Page:A History of Banking in the United States.djvu/397

 June 30, 1837, that this bank and its branches should provide themselves with gold was suspended, but the two chartered banks in Mobile were required to have in their vaults, on July 1st of each year, one-half of their note issue, but not more than one-quarter of their capital, in specie.

In the report of the Bank Commissioners for 1841, a long list of notes which they found in the Montgomery branch of the Bank of the State is given, with notes and comments. These are almost always to the effect that the principal and sureties are not worth a dollar. There are three notes signed by the same three persons in turn, as principal and sureties. One is the father, who is reported as a poor man; the other two are his sons, ten and four years of age. An agent of the bank recommended some notes for discount which he received from two persons whom he did not know. They were discounted and a person whom he did not know called on him with an order for the money, signed he does not say by whom, but he gave him the money and took his receipt, signed "C. Stone." He can only say that it was not the only "C. Stone" known to him. Later events prove that this agent was a knave and not a fool. It turned out that the notes which he had thus sent in to the bank were forged.

A law was passed December 27, 1841, that any member of the Legislature who nominated a director of the State Bank or branches should state in writing the amount of indebtedness of the candidate to the bank and branches, whether he was under protest, and was solvent and competent. December 31st, the authorities of the State Bank and branches were authorized to settle as well as they could unknown, bad, and doubtful debts to the bank. A joint Investigating Committee was ordered to be raised to investigate frauds on the State Bank and neglect, abuse, and misconduct in the management, with full powers.

The Planters and Merchants' Bank of Mobile failed October 25, 1842. Its charter was forfeited and receivers were appointed to wind it up by an act of February 13, 1843.

At the session of 1842-3, the affairs of the State Bank become a preponderating subject of interest. December 31st, joint resolutions were adopted in regard to preparations for liquidating the branches at Mobile and Decatur. They are no longer to lend on notes and bills, or to settle with debtors; but may accept payments offered, or may buy in property sold at the suit of the bank.

The Montgomery Branch was put in liquidation January 25, 1843. Its notes were to be received for debts to it and destroyed. Quarterly settlements were to be made with the Bank or the State and its branches. It was provided that whenever the State Bank and the surviving branches should resume, they should redeem the notes of the Montgomery Branch as well as their own. Similar acts were passed in regard to the other branches. February 13th, the right of any plaintiff in a suit against the State Bank and branches to have garnishment against a debtor of the bank was taken away. On the following day it was provided that during suspension by the Bank