a resolution urging that it should be done. The United States Government, however, decided that it was a matter for the two States to arrange for themselves. So a correspondence was begun between them with the object of forming a joint commission to do the work.

A still more troublesome question during this period was the money question. The population of Alabama had increased very rapidly, but the amount of money in circulation in the State had increased very little, if at all. This was attributed partly to the fact that so many people had bought government lands on credit at high prices, and that every year money was drained out of the State to make payments to the United States on these lands. Moreover, in a new country there are always many people anxious to borrow money.

The legislature of 1823 agreed upon a plan which it was thought would give permanent relief. This plan was to establish a State bank with a capital large enough to win the confidence of the people, and give it power to issue bank notes-or bank bills, as they were usually called. A bank note is simply the promise of a bank to pay gold or silver to the holder of the note whenever he demands it. The legislature could not compel the people to accept these bank notes. as money, because the Constitution of the United States declares that no State can make a man take anything but gold or silver coin in payment of a debt. But the legislature knew that if the people believed that the bank was able to pay its notes they would be willing to accept those notes in payment of debts, even though they were not compelled by law to do so. The plan, therefore, was for the bank to issue notes and lend them, at a good rate of interest, to men who wanted to borrow and could give good security. The bank notes borrowed would pass from man to man, and thus satisfy the pressing need for money. If borrowers paid their debts to the bank promptly, it would have money to pay its notes without using up its capital. The interest which it earned

BANK OF THE STATE OF ALABAMA.

145

on the loans would give a good profit. Other States were trying the same plan about the same time. It is important for us to see how it worked in Alabama.

دو

The act of 1823 gave to the "Bank of the State of Alabama a charter which was to hold good until 1845. Some moneys arising from the sale of the land given by Congress for a seminary of learning went into the capital stock, but it was proIvided that the amount from this source should not exceed one hundred thousand dollars. Moneys arising from the lands given for a seat of government, from the three per cent. granted by Congress on the sale of public lands, from escheats, and from the lease of salt springs, were also to go into the capital stock. In addition, the governor and five commissioners were authorized to issue State bonds, bearing interest at six per cent.; and it was declared that the legislature might from time to time put into the bank's capital stock any other funds in the treasury. It was provided that the bank should be governed by a president and twelve directors, all to be elected annually by the General Assembly. The bank had authority to issue notes of denominations not less than one dollar.

Alabama was thus embarked in the business of banking. The officers of the bank were really State officers, and all their accounts were subject to the inspection of the State comptroller. By June, 1824, $100,000 was secured as capital stock, and accordingly the bank was set up at Cahaba.

During the early years of Alabama's history as a State the people did not greatly concern themselves about national politics. The Democratic party was without a rival at that time, and all the public officers elected in Alabama were members of it.

Senator King was reëlected in 1823, and he was reëlected several times afterwards, so that he held the office for many years. In 1822 Senator Walker was obliged by ill health to resign, and William Kelly, of Madison, succeeded him. For

the term beginning in 1825 Henry Chambers, of Madison, was elected, but he died the next year while on his way to Washington. Former Governor Pickens was appointed to

SENATOR JOHN MCKINLEY.

succeed him, and held the place until a senator could be elected, and when the legislature met in November John McKinley, of Lauderdale, was chosen for the remainder of the term.

In the lower house of Congress John Kelly succeeded John Crowell in 1821. Two years later, under a new apportionment, the State became entitled to three representatives. John McKee, Gabriel Moore, and George W. Owen were chosen ; being twice reëlected, they held office six years.

In the Presidential contest of 1824 Alabama warmly supported Andrew Jackson. The legislature provided that the five Presidential electors should be chosen by popular vote, and this has remained the method of choice ever since.

At the State election in 1825 John Murphy, of Monroe, was elected governor without opposition.

QUESTIONS.

Tell what you know of Governor Pickens. What is said of the growth of the State during his administration? What new counties were formed? What is said of transportation and travel by land? By water? What was the attitude of the Creeks at this time? Mention some of the reasons that caused the legislature to charter a bank. Where was the bank set up? What is said of politics in this period? What changes occurred in Alabama's representation in the Senate? Representatives? Who succeeded Governor Pickens ?

In the House of

CHAPTER XVIII.

THE ADMINISTRATION OF GOVERNOR MURPHY.

JOHN MURPHY, the fourth governor of Alabama, was a man of solid parts, trusted and respected for his integrity. By birth a North Carolinian, he passed his youth in great poverty, from which he gradually rose by sheer industry, chiefly in the practice of the law. Coming to Alabama in 1819, he represented the new county of Monroe in the Constitutional Convention. Keeping always a plain and unpretentious manner, he commended himself to the people by his modesty as well as his worth. In 1827 they endorsed his administration by reëlecting him governor. Thus he held the office four years.

GOVERNOR JOHN MURPHY.

His first term was distinguished by a change in the seat of government. The Constitution provided that the legislature chosen in 1825 should name the permanent capital, and at the first session after Governor Murphy's inauguration the subject was taken up.

The freshets at Cahaba and the sickness there had satisfied the people that a change was necessary. The town had begun bravely, but its population was already falling off. Montgomery, Tuscaloosa, Selma, Greensboro, Montevallo, and Wilson's Hill were all mentioned in the discussion, but in

the end the fight was between the two first named. Andrew Dexter, who is regarded as the founder of Montgomery, had always hoped that the town would in time be the capital of the State. One of its claims lay in the fact that it was on the principal stage route from New Orleans to the east. But Tuscaloosa, a promising town which had grown up on the site of a Creek trading station which was destroyed by General Coffee in the war against the Red Sticks, won the prize. The legislature voted in its favor in January, 1826, and the removal was made in the same year. The bank was also moved to the new capital. Cahaba never regained its early importance. Gradually the town of Selma absorbed the greater part of its trade and population.

At this period there were really no cities in Alabama. The general prevalence of agriculture was not conducive to the growth of cities, which usually spring up as centres of trade and manufacturing. But migration to the young commonwealth was very rapid, and there was an air of growth and prosperity about it which excited comment in the newspapers of the day. Roads and other internal improvements were progressing. Domestic manufactures were encouraged. Members of the legislature, and the governor himself, wore home-made clothing. Nevertheless, the natural resources of the State were as yet hardly touched. There were miles and miles of land unmarked by the axe or plow. When the legislature offered a reward for wolf scalps and panther hides, so many scalps and hides were brought in that the law had to be repealed in short order.

When the bank was moved to Tuscaloosa it was apparently flourishing. Its notes were circulating to the extent of nearly three hundred thousand dollars. In 1828 its capital stock was increased by another loan of a hundred thousand dollars, and another trust fund-the money arising from the sale of school lands-was committed to its keeping. The only dissatisfaction, as yet, arose from the desire of other towns