USA > Indiana > Pioneer history of Indiana : including stories, incidents, and customs of the early settlers > Part 41
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Clinton County, containing 432 square miles. Elkhart County, containing 460 square miles.
St. Joseph County, containing 468 square miles.
In 1831 Grant County was organized, containing 416 square miles.
In 1832 the following counties were organized: Huntington County, containing 384 square miles. LaGrange County, containing 396 square miles. LaPorte County, containing 562 square miles. Miami County, containing 384 square miles. Wabash County, containing 420 square miles. White County, containing 504 square miles.
The population of the State in 1830 was a little over 343,000.
The expenditures up to 1830 to 1835 to carry on all inter-
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est of the State of Indiana, were so small in comparison to the extraordinary expenses that are now made, that it is often brought into question whether the appropriations made for the legitimate expenses were not better applied then than now. True, the expenses for the Legislature of Indiana in 1817 were only a little over $7,000.00. This amount covered all the expenses of the first General Assembly. More particu- larly itemized, there was $5,220.00 for the pay and mileage of forty members; $1,157.00 for clerks, fuel and stationery, and $947.00 for printing and distributing the laws. The cost of the session in 1818 (the same number of members) was $10,054.00; the next General Assembly in 1819 was $4,350.00 for the same number of members. In 1825 the total expenses of the State Government were $16,000. The expenses for the members of the General Assembly for sixty days, 1903, were very near $120,000. These statements are not made in the way of criticism, but show the great increase in expenditures. What the expenditures for that last named Legislature were is not known by the author, but probably more than all the expenditures for the ten first Legislatures in Indiana.
MICHIGAN'S NULLIFICATION.
In 1834 Michigan, led by some of her very smart set, at- tempted to steal a strip of Indiana, ten miles wide, which lay along the southern border of Michigan, thus attempting to take from Indiana her very valuable harbors on Lake Michi- gan. This claim was set up long after the constitutions of Indiana, Illinois and Ohio had been accepted and approved by the National Congress. This was kept up by Michigan for more than two years, until one of the principal agitators, while making a furious speech against Indiana and breathing out many threats of what he intended to do, became so wrought up and so angry that the blood rushed to his head and he fell dead. In this attempted steal, a few hot heads caused the State of Michigan to act equally as badly as South Carolina, except there was a slight difference in their attempted nullification.
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In 1836 the following counties were organized: Brown County, containing 320 square miles. DeKalb County, containing 365 square miles. Fulton County, containing 357 square miles. Adams County, containing 336 square miles. Jay County, containing 378 square miles.
Kosciusko County, containing 567 square miles. Marshall County, containing 441 square miles. Noble County, containing 432 square miles. Porter County, containing 415 square miles.
In 1837 the following counties were organized: Blackford County, containing 169 square miles. Delaware County, containing 394 square miles. Jasper County, containing 975 square miles. Lake County, containing 468 square miles.
Stark County, containing 432 square miles. Wells County, containing 272 square miles. Steuben County, containing 324 square miles.
STATE BANK OF INDIANA.
This bank was established in 1834. Its charter was simi- lar to the old United States Bank in many particulars. It was adapted to the local conditions of the State. There were twelve districts, all having branch banks in Indianapo- lis, Terre Haute, Ft. Wayne, Michigan City, Richmond, New Albany, Madison, Lawrenceburg, Evansville, Lafayette, Vincennes and Bedford. The bank was a State institution and the president was elected by the Legislature to serve five years, with a salary not less than one thousand dollars or over fifteen hundred. The time the charter was to run was until the first of January, 1859. The capital stock was $1,600,- 000.00, divided into fifty dollar shares. One-half of the stock was subscribed for by the State. The branches were each to have a capital of $160,000. One-half of this was sub- scribed by the State. During the life of the State Bank there would not any other banking institution be permitted to be incorporated by the State. The charter provided that every stockholder who would pay eighteen dollars and sev-
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enty-five cents on a fifty dollar share of stock, the State (if he wanted it) would loan him $31.25 on each share of stock, so that the stock would be paid up. This loan was secured by good collateral security. The stockholder borrowing to pay his stock was charged by the State five per cent on the amount borrowed and was credited with whatever dividend there was declared on the stock. In this way the loan was paid back to the State and the stock was free to those sub- scribing it, less $18.75 on each fifty dollars. After it had paid out, the dividend was paid directly to the holder of the stock. Not only did the stockholder receive the dividends, but was paid his share of the surplus which accumulated.
