CHAPTER EIGHTEEN

P. 193  ADMINISTRATION OF GOVERNOR JOSEPH DUNCAN

ELECTION AS GOVERNOR—BANKING LEGISLATION RECOMMENDED—

UNITED STATES AND STATE BANKS—REDEMPTION EXTENSION—

SUSPENSION OF SPECIE PAYMENTS—STATE BANK IN LIQUIDATION—

INTERNAL IMPROVEMENTS—RECOMMENDATIONS—

BILL PASSED OVER GOVERNOR’S VETO—CAPITAL REMOVED TO SPRINGFIELD—

ALSO PASSED OVER COUNCIL’S VETO.

       Joseph Duncan was a Kentuckian, having been born at Paris in that state, February 23, 1794. He is recorded as a sergeant in the Illinois militia, in Capt. Nathan Chambers’ company of 30-day men in the War of 1812. He served from April 12 to May 12, 1813. He is also put down as a lieutenant in the second regiment, Samuel Judy, colonel, which served in the War of 1812. He is also said to have fought bravely with Colonel Croghan in the defense of Fort Stephenson in 1813.
      
       At the close of the War of 1812, he settled at the “big hill,” now called “Fountain Bluff,” in Jackson county. “In 1814, there was quite a large accession to this county. Joseph Duncan, Dr. John G. Duncan, Polly Ann Duncan, old Mrs. Moore, their mother, and her son Ben, with several blacks, settled here. Joe Duncan built the best house in the county, near the river and under the bluff, and it was called the ‘White House’ as long as it stood. He renovated the mill, and it did considerable business. The Duncans lived there several years. Dr. Duncan died and was buried there.” The foundations of the mill dam could be seen a few years ago. Here he occupied himself in the business enterprises common to those pioneer days. In 1823 he was appointed a major general of militia.  In 1824 he was elected to the State senate from Jackson county. In 1825 he introduced the first legislation on public schools in the state. It was also the most rational that was suggested for many years. Mr. Duncan was elected to congress in 1826, took his seat March 4, 1827, and served continuously till he came home to be inaugurated in 1834.

ELECTION AS GOVERNOR

       The canvass which preceded the election in August, 1834, was rather a tame affair. Mr. Duncan’s opponent was Mr. Kinney who had opposed Governor Reynolds in 1830, and who had served as lieutenant governor with Governor Edwards from 1826 to 1830.

       Mr. Duncan remained in Washington during the summer of 1834 P 194 carried on his canvass by sending out circulars and letters. His opponent, Mr. Kinney, carried on his canvass personally, as he had in previous campaigns. Duncan’s vote was 17,830, while Kinney‘s was 10,224, with 5,000 scattered.

       Governor Duncan was naturally a Democrat. He had been a friend to Jackson, but several things worked together to alienate him from the hero of New Orleans. Jackson at the time was working the destruction of the U. S. bank and in his eagerness to do this he often failed to do things which would hold his friends. Mr. Duncan was very much interested in two measures, one an appropriation to” render navig­able the Wabash river, the other an appropriation to improve the Chi­cago harbor. In addition nearly every congressman was deeply interested in congressional aid in constructing great highways from the Atlantic seaboard to the region of the Mississippi river. Jackson vetoed the two bills, the one for the Wabash and the one for the Chicago har­bor, and refused aid to the internal improvement scheme at national expense.

       By the time of the canvass, Mr. Duncan was completely at cross purposes with the “Military Chieftain.” And it is not at all improbable that he remained in Washington in order that he might not be under the necessity of letting the people know that the breach was as wide as it was in reality. The Whigs knew of the breach and so did the leaders among the Jackson men, but the former kept still and the latter were not believed by the great mass of Jackson men.

       By the time Governor Duncan took up the duties of his position, it was generally known that he was not in harmony with Jackson. And although the legislature was for “Old Hickory,” its members and Governor Duncan seem to have had about the same general notions of what was needful for the upholding of the interests of Illinois.

BANKING LEGISLATION RECOMMENDED

       There were two important subjects upon which he recommended legislation—one was banking, the other internal improvement. On the latter subject he recommended the laying out of roads now, before the country was settled, so that they might run on the most direct line from one point to another. In response to this suggestion the legislature authorized the establishment of forty-two state roads and at a later special session forty more. In addition, a law was passed authorizing county commissioners to establish roads within the limits of their counties. This public road legislation was only an earnest of what was in store for the state within the next few years, and since the legislation on each of these topics, banking and internal improvements, was of such far reaching importance, it will be well to consider one at a time.

