USA > Alabama > Reminiscences of public men in Alabama : for thirty years, with an appendix > Part 72
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33 | Part 34 | Part 35 | Part 36 | Part 37 | Part 38 | Part 39 | Part 40 | Part 41 | Part 42 | Part 43 | Part 44 | Part 45 | Part 46 | Part 47 | Part 48 | Part 49 | Part 50 | Part 51 | Part 52 | Part 53 | Part 54 | Part 55 | Part 56 | Part 57 | Part 58 | Part 59 | Part 60 | Part 61 | Part 62 | Part 63 | Part 64 | Part 65 | Part 66 | Part 67 | Part 68 | Part 69 | Part 70 | Part 71 | Part 72 | Part 73 | Part 74 | Part 75 | Part 76 | Part 77 | Part 78 | Part 79 | Part 80 | Part 81 | Part 82 | Part 83 | Part 84 | Part 85 | Part 86 | Part 87
Besides all this, which appeals to our interests, gentlemen, do we owe the ne- gro any grudge? What has he, himself, done to provoke our hostility? Shall we be angry with him because freedom has been forced upon him? Shall it excite our animosity that he has been suddenly, and without any effort on his part, torn loose from the protection of his kind master? You may have been that master. He is proud to call you master yet. In the name of humanity, let him do so. He may be older than you, and perhaps carried you in his arms when an infant. He may have been the companion of your boyhood. You may be bound to him by a thousand ties which only a Southern man knows, and which he alone can feel in all its force. It may be that when, only a few years ago, you girded on your car- tridge-box, and shouldered your trusty rifle, to go forth to meet the invaders of your country, you committed to his care your home and your loved ones; and when you were far away upon the weary march, upon the dreadful battle-field, in the trenches, and on the picket line, many and many a time you thought of that faithful old negro, and your heart warmed towards him.
[The remainder of the charge, as printed, was accidentally torn off and lost.]
.
665
Reminiscences of Public Men in Alabama.
STEPHEN F. HALE, of Greene, was a Kentuckian, and came to Alabama in the capacity of a teacher. He read law, and en- tered upon the practice at Eutaw, about 1841. His talents soon attracted notice. In 1843, when quite a young man, he was elected to the House, where he made a favorable impression. Continuing to apply himself to the duties of his profession, and advancing in influence, he remained in private life until the breaking out of the Mexican war in 1846, when he volunteered, and was elected Lieutenant of a company. He served in Mexico until the con- clusion of peace, in 1848, when he returned home with a bright reputation as a soldier and officer.
Again applying himself closely to his profession, he did not again come forward for public trust until 1857, when he was a second time elected to the House, and was reelected in 1859. His physical and mental capacity, as might have been expected, was improved since 1843, and he became a leading man, with an ac- knowledged force of character, in the Legislature. In debate, he displayed a high order of intellect, and his manner and delivery gave great effect to his arguments. He was a Whig of the Ken- tucky stamp of those days. His mind had been logically trained. There was an energy in his style, and a tone in his elocution, which made him somewhat noted on the floor, and had great weight with his hearers.
In 1860, he voted for John Bell for President, because he was a Whig, as he always voted with his party for the first office in the country, when a suitable candidate was in the field. After the State seceded, Mr. Hale was sent, by Gov. Moore, as a Com- missioner to Kentucky, to take counsel with the authorities of that State in regard to the momentous issues then pending. He afterward engaged in the military service of the Confederate States, and held the rank of Lieutenant-Colonel in the army of Virginia, where he was killed in one of the battles around Rich- mond in 1862, while bravely leading his command in action.
As a gentleman, Col. Hale possessed a noble spirit, and was kind and true in all the relations of life. In 1866, the Legisla- ture named a new county "Hale," formed out of the eastern por- tion of Greene, in honor of the man who came among the people of that county a young stranger, and in their midst, for more than twenty years. proved himself a good lawyer, a worthy citizen, an intelligent legislator, and a brave soldier; and when the sacrifice was demanded, he left the comforts and endearments of home for the battle-field, where he gave his life in defending the rights and honor of the South. Surely such a man, such an example, deserves commemoration.
