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FINANCIAL DIFFICULTIES.

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nature that the Democrats lost their majority in the legislature. Another term in the Federal Senate was given to Spencer, and Alabama was once more in the power of the "Black Man's party." A witty old judge about this time said to a young man who asked his opinion on the advisability of studying constitutional law: "My friend, I advise you to study all the unconstitutional law you can find."

The State had endorsed railroad bonds to the amount of over $17,000,000. The Alabama and Chattanooga was in the hands of a receiver, and the State was trying to get it sold out. But the men who had wrecked the credit of Alabama now found a difficulty in running up any more debts. They learned at last that a nation or a State when it wishes to borrow money is dependent on those who have it to lend. People will not lend to a State unless they have good reason to believe that their principal and interest will be paid in money just as good as their own. Alabama was not regarded as an honest State under its new rulers, and that was the reason why Governor Lewis had to tell the legislature that he could sell no bonds except on ruinous terms. Moreover, in 1873 there was a financial panic which was general throughout the country, but particularly distressing in the South, whose people had only begun to recover from the effects of the war. Several Southern cities were scourged with yellow fever. Many of the bravest and truest men of Alabama were now near the point of despairing. It is estimated that the number of emigrants from the State exceeded the losses in battle during the war time.

But the year 1874, a good year for Alabamians to remember, brought evidence that the honest people of the North were at last beginning to understand the true situation in the South. The Democratic party, protesting against any further persecution of those who had been Confederates, but who were now striving for their rights as citizens of the United States, swept the North in the congressional elections.

The Democrats of Alabama chose as their leader George S. Houston, a man who in wisdom and honesty must take rank with the very foremost of all who have held public office in the State. Their organization was perfect and their

JUDGE ROBERT C. BRICKELL.

shrewdest leaders were in command. Walter S. Bragg was at the head of their State Committee. The opposition tried every trick they could think of. The old cry against the "Ku Klux" was raised again. An appropriation was obtained from Congress on the plea that the Alabama rivers were in a state of overflow, and the money was expended to influence votes in towns which, as one writer says, "had not been under water since the days of Noah's Ark."

But the carpet-bagger's day was over. The Democrats elected a majority of both houses of the legislature, and all but two candidates on their State ticket were successful by more than 10,000 majority. Three lawyers of marked ability and high character, Robert C. Brickell, Thomas J. Judge, and Amos R. Manning, were elected to places on the bench of the Supreme Court. No one who witnessed the scenes of joy that followed the election will ever forget them.

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QUESTIONS.

What is said of Governor Lindsay? Describe the struggle through which he entered his office. What was done about the railroads? What was the policy of the carpet-baggers? What is said of the "Ku Klux "? How was the Agricultural and Mechanical College founded? What is said of education at this time? Describe the political changes of 1872. Tell the story of the rival legislatures. What was the result of the effort to aid the railroads? Describe the election of 1874.

CHAPTER XXXV.

ADMINISTRATION OF GOVERNOR HOUSTON.

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GEORGE SMITH HOUSTON was born in Tennessee in 1809, and was brought to Alabama in his childhood. He first won distinction as a lawyer. In 1841 he entered Congress, and with the exception of one term he served continuously until Alabama withdrew from the Union. In Congress he was at one time chairman of the committee on ways and means, and at another time chairman of the committee on the judiciary-the two most important of the congressional committees. He was a Unionist, and opposed secession to the last, but in the gloomy times of defeat he cast in his lot with his own people, and never stooped to reproach them with the results of their course. Lieutenant-Governor Ligon, of Macon, was a lawyer who had done good service in the legislature.

GOVERNOR GEORGE S. HOUSTON.

The men who now came into power in Alabama knew that they were in office as a result of something more than a party triumph. It had come to be a question whether ignorant colored men, led by strangers, or the white men who had always lived in Alabama, should rule the State. Governor Houston and his associates set to work very gravely and earnestly to undo the mischief that had been done by their opponents and to the end that Alabama might regain her old

standing among the States and that her people might once more take heart and lift up their heads.

they had before them.

It was no easy task

An

The debt was the first thing they had to consider. investigation showed that the total debt of the State, including the endorsed railroad bonds, was over twenty-five millions of dollars. It also showed that public funds had been handled in a criminal way, and that it was almost impossible to find out what sums the State owed justly and what sums were unjustly charged against her. The legislature, following the plan adopted when the State Bank failed, empowered a commission to look into the whole matter and report. The members of this commission were Governor Houston, Levi W. Lawler, of Talladega, and T. B. Bethea, of Montgomery. The young reader who likes to think of the soldier as the type of a patriot will have to be reminded again that the credit of a State in modern times is its very life-blood in order for him to understand that the work these men had to do was quite as important as the fighting of a battle for Alabama.

It was a year before the commission made its report. It then made a complete and careful statement of the facts, and proposed a plan of settlement. The main fact was that the State was bankrupt: the debt was too much for the people to bear at the prevailing rates of interest, as only two of the railroads which the State had helped were paying interest on the bonds for which the State was responsible. It was also made clear that a large part of the debt was due to corrupt office-holders. The plan of settlement included the scaling down of some claims against the State and the refusal to pay others. It was recommended that the State issue new bonds, bearing a reasonable rate of interest, instead of those bearing an unreasonable rate. As to the railroads which had failed to meet their payments of interest, it was recommended that the State, which held a first mortgage on their property,

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should turn this over to their creditors as a full satisfaction of their claims. The Alabama and Chattanooga road was sold at public outcry in October, 1876, under an order of a United States court, the rights of the State being reserved. Alabama was now ready to give up her experiment with railroads, as she had long ago quit experimenting with banks.

The legislature adopted the recommendations of the commission and gave it authority to carry out its own plan. The work was faithfully performed, but it was many years before it could be finished. The final result was that the State's bonds rose and rose until they sold at and above par. Alabama thus regained her reputation for ability and willingness to pay her debts. The interest on her bonds has been paid promptly ever since the settlement was made, and the principal has been reduced from time to time.

A similar plan was adopted by the various counties and cities which had been bankrupted by their Reconstruction rulers. The misgovernment of these smaller communities had been even worse than the misgovernment of the State.

The second of the tasks which Governor Houston and his party undertook was no lighter than the first, but it was accomplished more quickly. The constitution of 1868, framed by men who did not properly represent the people of Alabama, was not satisfactory. The legislature accordingly submitted to popular vote the question whether or not another constitutional convention should be held. At the same time, the polls were opened for the choice of delegates in case it should appear that a majority favored the holding of a convention. The election was held August 3, 1875, and the people decided to have a convention. Of the delegates chosen, eighty were Democrats, and among them were many of the foremost citizens of the State. The convention met at Montgomery early in September, 1875, and completed its work in less than a month. The result was the present constitution of Alabama.

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