       We have in a previous chapter followed the financial legislation up to the year 1831, the expiration of the charter of the State bank, which was granted in 1821. And in this we have seen that the project ended very disastrously for the state. The last act in this ten-year drama was to borrow $100,000 to redeem the outstanding issue of the defunct bank, and anticipating that this would not be sufficient to meet the entire obligation of the state, it was provided that the state bonds might be issued bearing six per cent interest to meet the remainder.

       The legislature readily agreed with the governor on the value of P 195 banks when he said “banks may be made useful in society.” It should be remembered that the members of the general assembly were not elected with any idea that such a subject would be before them. It was therefore quite a surprise to the members of the legislature, as well as to the people, when they found themselves absorbing a great corporation with millions of capital. A bill was introduced which created a State bank with a capital of $1,500,000 with the privilege of adding another $1,000,000 to the first named sum if the legislature in its wisdom saw fit so to do. As a sort of offset against taxation, the bank was to pay as a tax to the state one-half of one per cent of its capital actually paid in, but was to be subject to no other taxation. Another bill provided for the charter of the old Shawneetown bank with a capital of $300,000. The bill creating the State bank was passed with difficulty. One representative agreed to vote for the bill if its friends would guarantee to pass a law taxing the lands held by non-residents higher than that held by the citizens of the state. Another who was opposed to the law creating the bank, suddenly became a convert to the bank and voted for the measure, and the next day he was elected a county attorney, the election to such offices falling to the legislature.

       One million four hundred thousand dollars of the capital of the State bank was to be subscribed by individuals while the state reserved $100,000 for itself, The bank was one of issue and deposit. The bank was to be managed by a board of directors consisting of nine, one of whom should be president. The principal bank was to be located in Springfield with a branch at Vandalia. The stock was subscribed quickly, provision being made in the charter that the subscription books must remain open in this state for twenty days and that $5 in cash must be deposited with the subscription of each share of $100. Another clause prevented any one person from subscribing for large blocks of the stock, but a clique headed by some people interested in Alton, got men over the state to authorize the purchase of stock by this clique and then transferred these shares to the Alton boomers and in this way Godfrey, Gillman & Co., of Alton, Thos. Mather, of Kaskaskia, and others came to own a controlling share of the stock.

       The bank management with Thos. Mather, president, attempted to boost Alton as a great market and distributing point and thus to check the growing power of St. Louis in the Mississippi valley. The lead mines of Galena and adjacent regions were very important at this time. All the trade, however, was centered in St. Louis, The Alton interest invested many thousands of dollars in the mines and in their product and thus “cornered” the market. They held the lead for big prices which were never realized and thus the Alton concerns lost very heavily. This involved the bank. Ford says he thinks the bank lost a million dollars in the venture. There was one arrangement by which the bank could loan on real estate mortgages and in this way hundreds and probably thousands of the small farmers borrowed money, put it into improvements, and when the hard times of 1837 came they could not meet their notes and their farms were taken in by the bank and sold under the hammer.

UNITED STATES AND STATE BANKS

       Of course a great concern like this State bank could not escape an alliance with politics. Politics and business are so often joined that it P 196

Bills Issued By The Cairo Bank, Bearing Dates 1839, 1840, and 1841. The Bank Was Located In Kaskaskia

P 197 is a rare thing to see a business enterprise that does not get caught in the toils of the politicians. The period through which we are now passing, say from 1830 to 1837, was one fraught with a vital national question. Jackson was uncompromisingly opposed to the United States bank, chartered in 1816. When he became President in 1829, one of his chief aims was to crush this bank. Not much was accomplished in the first term, but a bill to re-charter the bank was vetoed by Jackson, and the congress was unable to pass it over his head. Those who could look ahead saw that the days of banking with the United States as a co­partner were numbered. State banks must eventually carry on the business of the country. There was, therefore, great activity in legislation in all the states preparatory to the death of the old U. S. Bank in 1836. To hasten the demise of the U. S. Bank, Jackson, taking advantage of a clause in the charter which permitted the secretary of the treasury to withdraw the deposits of the general government from the U. S. Bank, and put them in State banks, issued an order to carry this contingent clause into effect.

