in 1868; the bank "really and in fact had no independent existence from the State, but was really subject to and controlled by it. Truly, it had a legal entity for business purposes, but was really nothing more nor less than the State engaging in banking business." It was held that the fire bonds were not a prior lien on the assets of the bank, but that these were distributable for all debts alike. The bank was held not to be liable for the fire loan bonds of the State, issued at the same time, for a part of the rebuilding fund; also, the holders of the notes of the bank held them at their face against the bank, no matter for what price they were bought. In the absence of a special contract, depositors of Confederate currency were held to be entitled only to what it was worth when deposited. "The moneyed relations between the State and the bank might well be said to have identified them." The bank was in liquidation in 1871.[1]
Georgia.—We find laws of 1847 and 1854 to "commute," as it was called—that is, to fund in bonds of not less than $500 each, the small bonds which were issued for the circulation of the Central Bank of Georgia.[2] This State also, in 1851, was once more legislating against issues by unauthorized persons or corporations, with heavy fines and imprisonment as a penalty. The Bank of the State, in 1850, with a capital of $1.5 millions, had a circulation of $1.8 millions; specie, $489,409; bills of exchange, $1.5 millions; discounts, $1.2 millions. In 1852, the banks were allowed to issue notes under $5 for twenty per cent. of their capital, instead of 5 per cent. as before. This State also multiplied banks between 1853 and 1856. In 1857, the act of 1840 to enforce specie payments was suspended for a year, in spite of the Governor's veto. The banks must resume, however, at the time set, or pay ten per cent. damages and interest for non-redemption. If a note-holder sues the bank, it must redeem all the notes he has or forfeit its charter.
The Governor recommended, in 1859, that a suspension of specie payments by a bank should be made a misdemeanor on the part of the chief officers, and punished by penal servitude for between five and ten years. The Legislature was not prepared to go so far, but a very stringent law was passed without penal features, giving the note-holder summary remedies.
The tax collectors of Alabama appear to have been speculating on the depreciation of the currency, for an act was passed February 4, 1846, to prevent them from doing so.
It was enacted March 4, 1848, that no foreign corporation should do discount banking in Alabama, unless it did so by the use of gold and silver or of notes issued under the authority of the State. Notes discounted contrary to this law were to be void. The Southern Bank of Alabama was chartered February 12, 1850; capital, $834,000; two-fifths being reserved for the State, as the Constitution required; but it appears that there was no intention that the State should subscribe. On the same day a free banking law on the New York plan was adopted. The lowest note was set at $5, which
