Augusta, Georgia - History (part 11 of 17)

In 1827, the Merchants and Planters Bank was incorporated, Edward Thomas. Joseph Wheeler, and William Bostwick being appointed commissioners to secure subscriptions at Augusta for 1,1 50 shares; other commissioners being appointed for like purpose at other points throughout the State, viz. : At Savannah, for 600 shares; W^ashington, Wilkes count}', for i 50 shares; Alliens, 50 shares; Lexington, 100 shares; Pelersbiirg, 100 shares; Greensborough, 150 shares; Milledgeville, 150 shares; Macon, 100 shares; Waynesboro, 50 shares; Louisville, 50 shares; and St. Mary's, 50 shares. The capital stock was to be $300,000, in shares of $200 each, and the charter was to expire January i, 1858. It expired long before that. The bank began business in May, 1 828; and, for some years, received the commendation of the LeL;islati\-c examining committee. In 1830, it was reported "sound, and its credit unimpaired ; " in 1831 as " entirely sound;" in 1832 " in a sound and thriving condition." April 10, 1833, it suspended ; in December of that year the Legislature appointed Nathaniel W. C. Cocke, Henry Cook, and Robert Campbell, of Augusta, to co-operate with a joint committee of two from the Senate and three from the House, to cxam'nc into the circumstances of the failure. The report of this committee is curious reading. It first dilates on the obstructions placed in the way of a discharge of their duty: "The first obtacle presented to the efficient discharge of those duties was the unqualified refusal of the president and directors of said bank to submit their books and papers to the inspection of your committee. A formal protest under their order was presented, in which the investigation directed by the supreme legis- lative authority of the State was denounced as 'a proceeding illegal, utterly subsersive of private right, and assumption of power which under the Constitution, the Legislature cannot exercise.' This lofty tone of presumptuous defiance against the authority of the highest tribunal recognized by the Constitution and the people of the State, adopted by this banking interest, a mere creature of the Legislature, and owing every moment of its existence to the forbearance of that body, seemed well to become the arrogance of an inflated aristocracy, more gratified at the possession of power to abuse, than respect to those whose interests are afifected by its exercise for the virtuous use of it, and placed in bold relief the shameless desperation which violated confidence, fraught with its excesses, was capable of assuming." The committee then proceeds to say that it overruled the protest, and ordered the president and directors to appear before them and to produce the books of the bank. In answer to this those officials replied that the books had been deposited in the bank, not to be removed except on an order of the board of directors ; and as there was now no such board they could not be produced by them, they being now mere private individuals. This showing also was overruled, and the books ordered to be produced ; and, further, the recalcitiant officials were ordered to show cause why they should not be attached for refusing to attend and testify in person, as ordered. On this, the recusants protested the whole investigation was illegal and unconstitutional, as before, and prayed the benefit of counsel to make their defense. At the prospect of a dozen lawyers being let loose upon them, the committee somewhat receded from their high ground, saying, " to have done this would necessarily have consumed much time which was not to spare, as the committee was to report to the Legislature then in session." Accordingly the committee confined itself to an examination of a large number of other witnesses, and reported their concluMons as follows: In the first place they say " the Merchants and Planters Bank never did have any legal existence whatever." By the charter, directors were not to be elected until gold and silver coin to the amount of twenty per cent, of the subscription had been received. No such payment had been made. Bank notes had been deposited in the State Bank, and certificates of deposit, as of specie, had been requested and received, these certificates being used in ord.>r to show the same to the governor as evidence that the bank had the amount of specie required for it to begin operations. In the next place the committee found that, whereas the charter required all discounts to be passed on by at least five, directors, it was a common practice for the president, or the president and cashier, or a less number of directors than five, to make discounts. Another violation of the charter was that non-stockholders were made directors. The causes of the bank's failure are then considered. It had no capital ; the stock was largely represented by the notes of stockholders; the bulk of discounts were made to the president and three directors. This quartette had half a million of their paper in the bank ; all other debts due it were but $8o.OOO. Tlic committee say they cannot see how, with such a state of things existing, the credit of the bank stood so high. Its stock was 130. and its regular dividend eight per cent. In 1829 it reported a reserved fund and undivided profits of $14,944 ; in 1830. of $27,668 ; in 1831, of $44,418; in 1832, of $23,- 060; and within a few days of its failure, $418,803 debit and $659,981 credit, and yet its stock was then 66 per cent, below par. The committee finds that in April, 1833, the bank had $393,000 of its bills in circulation, in December of that year but $98,000. The difference, $205,000, had been passed out to the president and directors on their own notes ; they had gotten what they could for them ; and when the bills, came back the bank failed. Down went the bills, and the evidence was that those who had thus set them afloat at par, brought them in at 66 per cent, discount. The committee further report that a loan of $ioo,000 was offered this bank by the State Bank, if it would allow two disinterested and skillful persons to examine its affairs, and they should report it solvent, which was declined. The committee recommended that the bills of the Merchants' and Planters' Bank, should never be thereafter received at the State Treasury, and that the attorney-general be directed to proceed to forfeit the charter thereof, which was so ordered.

The Mechanics' Bank was incorporated in 1830, the incorporators being John Phinizy. Amory Sibley, Ji'hn H. Mann, Moses Roff. jr., William W. Montgomer)', Alfred Cunmiing, Jesse Kent, George R. Roimtrte, and George L. Griggs. The capital stock was $200,000, increasable to $400,000, in shares of $100 each. Subscriptions were to be paid as follows: Two- per cent, cash at time of subscribing, eight percent, at the expiration of sixty days, ten percent, at the expiiation of sixty days more, and the balance at such limes thereafter as the directors may require. For non-payment, the shares, and all amounts paid thereon, were forfeitable to the bank. There were to be nine directors, and the instiution was to go into operation when twenty-one per cent, of subscriptions sliould have been p.^id in, in specie. Stockholdeis were to have one vote for each share, but no share was to be voted unless held bona fide for three months prior to the election by the person voting the same. Five directors were to be a quorum and every twenty stockholders owning two hundred shares could call a stockholders' meeting on sixty days' notice in thecit\' papers of Augusta specifying the objects of the meeting in the call. The bank was not to contract debts by bill or otherwise beyond three times the amount of its capital, and the stockholders were personally liable for such debts. The charter was to expire January i, i860, and *' the said bank shall be established at such place as may be determined on by the directors below W.ishington street in the said city of Augusta." The granite building erected b}' this bank still stands on the north side of Broad street a few doors east of Washington street. At the close of the war it was used as headquarters for the Federal post- com-

In 1832 this bank was reported as manifesting "a prudent and cautious management." In 1833 it was reported "in a solvent condition and deserving confidence of the people." Its statement of April i, 1833, makes the following:

By the next semi-annual report the debits and credits were $448,880.70. The specie was $42,172.54; issue, $206,363. The bank had been robbed of $5,428. Fielding Bradford was president, and George W. Lamar, cashier.

In 1836 the Mechanics' Bank was authorized to increase its capital stock to $1,000,000, but in 1841 was empowered to reduce same to $500,000.

In 1854 the charter of the bank was extended to January i, 1880, and the capital stock was authorized to be increased to $1,000,000. The bank was given a lien on the stock of any stockholder for debts due by him to the bank as principal, security, guarantee, drawer, acceptor, or endorser. The personal liability clause was re-enacted, and no transfer of stock within six months of failure of the bank should relieve a stockholder.

The Union Bank was originally incorporated in 1836 as the Bank of Brunswick. The capital stock was $200,000, increaseable on the completion of the Brunswick and Altamaha Canal, to $i,coo,ooo, and on the completion of the Brunswick and Florida Railroad from Brunswick to the Apalachicola River, to $3,000,000. The voting power of stock was regulated something after the fashion of the Bank of Augusta, viz.: For one share, one vote; for two shares, and not exceeding five, two votes ; and for every five shares above five, one vote ; but no person, or body corporate, was to have more than thirty votes, and no stock could be voted which had been transferred three months prior to the election. The subscriptions were to be in specie, and the bills of the bank, the issue of which was not to exceed three times the amount of the paid in capital, were to be paid on demand in specie under penalty of forfeiture of charter. The personal liability clause was inserted, and it was provided "that the United States Bank, now located in Pennsylvania, shall hold no stock in said company."

In 1842 the Bank of Brunswick was authorized to remove to Augusta and there exercise all the privileges of its charter, save that the capital was not to be increased beyond its then present amount, $200,000.

In 1850 this restriction was removed, and it was provided that the stock might be increased to $500,000, and that each stockholder should have one vote for each share by him held.

