USA > Michigan > Wayne County > Detroit > Compendium of history and biography of the city of Detroit and Wayne County, Michigan > Part 10
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"Having brought matters to a favorable issue, a meeting of the founders and their new converts assembled, and appointed Judge Woodward president and William Flannigan of Boston cashier. Parker and Broadstreet then embarked for Boston with a small venture of one hundred and sixty-three thousand dollars of Detroit Bank notes. The appearance of the notes excited the curiosity of the Bostonians, but on inquiring they were given to understand that they were very safe notes and that the rich territory of Michigan was concerned in them. Agents were also stationed throughout the northern states, who dis- posed of immense quantities of them to the unwary, at from ten to twenty-five per cent. discount. Not long after the introduction of the notes in New England the following remark appeared in the Boston Sentinel, developing the motives of the Detroit bank, sup- posed to be the production of Mr. Parker: 'The enterprise the Detroit banking com- pany have in contemplation, of which this bank is but a part, involves in it as much public advantage as any enterprise that ever was undertaken, viz: the diversion of the valuable trade of Canada to the ports of Boston and New York.' Yes, and peddling Detroit bank notes through the New England states is the very plan to effect that object. Every lover of sport must admire this choice diversion-diverting the cash from the Atlantic states into the Detroit bank.
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"The amount of their paper currency circulating here never, until very lately, exceeded two thousand dollars, and how even that much got afloat is a mystery, for no person ever deposited money in the bank, and no person ever borrowed from them; neither do I know that any notes of hand, bills, or bonds were ever discounted. * *
"In the month of March or April, news came to Detroit that Parker and Broadstreet had sold their interest in the Detroit bank to a Mr. Dexter, at or near Boston, and it appeared by the length of their faces that our Detroit proprietors were somewhat suspicious that their late associates had swindled them. Before our mock bankers were entirely recov- ered of this shock, a Mr. Latimer, of Presque Isle, arrived and brought on one of the New England five dollar Detroit bank notes, which he presented at the bank, but it was refused admittance. The week following Mr. Conrad Ten Eyck returned from Albany with a small cargo of five hundred dollars' worth of Detroit bank notes, which he purchased from one of the agents at or near Albany at twenty-five per cent. discount. He made a tender of them at the bank, but to his great surprise the directors refused to discount them.
"The appearance of Ten Eyck with so much of Detroit paper at first determined the directors to shut the bank. On that occasion Governor Hull delivered the following very learned oration : 'It is reported there are now in circulation in New England from four hundred thousand to six hundred thousand dollars of Detroit paper money, and I believe it. It is very strange that I was not informed of it before. I assure you, gentlemen, I never knew that a single bill of this bank went down the country. This bank business I find is one of the damnedest swindles I ever heard of; but,' laying his hand on his breast, 'thank God, I have no hand in it!' Mon Dieu! What an example of piety and virtue!
"For about three weeks the bank gentry assembled daily, no doubt to deliberate on the propriety or impropriety of shutting up the bank. If they shut the bank on the bills from below, the report would very soon reach Boston and put a final stop to the circulation of bills in that quarter; on the contrary, if they satisfied Ten Eyck, and maintained the credit of the bank a few months longer, they would easily dispose of five hundred or six hundred dollars' worth more of their paper, which would amply compensate for Ten Eyck's five hundred dollars. Accordingly, after a series of consultations, it appears that the latter proposition prevailed. The cashier was dispatched with tidings to Ten Eyck to repair to the bank and receive the cash for his notes. There were in circulation at that time in Detroit and its vicinity seventeen hundred dollars of the Detroit paper currency, and the report having gone abroad that the bank refused to discount its own bills, the people crowded in from all quarters with their bills, and without any difficulty received cash for them, which was more than they expected.