666
Reminiscences of Public Men in Alabama.
SAMUEL JETER, of Chambers, was elected as a Democrat, and served only through the session of 1857. He was a Georgian, originally, but had long resided in Alabama, where his political relations were well established in the Conventions and consulta- tions of his party, in which he took a prominent part. He was somewhat advanced in years, was wealthy, and had a force and de- cision of character that gave him much influence in political and social circles. He still possesses the mental vigor of earlier days.
DR. A. G. MABRY, of Dallas, took his seat in 1857, and served with little interruption to the close of the session of 1866-'7. He possessed good practical sense, and much and varied information on public affairs, which contributed no little to the benefit of the State in his legislative career. As a member of the Committee on Ways and Means he rendered very substantial service. With- out social qualities of any special character, he cultivated pleasant relations with his fellow-members, without neglecting his public duties, however, and was at all times respectful and courteous as a gentleman.
Dr. Mabry, as a physician of high culture, took a lively interest in the establishment and organization of the Asylum for the In- sane, was one of the first Trustees, and with watchful and tender care, has looked after its interest, so as to secure, upon a perma- nent basis, the support of the institution, that it may impart vigor and certainty to its benefits. In all these philanthropic efforts, he has enrolled his name on the list of Alabama's most deserving sons.
JAMES B. MARTIN, of Talladega, by birth and education a Georgian, first settled in Jacksonville, in the practice of the law, and afterward removed to Talladega. He advanced rapidly in his profession. The superior mind, the close attention to law- books, the fidelity to his clients, which marked his character, made him a rising man, and brought about him many friends and ad- mirers. He came to Alabama a stranger, without influential con- nections, and worked his way through the difficulties usually en- countered by young men in this situation. But he rose above them, and became established in the confidence and patronage of the people.
In 1857, he was elected to the House, and the ability of his reports from Committee, and in his speeches on the floor, secured him a prominent rank among the working and useful members. Not long afterward, he was elected Judge of the Circuit Court, and presided with uprightness, and to the public satisfaction, until he resigned after the commencement of hostilities, and took the field as Lieutenant-Colonel of a regiment, displaying as much bravery in war, as he had given proofs of great intellect in peace.
667
Reminiscences of Public Men in Alabama.
While leading a charge, in one of the battles of Virginia, (at Dranesville, I believe,) he was killed, in the flower of his age, and in the midst of his usefulness. His moral character was up- right and pure, and he died, as he had lived many years, a worthy member of the Presbyterian Church.
ALEXANDER SMITH, of Coosa, was elected in 1857 and in 1859, upon the Democratic ticket, and served the State and his constitu- ents well and faithfully. The people had bestowed on him vari- ous county offices, with that of Sheriff, in all which he exhibited the force of his character in decision and punctuality.
Mr. Smith is a North Carolinian; but has so long resided in Alabama, that he is entitled to the appellation of an old citizen. He has always been remarkable for energy and perseverance, and now, at the age of 76, he is engaged in the active duties of life, in rearing up and educating a family of young children.
Under the old organization, he was a Democrat, and supported Mr. Douglas for the Presidency in 1860; but when the State se- ceded, he gave her his support, with all the earnestness of his na- ture; and, now, in the evening of his days, he can look back with satisfaction upon a life devoted to the public good, so far as his means and opportunities would allow. Mr. Smith is much re- spected wherever he is known.
668
Reminiscences of Public Men in Alabama.
CHAPTER XXXVII. Financial Policy - Banking System.