       The State banks now looked hopefully forward to the receipt of large sums of government deposits in their vaults. The State bank of Illinois was no exception. But as is so often the case, a very trifling thing, apparently, prevented this bank from sharing in the “distribution of the spoils.”

       In the general assembly when this bill was on the passage, there was no division on politics. The bill was prepared by Judge Theophilus Smith, of the supreme bench. Judge Smith was an ardent Jackson Democrat and of course was a strong believer in state banks. But in the organization of the State Bank of Illinois it so happened that a majority of the directors were Whigs, as were also the majority of its officers. The leading Democrats of the state did not hesitate to say now that the charter was unconstitutional. So when the bank asked the secretary of the treasury for a deposit of a portion of the government funds, the Democratic leaders had so poisoned the minds of the treasury officials at Washington, that they refused to favor the manager of the bank with a deposit.

      Just at this time, too, it will be remembered that Jackson put forth what we know as the “Specie Circular,” which was an order that receivers at the land offices were to receive no more state bank issues— only gold and silver. This made it necessary if a man had $200 in state bank issue, and wished to enter 160 acres of land, that he should go to the bank and present this paper for redemption, and with the specie he could enter the land. And when the receiver at the public land office received the $200 in specie, he was not allowed to deposit it in the State Bank of Illinois, but must forward it to some state bank that was in good standing. This worked, as a recent statesman said, in the “endless chain” order. The specie was constantly being drawn from the bank vaults.

REDEMPTION EXTENSION

       On December 7, 1835, the legislature met in special session. The law which provided for the loan of $500,000 on the canal could not be consummated. So at this extra session a loan of five hundred thousand dollars was ordered on the credit of the state. The governor at this P 198 extra session recommended that the state take the remaining one million dollars of the stock in the State Bank. The legislature did not take kindly to this, but did order a subscription to the one hundred thousand dollars of stock reserved for the state in the charter. A clause in the original charter provided that at any time upon presentation of its issue by holders thereof, the bank should have ten days in which to redeem it, but at this special session the time was lengthened to sixty days.

       When the legislature met in December, 1836, the makeup of the two houses was not different from that of the previous general assembly, but they were now deeply interested in what appeared to be the onward movement of the state. The capital of the State Bank was increased to $3,500,000 and that of the Bank of Illinois (the bank at Shawneetown) was increased to $1,700,000. This increase in capital amounted to $3,100,000, all of which was taken by the state. It was expected that part of this stock would be paid for out of the surplus revenue which the general government was distributing about this time. The balance was to be paid for with the sale of state bonds.

       The whole financial interest of the state was now put into the hands of a body of men known as the fund commissioners. These fund commissioners were authorized to subscribe, on behalf of the state, for this increase in the capital stock of the two banks. The increase amounted to $3,100,000. The state had now become a bona fide partner in the two banks and owned a controlling interest in each of them. It was expected that the bonds which would be offered for sale, the proceeds of which were pay for the stock, would command such a premium, at least ten per cent, that it would not only pay the interest on the bonds the first year, but that the interest fund would be considerably enlarged. Likewise it was really believed that the profit from the investment of over three millions in the bank would add greatly to the interest fund.

       When the fund commissioners offered the bonds on the market they could not be sold at a premium nor at par, and if sold at all they must be sold at a discount. Rather than have our own bonds go on the market at a discount, the two banks agreed to take $2,665,000 worth of them.

       The Shawneetown bank, called the Bank of Illinois, effected the sale of $900,000 worth of the bonds, but the $1,766,000 worth taken by the State Bank could not be disposed of. In the spring of 1837 the banks of the whole country began to suspend specie payment. The state bank law contained a clause which provided that its charter should be forfeited in case it suspended specie payment for more than sixty days at any one time. The demands for specie grew and the situation was getting critical.

