The Montgomery advertiser., 1906-12-16


 commenced operations in 1925. Three branches were established in 1882 and one In '35, and all suspended specie payment in 1887. In 1S42, the charters of all the branches were repealed and the State Banks charter expired by limit atlon January 1st, 1S45. Three com missioners were appointed to take charge of and wind up their affairs. They had a task of immense propor- tions to contend with. By prudent management, q bonded debt which, \ in 1874 amounted to s14,00o, ,oOO, was reduced by 1853 to sS,5S4,666. Ala bama owes a debt of gratitude to Francis S Lyon, c. c. Clay, William Cooper and John Whiting. They have all passed away, but all generations of Alabamaians will enjoy the fruits of their labors.
 In the way of legacy from that era of State banking, we have been pay ing an annual interest of $271,S86, and will have to continue to pay al very large sum for many years to come.
 It would require far more time and patience than are at present available to attempt anything like description Of the way Alabamians footed the State Bank and piled up a lebt for their children to pay. The amount which is annually paid by the people of Alabama on account of losses by the State Bank and branches. is: Interest on the 16th Section rn tHna o s.oto ona. SiSa'SSS i9a SSs Interest on debt to University
 (now $36,0o0) .... .. .m... 24,O004
 Total :. .$271.Sss
 Not one dollar of this debt was created by the carpetbag Legislature. By honest management on the part of those entrusted with the care of our financial affairs back in the so's and 40's, we would have been relieved of this much burden of taxation.
 Those who want to mix up the State and Federal governments in whole- sale banking scheme, would do well to study the history of the Alabama State Bank and branches
 At the close of the war everything was chaos and confusion,and when Gov ernor Patton was inauguTated, in No- vember. 1865, there was due and unpaid over four years interest on bonds held in New York and London. The Leg islature authorized the issue of $1,500,- 000 bonds. London and New York bond holders accepted bonds for the amounts due them on interest. which amounted to $620.0O0 Governor Patton dispised of $659,O00 of the s1,500,00 issue. This made our bonded debt $4.725, 100 when Governor Patton retired and the Re- publican administration was inaugur- ated. There Is no doubt of the fact that for this much of our bonded debt the carpet -baggers are free of all responsi- bility. Every dollar of this debt arose from losses sustained by the State Bank and branches management. But for that unwise and ill-starred ven- ture. Alabama, when the war began in 1861, would have been free of bonded .K.k IL |. fieved of that much drain upon their resources as we'll as the vast sums paid in the way of interest. Instead of ow- ing to our public schools that Sf,300,- 900 of Sixteenth Section land funds, that amount could have been invested in safe securities and our tax burdens relieved to the extent of over $100, ,0O0 annual interest for the past sixty years. Our State University, too, in- stead of being an annual tax on the people of $24,000, for many years and now $36,000 would have been rich by the better disposition of it's funds which were swallowed up by worthless lioans to Tom, Dick and Harry That fund, if 1t had been properly handled, would be more than $1.00O,000 today.
 Prior to 1860 there had been a strong element m favor of State aid to rail- roads. This feeling was particularly prevalent in the old Whig Party. but there was decided minority Of the Democrats who entertained the same views. This latter element was led by Hon. J. L. M. Curry in the Legislature and under his management a number of State endorsement measures passed both houses. only to meet defeat at the hands of Governor Winston. He was so vigorous in killing such propositions that he was called the Veto Cover nor" There was no State aid to im- provemeDts until after 1865.
 On the 18th of September, 1867, the Legislature of Alabama composed of many of the hest citizens of the State, and representing It's wealth. intelligence and integrity, passed an act making 1t the duty of the Governor, whenever any railroad company then incorpor- ated, or that might thereafter. be in- corporated by the General Assembly of the State, should have completed and equipped twenty continuous miles of road to endorse, on the part of the State the first mortgage bonds of said company to the extent of $12.000 per mile for that portion thus completed and equipped, upon the presentation Of said bonds by said companies. and for each subsequent section of twen- ty miles of road completed and equp- ped it was made the duty of the Gov ernor to endorse in like manner, the first mortgage bonds of said company