In settling on a plan likely to be the most useful in operation, with less cost to the people, in raising and disbursing money on public account, the Legislature of Alabama, at an early period, chartered a State Bank, with Branches as occasion seemed to require, founded upon the credit of the State. The leading idea, no doubt, was the realization of a surplus not only sufficient for the support of the Government, in its Legislative, Executive, and Judicial Depart- ments, but a balance which might be applied to the cause of pop- ular Education, or to any other scheme or method for securing the greatest good to the greatest number. The ground of calculation was probably the difference between borrowing capital by the sale of State bonds at five per cent. interest, to be used by the Banks in the discount of paper bearing eight per cent., which would show a profit of $30,000 on each million so invested. On this principle, ten millions of dollars in bonds, as a basis of issue in Bank circu- lation, could not produce less than $300,000 per annum, confining the issue, dollar for dollar, within the specie ability of the Banks to redeem their notes on presentation, even on the same day. To this supposed gain might reasonably be added still more extensive profits from the issue of Bank notes in the proportion of three dollars to one dollar in specie, the usual privilege granted, on the presumption that the return of the bills in payment of Bank debts would always keep the circulation at a point of safety, without creating a demand for coin beyond the ordinary routine of com- merce, and without the possibility of a panic, or of peril to the Banks.
Such may have been the inducement to adopt the Banking Sys- tem in Alabama, as a relief from taxation, and as promising other desirable results. At all events, the experiment has been made, attended perhaps with more of general prosperity in the develop- ment of the agricultural resources of the State, and in other chan- nels, than would have accrued to the people had no such facilities been afforded. It is altogether useless, at this late period, to spec- ulate upon the advantages which might have been secured to the citizens by a literal fulfillment of contracts on the part of bank debtors, and the exercise of the privilege of the Banks to increase their circulation on a legitimate basis, so that instead of $300,000
-
Reminiscences of Public Men in Alabama. 669
profit per annum, this sum might have been tripled to $900,000 on $10,000,000 of capital thus employed.
It is not intended here to examine the several Bank charters, nor the respective dates when the State Bank and Branches were established. The particulars would serve no useful purpose. The management of the Banks has been noticed incidentally in other portions of this work, and this must suffice, except to show, as the time approached for winding up the Banks, the amount of indebt- edness by the people, and the liability of the Banks for their out- standing circulation.
As evidence of the demand for accommodations, it is shown by tlfe Bank reports, that, for the year ending November 30, 1840, the offerings of ninety days paper at the State Bank, from twenty- two counties, amounted, in the aggregate, to $1,710,489, while the discounts for the same counties were $295,802. Perhaps about the same ratio of seven to one existed in the Branch Banks, though no statement of offerings is made in their reports. The relief law of the extra session, in 1837, directed loans to be made from the sale of $5,000,000 new bonds, mainly to debtors in distress from judg- ments and executions pending over them ; and certificates from the Clerks of the several Courts, showing these liabilities, were nec- essary to be laid before the Directors, in order to obtain loans, or relief. No attempt is made to trace the amounts offered for this purpose in the intervening years to 1840; but some idea may be formed of the pressure, from the fact stated as to the twenty-two counties already referred to, seven of which, offering more than $100,000 each, are the following:
Counties.
Am't Offered.
Am't Discounted.
1. Greene
$ 413,898 00
$ 63,350 00
2. Sumter
302,250 00
44,400 00
3. Perry
214,558 00
23,950 00
4. Marengo
203,150 00
36,785 00
5. Tuskaloosa.
141,333 00
55,367 00
6. Dallas
132,400 00
18,400 00
7. Pickens.
124,270 00
19,250 00
Total.
$1,531,859 00
$261,502 00
Without going farther back to ascertain the precise amount of State bonds originally issued to the Banks, it may be stated that in 1840 the amount outstanding was $10,859,856, drawing an an- nual interest of $563,768. The Joint Examining Committee at the session of 1840, consisted of Messrs. W. W. Morris, Milton McClanahan, and Thomas A. Walker, of the House; and Messrs. George Reese, D. B. Turner, and Dixon Hall, on the part of the Senate. In their report on the condition of the State Bank and
670
Reminiscences of Public Men in Alabama.
