Page:A History of Banking in the United States.djvu/456

 was changed in 1852 to $2. At that time, also, the Southern Bank was authorized to make its circulation thrice its capital. Then also the Northern Bank of Alabama was chartered, like the Southern Bank. In 1854, the lowest denomination of note was set at $1, and the Central Bank of Alabama was chartered on the same plan as the two already existing. In 1856, the Commercial Bank of Alabama, another one on the same plan, was likewise chartered, over a veto. December 19, 1857, the suspension of specie payments by the Central and Commercial Banks was legalized, on condition that they should pay, January 1, 1858, as much as $50,000 of their notes in the State treasury, with interest at eight per cent. from that date; and on April 1st as much as $200,000. After January 1, 1859, they must issue no notes under $5. They must resume February 15, 1858, and by November 15, 1858, they must get and thereafter always keep on hand coin to the amount of one-third of their circulation. If they do not comply with these conditions, they shall forfeit their charters. The Governor shall cause the notes to be presented, and shall institute proceedings as provided by the charter. If they accept these conditions and give bonds to fulfill them, their notes shall be received by the State. The Eastern Bank of Alabama was chartered February 8, 1858, on the plan of the great banks already founded, and on the same day the capital of the Southern Bank was increased $500,000, of which half was a surplus on hand, distributed in a stock dividend. February 8, 1860, all the chartered banks were allowed to issue down to $1. Another large bank, the Bank of Alabama, was founded February 13, 1860, for the stockholders in the South and North Alabama Railroad.

The Northern Bank of failed in 1857. It had no circulation in that State, but some in Arkansas and a great deal in Texas. The only bank then remaining in Mississippi was the Bank of Manchester at Yazoo City, which made no reply to the Treasury Department when it was requested to send in a report.

A proposition for a free banking law in this State, in 1854, obtained no support.

.—An assessment of $6 per share was levied, in 1847, by the liquidator, for seventeen years, on the stock of the Planters' Association, which tax was construed by the Court, in 1883, as a contract on the part of the State that the stockholders should, by paying the same, be discharged of responsibility for the State stock issued for the bank. A law of 1878, levying $40 per share, was therefore declared null. In 1861 provision had been made for the State bonds issued for this bank which fell due that year. There was still $550,400 to be paid, but there were assets, $598,506. The last set of bonds were payable in 1866. The stockholders paid all but $13,000 of the $612,000 which the above assessment was expected to