Governor's Proclamation to the people of Alabama concerning the authorization of banks' suspension of specie payment.
Item
Identifier
RSG00248_f09_Q0000134703_Q0000134711
Title
Governor's Proclamation to the people of Alabama concerning the authorization of banks' suspension of specie payment.
Rights
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Type
Text
Creator
Moore, Andrew B. (Andrew Barry), 1807-1873
Date
December 17, 1860
Description
This letter is directed towards the people of Alabama in regard to convening the legislature. A.B. Moore emphasizes that the citizens desire new legislature to ensure the protection of the state during a crisis. He aimed to allow banks to suspend special payments to aid in the cotton market. AB Moore adds that given the most likeliness of Alabama retreating from the Union -- this situation is dire and must be completed soon.
Format
letter
Place
Montgomery (Ala.)
Publisher
Alabama Department of Archives and History. (electronic version)
Contributor
Anna Arnwine
transcription
Executive Department Montgomery Ala 17 Dec 1860.
To the people of Alabama.
Strong appeals have been made to me by many Citizens from different sections of the state to convene the legislature for the purpose of provi= ding the ways and means of protec= ting the interests and honor of the state in the impending crisis, and for the further purpose of authorizing the Banks to suspend specie payments, to enable them to furnishe greater fa= cilities for moving the cotton crop, and thus relieve, to some extent the em= barrassed Condition of the cotton mar= ket, and the people. These appeals were made by those whose opinions are entitled to the highest respect, and are disconnected with the Banks, either as directors or stockholders. After giving to the subject the fullest consideration, and viewing it in all its bearings, I determined not to convene the legislature for reasons which I will now give. I did not doubt, and do not now, that the convention to meet on the 7th January next, will determine that Alabama shall withdraw from the present Union at an early day. Should this contingency occur, it will be necessary forthwith, to Convene the legislature, to provide for whatever the action of the Con= vention may render necessary in
[Left margin:] Gov Moore's proclamation Dec 1860
the way of legislation. The imposition upon the state of the expense of the convention, and two extra sessions of the legislature at this time, when economy is a matter of the highest consideration, ought to be avoided if it could be done consist= ently with the public interests. If the legis= lature could anticipate the action of the convention, and provide for it, it would supersede the necessity of con= vening after the convention shall have acted; but this would be impossible.
It was my opinion if I issued a proclamation calling an extra session of the legislature every one would believe that the object, in part was to au= thorize the banks to suspend specie payments. This would have caused an immediate run upon them and would in a great measure have exhausted their specie and thus rendered them unable to aid the state in her emergency or relieve the people.
It appeared to me that these difficulties could be avoided, by the banks and myself assuming responsibilities which never should be done under any other circumstances. I considered it a matter of the utmost importance that the specie in the vaults of the Banks should be kept there, so far as it could be done, in order to aid the state in providing the means tosustain herself in the approaching crises. It would be inexpedient, at such a time to tax the people, and state bonds could not now be sold except at a great sacrifice. I considered it the duty of banks upon whom extraordinary privileges had been confered to come to the aid of the state in her hour of need and therefore determined to request them at the same time to suspend specie pay= ments and retain their specie for the benefit and security of the state, so far as it might be necessary.
In this way a run upon the Banks would be avoided, and they would re= main in a condition to relieve the state from immediately taxing her people, or selling bonds at a heavy discount, and render unnecessary an extra session of the legislature before the meeting of the Convention.
The extension of relief to the people in selling their cotton crops would follow as an incident. In consideration of the premises I ad= dressed to each of the Banks a letter, of which the following is a Copy:
Executive Department Montgomery Dec 4. 1860 To the President and Directors of the Central Bank of Alabama Montgomery Ala.
Gentlemen:- The peculiar and ex= traordinary state of public affairs and the interest of the state make4
it a matter of state necessity to retain in the vaults of the Banks all the gold and silver coin in their poss ession.
From present prospects, there can scarcely be a doubt that Alabama will secede from the Union before the fourth day of March inst. Should that contin= gency occur, it will be necessry for the state to raise not less than a million of dollars in specie or its equivalent. Under the cir= cumstances which surround us, we could not sell state bonds, either in the north or in Europe, except at a ruinous discount; and it would be inexpedient to tax the people immediately for that pur= pose. How then can the state secure the money that may be necessary in her emergency?
But one practicable plan now presents itself to my mind, and that is to call upon the Banks of the state to come up to her aid. The course of events and the sus= pension of the South Carolina and Georgia Banks, will create more or less uneasiness in the minds of the bill holders, and will induce many of them to draw the specie from the Banks to the extent of the notes they may hold and thus render the Banks5 unable to aid the state, as they other= wise could do.
I am strongly urged from vari ous parts of the state to convene the legislature for the purpose of author izing the Banks to suspend specie payments, and thus enable them to retain their specie for the pur= poses suggested.