In 1854 the name was authorized to be changed from the Bank of Brunswick to the Union Bank, the charter otherwise to remain the same, save that the personal liability clause was amended so as to continue such liability on holders of the stock tiansferred within six months of a failure of the bank.

The next bank incorporated in Augusta was the City Bank, chartered in 1854. The incorporators were Ignatius P. Garvin, Henry C. Seymour, Benjamin Conley, Wiiliam H. Stark, and Charles S. Baker. The capital stock was $200,000, increaseable to $500,000. The charter was to expire January i, 1880; there were to be five directors; each share of stock was to have one vote; the debts were never to exceed three times the amount of the capital paid in, and no bills were to be issued until $50,000 had been bona fide paid in in specie. The directors were personally liable for the whole of any over issue, and the stockholders liable in proportion to their shares.

The Georgia Railroad and Banking Company was originally incorporated in 1833 as the Georgia Railroad Company for the purpose of a railroad communication between the city of Augusta and some point in the interior of the State to be agreed upon by the stockholders, with branch roads to Athens, Eatonton, and Madison. In this charter it was provided that " it shall be lawful for the company from time to time to invest so much, or such parts of their capital, or of their profils as may not be required for immediate use, and until it may be so required, in public stock of the United States, or of this State, or any incorporated bank, or lend the same out at interest on good security, and draw and apply the dividends, and when, and as they shall see fit, sell and transfer any parts or portion thereof, provided that nothing herein contained shall be so construed as to authorize said company to issue bills of credit or to loan out any moneys at a greater rate of interest than eight per cent."

The capital was fixed at $1,500,000, but it was provided that "the said company shall be at liberty to enlarge their capital as in the progress of their undertaking they may find necessary, and that either by additional assessments on the original shares, not to exceed in the whole the sum of twenty dollars in addition to each original share, or by opening books for enlarging their capital by new subscriptions in shares of not more than one hundred dollars, so as to make their capital adequate to the works they undertake.''

Railroad and Banking Company; the capital stock was fixed at $2,000,000, " one-fourth of which, applied to banking purposes, shall be gold or silver coin, in shares of one hundred dollars each, of which capital one- half may be used for banking purposes, and not more until the completion of the road to Athens and one of the southern branches through Greensborough, to be designated by the stockholders, at which time any capital stock unemployed may be used for banking purposes." The railroad was directed to be completed by December 18, 1840, and the banking privileges were to expire on December 18, 1865, or twenty- five years thereafter. The company was empowered to issue bills, not to exceed three times the amount of the banking capital allowed. By the last section of this amendatory act it was provided " that no foreigner either directly, or indirectly, shall own stock in the said railroad or bank ; and if any foreigner shall own stock in anywise, the same shall be forfeited to the State." In 1840 this was modified so as to allow foreigners to own stock, provided it did not amount in the aggregate to one-third of the entire stock. In 1849 the stock was increased to $5,000,000, but it was provided that the banking capital should not be increased beyond the amount then authorized by the charter, namely $1,000,000.

In 1865 the Georgia Railroad and Banking Company was authorized to close up its banking business, the term of that privilege expiring, as has been stated, in 1865. In 1870 the banking privileges under the act of 1835, ^"d acts amendatory thereof, were renewed and extended to October 19, 1900.

We here present a statement of amotmt of capital stock of this company, and dividends paid thereon from 1836 to 1847; from which, by bearing in mind the ratio of banking to entire capital as prescribed by the charter, can be seen how the banking department prospered during that period. From 1847 to the lapse of the banking privilege in 1865, a fuller account can be given :

Having thus given some account of the particular banks existing in Augusta in ante belhim times, we now proceed to a statement of the banking system as regulated by law.

In the early part of the nineteenth century banking in Augusta, as elsewhere throughout the State, was conducted in a very loose and irregular way. It was then supposed one of the inalienable rights of the citizen to set up a bank at pleasure, issue such bills as he saw fit, and financier generally at his own good will. The consequence was that the country was overrun with mushroom banks and irresponsible paper currency. The need of a better plan was sorely felt in Savannah and Augusta, and accordingly the Planters' Bank was incorporated in the former city in 1807, and the bank of Augusta in the latter in 1 8 10. The good effect of these regular organizations was soon manifest, and in 18 1 5 the Legislature began to take steps toward the suppression of the guerrilla style of banking above mentioned. It was enacted that it should not be lawful for any association or company of persons not having a charter authorizing them so to do, to issue "any engraved note or bill, intended to represent a bank note, for the sum of two dollars, or for any greater sum." The act also stated that "a practice pernicious to the community has prevailed with corporate bodies, companies, and individuals in this State, of putting in circulation small notes, or due bills, to supply a deficiency of change; which pernicious practice is calculated to defeat the object it proposes to remedy by expelling from circulation the small coins, and is productive of other serious evils," wherefore it was provided that any person, body politic or corporate, other than the incorporated banks of the State issuing "any engraved or printed note, due bill, ticket, or change bill evidencing or intending to evidence that any sum less than two dollars is due," should forfeit three times the amount thereof, " such recovery to be had by warrant or summons before a justice of the peace, and on the trial of every such warrant or summons, if the note, due bill, ticket, or change bill be in part or whole engraved or printed, it shall be conclusive evidence of an intention to violate this act." The emitters of all such bills then out were to pay a tax of twenty per cent, thereon, or in default, be subject to a penalty of treble the amount of the bill.

It is sad to relate that Augusta felt the weight of this statute with special force. The city council and the Change Company of Augusta were found to have been issuing shin plasters at a terrific rate, and a special act was passed for their pardon on condition of paying the tax on their issues in ten days.

In 1818 the Legislature essayed to lay the ax to the root of the old voluntary system. It was enacted that, from and after January i, 1820, no person, association of persons, or body corporate should keep any place of business for carrying on any kind of banking operation which incorporated banks were allowed by their charter to conduct, or issue, emit, circulate, lend, pass, pay, or tender in payment, as private bankers, any bills or promissory notes of private bankers, incorporated or unincorporated banks or banking companies, copartnership, or association, by whatsoever name called, unless thereunto specially authorized by law. If any person or persons, co-partnership, association or corporation should contravene these provisions, such person and every individual member of such copartnership, assoc iation, or body corporate should forfeit the sum of $1,000 for each infraction, each day such unauthorized bank was kept open, and each note issued, etc., to be a distinct offense. The act also required that by the time named, all private bank notes then out should be redeemed, on demand, in specie, or notes of incorporated banks of the State, or bear interest at the rate of two and a half per cent, per month until paid, and that, for any note under one dollar issued without authority of law a penalty of $100 should be incurred.

This act dealt a severe blow to private banking, but the issuing of change bills was kept up, and by acts passed in 1829 and 1830 it was declared that on all change bills put in circulation without a charter a tax of fifty per cent should be collected, and that for each issual a fine of not less than fifty nor more than five hundred dollars should be imposed. To stimulate prosecutions It was provided in these acts, as in that of 1818. that half the amount of the penalty should ^o to the informer.

In 1832 the Legislature, reciting that " the circulation of bank bills of a small denonnnation has been productive of fraud and loss to the public and has a tendency to prevent or retard the general and speedy restoration of a specie currency," enacted that the chartered banks should not issue any notes of a less denomination of five dollars. The penalty was $100. and each bill a separate offense. In 1835 the Legislature, reciting that the act of 1832 " has manifestly benefited the circulating medium," enacted that the banks should not issue any notes "other than of the denomination of five dollars ten dollars, twenty dollars, fifty dollars, hundreds of dollars or thousands of dollars " under a penalty of $500. In 1842 they were allowed to issue small bills of the denomination of one. two, three, and four dollars, to an amount not exceeding five per cent, of their capital stock.

In 1832 failure to redeem a bank note in specie on demand was visited with a penalty of ten per cent. In 1840 it was enacted that such failure should render the charter forfeitable. In 1 832 it was also enacted that the banks should make semi-annual reports to the governor. On failure, their notes were to be refused at the State treasury, and the governor was to publish their names in the papers of Milledgeville. then the State capital. The report was required to state " the amount of bills on other banks of this State; the amount of gold silver, and bullion in their vaults ; the amount of debts due them at the North' or elsewhere, which may be denominated specie funds; the amount of active' or running paper, the amount in suit, the amount under protest, and not in suit, and clearly stating what amount of all the debts due the bank is considered good, what amount doubtful, and what amount is considered bad and lost to the bank, the amount of issues ; the amount of bills in circulation ; and the amount of bills of said bank in circulation under the name of deposits; and the highest amount due and owing by the bank."