SUSPENSION OF SPECIE PAYMENTS

       The State Bank had now become so closely connected with the interests of the state, it being the depository of the funds of the gigantic internal improvement schemes, that the state must maintain it at all hazards. If the bank should go down so must the state’s great enterprises. In this critical situation the fund commissioners appealed to the governor to call an extra session of the legislature for the purpose of legalizing the suspension of specie payment. The governor readily P 199 complied with their request and on the 10th of July, 1837, the legislature convened in extra session. The legislature also readily complied with the demand for the legalization of the suspension of specie payment. The governor now embraced the opportunity to appeal to the law makers to repeal the legislation which was driving the state to financial ruin, but all in vain; the legislature had set itself to the task of putting Illinois in the front rank in the matter of its internal improvements. “It was plain that nothing could be done to arrest the evil for two years more. In the meantime all considerate persons hoped the public insanity would subside, that the people would wake to reflection and see the absurdity of the public policy.”

       It was now necessary that the bank should go into politics. Self-preservation was justification. In national politics the Jackson Democrats had persistently opposed the U. S. Bank and favored the State Bank, The Whigs, or those anti-Jackson Democrats who eventually made up the Whig party, favored the U. S. Bank and opposed the State Bank. But in Illinois the rule seemed to work the other way, for the anti-Jackson people or the Whigs favored the State Bank, while the Democrats or Jackson people were bitterly opposed to it. It was therefore quite natural for the bank to take such part in the legislation as would result in advantage to itself. Not only was the bank involved in politics but its life seemed to depend upon continuing the far reaching projects for internal improvements.

       It is very difficult to trace the bank from 1837 to its downfall on account of its intricate relationship with the internal improvement schemes. However, in a session of the legislature, which met in December, 1838, a law was passed which legalized the suspension of specie payment till the end of the next regular or special session of the legislature. The next session was a special session called just before the constitutional time for the assembling of the legislature in regular session. In this special as well as in the regular session which followed there was a very bitter fight on the State Bank. The enemies of the bank knew that if the law permitting suspension were not extended that the charter of the bank would be annulled since they knew the bank was not able to redeem its issue as fast as presented. If a sine die adjournment be taken at end of special session, then the charter would be annulled, but if they took a recess and began the regular session the friends might succeed in tiding it over. Those in favor of the sine die adjournment seemed to be in the majority, and to break a quorum the members who were against that kind of adjournment made a break for liberty by jumping through the windows, the door having been locked. This incident occurred while the sessions were being held in the old Presbyterian church in Springfield, the capital having been removed to that city, and the new capitol building not being ready for occupancy. Enough of the Whigs were prevented from escaping by the opponents of the bank and a sine die adjournment was taken.

       Notwithstanding this apparent victory of the enemies of the bank, in the regular session beginning December, 1840, the bank won the good will of the majority and considerable legislation was passed which favored it. P 200

STATE BANK IN LIQUIDATION

       In 1843 the legislature passed a law “to diminish the state debt and put the State Bank into liquidation.” The bank was given four years to wind up its business. Now the State Bank held $2,000,000 worth of bonds and other forms of state indebtedness, while the state held $2,000,000 of stock in the State Bank.

       This law to “diminish the state debt, etc.,” provided that the bank should turn over to the governor the bonds, scrip, etc., to the amount of $2,050,000, while the governor was to deliver to the bank an equal amount of bank stock. This still left the state with $50,000 worth of bank stock. A similar law provided for the cancellation of $1,000,000 worth of state bonds held by the Shawneetown bank by surrendering $1,000,000 worth of stock in that bank. Thus the state reduced its indebtedness to the extent of $3,050,000.

       Much of the history of the banking business in Illinois cannot be condensed into a single volume history of our state, and we must content ourselves with the foregoing facts which give the general features of a very unfortunate system of financiering.

INTERNAL IMPROVEMENTS

       In subjects so organically connected with the whole life of the people as roads, bridges, railroads, canals, and banks, it is extremely difficult to find the origin of any one of them. The fact is there is no formal beginning. Roads and trails were the earliest care of the permanent settlers. Fords, ferries, and bridges were provided at a very early date.

       But it is probably due to Governor Reynolds to say that he is to be given credit for first calling the attention of the legislature to the need of internal improvement. Governor Reynolds, in his inaugural message, transmitted to the general assembly in December, 1830, had this to say on the general subject of internal improvement:

       “The internal improvement of the country demands, and will receive your particular attention. There cannot be an appropriation of money within the exercise of your legislative power, that will be more richly paid to the citizen, than that for the improvement of the country.”