I have reflected much and anx= iously upon the subject. I am satisfied, were I to convene the leg= islature for the purpose stated that it would produce a run on the Banks, and in a great measure exhaust their specie and defeat the object I have in view.
With the view thus of enabling the Banks to retain their specie for the purpose aforesaid, I deem it my duty, under the circumstan ces, to advise and request them to suspend, all at the same time.
The high and patriotic motives which would induce the act, would sustain the Banks and we.- There can be no doubt that the conven= tion and legislature soon to meet will sustain and legalize the act. I will sanction it, and will institute no proceedings against them; and in my message to the legislature and convention will urge them to sanction the act, which I am sure they will do.6
If need be, after the suspension, I will write an address to the people of the state, stating the facts and circumstan ces under which the step was taken. I am satisfied that the Banks are in a sound condition and can maintain it through the present crisis; but it will render ^them unable to give the state that aid she will need.
I have written similar letters to all the Banks. The contents of this com= munication are respectfully submitted to your consideration.
Very respectfully your obedient Servant A B Moore.
At my suggestion and request and for the purposes stated in my letter, the Commercial Bank at Selma, the Central Bank at Montgomery, and the Eastern Bank at Eufaula, suspend this day. It is due to those Banks, that I should say (being advised of their condition) that they are able to sustain themselves through the crisis, and that they have taken this important step with the high and patriotic motive of sustaining the state - as shown by the response of each of them to my letter. Their letters are filed in my office, and would have been published, but for the length they would give this communication.
[This is the same as page 5.]7
There is no necessity for any depre= ciation of their notes, as there can be no question of their solvency.
The circumstances under which they have suspended, should relieve them from any censure. If censure is to fall upon any one, it should be upon me, and I rely for my justification upon the manifest propriety and necessity of the act as well as the motives which induced it. The Bank of Mobile, and the Southern Bank of Alabama, decline to sus= pend, but patriotically pledge themselves to raise the proportion of the amount suggested in my letter, should their be a necessity for it. These two Banks being located in Mobile can procure specie, and exchange with more facility than the Banks in the interior, and are not so liable to be prejudiced by the suspended Banks of South Carolina and Georgia.- Hence, their ability to aid the state without suspending specie payment.
The Northern Bank at Huntsville also declines to suspend on account of peculiar circumstances which surround it.
I have now briefly stated the circumstances and facts connected with the suspension of three of our Banks, in accordance withthe promise contained in my letter, and hope they will be satisfactory to the enlightened and patriotic people of Alabama, for whose benefit this great responsibility has been assumed. A B Moore.
I am authorized to say that the Banks are prepared to loan the state their proportionate share of one million dollars should her necessities require it.
To the people of Alabama.
Strong appeals have been made to me by many Citizens from different sections of the state to convene the legislature for the purpose of provi= ding the ways and means of protec= ting the interests and honor of the state in the impending crisis, and for the further purpose of authorizing the Banks to suspend specie payments, to enable them to furnishe greater fa= cilities for moving the cotton crop, and thus relieve, to some extent the em= barrassed Condition of the cotton mar= ket, and the people. These appeals were made by those whose opinions are entitled to the highest respect, and are disconnected with the Banks, either as directors or stockholders. After giving to the subject the fullest consideration, and viewing it in all its bearings, I determined not to convene the legislature for reasons which I will now give. I did not doubt, and do not now, that the convention to meet on the 7th January next, will determine that Alabama shall withdraw from the present Union at an early day. Should this contingency occur, it will be necessary forthwith, to Convene the legislature, to provide for whatever the action of the Con= vention may render necessary in
[Left margin:] Gov Moore's proclamation Dec 1860
the way of legislation. The imposition upon the state of the expense of the convention, and two extra sessions of the legislature at this time, when economy is a matter of the highest consideration, ought to be avoided if it could be done consist= ently with the public interests. If the legis= lature could anticipate the action of the convention, and provide for it, it would supersede the necessity of con= vening after the convention shall have acted; but this would be impossible.
It was my opinion if I issued a proclamation calling an extra session of the legislature every one would believe that the object, in part was to au= thorize the banks to suspend specie payments. This would have caused an immediate run upon them and would in a great measure have exhausted their specie and thus rendered them unable to aid the state in her emergency or relieve the people.
It appeared to me that these difficulties could be avoided, by the banks and myself assuming responsibilities which never should be done under any other circumstances. I considered it a matter of the utmost importance that the specie in the vaults of the Banks should be kept there, so far as it could be done, in order to aid the state in providing the means tosustain herself in the approaching crises. It would be inexpedient, at such a time to tax the people, and state bonds could not now be sold except at a great sacrifice. I considered it the duty of banks upon whom extraordinary privileges had been confered to come to the aid of the state in her hour of need and therefore determined to request them at the same time to suspend specie pay= ments and retain their specie for the benefit and security of the state, so far as it might be necessary.