Branches, the Committee stated the amount of good, doubtful, bad, and unknown debts due the State Bank and Branches, from each county, after this classification had been made by their members, who inspected the list. The following is the result:
STATE BANK-
Good.
$2,297,477 33
Doubtful
179,532 20
Bad.
397,413 04
Unknown
151,839 01
-$3,026,251 38
BRANCH AT MONTGOMERY-
Good.
$2,441,228 43
Doubtful
217,204 09
Bad
196,542 43
Unknown
108,568 47
$2,963,603 42
BRANCH AT HUNTSVILLE
Good
$1,513,460 90
Doubtful.
93,625 84
Bad.
104,903 37
Unknown
19,885 42
$1,731,875 53
BRANCH AT MOBILE-
Good. $3,271,717 71
Doubtful
947,720 47
Bad.
2,134,239 21
Unknown
889,346 40
$7,243,023 85
BRANCH AT DECATUR-
Good.
$2,490,365 28
Doubtful.
300,020 06
Bad.
713,403 75
Unknown
190,894 67
$3,694,683 76
Total
$18,659,428 14
To replenish its vaults with coin, looking forward to an early resumption of specie payments, the State Bank, in the summer of 1838, commenced advancing on cotton to be delivered, under special contract, which practice it kept up for two years. In notic- ing it the Committee say :
Our examination extends back to the commencement of these transactions. The results of our investigations are as follows:
Number of bales advanced on .21,624
Number of bales received and shipped. 19,124
Number of bales not delivered. 2,475
Number of bales sold, as per account of sales rendered. 18,290
Number of bales unsold on account of sales not received 859
1
671
Reminiscences of Public Men in Alabama.
Amount advanced on 21,624 bales. $1,209,416 29
Proceeds, as per account of sales, of 18,290 bales 764,898 62 Amount of reclamation from shippers, subject to the deductions of the net proceeds of 859 bales 504,517 67
Now, taken as data, the proceeds of the same number of bales, as per account of sales of cotton already sold, gives a credit to the above, of. $ 25,770 00
The probable amount of reclamations 478,747 00
At the session of 1842, the Joint Examining Committee made a report on the condition of the debts due the State Bank and Branches, showing by classification the following results:
Total amount of good debts $ 8,852,135 80
Total amount of bad debts. 5,501,493 16
Total amount of doubtful debts 2,048,244 81
Making the grand total. $16,401,873 77
In the days when the Banking System of Alabama had free course, and millions of currency were issued in exchange for busi- ness and accommodation paper, there was, at times, a stringency in the money market more or less inconvenient to the people, ยท caused mainly by their large indebtedness to the Banks, and the low price of cotton, which ranged from seven to ten cents per pound. The money borrowed from the Banks had been generally invested in real estate and labor at a high figure. Hence the pressure when cotton was low, and liabilities urgent for property purchased on credit.
The Committee for 1842, in their report, made the following statement of the total amount due from each county to the State Bank and Branches :
Autauga.
$482,343 57|Lauderdale $ 260,159 25
Blount
169,490 04 Lawrence.
909,766 19
Benton
122,406 60 Limestone. 465,343 37
Barbour
113,414 36 Lowndes 579,506 70
Baldwin.
34,056 50 Marshall. 189,220 86
Bibb
121,605 65 Madison
978,481 73
Butler
143,647 75 Morgan
375,985 38
Cherokee
28,272 25 Marion.
66,279 30
Chambers
99,990 09 Macon.
193,835 40
Clarke
209,728 32| Marengo
595,383 04
Conecuh
65,614 18 Mobile. 2,740,227 24
Coosa ..
116,725 48 Montgomery. 1,222,014 44
Covington
4,190 27 Monroe 175,429 64
DeKalb
42,330 99 Perry.
471,150 40
Dale.
