government, when sixteen ballots were had on the several nominations :
1st ballot. 5th ballot. 10th ballot. 16th ballot.
For Tuskaloosa
39
38
41
39
For Wetumpka.
28
33
33
9
For Mobile .
6
8
7
3
For Montgomery
33
27
36
68
For Statesville.
2
For Selma
9
8
6
11
For Marion
4
4
5
For Huntsville
6
The Journal of the House says: "The city of Montgomery hav- ing received a majority of the whole number of votes given, Mr. Speaker declared said city of Montgomery duly and constitution- ally elected the Seat of Government of the State of Alabama, according to law."
As the decision of Mr. Speaker Moore, previously referred to, was the topic of much conversation, it is only an act of justice to say, that the opinion of parliamentary men with whom I con- versed, was, that the decision was correct.
MESSAGE OF GOV. MARTIN.
In the proper order of time, I omitted to state, that on the 16th of December, a communication from the Governor was transmitted to the Legislature by Mr. George Mason, his private Secretary, which, document is given entire, as indicating the policy of his administration :
EXECUTIVE DEPARTMENT, TUSKALOOSA, December 16, 1845. 5
Gentlemen of the Senate and House of Representatives:
In entering upon the discharge of my official duties, I feel called upon by recent events to communicate to you my views upon the various subjects connected with 27
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Reminiscences of Public Men in Alabama.
the affairs of our State Bank and Branches; and with the indebtedness of the State-subjects which have for some time past occupied the attention of our con- stituents, and which have recently become so important in their view as to engross all others. To these subjects I shall confine myself in this communication.
From the reports of the several legislative committees whose duty it has been, from time to time, to inquire into the condition of our State Bank and Branches, it appears, that for the last seven years, these institutions have suffered one un- broken series of losses; resulting in the disastrous condition in which they were found at the last session of the General Assembly. The causes which have brought about these continuous and heavy losses, are readily discovered by a recurrence to the history of their management; the whole tenor of which proves, beyond doubt, that less regard has been had to the interests of the Banks than the convenience and accommodation of their debtors.
By the report made to the Legislature at the session of eighteen hundred and thirty-seven and eight, it is shown that the indebtedness of [to] the State Bank and Branches amounted at that time to more than twenty millions of dollars; of which but little more than one hundred thousand dollars were considered bad; and but little more than five hundred thousand dollars doubtful. The first act of the Legis- lature, changing the usual course of business in those Banks, was passed a short time before, at the called session in June, eighteen hundred and thirty-seven. This act extended the time of payment of the debts then due; dividing them into three annual installments ; the first, of twenty-five per cent .; the other two of thirty- seven and a half per cent. each. And it authorized further loans, payable in like installments.
At the session of eighteen hundred and forty and forty-one, a report was made to the Legislature, by which it appears, that under the influence of the act re- ferred to, commonly known as the relief or extension law of eighteen hundred and thirty-seven, the bad debt had increased to more than three and one half millions of dollars; while the doubtful debt had swelled to an amount exceeding one million and a half of dollars. And in this report is introduced a new item denominated "unknown debt," amounting then to more than one million and a quarter of dollars. Thus is shown a deterioration of the debts due to the Banks, by which losses have been incurred, to be estimated at not less than one million and a quarter of dollars annually, during the three years immediately preceding this report.
At the session of the Legislaturu of eighteen hundred and thirty-nine and forty, another act was passed, (approved the third of February, eighteeen hundred and forty,) by which it was required that, "not more than twenty per cent." of the several debts due the Banks should be demanded, per annum. Under the opera- tion of this act, connected with that above referred to, as shown by a report of a committee, at the last session of the General Assembly, the good debts were re- duced to six million, nine hundred and ninety-three thousand, nine hundred and sixty-five dollars, and thirty-six cents-($6,993,965.36.) The doubtful debt to four hundred and eighty-four thousand, one hundred and thirty-two dollars and forty-six cents-($484,132.46.) While the bad debt had reached the enormous sum of six millions, two hundred and ninety-two thousand, five hundred and ninety-nine dollars and seventy cents-(6,292,599.70.) Each of the laws here referred to required that the President and Directors of the several Banks should demand further security, if by them deemed necessary, as a condition precedent to the extension. How far this provision was regarded, may be judged of by the results.
This cursory glance at the history of the legislation, and management of our Banks, must clearly show that the extension laws, and the manner of their execu- tion, were the principal causes of the immense losses sustained by these institu- tions. A more minute examination would but fortify this conclusion. As how- ever, it is important to know the causes of the evils, simply with a view to avoid them in future, I shall not pursue this inquiry further. We find our Banks at the last session of the Legislature in the situation mentioned. We have no reason to believe that they are in a better condition now. The mischief is done, and it is the part of wisdom to make the best that we can of our present condition. To do
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this, we should adopt such measures as may promise to collect the largest amount of the entire indebtedness to the Banks with the least expense, and at the same time bring their affairs to the most speedy adjustment and conclusion, compatible with that important object.
At the session of eighteen hundred and forty-two and three of the General As- sembly, acts were passed repealing the charters of the four Branch Banks, so far as to deprive them of banking powers, and putting them in liquidation. On the first day of January last, the charter of the State Bank expired by its own limita- tion. None of its banking powers have been renewed, but by an act of the last session of the General Assembly it was put in liquidation. By the same act, the officers of the State Bank and of each of the Branches were made to consist of a President and two Directors, a Cashier, and two clerks; and one additional clerk in the Branch at Mobile.
