The Montgomery advertiser., 1906-04-04
FLUSH TIMEs
And Some of the Aftermath In AIabams


 And Some of the Aftermath In Alabama Editor Advertiser:
 We enclose a scrap of banking hfs- tory that shows the aftermath of the flush times of Alabama" -,..
 Bank of the State of Alabama. Tuscaloosa Oct. 11th 1889. J. $. Kennedy:
 To note Cue 14th Oct. 1S3s.. $190 To new note. .... ieo | To curtailment per cent ID l To discount on s1SO for 93 days 2.79 sia.7s
 Due again 14th Jan. 1S4o for $1so." The following brief, of personal
 history will throw light on the flush times of Alabama. Soon after the State
 had established bank at the Capitol, with branch banks at Decatur, Eufaula
 and Cahaba, a young man from the tide
 water section of Virginia. (where only | the first families" was then grown) | left the paternal roof, to find fame and | fortune in Alabama. Mounted upon | horse, with a saddle provided with two
 holster pistols, his destination was the court house town of Linden in Marengo county. In due course of time, the soli-
 tary horseman reached his destination,
 and drew up in front of a log tavern at which time there was not frame build | ing in the village. Provided with nec-
 essary letters. our pioneer. whom we
 will introduce as Jno. Smith. attorney
 at law, made himself known to the High
 Sheriff and other dignatories of Maren- go county. The next step, was to pro- cure an office for the practice of law.
 there being at that time no lawyer in the county. A log house 12x12 feet
 was soon built and ready for occupancy.
 From the resources of the saddle bags,
 small tin sign. bearing in gilt letters "Jno. Smith Attorney at Law" was painted and nailed over the office door l The next step was to procure law | library of two or three volumes which
 was obtained from a bookstore in Mo-
 bile and shipped by boat. After paying
 board and waiting in vain for several
 months, for the first client. Mir. Smith
 reached the conclusion that he was
 too previous for his chosen profession,
 but just in time to become rich plant
 CT, if his Governor" in Virginia, would
 lend him a helping hand. The Federal
 Government had a land office open at l Cahaba and open prairie and wooded l lands of Marelgo county could be en- 1 tered at one dollar and twenty-five cents per acre in coin. In due course l of mail that required several weeks. the Governor remitted to the son, a
 Virginia bankers check on New York
 for $500 payable in coin. Calling in the aid of a friend Mir. Smith selected
 section of $40 acres land for his entry Going to the state bank at Cahaba, he sold his check for silver coin, known | in that day as Spanish Milled Dollars
 Going thence to the land office. ap- | plica.ions was made. and the eight | hundred dollars in coin was paid for | A section of land. After waiting sev- | eral months Mir. Smith secured rom 1 the agent of the land office patent l for a section of land. The state bank
 was again visited and an application for
 q loan on $40 acres land at ten dollars | Alabama currency) per acre was made. A mortgage for $6,400 was signed and | this amount less discount was passed 10 | the credit of MT John Smlth on the
 books of the bank.
 In A few weeks Mr. Smith called at
 tho hank in Cahaba and stuffed in the l bottom of his saddle bags $6,400 in paper money and then joined trio or | waiting horsemen-who were on their way to the slave mart at Richmond Virginia. On reaching Richmond the parties halted at a bank to deposit their Alabama currency. They were suayely informed by the cashier that the discount between Alabama and Nirglnia
 money was 3 per cent, which was en- tirely satisfactory to the deposi'ors' After visiting relations in Virginia, the trio met by appointment in Rich
 mond and proceeded to exchange their Virginia currency into the necessary resources. to develop Alabama planta- tion lands Before leaving Richmond a few hundred dollars of Virginia mon ev WAS exchanged into specie that embraced silver coins, bearing the im- nress. of these nations, spain, Great Britain, and France. This was necessa- rv to meet travelling expenses Of caravan of wagons traversing several states each of which had its own legal tender currency. Within three years after leaving Richmond. MT smith was making cotton shipments 10 britisn Merchant" at Mobile to be forwarded
 to Ijverpool. and to be sold for accounts of inc producer The Mobile merchant when necessary would advance three fourths of the value of the cotton on arrived by boat at Mobile.
 Things moved along smoothly Tn finances and farming, until Black Fri- ldsy" in the year of our Lord lS31-when tho state bank of Alabama and all | branch banks. busted.
 There was a panic in the land ol | "bare Wp rest" The time HAu hIilNeo when the advice of lawyer was much i'm demand. MT Smith. however, had
 troubles of his own" in the seizure or his land. negroes and mules to satisfy A mortgage held by the bank, and had
 no time to practice law He gave no advice. but sought counsel of his Britls cotton merchant at Mobile, Ihe piai, adopted was to spar for time ana stand in" with the high sheriff of Ma rengo county The debt due the bank was payable in the paper money or stato bonds of Alabama-and bonds
 were declining in value. like barom-
 ctcr before the coming storm
 In due season the British Merchant
 purchased ten thousand dollars Of state i bonds for which he paid four thousand doIlars-basis sterling, and took rom the bank MT Smiths mortgage note with interest. court cost and sherln feeS
 MT. smith got down to farming in ear
 nest. and the proceeds of two cotton crops sold in Liverpool paid tho S4'ooo
 sterling" and left q credit balance on inc books of the Mobile merchant Current Topics.