By act of 1837 no bank was to issue any paper for circulation made payable at a longer time than three days from date, or redeemable otherwise than in specie, under a penalty of $1,000 for each offense.

In 1838 the Legislature passed " an act to authorize the business of bankmg. and to regulate the same." commonly known as the free banking law Ihe system established by this statute is in some particulars much like the national bank act. It provided for a commission consisting of the comptrollergeneral and two commissioners chosen by the Legislature to operate the act Ihe commission was to prepare a quantity of engraved bank notes in blank of the denominations then allowed by law which were to be countersioned 'by registers appointed by the commission, numbered and registered. Then any person or association of persons desiring to do a banking business was to draw up and file in the office of the clerk of the Superior Court, where the business was to be done, a certificate setting out the name of the proposed association ; the place where it proposed to conduct operations ; the amount of capital stock (which was not to be less than $100,000) and number of shares proposed; the name, residence, and number of shares of each stockholder; the time at which the association was to begin, and the period for which it proposed to continue, the act making the maximum term twenty years. A copy of this certificate was to be furnished the commission, and the applicants were to deposit with it certain kinds of securities set out in the act commensurate in amount with the number of bills desired.

The following securities might be furnished: first, any stocks or bonds of the United States or the State of Georgia, or of any other State, if approved by the commissioner, any stock offered to be equal to a State stock producing five per cent. If this kind of security were deposited, the commissioner was to issue the incorporators an equal amount of registered notes, the same to have stamped upon their face "Secured by the pledge of public stocks." Secondly, the incorporators might deposit bonds and mortgages upon real estate, bearing at least six per cent. Such morgages were only to be taken when on unincumbered lands in Georgia, worth independently of the buildings thereon, at least double the amount of bills desired on the pledge thereof, and the commissioners were to investigate title and value. In the event this kind of security being accepted, the bills were to be stamped, " Secured by pledges of real estate." Thirdly, the incorporators might offer bond and mortgage on land, town property, and negroes, in which case the negroes were not to exceed one-half the security, and the total amount of such deposit was to be fourfold the number of bills required. In this case the bills were to be stamped, " Secured by the pledge of real and personal property." On the deposit of the security the commission was to issue bills to the proper amount to the in- ' corporators, who were thereupon authorized to fill out the notes, the president, or vice president, and cashier signing, put them in circulation and do a general banking business. On failure to redeem a note, in specie, on demand, and during banking hours, i. e. between nine and two, the bill holder was to protest same and file the protest in the controller-general's office, whereupon the commission was to call on the bank tp redeem same. If not done is si.xty da\s thereafter the commission was to convert the deposit into cash, notify all bill holders to come in and pay them out of proceeds of the sale. Incorporations under this act were to make semi-annual reports in April and October setting out their capital ; value of real estate; number and value of shares, stating how many held as collateral ; debts due to and by tiie corporation ; disputed claims against it ; circulation, losses, and dividends since preceding statement ; monthly average of debts, specie, and circulation ; and increase of capital, if any. This report was to be published in the county where the corporation was doing business, and failure to make statement, or violation of any requirement of the law, operated a loss of franchise. In addition to the regular reports, any creditors or stockholders representing $5,000 could obtain an order from the judge of the Superior Court for an examination and report by an expert of the state of affairs, or the commission could make examination. In 1841 this act was so amended as to require only so much of the deposits to be sold as were necessary to satisfy the protested bills.

In 1837 ^'^ the banks in Augusta succumbed to the panic which swept over the United States in that year, and suspended specie payments. But three banks in the State, the Central Bank, the Columbus Bank, and the Insurance Bank of Columbus withstood the storm. In 1836 three-fourths of Georgia's quota of the surplus revenue of the United States, or $1,051,421.09 had been received and deposited in the Central Bank and this measurably relieved the general distress. The blow, however, was a severe one. The banks remained suspended, and the act of 1840 was passed to coerce a resumption of specie payments, under penalty of dissolution. The law officers of the State were busy forfeiting charters. The banks claimed the act of 1840 unconstitutional, and in 1841, the penalties claimed to have been incurred were remitted on condition of resumption by January i, 1842.

Twenty years after the panic of 1837, another period of financial distress occurred. The Legislature of 1857 suspended the operation of the act of 1840, which forfeited the charter of a bank for suspension of specie payments, until November 15, 1858. The act was vetoed by the then executive, Governor Brown, and while repassed over the veto, the contentions on the subject, known as " the battle of the banks," created great excitement in Augjusta, and throughout Georgia at the time. The bill was originally passed by a vote of 58 to 27 in the Senate, and 64 to 50 in the House. The governor sent in a veto message, which, while ostensibly confined to the measure under review, was really an attack upon banking and an argument against having any banks at all. His first point was that banks had peculiar privileges which were denied the ordinary citizen, and instanced this in the following way : " Two men work with their hands, the primary mode of making capital, till each makes a dollar in gold or silver. One loans his at interest. The law of our State permits him to receive only seven cents for the use of it one year, and if he charges more the law declares the excess to be usurious and void. The other applies to the Legislature and obtains a charter conferring upon him banking privileges. By this charter it is made lawful for him to pay his dollar as capital stock into the bank and to issue upon it three paper dollars. The bank is permitted to loan these three paper dollars at interest, and charge seven per cent, on each of them. If he were to loan them for one year at legal interest he would receive for them twenty-one cents. These three paper dollars are based upon the one dollar in i^old or silver, and the bank in fact receives the twenty-one cents interest upon his one dollar in specie, while the person without banking privileges receives only seven cents interest upon his dollar. But the banker is not content with twenty- one per cent, a year, or three times the amount received by his neighbor who is without banking privileges. He will not, therefore, lend his three paper dollars (his own notes) a year at seven per cent., but he will loan them at thirty days, first deducting interest out of the sum loaned, if the borrower will also pay one half, one, two or three per cent. a month usury under the name of exchange. . . . This increases the interest received on the banker's three paper dollars, or one silver dollar, to twenty-five, thirty, or thirty-five per cent, dependent on the amount of exchange or usury added each time the note or bill is renewed." He then proceeds to say that this is not all. The banker has still left the one silver dollar on which the three paper dollars were issued, and while the charter says the one silver dollar must be paid in before the three paper dollars issue, it does not say it must stay in, after they are issued. He can, therefore, lend that out too, and thereby make on the use of his one dollar from thirty to fifty per cent, while the non-banker can only make seven.

The consideration of the privileges accorded banks is, he says, that they should furnish a paper currency at all times convertible into specie on demand. Out of their profits they should buy specie and resume. He aflfirms that by suspending they are guilty of a high commercial, moral, and legal crime ; a commercial crime because by suspending, they have brought on a commercial crisis, causing cotton to fall from seventeen to ten or eleven cents a pound and other property in proportion; a moral crime by refusing to keep faith with the people by the redemption of their promises ; a legal crime by violating a positive statute of the State.

Since the establishment of the banking system in Georgia he notes that the country has passed through two or three periods of like distress. In 1840 the people determined to apply a remedy to suspensions at such epochs, and passed the act which makes a forfeiture of charter the penalty of suspension. If that law be violated the penalty should follow. None should be above the law.

He could not admit that the suspension ot the Northern banks compelled those of Georgia to do so also. If so, why was it that nine of the South Carolina banks, most of those in Alabama, all of the Kentucky banks, and four or five in Georgia had not suspended ? The constitution of Louisiana forbade the Legislature of that State to legalize a bank suspension. Referring to the statement that large public meetings in Augusta and Savannah had asked the banks to suspend, he queries how many bank directors, stockholders, or otherwise interested had managed these meetings, and asks why none were held elsewhere in the State. He then discusses some of the details of the bill and takes up the argument that it would react injuriously on the people to wind up the banks as the banks only owe the people $5,000,000 and the people owe the banks $22,000,000. This being so, would alarmingly evidence how the banks are concentrating the wealth of the country in their own hands, but it is not true according to the sworn statements of the presidents and cashiers whose reports as made to the executive office "balance to a quarter of a cent." This expression was long memorable in Georgia. Lastly argues it was part of the contract whereby the bill-holder took the bill, that of the bank did not redeem It on demand, in specie, its charter should be forfeited, and argues that the act to legalize the suspension impaired the obligation of this contract and thereby violated constitution of the United States.