39,409 40 Pickens 180,304 58
Dallas
444,067 92 Pike. 72,064 25
Fayette
57,377 24 Randolph 27,428 22
Franklin
563,693 08 Russell.
70,156 61
Greene
795,735 20 St. Clair
49,920 94
Henry
37,848 63 Shelby.
74,540 14
Jackson
236,003 81 Sumter 663,915 14
Jefferson
87,438 72|Talladega
273,835 20
672
Reminiscences of Public Men in Alabama.
Tallapoosa $ 37,473 96|State of Mississippi ... .. .$ 130,948 04
Tuskaloosa 626,827 64 State of Tennessee 7,701 20
Washington
100,228 61 State of Georgia.
7,652 05
Walker.
49,929 77 State of Pennsylvania.
2 00
Wilcox
274,475 86 Promiscuous
101,510 90
University
52,500 00
Cotton Debt.
351,190 14
$16,401,873 77
At this session all the Branch Banks were so far placed in liquid- ation as to cease discounting paper. Officers were retained to close up the business and expedite the collection of debts. At the session of 1843, Dr. David Moore, of Madison, was Chairman of the Bank Committee, and from his report the following items are derived:
Debts collected during the year $1,785,416 79
Outstanding circulation 4,319,358 00
Specie in Branch Banks 624,659 41
Current expenses of the Banks.
90,831 36
Paid on account of valueless 16th sections.
161,251 57
Amount due 16th sections.
822,440 07
These calculations were based on the reports of the Bank Com- missioners and Bank officers, which were quite voluminous, as re- ferred to the Committee.
By the act of 4th February, 1843, the Bank managers were to. appoint attorneys for the several counties, to whom a commission varying from five to twenty per cent. was allowed on all collec- tions paid in Bank. A large portion of the paper due the Banks was accordingly placed in the hands of attorneys selected in the different counties, whose names, with those of debtors, were pub- lished with the Bank reports. The law also required that the indebtedness of the Directors, and of members of the Legislature, together with the items of expense in the administration of the Banks, should be published.
From the report of the Commissioners in 1845, the condition of the State Bank is ascertained, showing collections for the year, $232,276 03, with a balance of unpaid debts, $1.572,710 66; of which amount, $722,998 17 was classed as good.
In 1845, the outstanding bonds of the State for Bank capital, falling due from 1850 to 1866, with the annual interest thereon, were thus stated:
Issued to.
Amount.
Annual Interest.
State Bank
$ 708,711 11
$ 36,435 56
Branch at Montgomery
1,838,711 11
95,265 56
Branch at Mobile.
3,434,711 11
175,045 56
Branch at Huntsville
1,357,711 11
69,785 56
Branch at Decatur
1,867,711 11
94,975 56
Total
$9,207,555 55
$471,507 80
673
Reminiscences of Public Men in Alabama.
Previous to 1820, Congress passed an act enabling the people of the Alabama Territory to form a State Government, and among other provisions was a grant of the 16th section in every township for the support of Common Schools. Most of these lands have been sold, and the proceeds, cash and notes, deposited in the Banks, the interest on which has been paid to the several counties. Of the twenty-two counties which had accounts in the State Bank, five, having the largest credits, are here noticed :
Counties.
School Fund.
Annual Interest.
1. Sumter
$146,717 29
$8,767 51
1. Greene
104,929 19
7,252 17
3. Perry
65,069 93
4,538 44
4. Pickens
49,554 90
3,603 20
5. Tuskaloosa
45,323 67
3,472 02
Total
$411,394 98
$27,633 34
In relation to this fund generally, as affording an idea of its ex- tent in the other Banks, a paragraph from the report of the Com- missioners of the State Bank for 1845, is subjoined :
Estimating each county to contain nine hundred square miles (the Constitu- tional minimum), there will be twenty-five townships in each, or 16,000 acres of Sixteenth Sections. The twenty-two counties named in the table, at this rate, have 352,000 acres of school lands, of which 206 sections, or 131,840 acres, have been sold, netting $573,047 47, at an average of $4 34 per acre. The unsold sec- tions in these counties are 344, containing 220,160 acres, which, at the same aver- age, would yield $955,494 40. This, added to the account in bank, would make the sum of $1,528,541 87. If all the counties in the State sold their school lands at the same price, the grand total would be $3,472 00, for the 800,000 acres de- voted to popular education, which, at six per cent., would produce $208,320 in annual interest.