"Just at this time the following conversation accidentally took place on the subject of the bank: Mr. S-, who was one of the largest share holders, said that that 'Parker and Broadstreet had acted a very treacherous part, and for that reason the directors were determined not to pay the bills that are in circulation below;' but he pledged his word and honor 'that no person in this country would be suffered to lose a single cent by the bills which had been circulated here.' It was answered, 'How will you avoid payment of your own notes? You can surely be compelled by law to pay them.' Mr. S- - replied, 'We never will pay them, neither can we be compelled by law to pay them, unless we please.' Mr. S-'s observations are perfectly correct, for the Territory of Michigan holds an inter- est of ten shares in the bank, and congress, not having the fear of God before their eyes, nor the interest of the Detroit Banking company, at the last session, wilfully and malici- ously, destroyed the charter of the bank; and every stockholder is now bound for the
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bank debts to the full amount of his fortune (and that is not much). *
* The ter- ritory being a stockholder involves a general interest in the bank, and the property of every person therein is bound to these promises for the payment of the Detroit bank notes, and no person, agreeably to the laws of the land, being eligible to serve as judge or jury or evidence, in processes wherein his interest is concerned, consequently no suits can be instituted in this territory for debts due by the Detroit Bank.
"The people through their grand juries have three different times remonstrated to the government of this territory against the illicit connection with the bank, but their respect- ful solicitation has been disregarded.
"The directors say that the intentions of the banking company are honest, their views extensive, and their prospect of pecuniary remuneration incalculable; that the Michigan gov- ernment has no concern in the bank, nor the bank with the schemes of government. * First,-Governor Hull and Judge Woodward, in the spring of last year, while they so- journed in the states, spent a great deal of time and a great deal of money, negotiating with the good people of Boston and New York, for the establishment of the Detroit bank. Still the government have no concern in the bank. Second,-The governor and Judge Bates accommodated the bank with two of the most valuable lots in the new town, in total disregard of the act of congress and the interests of the people. Still the govern- ment have no concern in the bank! Third,-Although Governor Hull was himself living in an old store house he stopped the building of his own mansion, and sent all his workmen to expedite the erection of the bank! Still the government have no concern in the bank! Fourth,-Last September Judge Woodward, in his charge to the grand jury recommended this infant bank to their particular protection. Still the government have no concern in the bank! Fifth,-The governor and judges made a law incorporating the Detroit bank, in utter contempt of a law of congress, in favor of the United States Bank, which says in plain terms 'That no other bank shall be established by any future law of the United States, during the continuation of the corporation hereby created, for which the faith of the United States is hereby pledged.' Still the government have no concern in the bank! Sixth,-Judge Woodward is president of the bank. Still the government have no concern in the bank !
"Seventh,-The governor and judges removed one of the streets forty to fifty feet nearer the bank, to make it form the corner of two streets, to the great damage of the principal range of houses in the new town. Still the government have no concern in the bank! Eighth,-The governor and judges are proprietors of a few shares publicly, and an immense number clandestinely in the Detroit Bank. Still the government have no con- cern in the bank! Ninth,-The governor and judges passed a law making it lawful for this territory to become proprietors in the bank. Still the government have no concern in the bank! Tenth,-The governor and judges made a law authorizing Governor Hull to purchase ten shares in the bank for the territory of Michigan. Still the government have no concern in the bank! Eleventh,-Governor Hull did purchase ten shares in the Detroit Bank, for the territory of Michigan, without the advice or consent of the inhabitants thereof. Still the government have no concern in the bank! Twelfth,-The people have often solicited the governor and judges through the grand juries, and otherwise, to exon- erate the territory from its dangerous connection with the bank, but their respectful solici- tations are to this day totally disregarded. Still the government have no concern in the bank! Thirteenth,-The governor and judges passed a law making the Detroit bank notes a lawful tender. Still the government have no concern in the bank! Fourteenth,-In the
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winter of last year Governor Hull made a tour through the New England states, sounding the praises, as he went, and jingling the unaccountable riches of Michigan, in the listening ears of the astonished Yankees. 'Come all to Michigan! It is the richest country, and the richest land for raising pumpkins in the world.' Immediately on his return to De- troit, he instituted the bank, and shipped with all possible speed to New England an im- mense cargo, consisting of one hundred and sixty-three thousand dollars in Detroit bank notes, peddling them through the country ever since, and passing them away on the credit of the immense riches of Michigan. And yet the government have no concern in the bank !''