Great was the excitement in the Legislature when this veto came in. Long and fiery were the speeches, but the bill was repassed by 61 to 22 in the Senate, and 68 to 33 in the House, a small gain for the bill in either body. As will be remembered, the suspension was legaHzed to November 15, 1858. but on May i, 1858. the banks resumed specie payment. A golden era ensued and lasted till the outbreak of the war, but before entering on this period we may give some further idea of banking in Augusta up to the time of the panic of 1857.

In 1835 there were eleven banks in operation in Georgia with an aggregate capitalof $4,571,000, a total circulation of $3,942,000, and the sum of $2,1 1 1,- 000 in specie in their vaults. Three of the banks were in Augusta with capital, circulation, and specie as follows :

In 1838 there were nineteen banks, the railroad banks being excluded, with a total capital of $8,648,562. The three Augusta banks above mentioned had an aggregate capitalization of 2,700,000, namely. Bank of Augusta, $1,200,- 000; Augusta Insurance and Banking Company, $500,000; Mechanics' Bank, $1,000,000.

The early policy of the State was to subsidize banks as it were by liberal subscriptions to stock, and from a report made in 1839 we have a very fair idea of the dividend paying power of the old Bank of Augusta. We give the names of the banks in which the State had stock, number of shares, amount paid therefor, and dividends and bonus received thereon from 1829 to 1838, both inclusive ;

Showing that during this period the Bank of Augusta paid a regular eight per cent, dividend, and a bonus equal to two per cent more. In process of time the State's bank stock became reduced from one cause or another, and in 1859 there remained of the above but 1,833 shares in the State Bank and 890 shares in the Bank of Augusta. To this had been added 186 shares of stock in the Georgia Railroad and Banking Company, and the comptroller-general in 1859 states that these stocks paid an annual average dividend often per cent. As the Georgia Railroad Bank paid but eight per cent, in 1859 the other two must have averaged an eleven per cent, dividend.

In i860 there were twenty-five banks in Georgia, including the Georgia and Central Railroad Banks, with an aggregate capital of $9,028,078, Augusta having six, with a capital of $2,675,000, as follows : Bank of Augusta, $600,- 000; Mechanics' Bank, $500,000; Georgia Railroad Bank, $500,000; City Bank, $400,000 ; Augusta Insurance and Banking Company, $375,000; Union Bank, $300,000 The prosperity of the State at this time was marvellous. The depression of 1857 passed away by the spring of 1858, and from that time to the outbreak of the war the taxable property of Georgia increased at a rate never known before. We have said that a golden era preceded the war, and the tax books sustain the assertion. The total valuation of the State and of Richmond county for the years 1858, 1859 and i860, distinguishing slave property from other property, we here give :

Showing that, in the two years immediately preceding the war, the wealth of the State in property other than in slaves, had increased about eleven per cent., and the like wealth of Richmond county had increased fifteen per cent. The wealth of Richmond county in i860 was made up of the following items :

But even this does not fully represent the taxable property of the county in i860. It only represents the property returned to the county receiver of tax returns. There was, as we have seen, an aggregate bank capital in Augusta in i860 of $2,675,000, which made return direct to the controller-general, and, accordingly, does not appear on the books of the local officials. In addition to this there were exempt from taxation all annual crops and provisions, all libraries, all fire-arms, all poultry, all plantation and mechanical tools, and all household and kitchen furniture not above three hundred dollars in value, all lands and stocks of literary associations, and two hundred dollars worth of all other property to each taxpayer. It is probably within bounds to say that, exclusive of slaves, Richmond county had, at least, $20,000,000 of property in i860. The State tax was six and one-half cents on the $100; the State debt was $2,670,750 ; its assets were the State or Western and Atlantic Railroad, which cost $4,441,532, and paid $450,000 yearly into the treasury, and $807,025 in good, dividend paying stocks and bonds; there were 400 lunatics, 247 felons, and no paupers in a population of 1,057,248. It was truly a golden era, but this prosperity was laid a sacrifice on the altar of war.

In i860 the Legislature authorized an issue of $1,000,000 in six per cent, twenty-year bonds, of which amount the banks of Augusta at once took $267,- 000, thus: Bank of Augusta, $60,000 ; Mechanics' Bank, $50,000; Georgia Railroad and Banking Company, $50,000 ; City Bank, $40,000 ; Augusta Insurance and Banking Company, $37,500, and the Union Bank, $30,000.

In the same year an act was passed relieving the banks from liability to forfeiture of their charters, up to December, 1861, in event they should be com pelled to suspend specie payments, a privilege subsequently extended. In 1 86 1 the banks lent the State $2,000,000 of their notes to bridge over an emergency. In 1862, in order to enable the State to assume her quota, $2,441,- 000, of the direct tax levied by the Confederate Congress, the banks took $1,920,000 of the bonds issued to meet that tax. From this time on there was financial chaos. At the close of the war the State's indebtedness in bonds and notes was $20,811,525. The war bonds amounted to $3,308,500, in two issues, one of $2,441,000 Confederate direct tax bonds, and one of $867,500 of State defense bonds, tiie residue of the issue of $1,000,000 not being placed. There were out $3,758,000 of non-interest bearing treasury notes and treasury certificates of deposit, " payable in eight per cent, bonds or specie, six months after a treaty of peace, or when the banks of Savannah and Augusta resume specie payment, if before that time." There were also out non- interest bearing treasury notes and treasury certificates of deposit " payable in specie or six per cent, bonds of the State, six months after a treaty of peace shall have been ratified between the United States and the Confederate States," to the amount of $4,800,000. There were also in circulation Georgia treasury notes, payable in Confederate treasury notes " if presented within three months after maturity, otherwise not redeemable except in payment of public dues," to the amount of $5,171,500; and, lastly, there were change bills outstanding, payable only in Confederate treasury notes, to the amount of $977,775- The change bills were in the following denominations, five, ten, fifteen, twenty, twenty-five, fifty, and seventy-five cents, and one, two, three, and four dollars. Some $3,000,000 of these bills were issued.

During the war one of the banks now in operation in Augusta was chartered, to wit: The Commercial Bank, though, as originally incorporated in 1863. it was called the Commercial Insurance Company of Augusta. At a subsequent date it was changed into a bank, and will be more fully mentioned hereafter.

When the war closed, the ante bcllniii banks of Augusta were practically wiped out of existence. Most of them had erected handsome buildings in the day of their prosperity, and some of these landmarks remain. The Mechanics' Bank building has already been mentioned as the granite structure on the north side of Broad street, a few doors east of Washington street. The Bank of Augusta had erected in 1856 a handsome brownstone front banking building on the north side of Broad street, between Mcintosh and Jackson streets. The City Bank was on the same square where the Southern Express Company office is now located. The Augusta Insurance and Banking Company had its quarters in the bank building on the same side of Broad street, between Jackson and Campbell, afterwards occupied by the Bank of Augusta, a corporation created since the war with the same name as the old bank, and now by Fleming, Thomas & Co., bankers. The Union Bank was located on same side of Broad street, between Campbell and Cumming streets, where tiie shoe house of Mulherin, Rice & Co., is now. The Georgia Railroad Bank occupied its present location, but from 1865 to 1870 did no banking business, its franchise having expired in the former and not being renewed till the latter year.

In December, 1865, the National Bank of Augusta was organized under the national bank act, with a capital of $500,000. The main spirit in its organization was that wealthy and powerful capitalist who has been connected with the starting of so many great and substantial enterprises, Mr. H. B. Plant. The first president of the bank was William B. Dinsmore, of New York. The administration of the bank, however, was carried on by the vice-president Judge B. H. Warren, until his death. At his demise the position of president was given to that capable financier, Mr. William E. Jackson, long president of the Augusta factory, who remained at the head of the institution until his death. Upon the decease of Mr. Jackson Mr Z. McCord was chosen. Mr. McCord was succeeded in the presidency by Mr. Charles Estes, for many years mayor of Augusta, and now president of the King Mills. Mr. Estes was succeeded by Mr. James Tobin, a most capable financier. From the organization of the bank up to 1884, Mr. George M. Thew was cashier, and was then succeeded by Mr. A. C. Beane. This bank has had the good fortune to have had excellent management during the whole period of its existence, and passed with flying colors through the crisis of 1873. The capital stock of the bank is $500,000, and the surplus $100,000. It carries an average deposit of from $325,000 to $350,000.

The National Exchange Bank of Augusta was organized under the national bank act in August, 1871, with a capital of $250,000. Mr. Alfred Baker, a veteran financier, whose biography appears elsewhere in this work, is the president of this institution, and has been from the time of its organization. For a number of years Mr. Joseph S. Beane, sr., a brother of the cashier of the National Bank of Augusta, was cashier, and since his death the position has been very ably filled by Captain Charles E. Coffin, a gentleman whose high character and great financial skill have made him treasurer of many of the associations of the city.