The bank loaned money on real estate at its appraised value for taxation. This was always safe, as real estate was rapidly advancing in value. To enable the State to pay for its share of the stock and to enable it to make advances to the stockholders, the State issued five per cent bonds, to run for as long a period as the banks were chartered for. These bonds were very favorable security and were sold in all the money markets of this country and in Europe.
The State Bank and its branches were soon established. All the stock that each was entitled to was subscribed and they went on their mission of great prosperity and did untold good to the people of the State of Indiana. The management was so perfect there was not a single dollar lost by an indi- vidual during the long life of the banks. Those owning stock or having money deposited in the bank were perfectly secure. The confidence that this security brought about in all business circles added greatly to the rapid strides made by the people in advancing the interests of our State on every hand.
STATE BANK, WITH ITS BRANCHES AND THEIR OFFICERS, OR- GANIZED IN 1834.
Indianapolis Branch-Harvey Bates, president; Bethuel F. Morris, cashier.
Lawrenceburg Branch-Omer Tousey, president; Enoch D. John, cashier.
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Richmond Branch-Achilles Williams, president; Elijah Coffin, cashier.
Madison Branch-James F. D. Lanier, president; John Sering, cashier.
New Albany Branch-Mason C. Fitch, president; James R. Shields, cashier.
Evansville Branch-John Mitchell, president; John Doug- las, cashier.
Vincennes Branch- David S. Bonner, president; John Ross, cashier.
Bedford Branch-William McLane, president; Daniel R. Dunihue, cashier.
Terre Haute Branch-Demas Deming, president; Aaron B. Fontaine, cashier.
Lafayette Branch-T. T. Benbridge, president; William M. Jenners, cashier.
Fort Wayne Branch-Allen Hamilton, president; Hugh McCulloch, cashier.
Michigan City Branch (organized February, 1839)-Jo- seph Orr, president; A. P. Andrews, Jr., cashier.
There was a provision in the laws authorizing the State Bank of Indiana to appropriate the State's surplus of the pro- ceeds of the bank for a school fund. "This wise legisla- tion," so says Gen. John Coburn, of Indianapolis, "was pro- posed by John Beard, of Montgomery County, and has yielded many millions for the permanent school fund of our State." The interest on this fund has added untold blessings to the youths of our State for the last sixty years.
Another wise legislative provision was, that the fines for misdemeanors should be appropriated to the same noble pur- pose. Those who violated the laws paid for the violation in building up a fund to educate the young and influence them to become law-abiding citizens instead of law-breakers. From these two sources above named, and from many others which have favorably come to Indiana in the interest of education, our immense school fund has been secured.
The banks were authorized to issue notes and the prop- erty of all the banks was responsible for the redemption of
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these notes. The law governing the management of these banks was such that only five hundred dollars could be loaned to any one person, and before the loan of this amount could be made it had to be recommended by five of the seven directors which each branch had. The banks were specie paying institutions, and it was in direct opposition to their charter not to do so. When the volume of business that each of these banks transacted and the small amount of specie which was in circulation at that time is noted, one is forced to conclude that the bank notes were regarded as good as specie, which at that time was mostly silver.
In 1837, when the hard times came, the banks for several years had to suspend paying coin, but this was not regarded as a hardship, for the bank notes were so well secured, and notwithstanding the uncertainty of the times, people re- garded them as good.
The United States Government in 1836 directed that after a certain period in the near future, nothing would be received at the land office but coin or Virginia land scrip, ex- cept from those purchasing the land to settle and improve. The pow-wow made by the Federal authorities against United States banks was the real cause of the financial trouble all over the country, at least adding much to it.