Of the connection of Governor Hull and Judge Woodward with the Bank of Detroit, the authors of "Landmarks of Detroit" say :
"In reviewing the circumstances connected with the founding of this, the first mone- tary institution of Detroit, it is impossible to resist the conclusion that both President Woodward and Governor Hull were not men of integrity. Both were active promoters of the fraudulent concern. The latter confessed in an official letter to President Madison, in 1807, that eighty thousand dollars to one hundred thousand dollars of the bank's bills were sent to agents at Boston. There they went into circulation, scattering all over New England, but they were never redeemed at Detroit with the exception of five hundred dollars which were redeemed under threat of publicity. * * Hull and Woodward denied receiving any part of the proceeds, but it is contrary to probability that they told the truth. * * * When Woodward came to Detroit he was a poor man.
He certainly acquired money while in Detroit and became a very extensive land owner. He was a rich man when he left the city, yet he never engaged in trade nor in any visible business save the purchase and sale of land, and his sales did not aggregate a tithe of his wealth."
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CHAPTER VIII.
The Woodward Code-Judicial Districts in the Territory-Early Courts-Judge James Witherell-First Printing Press in Detroit-Efforts to Separate Legislative and Ju- dicial Departments of Territorial Government-Conditions Leading up to the War of 1812-Renewed Alliances Between British Agents and the Indians-Tecumseh, the Indian Leader-Battle of Tippecanoe.
Under a code of laws adopted by the governor and judges during the first year or two of their service-a compilation known as the Woodward code-Michigan Territory was divided into three judicial districts. Courts were established in each of the districts of Mackinac, Huron and Erie and had jurisdiction in both civil and criminal procedures, save those processes of so petty a nature as to fall within the province of the justices of the peace. The sessions of the Huron and Detroit district court were held at Detroit, following a proclamation providing for its establishment issued July 3, 1805.
As the people had become disgusted with the executive efforts of the governor, so they became dissatisfied with the procedure of the judges and governor acting as legislators and jurists. From the records of the times it is evident that little heed was given by the terri- torial officials to any principles of justice in the conduct of affairs. Court proceedings were characterized by the most unusual practices. Though the grand juries had repeatedly con- fronted both Hull and Woodward with alleged irregularities, nothing definite was at first accomplished in way of remedies. Upon the withdrawal from the territory of Judge Bates, President Jefferson appointed James Witherell as his successor. In this appointment the people were more fortunate. Witherell, who assumed the duties of his position in April, 1808, was an honest man, and possessed of sufficient courage to prove himself a thorn in the flesh of his colleagues. Usually he stood with Hull as opposed to Woodward and Griffin, in cases of executive division.
Despite the apparent uselessness of their deliberations, the grand juries began to be troublesome to the officials of the territory following Witherell's appointment. This fact and the circumstances incident to the rivalry and ill feeling between Hull and Woodward constituted almost the sole defense of the people against the high handed practices of the governor and judges. In 1809 the grand jury, of which George Hoffman was foreman, made so bold as to present an official accusation against Hull. One Whipple, a former army officer and a friend of the governor, had called Judge Woodward a rascal, following litigation in which Whipple had been unsuccessful. For this the offender was promptly brought to trial by Woodward and was convicted, the court assessing a fine of fifty dollars. Hull remitted the sentence of the court, thus straining to the breaking point his relations with Woodward and incurring much popular censure. It was generally conceded that the governor's act was one of personal spite. Public indignation found expression in this formal accusation from the grand jury: "History, the record of facts, shows that under every form of government, man, when vested with authority, from the weakness and imbecility of his nature has a strong propensity to assume powers with which he is not legally clothed. Fully persuaded of this truth from reflection and observation, we, the grand jury for the body of
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the Territory of Michigan, after having heard witnesses and a free and impassionate dis- cussion and consideration of their testimony, on our oath present that William Hull, governor of this territory, did on the 27th day of February, 1809, illegally and without any color of authority, sign an instrument in writing as said governor of the territory, remitting the fine of fifty dollars imposed on Whipple * * and we, the said grand jurors, have a con- fident hope that the supreme court will carry into effect their own judgment."