The State banks of Augusta are four in number, namely: The Georgia Railroad and Banking Company Bank, commonly called the Georgia Railroad Bank, The Commercial Bank, The Augusta Savings Bank, and The Planters' Loan and Savings Bank.

given. In December of that year the banking franchise of the company expired, and no effort was then made to obtain an extension or renewal thereof In his annual report in 1864, Hon. John P. King, president of this company, said: "The banking charter expires in December next, and the Legislature has refused to renew it except upon terms deemed inadmissable. Banking charters are now of no value, and are in fact a heavy burden upon stockholders. From a very general misunderstanding of the resources of banks, and the extent of their prohts, they seem to be considered by government, both State and Confederate, a never ending resource of taxation. If they can so use their assets as to liquidate their liabilities, it is probable that most of them will deem it good policy to surrender their charters and wind up their institutions." These views met the approval of stockholders, and no effort was made to obtain an extension of the banking franchise of the company. By act of 1865 the Legislature empowered it in order the better to close up its banking business to use the corporate name in all suits, legal proceedings, acts, and contracts where necessary to this end, and further empowered it to loan at seven per cent, for not exceeding six months any surplus money then on hand, provided, however, no notes were issued or other banking business done. A statement of the dividends paid by this company from the time it first got fairly in operation up to April, 186 1, will be of interest, and is here subjoined.

It will be perceived that even during the panics of 1837 ^"^ ' ^5 7 this company regularly paid its dividend ; and it may be here added that after payment of the last dividend, in April, 1861, there was then to the credit of the reserve fund the sum of $1,065,642. In a quarter of a century of operation, and that when railroading was in its infancy, some $4,700,000 was paid out in dividends. By act of October 19, 1870, the banking powers and privileges conferred on the company by the act of 1835, heretofore mentioned, were continued to it for the term of thirty years, or up to October 19, 1900. From 1861 to 1881 it paid out in dividends the sum of $4,154,576, or $99 50 per share. The capital of this company is $4,200,000, and the business done by this bank is the heaviest in the State, reaching $75,000,000 in a single year. It has has had but two presidents in its long career, Hon. John P. King, who presided over its affairs from 1833 to 1881, and Mr. Charles H. Phinizy since that date. More of this wonderfully successful corporation will be found in the chapter on railroads.

The Commercial Bank was originally chartered in 1863, for a term of thirty years, under the name of *' The Commercial Insurance Company of Augusta." The incorporators were Henry F. Russell, Barney S. Dunbar, Jacob Danforth, William Battersby, Henry E. Clark, James T. Gardiner, Daniel B. Plumb, and George T. Barnes. The capital stock was fixed at $250,000 increasable to $1,000,000, but operations could be be^^un when $100,000 was subscribed, and five per cent thereof paid in. The company was authorized to insure against losses by fire in all kinds of property ; also against the hazards of ocean or inland navigation and transportation of every kind ; also, to make insurance on lives and every insurance appertaining to the duration of life. It was further empowered to receive money on deposit and make loans and discounts. The stockholders were made individually liable for the debts of the company to double the amount of their respective shaies. In 1872 the corporate name was amended so that the same should be the Commercial Insurance and Banking Company of Augusta; and in 1875 was again changed to its pres- ent style the Commercial Bank of Augusta. In 1876 the bank was authorized to reduce its capital stock from $300,000 to $200,000, without prejudice to a right to a future increase under its charter, the reduction to be made by a purchase and retirement of its stock. The personal liability clause of the charter was reaffirmed, and as to the retired stock was to continue for twelve months after such retirement. In 1887 the charter was extended for thirty years, and many valuable franchises were conferred upon it, by which it received the most enlarged banking powers, was authorized to create a savings department, to receive realty as collateral, or to deal in such property, to act as fiscal agent for the negotiation of bonds or to act as executor, trustee, agent, assignee, or receiver. The capital of this bank is $300,000. Mr. John A. North, an experienced financier, is president.

The Augusta Savings Institution of Augusta, Ga., was incorporated in 1875, and has been in successful operation since May of that year. The corporators were Alfred Baker, John B. King, William B. Young, George T. Barnes, William H. Howard, sr., E. R. Schneider, Charles Spaeth, C. Hunneken, Patrick Walsh, William Mulherin, and Edward O'Donnell. The bank was authorized to make loans and discounts, to receive deposits on interest; act as trustee ; invest in stocks, bonds, or mortgnges on real estate. Deposits as small as one dollar were made receivable ; no manager, officer, or agent of the corporation was to be allowed to borrow therefrom ; the management was to be in the hands of a board of managers ; and the private property of the managers for the time being is made liable for all deposits and for all debts incurred by the institution while under their management in the same manner as in ordinary commercial cases or cases of debt. Semi-annual returns are to be made to the governor setting out in detail the condition of the institution.

In 1 88 1 the charter was so amended as to make the board of managers consist of four members, and it was declared that the private property of all incorporators for the time being should be liable for deposits or debts as in the act of 1875. Mr. Alfred Baker, president of the National Exchange Bank, is also president of this institution, and Mr. W illiam B. Young, cashier.

The Planters' Loan and Savings Bank was incorporated in 1870, Charles J. Jenkins. John P. King, George M. Thew, Benjamin Conley, Thomas P. Branch, Joseph S Bean, William H. Goodrich, William H. Scott, and M. I. Branch being tne incorporators. The cipital stock w.is $1, 000,000, and when $100,000 was subscribed, and $50,000 paid in, the corporation was authorized to organize and proceed to business. The ordinary banking powers were granted, and, in addition, authority to purchase, hold, and sell real estate in the course of its business; act as trustee; guarantee securities, and loan on mortgages on real and personal property, or on crop liens, receiving interest in money or products, or both. Stockholders were individually liable for the debts of the bank in proportion to their stock. In 1873 the charter was amended so as to make the shares ten dollars each instead of one hundred dollars.

In 1887 the bank was authorized to change its name to the People's Insurance and Banking Company; and to do a fire and marine insurance by participating policies if deemed advisable ; it being provided that no stockholder should be individually liable on insurance policies. The president of this bank is Mr. William E. Benson, and its capital stock $100,000.

The aggregate banking operations of the city will run to $200,000,000. The foreign exchange is $17,000,000 For cotton alone $280,000 have been used in one day. As much as $800,000 has been sent to Augusta to purchase cotton. The direction of exchanges has largely changed to the West from the North.

Quite a number of other banks have been incorporated for Augusta since the war, but never went into operation, or have ceased to exist. Some sketch of them may be of interest.

In 1865 the City Loan Association and Savings Bank of Augusta was incorporated, the incorporators being Henry Myers, W. H. Howard, F. C Barber, Joseph P. Carr, John E. Marley, W. A. Ramsey, William C. Barber, and John Kenny. The capital stock was $100,000, increasable to $400,000 in $50 shares, said stock being pledged for the security of deposits, and stockholders being liable to depositors to the extent of their unpaid stock. The corporation was vested with the ordinary banking powers, but forbidden to issue notes or bills as a circulating medium.

In the same year the Mechanics' Savings Bank of Augusta was incorporated with a capital of $200,000, increasable to $400,000 in $50 shares, the corporators being Henry Moore, Porter Fleming, John H. Baker, John D, Butt, George McCord, C. A. Rowland, John Butt, Charles Estes, W. E. Jackson, and George T. Jackson.

In 1865 a third bank, the Savings Bank of Augusta, was incorporated with a capital of $30,000, increasable to $100,000 in $100 shares, H, H. Hickman, E. P. Clayton, J. B. Walker, T. W. Chichester, Benjamin Conley, and C. F. McCay being the incorporators. The capital was made a fund pledged for the security of depositors. In 1866 the charter was so amended as to allow the capital to be increased to $500,000.

In 1872 the name was amended by striking the word " savings" therefrom so that it then read, the Bank of Augusta, being identical in name with the venerable bank of 18 10.

In 1879 the capital, then $350,000, was authorized to be reduced to any sum not below $200,000 by purchase and retirement of stock, and the bank was made one of deposit, discount, and loan. In 1 882 the stock was authorized to be further reduced from its then figure, $350,009, to $125,000 in same manner. In 1886 this bank failed.

