proves, beyond doubt, that less regard has been had to the interests of the bank than to the convenience and accommodation of their debtors." The outstanding loans of the bank and branches, in 1837, had been $20 millions, of which about $100,000 were considered bad, and $500,000 doubtful. Then came the extension law of June, 1837. In 1840, the bad debts had increased to more than $3.5 millions and the doubtful were $1.5 millions, while a new item was introduced, "unknown debt," amounting to more than $1.25 millions. Then came the act of February 3, 1840, the effect of which was that in 1844 the good debts were $6.9 millions, the doubtful $484,132, the bad $6.2 millions. "This cursory glance at the history of the legislation and management of our banks must clearly show that the extension laws and the manner of their execution were the principal causes of the immense losses sustained by these institutions." As the bank and branches were now defunct, he took it for granted that no one would propose to re-issue the notes after they should be paid in in taxes or debts to the bank. "This suicidal policy, I trust, will not be adopted, even as a temporary measure. It involves the same principles which have too long prevailed in the management of our bank,—favoring the bank debtors at the expense of the taxpayers of the State. * * * Bank debtors should understand that the laws are intended to operate equally on all, not to spend their force on one portion who regard them; then to be changed and modified to suit the convenience of other portions who treat them with neglect. * * * In connection with this subject, I submit to your consideration the propriety of causing a rigid scrutiny into the conduct of the officers, attorneys, and agents, under whose management the astounding losses to our banks have accrued, holding them to a strict accountability."
The Bank of the State at Tuscaloosa was put in liquidation December 31, 1844, the day on which its charter expired by limitation. From this time the old independent Bank of Mobile was the only bank left in the State. November 12, 1844, it had $1.5 millions capital, $1.4 millions loans, $791,459 specie, $486,440 circulation, $465,443 deposits.
The liquidation of the Bank of the State and its branches was regulated by an act of January 25, 1845, in which the consideration of leniency to the debtors still prevailed. All debts to these banks were extended until June 1, 1846, if, before June 1, 1845, the debtor paid one-third of the principal, with interest and costs, and gave additional security. Also all execution on judgments in favor of the bank was postponed one year if one-third of the debt was paid and new security given. All debts were to be put in suit between June 1 and July 1, 1845. Good ones were to be extended; bad ones put in the hands of an agent for collection; the real estate of the banks was to be sold, the plates of bank notes destroyed, and incomplete notes burned.
February 4, 1846, the assets of the banks were vested in three trustees who were to be appointed for a term of two years, to compound and settle "at the earliest day that the same can be done, having regard alone to the