This document was one of the first to be printed on the first printing press brought to Michigan Territory. It was widely circulated among residents of the city and was even posted on trees and about taverns and public places, somewhat to the governor's chagrin. Wherever his excellency was pleased to go, the noxious notice met his eye.
The formal accusation was significant in that its actuating cause was the last straw under which public forbearance seemed about to refuse to stagger on. This act of the gov- ernor's incited the most calm of the citizens to insist that the legislative and judicial depart- ments of government be permanently divorced. In October, 1809, a committee consisting of Solomon Sibley, Judge Woodward, George Hoffman, James May and James Henry, met at the house of one of its members, with an organization of citizens by which it had been named. The committee had been appointed for the purpose of inquiring into the legality of the ordinance of 1787 on which the laws governing the territory were supposed to have been based. For the publication of the following resolutions, which the citizens' organization adopted, the new printing press was again brought into service :
"That it is expedient to alter the present form of government of this territory and to adopt a form of government by which two bodies, elected annually by the people, should make the laws, instead of the executive and the three judicial magistrates, appointed by the gen- eral government, adopting them; the first to consist of five representatives, and the sec- ond of three councillors; the executive to have a qualified veto, under such modifications as congress in their wisdom may think proper to provide.
"That the congress of the United States be respectfully solicited to appropriate the sum of six hundred dollars annually towards defraying the expenses of the territorial legisla- ture, constituted on the foregoing principles.
"That it is expedient that the people of this territory should be represented in the con- gress of the United States by a delegate to be elected by the people."
Though these resolutions were presented in congress early in 1810, by Peter B. Porter, it was not until nine years subsequent to the latter date that Michigan was so represented by a delegate in the congress of the United States. The resolution assumed the form of a petition and is of particular interest, inasmuch as it may be said to have been the first effec- tive step of the citizens in attempting to throw off the yoke of political abuse under which they had been galled from the time of the birth of the territory. Reassured by their own boldness in this matter and by the evident concern it occasioned the governor, a subsequent grand jury attacked the acts of all four of the territorial officials, in 1810. So popular did this practice on the part of the people become, indeed, that it is probable that the rule of the governor and judges would have been overthrown with comparative dispatch had not the nation's final struggle with Great Britain intervened to claim the public attention.
Though Mad Anthony Wayne had wrested the northwest from English greed, his majesty the king was not disposed to allow an upstart government in the western world to balk the royal will without some punishment. Characteristic Yankee energy had begun to push the American flag and the American carrying trade into the ports of the world. Rich cargoes from the Indias and from European ports were traversing the seas in Yankee
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bottoms. Rich prizes were to be had for the taking on every hand and as the young govern- ment was innocent of naval defense, the taking of its merchantmen and the harassing of its foreign trade were shining marks for British vengeance. Sailor citizens of the United States were impressed into the British service and subjected to a quasi-slavery by brutal sailing masters, under the pretext that no English born individual could expatriate himself at will. Indignity after indignity was suffered by the American flag. That a "sailors' war" should follow was inevitable.
Naturally the young government was much concerned in the occurring of events of international magnitude that at the time made for some serious doubt as to the very continu- ance of the colonial federation; and these circustances were no doubt largely responsible for the seeming oversight of abuses obtaining in the west.
Reports of impressment and "right of search" were sent westward from the Atlantic seaboard. Simultaneously. equally startling revelations went eastward in exchange, chron- icling a general state of uneasiness over the Indian situation in the west. From all appear- ances it was evident that the old and well known British practice of employing Indian sav- agery in inducing American tracticability, was again about to be employed.