In 1872 the City Loan and Savings Bank of Augusta was incorporated with a capital not to exceed $500,000 in $100 shares, organization to be had when

$100,000 was subscribed and $50,000 paid in ; John P. King, Thomas G. Barrett, Charles H. Phinizy, George T. Jackson, W. M. Read, W. H. Barrett, William C. Sibley, and P. H. Woodward being the incorporators. This bank was authorized to receive deposits, make or negotiate loans, guarantee securities, act as trustee, and exercise the powers generally of the Planter's Loan and Savings Bank.

In 1873 the Manufacturers' Bank of Augusta was chartered with a capital of $100,000, increasable to $500,000 in $100 shares. P2ach stockholder was liable in proportion to the amount of his stock. The incorporators were William S. Roberts, Henr)^ F. Russell, Charles H. Phinizy, William T. Wheless, and William F. Herring.

In 1879 Joseph S. Bean, jr., D. B. Hack, M. A. Stovall, John D. Hahn, and Ernest R. Schneider were incorporated as the Augusta Savings Bank.

In 1880 the Citizens' Bank of Augusta was incorporated with a capital of $200,000, increasable to $500,000 in $100 shares, business to begin when $20,000 was paid in. This bank was authorized to issue bills not to exceed three times the amount of the capital paid in, and stockholders were individually liable in proportion to their stock. The incorporators were William H. Howard, Vernon Richards, William A. Latimer, John Doscher, John W. Wallace, Andrew J. Smith, Bernard Franklin, John A. Bell, Zachariah McCord, and Patrick Armstrong. In 1881 the charter was amended so as to allow business to begin when $io,000 was paid in.

In 1 88 1 William J. Wheless. Edgar R. Derry, J. V. H. Allen, P. E. Pearce, and H. Clay Foster were incorporated as the City Bank of Augusta, with a capital stock of $200,000, increasable to $1,000,000 in $100 shares, business to begin when $50,000 was paid in. The stockholders were liable to contribute to the payment of the debts of the corporation an amount equal to the par value of the stock held by them at the time of the bank failure.

During the existence of the State banking system divers highly penal laws were passed for the purpose of preventing violations of the trust and confidence necessarily reposed in such institutions. These statutes were codified into the penal code adopted in 1833, and at various times since have been amplified or amended. To a certain extent they are still applicable to banks operating under the State system, and some synopsis of this legislation will be here given.

Any president, director, or stockholder of an incorporated bank of this State who shall embezzle, steal, secrete, or fraudulently take and carry away any bullion, notes, bill, bills of exchange, warrants, deeds, bonds, drafts, checks, or other things of value, the property thereof, or any of the books thereof, is punishable by imprisonment in the penitentiary for not less than two nor longer seven years. Any president, director, or other officer of any such bank violating, or being concerned in the violation, of any provision of the bank charter, is punishable by like imprisonment for not less than one year or more than ten.

Every such officer is presumed to have a sufficient knowledge of the affairs of his institution to determine whether any act or omission is a violation of the charter, and if present at a meeting where such violation occurs is deemed to have concurred therein unless he cause his dissent to be entered at the time on the minutes of the board ; and if not present, but remaining an officer for three months thereafter without entering his dissent, is also deemed to have concurred therein. Every insolvency of a chartered bank or failure to redeem its bills on demand, in specie or current bank bills, is deemed fraudulent, but the officials may repel this presumption by showing that the affairs of the bank have been fairly and legally administered, and that the officers thereof have used the same care and diligence as all other agents receiving a compensation for their services are required by law to exercise. Where deposits are made in a bank at the time insolvent, and so known by the officials having charge thereof, and the deposit is not paid to the depositor within three days after demand, such officers are punishable by imprisonment in the penitentiary for not less than one year, nor more thixn ten. All conveyances, assignments, or transfers of stock or effects made by a bank in contemplation of insolvency, or after insolvency, except for the benefit of all the stockholders and creditors, unless made for value to an innocent purchaser are void ; and the officers making or consenting to such assignment, etc., even if to an innocent purchaser, are punishable by like imprisonment for not less than four nor more than ten years. Purchase by bank officers of its paper at a discount either for themselves or the bank is punishable by a like term as that first mentioned. Declaring fraudulent dividends, or other than out of net proceeds, is similiarly punishable. Purchase of shares with the capital stock is punishable by from one to ten years imprisonment.

On the organization of the royal, or king's, government in Georgia in 1755, one of the first statutes was one regulating the rate of interest which was allowed to be ten per cent. In 1759, this was reduced to eight per cent, the preamble to the act reciting that " the high rate of interest in this province of Georgia is a great discouragement to planters gjid others from improving their landed estates, by reason that the profits arising from such improvements do not equal the sum paid for money so laid out and employed." It was therefore provided that all agreements wherein it was stipulated that a greater interest than eight per cent, per annum should be paid, should be utterly voidi and that any one taking a greater rate shonid forfeit three times the sum loaned.

By the code of 1863 the rate was to be seven per cent. ; all over was usury; but the effect of the usury was only to void the contract so far as the usury was concerned, leaving the principal and legal interest thereon recoverable.

In 1 87 1 it was enacted that if the contract were silent as to the rate of interest, seven per cent, was collectible ; but by contract in writing any rate not to exceed ten per cent, should be legal ; if more was stipulated, only the excess was non- collectible.

In 1872, it was provided that no bank should charge over seven per cent, on loan or discount, and any excess paid should be recoverable if sued for within sixty days after payment thereof.

In 1873 banks were placed on the same footing as individuals as regards interest, usury, and penalties, the effect of which was to restore the act of 1871, but five days after this first act, a second was passed which abolished the usury laws in toto, and established a conventional rate of interest, that is, made it lawful to contract in writing for any rate agreed upon by the parties, whether more or less than seven per cent. If no rate was stated, seven per cent, was to be understood.

In 1875 the rate was restricted to not exceeding twelve per cent, provided it were specified in writing. For an excess both excess and interest were forfeited. If no rate was expressed, seven per cent, was to be understood.

In 1879 it was made unlawful to charge more than eight per cent.; and any excess, forfeited both interest and excess. Seven per cent, still remained the rate where none was expressed. This act made it obligatory on any party suing on a contract which expressed a higher rate than seven per cent, to allege and prove that no greater rate than eight per cent, had been, or was to be, taken.

In 1 88 1 this act was amended so as to make the penalty for a greater rate than eight per cent, a forfeiture of excess only ; and to do away with the requirement of proving no excess had been, or was to be taken ; so that as the law now stands, the legal rate of interest is seven per cent, where nothing is said upon the subject in the contract, but by specifying the same, the rate may be not exceeding eight per cent, the penalty for excess being forfeiture of excess. With this we may end a somewhat extended sketch of banks and banking in Augusta. It will be seen that in the long course of some eighty years since the old Bank of Augusta the second bank chartered in Georgia, was incorporated, the record of banking in the city has been highly creditable. One failure before, and one since, the war, the instances occurring about a half a century apart, form the exceptions which demonstrate an excellent general rule. The downfall of the old regime o^hnnks in 1865 can hardly be deemed a banking failure proper. The banks had simply gone out of their line into the business of government and on the downfall of the government of which they had become mere adjuncts fell like the governing authority itself. Even in this fall some passed away honorably, redeeming in whole or part their bills.

Early Religious Discrimination in Georgia - Establishment of Religious Freedom - The Colony Divided into Parishes - Church of England Established - Parish of St. Paul - Augusta's First Clergyman - Rectors of St. Paul's Church - Worshipers Required to Carry Fire-arms to Church - St. Paul's Burned in the Revolution - A New Church Built - The Protestant Episcopal Society Incorporated - St. Paul's Rebuilt - St. Paul's Ancient Tombs - Church of the Atonement - The Presbyterian Churches - History of the First Presbyterian - Originally called Christ Church - Incorporated in 1808 - List of Pastors - The Telfair Building - A Model Sunday-school - Changes in Charter - The Pew Law - Who is a Worshiper - Baptist Churches - The Old Kioka Church - Daniel Marshall's Grave - First Baptist Church Incorporated in 1809 Reincorporated in 1817 - Building Completed in 1819-List of Pastors - Second Baptist Church Incorporated in i860 - The Baptist Convention - Methodist Church - Early Difficulties - " The Weeping Prophet " - St. John's Established in 1 801 - Rev. John Garvin. Its Finst Pastor - His Distinguished Successors - St. James Built in 1855- Other Methodist Churches - Early Catholics - Catholic Society Incorporated in 181 1 - The First Church - Diocese of Georgia Created in 1850 - List of Bishops-St. Mary's Convent Established in 1853 - Consecration of St. Patrick's Church in 1862 - Father Duggan and Other Pastors -Sacred Heart Church Built in 1874 - Sacred Heart Academy in 1876 -The Franciscan Sisters -The Christian Church - The Lutheran Church - The Synagogue - The Unitarian Society-Colored Churches - Quaint Observances - Young Men's Christian Association - Ministerial Association - Libera? Religious Sentiment.

