demand, not more frequently than monthly; its notes. were to be receivable by the State; no other bank was to be chartered so long as it lasted.
Alabama.—The Planters' and Mechanics' Bank at Huntsville was chartered by the Legislative Council of the Mississippi Territory December 11, 1816; with $50,000 capital; to last until 1837; never to owe more than three times its capital, deposits being left out of account; to issue no note under $1; five hundred shares to be reserved for the Territory for ten years. February 13, 1818, its name was changed to the Planters' and Merchants' Bank. On the last date, the Tombeckbee Bank, at St. Stephens, was chartered, to last until 1838, with $500,000 capital, with the same limit on its debts, and the denomination of its notes; two-fifths of the capital to be reserved for the Territory for ten years. The Bank of Mobile was chartered November 20, 1818, with a capital of $500,000, payable in gold and silver (a specification which had not been included in the former charters), to last until 1818. One-fifth of the shares were reserved for the Territory for ten years. As soon as the State government was formed, in the following year, we find it borrowing from these banks. In the Constitution of the State, it was provided that one State bank might be established, with such branches as the Assembly might deem expedient. No branch and no bank charter was to be renewed, except by a two-thirds vote of both Houses, and only one bank or branch might be chartered or renewed at the same session of the General Assembly. At least one-fifth of the shares of every bank must be reserved for the State, which was also to have a number of directors in proportion. The State and the stockholders were to be liable for the debts of any bank in the proportion in which they shared the stock. Remedies for the collection of debts were to be reciprocal for and against banks. No bank was to begin until half its capital was paid in in gold and silver. Twelve per cent. penalty was imposed for a failure to redeem bank notes in specie, unless the suspension should be sanctioned by the Assembly. Whenever a State bank should be founded, the existing banks might become branches of it.
When Louisiana was bought by the United States, the movement of silver thither from Mexico was arrested for a time, and there was a complaint of lack of currency, although Spain had a quantity of paper money called "liberanzas" afloat, which were not redeemed at once. One of the first acts of Governor Claiborne was to found the Bank of Louisiana. The non-American population was extremely displeased at this, regarding a bank as an instrument of robbery, and fearing more paper money.[1]
In 1811, two banks were chartered—the Planters' Bank and the Bank of Orleans. The former was an already existing association. The capital was to be $600,000, payable in specie. It was to last fifteen years. The Bank of Orleans was to have a capital of $500,000, to last for fifteen years, and the subscriptions were made payable in money or "notes payable to the directors." This and the following are the only cases in which we have found,
- ↑ Gayarre; Louisiana under American Domination, 15.