Apparently the English were to have the advantage of finding an Indian leader ready to appreciate their presents and to understand clearly their attempted subtle urgings. This man was Tecumseh, an Indian leader who has been frequently likened to his predecessor, Pontiac. Indeed, Tecumseh's imagination embraced a plan of Indian confederacy similar to Pontiac's former enterprise. Drake's memoir of this celebrated chief says: "Pucke- shinwa, the father of Tecumseh, was a member of the Kiscopoke, and Methoataske, the mother, of the Turtle tribe of the the Shawanoe nation. They removed from Florida to Ohio about the midde of the last (eighteenth) century. The father rose to the rank of chief and fell at the battle of Point Pleasant, 1774. Tecumseh was born at Piqua, Ohio, about the year 1768. When seventeen years of age he manifested signal prowess in an attack on some boats on the Ohio near Limestone, Kentucky. The boats were all captured and all in them killed except one person who was burned alive. Tecumseh was a silent spectator, never having before witnessed the burning of a prisoner; after it was all over he expressed his strong abhorrence of the act and by his eloquence persuaded his followers never to burn any more prisoners."
Following this incident his influence over his followers increased to such an extent that he rose rapidly in the favor of his tribe. His subsequent respect for the valor of the whites originated in the battles occurring prior to that at Fallen Timber during Wayne's cam- paign in the west. Three years after his tribe had made him chief, in 1795, Tecumseh went into Indiana to live among the Delawares. He established his lodge on White river in that state, and began to extend his influence rapidly among other tribes. Through the influence of his brother Laulewasikaw, the prophet, a large village of Shawanoes was estab- lished at Greenville, Ohio, in 1805. Here the prophet began that famous career of sorcery that later made him a man of great influence with his people and a source of constant danger to the settlers.
At this time comparatively little of the land in Indiana, Ohio and Michigan had legally passed out of the hands of the Indians. Both Governors Harrison and Hull were seeking to acquire title to the Indian lands in their respective territories, but save for the somewhat meager results of their efforts, the savages owned practically all of the country not in- cluded in the treaties of Greenville. Notwithstanding this fact, however, white settlers made a common practice of appropriating such of these lands as they needed and even dese-
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crating the Indian burial grounds. Naturally the Indians were quick to respond to this unfortunate antagonism. This tendency did not escape the eyes of the British agents. The time was opportune for well directed gifts; and these were readily forthcoming.
Incidentally it was suggested to the savages by English envoys that the Americans were robbing the rightful owners of their choicest hunting grounds, a fact easily verified. As in the days of Pontiac, Indian runners began to pass to and fro between the various tribes. Tecumseh himself actively exploited a propaganda of confederation. The prophet was active in working on the superstitions of his brothers. Such were the circumstances which led Governor Harrison to make energetic efforts towards defense. Of these events Henry Howe has written: "In the spring cf 1808 Tecumseh and the prophet removed to a tract of land on the Tippecanoe, a tributary of the Wabash, where the latter continued his efforts to induce the Indians to forsake their vicious habits, while Tecumseh was visiting the neighboring tribes and quietly strengthening his own and the prophet's influence over them. The events of the early part of the year 1810 were such as to leave but little doubt of the hostile intentions of the brothers. The prophet was apparently the most prominent actor, while Tecumseh was in reality the mainspring of all the movements, backed, it is sup- posed, by the insidious influence of the British agents, who supplied the Indians gratis with powder and ball in anticipation perhaps of hostilities between the two countries, in which event a union of all the tribes against the Americans was desired. * * * In August he (Tecumseh) having visited the governor at Vincennes, a council was held at which, and a subsequent interview, the real position of affairs was ascertained.
"In June of the year following (1811) General Harrison sent a message to the Sha- wanoes bidding them beware of hostilities, to which Tecumseh gave a brief reply, promis- ing to visit the governor. This visit he paid in July, accompanied by three hundred fol- lowers, but as the Americans were prepared and determined, nothing resulted and Te- cumseh proceeded to the south, as it was supposed, to enlist the Creeks in the cause."
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