RECOMMENDATIONS

       Governor Reynolds was clearly of opinion that the general government ought to carry on a system of national improvements, but he was as clearly of opinion that there were certain local improvements that ought to be fostered by the state. He urged attention to the report of the canal commissioners and hoped that the attention of congress might be directed to the national importance of the enterprise. “The improvement of the navigation of the rivers adjoining and within this state, will be the subject of your serious consideration. Those improvements which are local to our state will receive your fostering care, so far as our means will justify without embarrassment to our people. The general good of the present and future population seems to require the permanent establishment of three public roads in this state extending from its southern to its northern limits.

       (1) One to commence on P 201 the Ohio river near its junction with the Mississippi, and extending north, on the western side of the state, by the principal towns on the most direct route to Galena.

       (2) Another to commence at Shawneetown passing north, through the center of the state, to accommodate the present and future population, to the lead mines.

       (3) And one other, to commence on the Wabash river, near its confluence with the Ohio, passing through the principal towns on the eastern side of the state by Danville to Chicago, and thence to the lead mines.”

       Governor Reynolds believed the general government might be induced to construct them and that then the counties might be required to keep them in repair. His idea was that a good road passing through an undeveloped region would be a very potent factor in the development of such a section. He specially called attention to the road leading from Vincennes through the state to St. Louis, saying it was much traveled.

       A careful study of the above modest recommendation and simple suggestions will prepare us to some extent to begin a thorough study of “Internal Improvement” as it was known in later years.

       Governor Duncan was inaugurated in December, 1834. The effects of the Black Hawk war were disappearing and population was moving rapidly into the northern counties. Governor Duncan was specially interested in a public school system, in the Illinois and Michigan canal, and in a system of internal improvement. No action on this last suggestion was taken by the legislature of 1834-5. The second session of this general assembly convened in December, 1835, and to this special session Governor Duncan sent his message. In it he says there is a very general demand for other internal improvements besides the canal. “When we look abroad and see the extensive lines of inter-com­munication penetrating almost every section of our western states, when we see the canal boat and locomotive bearing, with seeming triumph, the rich productions of the interior to the rivers, lakes and ocean, almost annihilating time, burthen, and space, what patriotic bosom does not beat high with a laudable ambition to give Illinois her full share of those advantages which are adorning her sister states and which her magnificent providence seems to invite by the wonderful adaptation of the whole country to such improvements.” And then, as if fearful that this oratory would overcome their conservatism, he adds: “While I would urge the most liberal support of all such measures as tending with perfect certainty to increase the wealth and prosperity of the state, I would at the same time most respectfully suggest the propriety of leaving the construction of all such works wherein it can be done consistently with the general interest, to individual enterprise.” This was indeed wholesome advice and had it been taken the state would hay greatly profited thereby. But internal improvement was in the air. The subject was receiving unusual interest in Ohio, Pennsylvania, New York and Maryland. In 1835 there were twenty-two railroads in operation in the United States, two of which were west of the Alleghenies. In addition there were several canals, beside the great Erie canal.

       The members of the legislature were not yet converted to the theory of state ownership of public utilities, and so they did no more than to charter a great number of railroads, but they did come to the relief of the canal and ordered the issue of half a million dollars worth of bonds P 202 on the credit of the state for the purpose of furthering this enterprise. The message of the governor seems later to have awakened great interest in internal improvement.

       The city of Chicago was now growing with amazing rapidity. The lots which were a part of the capital of the canal project were bringing big prices and selling freely. The state was taking on the same spirit of enterprise. Towns and cities were laid off and the lots sold at auction for extravagant prices. Five million dollars worth of land was sold in the year 1836. This meant increased immigration and an abundant inflow of money into the state. All the people were full of the idea of a great expansion of population, business, and wealth. All through the summer of 1836, there were all sorts of stories afloat in the air of what was just ahead, and to keep pace with this the need and advantages of a system of internal improvement were discussed everywhere.

       It was argued that Illinois is unsurpassed in fertility of soil, in variety of climate, and agricultural products; timber was plentiful, all that was needed was distribution. Her situation relative to the Lakes and the Mississippi was superior to that of any other state west of the Alleghenies. All that was needed was more people and more enterprises. Public meetings were held in which all these facts were discussed.