In this way a run upon the Banks would be avoided, and they would re= main in a condition to relieve the state from immediately taxing her people, or selling bonds at a heavy discount, and render unnecessary an extra session of the legislature before the meeting of the Convention.
The extension of relief to the people in selling their cotton crops would follow as an incident. In consideration of the premises I ad= dressed to each of the Banks a letter, of which the following is a Copy:
Executive Department Montgomery Dec 4. 1860 To the President and Directors of the Central Bank of Alabama Montgomery Ala.
Gentlemen:- The peculiar and ex= traordinary state of public affairs and the interest of the state make4
it a matter of state necessity to retain in the vaults of the Banks all the gold and silver coin in their poss ession.
From present prospects, there can scarcely be a doubt that Alabama will secede from the Union before the fourth day of March inst. Should that contin= gency occur, it will be necessry for the state to raise not less than a million of dollars in specie or its equivalent. Under the cir= cumstances which surround us, we could not sell state bonds, either in the north or in Europe, except at a ruinous discount; and it would be inexpedient to tax the people immediately for that pur= pose. How then can the state secure the money that may be necessary in her emergency?
But one practicable plan now presents itself to my mind, and that is to call upon the Banks of the state to come up to her aid. The course of events and the sus= pension of the South Carolina and Georgia Banks, will create more or less uneasiness in the minds of the bill holders, and will induce many of them to draw the specie from the Banks to the extent of the notes they may hold and thus render the Banks5 unable to aid the state, as they other= wise could do.
I am strongly urged from vari ous parts of the state to convene the legislature for the purpose of author izing the Banks to suspend specie payments, and thus enable them to retain their specie for the pur= poses suggested.
I have reflected much and anx= iously upon the subject. I am satisfied, were I to convene the leg= islature for the purpose stated that it would produce a run on the Banks, and in a great measure exhaust their specie and defeat the object I have in view.
With the view thus of enabling the Banks to retain their specie for the purpose aforesaid, I deem it my duty, under the circumstan ces, to advise and request them to suspend, all at the same time.
The high and patriotic motives which would induce the act, would sustain the Banks and we.- There can be no doubt that the conven= tion and legislature soon to meet will sustain and legalize the act. I will sanction it, and will institute no proceedings against them; and in my message to the legislature and convention will urge them to sanction the act, which I am sure they will do.6
If need be, after the suspension, I will write an address to the people of the state, stating the facts and circumstan ces under which the step was taken. I am satisfied that the Banks are in a sound condition and can maintain it through the present crisis; but it will render ^them unable to give the state that aid she will need.
I have written similar letters to all the Banks. The contents of this com= munication are respectfully submitted to your consideration.
Very respectfully your obedient Servant A B Moore.
At my suggestion and request and for the purposes stated in my letter, the Commercial Bank at Selma, the Central Bank at Montgomery, and the Eastern Bank at Eufaula, suspend this day. It is due to those Banks, that I should say (being advised of their condition) that they are able to sustain themselves through the crisis, and that they have taken this important step with the high and patriotic motive of sustaining the state - as shown by the response of each of them to my letter. Their letters are filed in my office, and would have been published, but for the length they would give this communication.
[This is the same as page 5.]7
There is no necessity for any depre= ciation of their notes, as there can be no question of their solvency.
The circumstances under which they have suspended, should relieve them from any censure. If censure is to fall upon any one, it should be upon me, and I rely for my justification upon the manifest propriety and necessity of the act as well as the motives which induced it. The Bank of Mobile, and the Southern Bank of Alabama, decline to sus= pend, but patriotically pledge themselves to raise the proportion of the amount suggested in my letter, should their be a necessity for it. These two Banks being located in Mobile can procure specie, and exchange with more facility than the Banks in the interior, and are not so liable to be prejudiced by the suspended Banks of South Carolina and Georgia.- Hence, their ability to aid the state without suspending specie payment.
The Northern Bank at Huntsville also declines to suspend on account of peculiar circumstances which surround it.
I have now briefly stated the circumstances and facts connected with the suspension of three of our Banks, in accordance withthe promise contained in my letter, and hope they will be satisfactory to the enlightened and patriotic people of Alabama, for whose benefit this great responsibility has been assumed. A B Moore.
I am authorized to say that the Banks are prepared to loan the state their proportionate share of one million dollars should her necessities require it.
Subject
Moore, A. B. (Andrew Barry), 1807-1873;
Governors--Alabama;
Alabama--Economic conditions;
Alabama--Politics and government--To 1865;
Banks and banking--Alabama;
Secession--Alabama;
United States--History--Civil War, 1861-1865--Economic aspects;
Montgomery (Ala.);
Montgomery County (Ala.);
Governors--Alabama;
Alabama--Economic conditions;
Alabama--Politics and government--To 1865;
Banks and banking--Alabama;
Secession--Alabama;
United States--History--Civil War, 1861-1865--Economic aspects;
Montgomery (Ala.);
Montgomery County (Ala.);