The impolicy of keeping up five banking establishments, with five Presidents, ten Directors, five Cashiers, eleven clerks, and other agents, attorneys and ser- vants, engaged upon salaries and pay-with a variety of other sources of expense, which might be mentioned-swelling the actual expenditure of the State Bank and all its Branches to a sum not very far short of the expense of our State Govern- ment, is too obvious to require argument; looking alone to its disregard of a proper economy. When to this is added the utter inefficiency of the system for the attainment of the great object in view-collecting and securing the debts, and winding up the concerns of the Banks in the most speedy possible manner-a rc- form of the system becomes an imperious duty. Without a change, judging the future by the past, we have but little ground to hope that this complicated busi- ness will be brought to a beneficial and satisfactory close in any reasonable time.
With these views, and others which will suggest themselves to you, I respect- fully recommend to your consideration. the propriety of dispensing with all the officers of the State Bank, and of each of the Branches. And I recommend that provision be made for the appointment of one agent to remain at each of the Branches, with authority to receive payment from the debtors, giving proper re- ceipts and acquittances, and to do such other ministerial acts as may be necessary and expedient for him to do in furthering collections, but with no other powers. I further recommend that provision be made for the appointment of three Com- missioners, in the mode now prescribed for the appointment of Directors, with such salaries as will command the best qualifications for the purpose to be found anywhere in the State, who shall reside at the State Bank, and devote their entire time and attention to the important object of securing and collecting the whole Bank debt, with full power and authority to appoint all necessary attorneys, clerks and agents; to transfer the books and papers of the Branch Banks to the State Bank-except the evidences of debt running to maturity-to dispose of the real and personal property of the State Bank and Branches, and when necesary and proper, looking alone to the interest of the State, to compromise and com- pound debts that may at any time be considered doubtful or bad : thus concentrat- ing the whole business at the State Bank. I further recommend that these Com- missioners be empowered to pay the interest, as it may become due, upon the State debt, and to extinguish the debt as fast as they may be able, from their collections and funds, under such rules and regulations as you, in your wisdom, may pre- scribe, giving to them ample powers for all these purposes, at the same time securing the State against its abuse by proper restrictions and sureties. By this system it is obvious that after the payment of such salaries as are contemplated, and every other expense incident to it, a vast amount of the present annual ex- penditure would be saved. None, I think, can doubt its superior efficiency. With suitable Commissioners, I am induced to believe but few years would be required to bring the whole of the affairs of our Banks to a final close; at least to enable our citizens to understand what ought to be known to all, but what is now known to none, the true pecuniary condition of the State.
By an act passed at the last session of the General Assembly, the debtors of the State Bank and Branches were required to pay, by the first of June last, one-third part of their respective debts, with interest. And it was provided, that, upon a compliance with these terms, the remaining two-thirds should stand over until the
1
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Reminiscences of Public Men in Alabama.
first of June next. It was generally understood that a further provision would be made at the present session, in favor of those who complied; extending one-half of the balance due for twelve months longer, upon the payment of the other half, by that day, with interest. The reports of committees touching this subject, clearly indicated this to be the policy which would be adopted. Under this ex- pectation, it is believed, many of the Bank debtors complied with the requisition of the law, with some inconvenience and sacrifice. I respectfully recommend that this expectation be met by the enactment of a law for that purpose, with proper guards and provisions. The first day of June may not be the most suitable day for the required payment. It may be proper, to appoint another day somewhat more distant. This, however, in my opinion, should be the limit. No other ex- tension should be conceded; nor should this apply to any other debtors than the class here specially referred to.
It will be seen to be indispensable, as already intimated, that some steps be taken at your present session, to provide for the payment of the interest of the State debt as it may hereafter become due. The plighted faith of the State re- quires it. Having no other known available effects than the assets of our Banks, it will be necessary, in prescribing for collections, to keep this object steadily in view. You will have before you the means of ascertaining the amount collected, under the late act on this subject, and the consequent reduction of the circulation of the State Bank and Branches. You will also be able, from the documents be- fore you, to form an estimate of the amount of circulation yet remaining out. A very large portion of the interest to be provided for being that which accrues on our foreign debt of $9,215,255.55, amounting annually to the sum of $471,907.80, is payable in New York, New Orleans, and in England, in par funds. The neces- sity of requiring collections to an amount which, together with the taxes, will ab- sorb the circulation of the State Bank and Branches, and furnish an additional sum in sound funds, sufficient to pay the interest thus to become payable, must be clear to all. For it will hardly be contended that the notes of those Banks, after being returned to the State, either in payment of taxes, or in payment of debts due the Banks, can legitimately be put again in circulation; the powers of the Banks which issued them for this purpose having terminated. If, however, there be any who suppose it can be done with the sanction of law, the destructive policy of throwing our Bank notes into the market by the State, to be sold for such funds as will, from time to time, be demanded of us, would utterly forbid it. Instead of relieving the country of the depreciated currency-one of the great purposes of winding up the Banks-such a policy would not only keep up the supply, but in- crease its depreciation. The losses to the State would be enormous. The fact be- ing known, through the country, as it certainly would be, that the State relies upon the sale of the State Bank notes as the means of raising money to pay the interest accruing from time to time, we would find ourselves in the hands of brokers and shavers, compelled to submit to such terms as their cupidity might dictate. Very few rounds of the circle-receiving our notes at par, and selling them at such a discount as would be demanded-would result in the exhaustion of the remaining assets of our Banks, to pay the interest only, leaving the principal debt, in all its magnitude, bearing heavily upon us, swelling with still further in- terest. This suicidal policy, I trust, will not be adopted, even as a temporary measure. It involves the same principles which have too long prevailed in the management of our Banks, favoring the Bank debtors at the expense of the tax- payers of the State.
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