HON. ISAAC MONTGOMERY.
(The speech of Hon. Isaac Montgomery, delivered in the State House at Indianapolis, on the 8th of January, 1841, while he was representing Gibson County in the State Legis- lature, was sent to the Southwestern Sentinel, published at Evansville. Whether it was published or not, I do not know. John Hargrove was a Democratic member of the Senate at the same time, and most likely furnished this copy to the Sentinel, as his name, in his handwriting, is on the lower corner of the old manuscript):
"For the Southwestern Sentinel.
Mr. Editor: On the 8th of January, 1841, the Hon. E. M. Chamberlain delivered a, very able but offensive address to the Whig party in the State Capitol at Indianapolis, in
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consequence of which the Whigs met at 6 o'clock P. M. same day, to make a rejoinder, called the Hon. S. R. Stan- ford to the chair as president of the meeting. The Hon. R. W. Thompson of Lawrence county was called on to address the meeting by way of reply to Mr. Chamberlain. After two long hours of denunciation and abuse of the most bitter kind against the administration of Pres. Jackson and VanBuren, he finally came to a close, when on motion the Venerable Isaac Montgomery, representative from Gibson county was called to the chair as vice-president of the meeting, in conse- quence of his age and having served with General Harrison in the Tippecanoe campaign. On being conducted to the chair he addressed the meeting in the following language:
" 'Gentlemen: I am an old man and no great speaker, having but little learning. I was raised in a time and country where there was a bad chance to get learning. I was raised partly, gentlemen, in the State of Kentucky. Yes, gentlemen, I was there in an early day when the Indians were as thick as seed ticks and we had to fort up and get along the best way we could for a long time before we got rid of them. There was no time nor chance, gentlemen, to get schooling.
" 'But gentlemen, if I am no great speaker, I know one thing. I am as true a Whig as ever breathed the breath of life and in an early day I moved to this state, then a wilder- ness territory, in 1805 with my wife and a few little children and I brought with me all the way here in my pocket a rec- commendation from Col. Crockett, my mother's brother, to General Harrison, then the governor of this territory calling on him to give me some assistance in purchasing a piece of land.
"'I. showed my recommendation to the General (then Governor) and he promised that he would give me some help when the land came into market but through my own integ- rity and strict economy, yes, gentlemen, by my own sweat and labor I procured enough money to buy me a quarter sec- tion of land near where, I now live, and have raised a large family, six sons and with one exception all larger men than I
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am. Yes, gentlemen and every one of them honest men and as true Whigs as ever walked on earth or ever the sun shown upon and who are ready and willing at any time to lift up their hands high to heaven and swear by Him who lives for- ever and ever, that they would do nothing wrong. No, gen- tlemen, nothing wrong, and who are as good marksmen as ever pulled a trigger. This thing of being called tories and cowards, gentlemen, there is nothing of it with them. As ยท old as I am I am now ready and willing to march out in de- fense of my country.
" 'Gentlemen, we have heard a great deal said about the battle of Tippecanoe and about the Indians choos- ing General Harrison's camping ground. Now, gentle- men, I was there myself, on that very same spot, and I know all about it. I know there have been a great many things said that are not so. Now, gentlemen, I can tell you all about this matter.
"' 'General Taylor and General Clark are the very men who picked out that camping ground. General Harrison sent them ahead about one hour by the sun in the evening. Now, gentlemen, I know this to be so for I was with General Har- rison and by his side at the time. These men, after being gone ahead about a half an hour returned and reported that they had found a very suitable place to camp, and a prettier or more suitable place could not have been found, I know. So we went into camp and it was a dark, drizzly night. Yes, gentlemen, you could not see your hand in front of you, only as the burning of the powder gave light from the guns of the enemy's fire, which was squirting and streaming out in almost every direction and the bullets would whiz and whistle all about in every direction, and they would just as soon have shot us right in the head as any other place.