BY the charter of Georgia it was provided " that forever hereafter there shall be a liberty of conscience allowed in the worship of God to all persons inhabiting, or which shall Jnhabit or be resident within our said province, and that all such persons, except Papists, shall have a free exercise of religion, so they be contented with the quiet and peaceable enjoyment of the same, not giving offence or scandal to the government."

By the sixth article of the first State Constitution of Georgia, as adopted on February 5, 1777, it was provided that no person should be eligible to be a member of the House of Representatives unless, among other qualifications, he were "of the Protestant religion," but in 1789 when the second constitution of the State was adopted it was specifically provided that "all persons shall have the free exercise of religion," and thus the faith of the Scottish Highlanders who saved the infant colony at the battle of Bloody Marsh with the Spaniards, and of the French auxiliaries who poured out their blood before Savannah was put upon a footing of legal equality in Georgia with all other creeds.

The discrimination against Catholics was not, however, the only governmental interference with matters of religion in Georgia's early days, for while the charter established religious liberty for all but Catholics, both the Colonial and home government lent their influence in favor of the Church of England. Upon the cessation of the proprietary government and the erection of the province into a King's government, one of the first acts of the Colonial Assembly was to divide it into parishes and provide for the support of Episcopal worship therein. In 1758 the province was laid off into eight parishes named respectively the parishes of Chri?t Church, St. Matthew, St. George, St. Paul, St. Philip, St. John, St. Andrew, and St. James. What had been the district of Augusta became the parish of St. Paul, and it was provided that from and after March 17, 1758, "the church erected in the town of Augusta with the cemetery or burial place thereto belonging, shall be the parish church and burial place of St. Paul." For the management of the parish many regulations were made, it being the avowed purpos-i of the act to establish the Church of England as the governmental faith, as appears by the title of the statute which reads as follows: "An act for constituting and dividing the several districts and divisions of the province into parishes, and for establishing religious worship therein, according to the rites and ceremonies of the Church of England ; and also for empowering the churchwardens and vestrymen of the respective parishes to assess rates for the repair of churches, the relief of the poor, and other parochial services." Vestrymen and churchwardens were to be selected and sworn to the faithful performance of their duties. For the purpose of keeping the church edifice in repair, for the care of the appurtenant cemetery, sacred utensils, and ornaments, to provide bread and wine for the Holy Eucharist, to pay the salaries of clerk and sexton and to assist the poor and impotent of the parish, the rector, churchwardens, and vestrymen were empowered to levy a tax on the estate real and personal of all the inhabitants within the parish sufficient to yield annually the sum of thirty pounds. With the rector, churchwardens, and vestrymen rested the authority of appointing sextons and of regulating their salaries and fees. The rector was to be one of the vestry, and the churchwardens were instructed, at the charge of the parish, to procure a well bound paper or parchment book wherein the vestry clerk was to " register the births, christenings, marriages, and burials of all and every person and persons that shall from time to time be born, christened, married or buried within the said parish, under the penalty t)f five pounds sterling on failure thereof" Such registers were to be adjudged and accepted in all courts of record in the province as furnishing sufficient proof of the births, marriages, christenings, and burials therein recorded. If any party was con- victed of " wilfully making or causing to be made any false entry therein," or of " wilfully erasing, altering or defacing an entry, or of embezzling any entry or book of record, he was to be adjudged guilty of a felony and to be punished with death without benefit of clergy." The vestry was instructed to nominate a proper person to keep a record of its proceedings, and to act as the custodian of its books and papers. No authority was conferred upon rectors to exercise any ecclesiastical jurisdiction or to administer ecclesiastical law.

But, to quote Colonel C. C. Jones, the great authority in Georgia on all matters of Colonial history, " while the patronage of the Crown and the favor of the Colonial assembly were extended in this special manner in aid of churches professing the Episcopal faith, it was not the purpose of this act to sustain them by exclusive recognition. This would have involved a violation of the privileges originally promulgated in the charter granted to the trustees. The idea appeared to be to accord to that denomination, within the limits of Georgia, a preference akin to that which the Church of England enjoyed within the Realm, to create certain offices for the encouragement of that religious persuasion and the extension of the Gospel in accordance with its form of worship and mode of government, and to describe a method by which faithful registers of births, marriages, christenings, and deaths might be made and perpetuated. Numerous were the dissenters then in the province. They were represented by Presbyterians, Lutherans, Congregationalists, Methodists, Anabaptists, and a few Hebrews. To all sects, save Papists, was free toleration accorded, and wherever a dissenting congregation organized and applied for a grant of land whereon to build a church, the petition did not pass unheeded. There can be no doubt, however, but that it was the intention of the government, both Royal and Colonial, to engraft the Church of England upon the province and within certain limits, to advance its prosperity and ensure its permanency. At the same time a loyal adherence to its rubrics was in no wise made a condition precedent to political preferment."

While Augusta was laid out in 1735 it was not until 175 i that it had stated religious services or a regular pastor. About that time a number of the principal inhabitants forwarded a memorial to the " Society for the Propagation of the Gospel in foreign parts," setting forth their spiritual needs, and asking assistance. It appears that as an earnest of their disposition they built a church near the fort on the Savannah River, the location of which is supposed, and probably with entire correctness, to be on or near the site of the present St. Paul's Church ; and agreed to build a parsonage, set apart a glebe, and raise a salary of twenty pounds per annum if a clergyman were sent there. Rev. Jonathan Copp. a native of Connecticut and graduate of Yale, who had been ordained by Dr. Sherlock, the famous Bishop of London, was selected to go as a missionary to Augusta, then the furthest point in Georgia, to which the Church of England had penetrated, and about 175 i entered on his ministry with joy and hope. According to Colonel Jones : " Although he found a congregation numbering one hundred souls, with eight communicants, there was no parsonage, the glebe land lay uncultivated, and there appeared but little hope of collecting the twenty pounds offered by the committee. He continued to labor in this isolated field with indifferent success and in extreme poverty, for some five years ; when, utterly disappointed and disheartened, he accepted the rectorship of St. Jolin's Parish in South Carolina, where he died in 1762."

Some eight years after Mr. Copp's removal, the Rev. Samuel Prink was sent out by the Society. He reported the population of Augusta at that time as 540 whites, 501 slaves, and 90 Chickasaw Indians. Mr. Prink labored until 1767, when he was succeeded by Rev. Edward Ellington. In 1768 this zealous and faithful rector reported that St. Paul's Church was the only place of worship within one hundred miles of Augusta. His exertions, as appears from the society's reports, were most strenuous and praiseworthy. He generally left home on Monday, traveled thirty or forty miles and preached at three different places about ten miles apart during the week, and returned on Friday for the next Sunday's services. During his three years' service he traveled over three thousand miles to minister to his scattered flock, baptised 428 persons, mostly children, married sixty-two couples, and raised the number of communicants to forty. After Mr. Ellington's departure in 1770 it was a number of years before we find trace of any clergyman in Augusta. The times seemed to be portentous of the storm about to break in the Revolutionary War, and from an act of this year, 1770, the performance of divine service seems not unattended with peril. The act is entitled "an act for the better security of the inhabitants by obliging the white male persons to carry fire-arms to places of public worship," and provides that every such person liable to militia duty shall on " resorting on any Sunday or other times, to any church, or other places of divine worship within the parish where such person shall reside, shall carry with him a gun, or a pair of pistols, in good order and fit for service, with at least six charges of gunpowder and ball, and shall take the said gun or pistols with him to the pew or seat where such person shall sit, remain, or be, within or about the said church or place of worship, under the penalty of ten shillings for every neglect of the same, to be recovered by warrant of distress and sale of the offender's goods," one-half the fine to go to the churchwardens and the other to the informer. The churchwardens of each parish, and the deacons, elders, or select men of other places of worship were to examine every male person attending such church on Christmas and Easter, and on twelve other times during the year to see if he was so armed, and if not, such officials if not lodging information of the fact in fifteen days were to forfeit the sum of five pounds ; any person declining to allow examination of his weapons was to forfeit ten shillings.

Then the Revolutionary War came on. Augusta was the scene of a bloody border warfare and the voice of religion seemed lost in the clash of arms. St. Paul's was burned by the British, or their loyalist allies, and in 1782 the Legislature which met in Augusta, in summing up the wrongs of Georgia, evidently refers to this heinous act in speaking of " the abandoned profligacy of setting torches to temples dedicated to the service of the Most High God, whereby they completed a violation of every right, human and divine."