       A move was eventually set on foot for a state convention which was appointed to meet in Vandalia at the time of the meeting of the legislature early in December, 1836. Delegates were appointed from the several counties and much interest was manifested.

       A new legislature was also to be elected in August, 1836, and as the candidates for the legislature went about among the people or spoke from public platforms, the subject of internal improvement was more or less discussed. Another matter which added fuel to the flames already started was the beginning of the work on the Illinois and Michigan Canal. On July 4, 1836, the first ground was broken in Chicago on this famous waterway. The event was accompanied by a public celebration in Chicago. The Hon. Theophilus W. Smith, a former canal commissioner, read the Declaration of Independence; and Dr. William B. Egan delivered an able and appropriate address on the occasion.

       Ford in his history of Illinois, says, however, that the great mass of the people and more particularly those who resided in the country were not in the whirl of excitement. It was chiefly in the towns that the people were wrought up.

       The legislature met the first part of December, and at the same time the convention to consider internal improvements assembled at Vandalia. The make-up of the legislature was quite remarkable. Among those elected to this general assembly, one became president, one a defeated candidate for the same office, six became United States senators, eight congressmen, three state supreme judges, and still others reached high state and national positions. Many members of the legislature took part in the deliberations of the internal improvement convention. This convention soon finished its business and adjourned. The result of its deliberations were, first, a bill which it was expected some friend would introduce into the legislature; and second, a memorial or plea setting forth the advantages, costs, incomes, etc., of this improvement venture. In addition, the convention selected a lobbying committee that P 203 should remain in Vandalia during the session and see that timid members did not fail to do their duty.

       The governor’s message was a conservative document for such times. He was heartily in favor of the idea of internal improvements, but was quite doubtful as to the advisability of the state’s undertaking the entire financial obligation. He was willing that the state should assume a third or a half of the responsibility but was not favorable to the assumption of the whole burden by the state.

       After the session was fairly open, the bill prepared by the convention and the accompanying memorial were presented to the house. Resolutions were introduced by Stephen A. Douglas favoring state ownership. The subject was referred to the committee on internal improvement, the chairman of which was Edward Smith, of Wabash county.

BILL PASSED OVER GOVERNOR’S VETO

       The bill which had been kindly prepared by the convention and presented to the legislature for its endorsement and modification by the house, provided for the following internal improvements, and set aside the amounts opposite for the carrying out of the same:

Improvement of the Wabash, the Illinois, Rock river, Kaskaskia, and Little Wabash, and Western Mail Route.  $400,000
Railroad, Vincennes to St. Louis                         250,000
Railroad, Cairo to Galena                                                             3,500,000
Railroad, Alton to Mt. Carmel                            1,600,000
Railroad, Quincy to Indiana line  1,800,000
Railroad, Shelbyville to Terre Haute 650,000
Railroad, Peoria to Warsaw 700,000
Railroad, Alton to Central Railroad 600,000
Railroad, Belleville to Mt. Carmel  150,000
Railroad, Bloomington to Pekin 350,000
To pacify disappointed counties 200,000
   

Grand Total

$10,200,000

                                                              

       This bill which provided for the construction of so many railroads, was sent to the governor, who, together with the council of revision, vetoed the measure. But when it came back to the general assembly it was speedily passed over the veto. This bill which looked to the burdening of the state to the amount of over ten millions of dollars was not the only measure of importance before the legislature. There were at least three other important matters that must be considered. They were, a bill to increase the capital stock of the state bank $2,000,000, and that of the Shawneetown bank $1,400,000; a proposition to relocate the state capital; and also a proposition to enlarge the issue of bonds for the completion of the Illinois and Michigan canal. These four measures were fraught with grave consequences to the future of the state.

CAPITAL REMOVED TO SPRINGFIELD

       It can be readily seen that in this session of the legislature there will be conflict of interest, and it will only be by considerable amount of “swapping” of votes that the several measures can be carried. For P 204 instance, the delegation from Sangamon county

 

THE FIRST STATE HOUSE, SPRINGFIELD, NOW COURTHOUSE OF SANGAMON COUNTY
 

 consisted of nine men, two in the senate and seven in the house. They had been instructed to vote for internal improvement, but more especially to secure the removal of the state capital, and to secure its location in Springfield. This latter problem had been entrusted to Lincoln, who, it seems performed his task with eminent success. When the vote was finally reached Springfield, Jacksonville, Vandalia, Peoria, Alton, Illiopolis, besides smaller towns, were candidates for the honor. Four ballots were taken before the selection was finally made.

