money on cotton in the field that had not been picked. This policy was continued until finally the debt of the banks amounted to more than nine million dollars. The country suffered because the people began to distrust more and more such careless bank methods. Prices changed so rapidly as to disturb seriously the transaction of business. Thoughtful men, dreading the collapse of the credit of the State and the financial ruin of its people, began to demand that the banks either be reformed or that they be closed altogether. 6. Charges of Mismanagement.-"Reform” became the cry of those who wished to save the State from bankruptcy. Resolutions were introduced in the legislature of 1840 and 1841, charging that members of the legislature and officers of the banks had entered into dishonest bargains. Governor Fitzpatrick appointed a committee of three to examine and report upon the condition of the Montgomery branch of the State Bank. Its careless and slipshod methods of doing business, which were exposed by the committee, were fiercely attacked and denounced by the newspapers of the State. Mass-meetings of citizens started investigations in which it was shown that the lawmakers were engaged in crooked dealings with the banks. It was learned that the banks had loaned more money to its officers and to members of the legislature than had been borrowed by all the rest of the people of the State. Strong opposition blocked continuously Governor Fitzpatrick's efforts to protect the banks, but 1842 May, 1845 economy was begun in their management and in all offices of the State. Taxes were reëstablished. Banks were forbidden to lend money or to increase their debts, and the four branch banks were instructed to refuse all new business and prepare to close up. 7. A Political Issue. The credit of the State and the private fortunes of the people were still in danger when Nathaniel Terry was nominated for governor in 1845 by an incomplete Democratic convention in Tuskaloosa. He was largely indebted to the banks and favored their continuance. Chancellor Joshua Lanier Martin, a lifelong Democrat, declared himself a candidate for governor on the issue of bank reform. Both candidates were Democrats, and at the election Whigs and Democrats voted as they judged the merits of the issues before the country. Martin was overwhelmingly elected. His majority was more than five thousand votes. 8. The Banks Closed and State Credit Upheld. Governor Martin, in his message to the general assembly recommended the legal removal of the president and directors of the banks. Francis S. Lyon,* of Demopolis, William Cooper, of Florence, *Francis Strother Lyon was a North Carolinian by birth, but removed to Alabama in his youth. He was secretary of the senate of Alabama, 1822 to 1830; a State senator, 1832 to 1834; representative in Congress, 1835 to 1839; bank commissioner, 1846 to 1853; a representative in the Confederate Congress, 1861 to 1865. He was a nephew of George S. and General E. P. Gaines, and the father of Mrs. Wm. H. Ross and Mrs. O. H. Prince. and Benjamin Fitzpatrick, of Autauga, were elected commissioners to wind up the affairs of the banks. Mr. Fitzpatrick declined to serve, and C. C. Clay, of Huntsville, was given his place. The business was soon solely in the hands of Mr. Lyon, with John Whiting his assistant. Mr. Lyon was an able, and pure man. He discharged the duties of his office with such judgment and discretion as to restore to par the money issued by the banks, to uphold the credit of the State, and to save from bankruptcy thousands of citizens whose financial interests depended upon his business ability and sense of justice. Other States and Europe watched anxiously the course of Mr. Lyon. The manner in which he managed the affairs of the bank and kept up the credit of the State made him highly honored and respected by the business world and placed him among those most worthy to be remembered for services to the State. Governor Fitzpatrick, Judge John A. Campbell, Governor Martin, and others are sharers in the glory of the measures of reform, but to Mr. Lyon are due most directly the gratitude and pride of Alabama for the far-reaching benefits of the six years' work which he devoted to the money affairs of the State. SUMMARY To meet the demand for more money to carry on business, the State Bank was established by the general assembly in 1823. A large part of the capital of this bank was obtained from the sale of University lands. The election of the directors by the legislature soon became the basis of a political scramble. For awhile the State Bank and its branches were thought to answer all expectation, for there was a rapid increase in business, and everyone seemed to be prosperous. From 1836 to 1842 the expenses of running the government of the State were paid by the banks. After a time, however, it was seen that they were being run in a very unbusiness-like manner. "Bank reform" became the cry, and Joshua L. Martin was elected on this platform. The banks were placed in the hands of Francis S. Lyon and others. After several years of careful management, the affairs of the banks were wound up and the credit of the State upheld. QUESTIONS 1. For what reasons was the State Bank established? 2. At what places were branch banks established? 3. From what sources did the capital of the bank come? 4. How were the the directors chosen, and what class of men held at one time the "money keys of the State"? 5. What effect did the establishment of the banks have upon business and upon the government of the State? 6. In what ways were the funds of the banks misused? 7. What charges of mismanagement were made, and with what results? 8. Describe the contest for governor in 1845. 9. What did Governor Martin recommend? 10. Give an acount of the work of Mr. Lyon. WILLIAM LOWNDES YANCEY 1. Parentage and Early Life.-William Lowndes Yancey was born at O gee'chee Shoals, in Georgia. After having the best of instruction in a preparatory school, he went to Williams College. Before finishing the courses for his degree, he entered upon the study of law in the office of Benjamin F. Perry, in Greenville, South Carolina. He was soon engaged in public debates on questions that were giving the people a great deal of concern and that were to be settled in Congress. He opposed strongly the "Ordi |