"Yes, gentlemen, there was no time there for dodging. Many brave and good men there fought and died in defense of these principles which we now advocate and defend. Yes, gentlemen, the very identical things which we as a Whig party now hold to.'"
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Honorable Isaac Montgomery was a lieutenant in Cap- tain Wm. Hargrove's company which took part in the battle of Tippecanoe on Nov. 7. 1811. Lieutenant Montgomery and Captain Jacob Warrick who was killed at the battle of Tip- pecanoe were brothers in law, Warrick having married Jane Montgomery in Kentucky in 1795. On the march from Vin- cennes to the Tippecanoe battle ground, the day before the battle, Capt. David Robb's company had the advance, the army had halted in some prairie land for dinner. Three Indians on horse back were seen manoeuvring back and forth some dis- tance in front of the advance. Each time they circled a lit- tle nearer to the army. Several shots had been fired at the three without any effect.
Finally Lieutenant Isaac Montgomery was sent for to try the range of his heavy rifle, which he had had made on pur- pose to kill bear with. ' The Lieutenant had the reputation of being the best shot in Gibson county. When he came up he took deliberate aim and fired without any visible effect. He then loaded his gun with an extra charge of powder and taking careful aim, fired again. One of the Indians was seen to pitch forward off his horse. They all soon disappeared. From two Indians captured late that evening it was learned that the last shot killed one of the Indians.
The General Clark referred to in the speech was not General George Rogers Clark, but General Maston Clark, who was one of General Harrison's aides on this campaign.
LAND SHARKS.
The first settlers who came to Indiana were here before the land was surveyed. They selected such places as pleased them and built their cabins with the intention of purchasing the land when it was for sale. In most cases the settlers had an understanding with each other as to the land each wanted and mutually agreed to protect each other in these rights.
Most of the people secured the land which they had set- tled on but there were cases where great injustice was done by those who were able and had the disposition to be mean. This meanness was always resented by the old pioneers in a
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way that those who purchased the homes of others were looked on with contempt.
A man named McCoy had squatted on a nice piece of land in the eastern part of Warrick county and had made substantial improvements, but up to that time had been un- able to secure all the money needed to pay for the first forty acres of the quarter section which he wanted. His wife went a long way to an uncle of hers and borrowed the balance needed to make fifty dollars. The husband went to Vin- cennes to purchase the forty acres.
When he got there he found that a man living about two miles away had purchased the land that his improvements were on. He went home with the sad news to his wife. The neighbors found out the mean treatment that had been im- posed on him, and a number of them went in a body and told the man that one of two things would have to be done. He had to then and there deed the forty acres to McCoy for the fifty dollars or they would give him such a thrashing as he would never forget and gave him two hours in which to de- cide what he would do.
The fellow was so avaricious that it was hard for him to give up the nice property he had so wrongfully entered, but his determined neighbors were so threatening that he made the deed. McCoy paid the fifty dollars and finally bought the quarter section. This fellow was treated with such con- tempt by his neighbors that he sold his property and moved to the Illinois country.
Two farmers in Gibson county coveted a forty acre tract that lay between them. Neither of them had the money to enter it but both were working hard to secure it. One of the men owned one-hundred and sixty acres and his neighbor only forty but was intending to buy the forty referred to and fin- ally the balance of the quarter section.
It finally came to the ear of the man owning the forty acres that his neighbor had gone to Princeton and intended to go to Vincennes the next day to enter the land. He did not know what to do as he only had part of the money. A neighbor advised him to go that night to Major David Robb's,
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who lived near Hazleton ferry over White river, and he felt sure the Major would lend him the money. To make it sure the neighbor, who was a friend of Major Robb's, would go with him and go his security if needed. This they did and Robb let him have the money and had him ferried over and on his way to Vincennes two hours before day the next morn- ing.
The land was entered and when he got to the ferry com- ing home he found his neighbor on the south bank waiting to cross. When the man learned that the land was pur- chased he showed that he had some good traits in him by proposing to his neighbor that as he had procured the land, there was another forty of the quarter section which he had better enter and then the last forty was not so desirable and he could purchase that at his leisure and that he would loan him the money to make the entry. This offer was accepted. He took the money and went back to Vincennes and entered the land. These two men lived on adjoining farms the best of friends. Their families intermarried and their descend- ants are among our best citizens.
