The Montgomery advertiser., 1906-12-16

in proportion to their representation in the Legislature. It can be imagin- cd how many thousands of dollars were promised by candidates In their electioneering tours through their counties. goirg on the idea that men in that day were not different from those of the present. As there was no limit could be issued, that being left to the discretion of the President and Directors. 1t can easily be imagined what pressure was brought to bear hy hungry seekers after loans. to in- crease the volume of currency;
 Of course, there could be no other result than dismal failure under such a system. It was something on the line advocated by our Alliance friends few years ago of borrowing money from the Federal Government and giving individual obligations based on produce. merchandise or anything that might be offered. In the old bank days, loans were secured by endorsement. and when required by deeds of trust upon real estate and slaves. Phe Bar ings, the great bankers of England, precipitated the financial crash of 1898 by loanirg money in the Argen-s tine Republic, on similar unsatistac-. tory terms.
 Link Between politicians and Bank.
 Naturally, there were great scandals involving many men under such sys- tenn of transacfing business as char acterized the State Bank and branches. Mir. J H. Fitts, In paper read before the Alabama Bankers a few years. ago, said: "The annual election of the President and Directors formed the connecting link between the polite fans and the banks and furnished potent means by which the politicians obtained control of the finances of the State. The number of Directors who had to be elected annually for the bank and its four branches veri- ed from sixty to seventy There were generally two or three times that number who yearly presented them selves as candidates, after the branches were established and the capital in- creased. 1t must be remembered that the office of the Bank Director with out salary or any emolument what ever, was regarded by many as the most lucrative office. in the State. The Legislature was annually heset by a horde of greedy adventurers who were candidates for Bank Directors. and who resorted to all kinds of electioneering tricks and promises to secure their votes. Unfortunately for the banks, the votes of too many members of the Legislature were con trolled by the liberality of candidates In promising bank discounts to them and their friends. In his Book of Re- miniscences of Public Men in Alabama. MT. Garrett gives an incident which illustrates the extent to which elec- tioneering was carried on by the can dIdates for this position. A member of the House of Representatives died during one of these contests for elec- tion of Bank Directors. The House passed the usual resolution to wear the badge of mourning for the period of thirty days. The badge of crape on the arm served to mark the mem bers of the Legislature. whom the candidates for Directors were con- stantly, counting for their votes by treats of cigars, drinks and oyster of the upper counties happened to suppers. shrewd huntsman from one be in Tuscaloosa, and, observing the popularity of the men who wore crepe, provided himself with a badge of crepe, and 1t is said he feasted royal ly for several days at the expense of the candidates before it was found out that he was not a member of the Legislature"
 Flush Times in Alabama.
 Those were Flush Times in Alabama. On the 9th of January, l836, an act was passed to abolish direct taxatfon in the State. Only race tracks, bi1- Hard tables, hawkers and pedlers, sale of playing cards, retailing liquor and few other things. were taxed. Wnap- ever of expense these failed to meet was met by profits of the State Bank. The officers of the Bank became such heavy borrowers that the Legislature limited the amount they could get to $35,000 each. Mir. Fitts, in the same article from which quotations have been made. says; 'T have heard of one party who was not director who borrowed as much as $S0.000. An octogenarian friend In talking of those days, described the financial condition in a single remark. He said: We had no trouble in getting plenty of money then; all we had to do was to get to- gether and vote ourselves as much as
 we wanted While the President and Directors were being allowed such large accommodations, we may rest assured that the majority of the mem- bers of the Legislature got their full line and fared sumptuously every day. I have heard 1t stated that at one time the Directors and members ow- ed the Bank and branches over six millions, and that 1t was about equally | divided between them" That has the appearance of being about as bad as anything the carpet baggers ever did. The end came, as was expected for years, by wise and sagacious men, The State Bank was chartered in 1923, and