       Springfield was selected and every one recognized the fine hand of Abraham Lincoln in the result. In a later session of the legislature charges were informally preferred against the “Long Nine” who, it was claimed, had secured the removal of the capital to Springfield through corrupt means. But probably nothing worse was done than to swap” votes with some of the members who were not getting out of the internal improvement scheme as much as they thought they ought to have. The names of the group of men known as the “Long Nine,” were A. G. Herudon and Job Fletcher, in the senate; in the house, Abraham Lincoln, Ninian W. Edwards, John Dawson, Andrew McCormick, Dan Stone, William F. Elkins, and Robert L. Wilson. Their total height was fifty-four feet averaging exactly six feet each.

       We have digressed from the improvement scheme in order to call attention to the removal of the capital; and now let us return to the main subject. The improvement bill as reported, amended, and passed, contemplated the expenditure of considerably more than $10,000,000.

       This money was to be raised by issuing bonds which it was confidently expected would sell at a handsome premium. General Linder, who, in later years, wrote reminiscences of this period, says: “The enthusiastic friends of the measure maintained that, instead of there being any difficulty in obtaining a loan of fifteen or twenty millions authorized to be borrowed, our bonds would go like hot cakes and be sought after by the Rothschilds and Baring brothers, and others of that stamp; and that the premiums which we should obtain from them P 205 would range from fifty to one hundred per cent and that the premium itself would be sufficient to construct most of the important works, leaving the principal sum to go into our treasury and leave the people free from taxation for ages to come.”

ALSO PASSED OVER COUNCIL’S VETO

       When this bill for internal improvement reached the council of revision, it was promptly disapproved and the bill was returned to the house. The council stated that “such works can only be made safely and economically in a free government, by citizens or by independent corporations, aided or authorized by the government.” But the bill rejected by the council of revision was passed by both houses of the legislature and there was nothing left for the governor to do but to carry it into effect according to its own provision.

       The act provided for the appointment of a board of three fund commissioners, who should negotiate all loans, sign and deliver bonds, and have charge of all moneys which should be received therefore. They should also pay out this money upon the proper orders. The law provided that these fund commissioners should be “practical and experienced financiers.” The three men selected by the legislature to fill these responsible places were Charles Oakley, M. M. Rawlings, and Thomas Mather. 
     
       There was another board created, known as the board of public works, consisting of seven members, one from each judicial district. It was the duty of this board to locate, superintend, and construct all public works except the canal which was in the hands of a commission of three. The first board of public works consisted of Murray McConnell, William Kinney, Elijah Willard, Milton K. Alexander, Joel Wright, James W. Stephenson, and Ebenezer Peck.

       In the summer of 1837 the fund commissioners went to their task of issuing bonds and offering them for sale. With the help of the old United States Bank, which was at that time winding up its business, they were able to place a considerable quantity of the bonds at par. This money was now at the disposal of the board of public works and the improvements were begun in many places. This was the beginning of a very flourishing period.

       Money became plentiful, work was abundant, and hopes were high. Just at this time the financial crash which followed Jackson’s term of office, was coming on and the fund commissioners were not able to place any more bonds in this country at par, and in London they could only be placed at nine per cent discount. It is said that this coming financial crash was hopefully looked to by the opponents of the internal improvement plan as a means of stopping the wild schemes of the “system.” But in spite of the hard times which were approaching the fund commissioners secured cash to the amount of $5,668,000 by December, 1838.

       The legislature that had projected these vast schemes of improvement had hardly adjourned in the early summer of 1837 when the members were called in extra session to legalize the suspension of specie payment by the State Bank, At the opening of this special session which met July 10, 1837, the governor in his message very earnestly recommended the repeal of the internal improvement legislation which had just passed at the previous sitting of the legislature. He said that P 206 the disasters which had already fallen upon the commercial world suggested the necessity of escaping from the perils of a system which could only be fraught with evil. But the legislature paid no heed to this wholesome advice. All through the year 1837-8 the fund commissioners were busy negotiating loans.

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