Alabama. Bank of the State of Alabama (1820-1843).

Authority: an act to establish the Bank of the State of Alabama, 1823 Dec. 20, Code, 1833. Subscribers to the Bank of the State of Alabama incorporated 1820 Dec. 20, Acts, 1820. Bank established at Cahawba, capital of the state, subject to removal if seat of government is changed and to be moved to place where capital is established. Moved to Tuscaloosa, 1826. Placed in liquidation 1844 Dec. 31. Acts, 1844/1845, no. 43.

The Alabama Constitution of 1819 provided for the establishment of one state bank with such number of branches as the legislature deemed expedient. The actual organization began in 1823. The session of 1832 of the General Assembly established branch banks at Montgomery, Decatur and Mobile, and in 1835 a branch bank was established at Huntsville.[Statute #1, 1832 Dec. 4; Acts 1832/1833]. After the establishment of the State Bank at Cahawba, private banks could be admitted as branches of the State Bank. In 1826 the Bank was relocated from Cahawba to Tuscaloosa, and in 1832 to Montgomery.

Aiken's Digest (1836) states that after the sale or sales of the sixteenth section of land, the amount in notes had to be forwarded to the president and directors of the Bank, and all payments could be made only to the Bank, otherwise they "shall not be deemed as good and valid payment." According to Clay's Digest (1843) the Bank had the authority to issue a writ of capias ad respondendum against a debtor, and require the county sheriff to bring the accused before a circuit or county court for judgment. On 1836 Jan. 9, direct taxation of the people was abolished by legislative enactment, the expenses of the state government to be defrayed by the operation of the State Bank. The branch banks were required to make quarterly statements of their financial condition to the State Bank. According to Toulmin's Digest (1823) the State Bank was required to annually provide the legislature, within the first week of the session, with general financial statements. Mismanagement and local abuses of the Bank led Governor Benjamin Fitzpatrick to lead a fight to take measures to liquidate the banks. Measures were taken in 1842 when a revenue bill was passed, re-establishing state taxation. The banks were placed in liquidation on 1843 Jan. 21. (Acts 1842/1843, Act #4). On 1846 Feb. 4, an act was passed, placing the assets of the institutions in the hands of three commissioners.

Francis Lyon was shortly there-after made sole commissioner, therefore completing the work of liquidation and adjustment.

Alabama. Bank of the State of Alabama. Branch of the Bank of the State of Alabama at Decatur.

Authority: Statute no. 3, 1832/33 Nov. 16. Placed in liquidation 1843 Jan. 21. Acts, 1842/43, no. 53.

Alabama. Bank of the State of Alabama. Branch of the Bank of the State of Alabama at Huntsville.

Authority: Statute no. 30, 1835 Jan. 10, Acts, 1834/35. Placed in liquidation 1843 Feb. 4, Acts, 1842/43, no. 49.

Alabama. Bank of the State of Alabama. Branch of the Bank of the State of Alabama at Mobile.

Authority: Statute no. 1, 1832 Dec. 4, Acts, 1832/33. Placed in liquidation 1843 Jan. 21. Acts 1842/1843, no. 4.

Alabama. Bank of the State of Alabama. Branch of the Bank of the State of Alabama at Montgomery.

Authority: an act to establish a branch of the Bank of the State of Alabama, 1832 Jan. 21, Acts, 1831/32. Placed in liquidation 1843 Jan. 25. Acts, 1842/43, no. 37.

From the description of Agency history record. (Unknown). WorldCat record id: 145407182