LAND SPECULATION.
Along in 1832 there was a flood of land warrants and land scrip which had been bought up by an eastern syndi- cate. The syndicate had a large number of agents in the settling portions of Indiana and Illinois, selecting the land they wanted. There were usually quite a number of these agents together. If there were not a sufficient number of agents, they hired men to go with them so they would be in sufficient numbers to defend themselves. There was not thought to be much danger from Indians, although there was quite a stir in Northwest Indiana and many reports about the Indians.
There was a neighborhood in western Montgomery County which had a fine body of land that fifteen or twenty men had settled on, and all of them had purchased part of the land that they wanted and built their cabins and cleared.
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up a portion of the land, with a view of purchasing the rest of the land which each had selected.
It was found out there was a number of men who had been at Crawfordsville hunting for lands which were located in neighborhoods that were being settled. This news alarmed the men who had settled in the western part of Montgomery County, and they sent several parties to find out what they could about these agents and to keep a watch on their proceedings.
One of these spies learned of them that they were intend- ing to purchase a large body of land in the immediate vicin- ity of every settlement in that section of the country. He also learned they had already examined several pieces of land in neighborhoods southeast of where he was located, and he further learned that in obedience to the instruction of their employers, every piece of land they recommended had to have their personal examination and they had to describe it so minutely as to timber, springs, branches, hills and hollows, that it could be easily located. The spy also learned that these agents intended to be in his neighborhood at a certain time a few days off. He agreed to show them the land in his part of the country, telling them he was well acquainted with all the land in that section. Hurrying home, he told the neighbors of the danger they were in. They got together and canvassed many plans of how to best get rid of these ob- noxious agents. They sent to their surrounding neighbors . and procured all the help they could and determined to give the agents a scare, or try it.
The day the agents went to the settlement, they met their pretended friends, who were showing them the land outside of their neighborhood. They had been some time engaged in going over the land, when behind the party several Indians were seen coming on their trail. This startled them. Soon on the north another party appeared, on the west another party-in all, thirty or forty full-dressed Indians. Giving a blood-curdling war-whoop, the Indians started for the agents, who made a rush for the south to get out, as they were surrounded on every other side. The guide
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lying down on his horse led the party. The Indians were shooting and whooping at a fearful rate, the balls whistling uncomfortably close around their heads. The Indians made it a point not to overtake them, but to keep up the running fight, and every now and then a party of Indians would dash around the side as if they intended to surround them. This running fight was kept up for several hours, the guide lead- ing them out of Montgomery County and down into Park County. They kept up a good gait until they reached Terre Haute.
The excitement created by this Indian scare raised a wonderful excitement all over that section of the State. The alarming reports of the speculators were the cause of Gov- ernor Noble ordering General Walker to call out his com- mand. In that command were several companies from Mont- gomery County. Among these companies were a number of our land friends, and they were very loud in telling about the attack of the Indians on the land agents. This taking place at about the same time that Black Hawk was raising trouble in the Illinois country not far away, raised a tremendous ex- citement all over a large part of Indiana. Some of the citi- zens went to repairing old forts and building blockhouses, and it was many weeks before things quieted down. It is not known whether the men who organized the Indian scare got the land that they wanted or not, but they certainly de- served it.
BRAVE WOMEN.
. Many startling incidents grew out of the Indian scare when the defenders of the land, disguised as Indians, drove the agents out of the country, as recorded in a previous chap- ter. and some of them were really amusing. Hundreds of persons flocked into Lafayette and Crawfordsville and other towns near that section. The people of Tippecanoe, Ver- million, Fountain, Montgomery and Warren counties and parts of other counties were in a great state of excitement. The militia were heroically preparing for war.
A family which lived several miles west of Lafayette had seven children. The man had married a woman who had
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