.
An act was passed 4th February, 1846, placing the State Bank and Branches in the hands of Hon. Francis S. Lyon, C. C. Clay, and William Cooper, Commissioners and Trustees, to control the assets and property, converting the same into money, or State bonds, at as early a period as practicable, with an officer to assist at each institution. They appointed the following:
William Hawn, for the State Bank at Tuskaloosa;
Henry B. Holcombe, for the Branch Bank at Mobile;
John Whiting, for the Branch Bank at Montgomery ;
William Mailler, for the Branch Bank at Decatur;
Theophilus Lacy, for the Branch Bank at Huntsville.
On the 20th December, 1847, the Trustees made their report to the Legislature, from which the following items are obtained :
Amount collected since 4th of February, 1846. $3,457,973 54
Amount of Sixteenth Section Fund on Deposit. 1,015,580 36
Outstanding circulation. 457,177 00
43
674
Reminiscences of Public Men in Alabama.
The Trustees estimated the amount likely to be realized from the remaining assets and property of the Banks-
From the Bank of the State, about. $ 300,000 00
From the Branch at Mobile, about 1,000,000 00
From the Branch at Montgomery, about. 500,000 00
From the Branch at Decatur, about .. 300,000 00
From the Rranch at Huntsville, about.
100,000 00
Total
$2,200,000 00
Amid all the fluctuations of commerce and of finance, from the time the Banks suspended specie payments, in 1837, the notes of the State Bank and Branches have, except at very short periods, kept within a small margin of specie value. That such was the fact in 1847, an extract from the report of the Trustees is here given :
So far from depreciating, the bills, although not convertible into specie, appre- ciated in value, until they are, and have been for some time past, almost equal to specie. They are at a discount of less than one per cent. We were compelled, in order to preserve their value, and prevent loss to those who might use them as a circulation, to refuse to receive in payment of Bank debts anything but gold or silver, the bills of the Bank of Mobile, or of the State Bank and Branches.
Under the judicious administration of the Trustees, the affairs of the Banks have been closed without the loss of a dollar to public creditors, or to bill holders. The faith of the State has been maintained and its obligations promptly redeemed. For many years the revenue from the Banks defrayed the expenses of the Government, thus relieving the people entirely from taxation for the same period. To claim for those who, in the meantime con- trolled the Banks, an utter exemption from error and occasional excess in dispensing favors, is not here pretended. But, all things considered, and the influences frequently brought to bear upon human weakness, and human sympathy, it is matter of gratulation that no worse results have flowed from the system, especially when for each Bank more than a dozen Directors were annually elected by the Legislature, often on the log-rolling principle, more or less prevalent even in Congress, without the seal of public condem- nation.
As to the substantial benefits afforded to the people by the Banks, let the rich fields, and the many improvements which place Ala- bama in the front of agricultural States, with her cotton crop lead- ing Southern production, proclaim the award. The wilderness has been subdued, the priceless cane-brake region developed; cities and towns have been built; railroads constructed in every direc- tion; public institutions have been munificently endowed ; colleges and high-schools have been established; hospitals and asylums have been organized for the relief of humanity; and churches,
675
Reminiscences of Public Men in Alabama.
with their beautiful spires pointing to heaven, abound through the State. Much of the prosperity of former years, when enterprise had its stimulus, doubtless originated in the timely aid of a sound and liberal circulation furnished by the Banks, now swept from existence.
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.