After the war one of the first cares of the Legislature was to rehabilitate the interests of religion in Augusta, and by act of 1783 certain commissioners were appointed to sell the town lots of that city and out of the proceeds to erect on one of the best lots " a church or house of worship to the Divine Being by whose blessing the independence of the United States has been established." A new St. Paul's was accordingly erected on the site of the old one in 1786. Three years later the governor was empowered on the application of any religious society then erected to grant the petitioners a charter of incorporation on the same terms as those granted Christ Church in Savannah, which provided for the election annually on Easter Monday of two churchwardens and seven vestrymen. It does not appear that the Episcopalians of Augusta availed themselves of this act, but it seems that Rev. Mr. Boyd officiated for them for some ten years after the building of the second St. Paul's.

For some twenty years after this, the Episcopalians of Augusta appear to have been unable to support a rector, and no mention appears of their denomination, but in 1 8 16 John Milledge, John Carter, Valentine Walker, George Walton, Thomas Watkins, Richard Tubman, Edward F. Campbell, Augustine Slaughter, Freeman Walker, Joseph Hutchinson, William M. Cowles, John A. Barnes, Milledge Galphin, and Patrick Carnes were incorporated as " the trustees of the Protestant Episcopal Society in the city of Augusta and county of Richmond." The trustees of Richmond Academy were directed to convey them an acre of ground for the erection of a church. The act required that three pews in the church should be reserved for the use of strangers, and provided that no one residing out of the county should be eligible to be a trustee. Under this act a third St. Paul's Church was erected on the site of the first. This building still stands. It was completed in 1820 and consecrated by Bishop Bowen, of South Carolina, on March 20, 1821. Pending the erection of the edifice Rev. Hugh Smith was called to the rectorate and officiated from 18 19 to 183 1. On the removal of Mr. Smith, Rev. P^dward Eugene Ford became rector in April, 1832, and for more than thirty years served faithfully in his high vocation. Dr. Ford died on Christmas Eve, 1862, and was buried beneath the altar. A handsome memorial tablet in the church records his long service and many virtues. He was succeeded by Rev. William H. Clarke, who also died in harness, departing this life in January, 1877. Mr. Clarke was succeeded by Rev. Chauncey C. Williams, the present rector. In seventy years

St. Paul's has, therefore, had but four rectors. For many years, and in fact, up to the opening of the present city cemetery, St. Paul's cliurchyard was the common burial place of Augusta, and in the yard may be seen the tombs of those of all denominations. Many of the monuments are very old. Here lies Oliver Bowen, the commodore of the American Navy in the Revolution. William Longstreet, inventor of the steamboat, is also interred here, as also Marshall Forsyth, father of the celebrated John Forsyth, and a soldier of the Revolution and member of the Order of the Cincinnati, the insignia of which are sculptured on his tomb. A nephew of General Washington, who came south for his health and died in Augusta, and several of the French refugees from San Domingo, and one of the exiles from Ireland, in consequence of the rising of '98, are also buried beneath the shadow of St. Paul's. Rev. Mr. Clarke, rector, and General Polk, an Episcopal bishop, are interred here. An act of 1818 recites that from time immemorial that lot in Augusta bounded north by the river, east by Washington street, south by Reynolds street, and west by lands of Jacob Danforth, had been used as a burial place and conveys the same to the trustees of the Protestant Episcopal Church of the City of Augusta so long as the same was used as a place of interment and for the site of a church, but on failure to devote the same to such purposes, to revert to the State. A walk in this ancient cemetery is full of interest. This gravejard was formerly larger than it is, the western part having been used for the interment of slaves, but in 1826 an act of the Legislature authorized the sale of that part, the proceeds to go to the vestry, on the remains being removed and carefully interred in the new colored cemetery and a brick wall being built on the line formerly divid ng the white and colored burial grounds. This wall is still to be seen and marks the western limit of the white portion of the original cemetery.

The Church of the Atonement is a handsome Episcopal edifice on the corner of Telfair and Kollock streets. It is built in the form of a cross and is covered with ivy, presenting an antique and picturesque appearance, thou<^h of modern date.

The Presbyterian Church in Augusta is said to date from 1804, and the present organization may possibly only go back that far, but there are evidences that this denomination, or one closely allied to it. is of older date. As far back as 1796 we find that the trustees of the town of Augusta were directed to convey a one-acre lot for the erection of a church thereon to Cornelius Dysart, Samuel Jack, Dennis Smelt, Isaac Herbert, James Pearre, John Springer, and Moses Waddel, who were incorporated as " the trustees of the Augusta Meeting House." From a still older act we gather that this was a Congregational Church, but it does not appear that a building was erected.

Returning to the Presbyterian Church, there was a congregation of that denomination in Augusta in 1804, with Rev. Washington McKnight as pastor. In 1805, on the death of Mr. McKnight, Rev. John R. Thompson, then rector of the Richmond Academy, was called to the charge on July 3, 1806, and served acceptably to his death in 1816. Up to the lime of Mr. Thompson's incumbency the church had three ruling elders, but three more were then added, Messrs. Oswell Eve, Thomas Gumming, and Augustus Moore. The church was at that time called " St. Paul's Church," from the fact that they then worshiped in the second St. Paul's Church which was rented them by the trustees of Richmond Academy, the Episcopal organization, as has been stated being in abeyance from about 1796 to 1816, and St. Paul's being used for other denominations.

The system of renting being uncertain and the congregation increasing, the members subscribed fur the erection of a church of their own, and nominated John Taylor, James Pearre, John Wilson, sr., Thomas Gumming, John Campbell, John B. Barnes, and William White as trustees, who were incorporated by act of December 16, 1808, as "trustees of Christ Church in the city of Augusta." The act provided that these trustees should remain in office until January I, 1 8 10, on which day, and on the first day of January annually thereafter, the congregation was to elect seven trustees, none to be eligible if residing out of the county. Until the new church was built the congregation was to meet in St. Paul's. The act further provided that the trustees of Richmond Academy should cr>nvey to the church trustees that lot of land in Augusta, then on the commons, bounded " on the north by Telfair street, on the east by the road leading from Washington street to Savannah, on the west by Mclntosli street, and on the south by a line to be drawn parallel to and distant from Telfair street aforesaid, three hundred feet."

On the passage of this act the congregation met and appointed Messrs. John Murray, David Reed, Robert Creswell, Oswell Eve, and Ferdinand Phinizy as a building committee. The corner-stone was laid on July 4, 1809, by Dr. John Mundy, in the presence of the trustees and congregation of the church, the trustees of Richmond Academy, the city officials, and a large concourse of citizens. The building was completed in 18 12, and dedicated on the 17th of May in that year, the spire being added in 18 18.

After Mr. Thompson's death in 18 16 the pastorate was vacant till February 6, 1820, when Rev. Mr. Moderwel was called to the charge and remained till July 16, 1826, at which time Rev. Drs. Davis and Talmage officiated conjointly for about a year. Then Dr. Talmage was pastor till 1835 when he accepted a call to Oglethorpe University, and the pulpit was vacant till May, 1837, when Rev. A. N. Cunningham was called and served till 1842, when he was succeeded by Rev. C. S Dod, who resigned a few years after. In 1867 Rev. Ebenezer P. Rogers became pastor, and after him Rev. James R. Wilson, D.D., who resigned in 1870 to accept the chair of pastoral theology in the seminary at Columbia. In November, 1870, Rev. Dr. Robert Irvine was called from Knox's Church, Montreal, Canada, who remained till his death, in 1883. Dr.

Irvine was a man of great learning, eloquence, and power, of fine personal presence and high executive ability. During his pastorate three new Presbyterian churches were erected, the Riverside Chapel on Bay street, the Second Presbyterian, a handsome edifice on Upper Green street, and Sibley Church on Upper Broad. The Sabbath-schools largely increased, and number some five hundred scholars. At the same time the church membership was increased to three hundred and five. A handsome marble monument to Dr. Irvine, surmounted by a statue of him, heroic size, in his robes, now stands close by the church.

The grounds have been further beautified by the Telfair building, justly claimed to be the best, the finest, the most beautiful and convenient Sundayschool building in the United States.

Miss Mary Telfair, of Savannah, a wealthy old maiden lady, died leaving a bequest of $30,000 " to the Presbyterian Church of Augusta, bearing her name, to erect a suitable and commodious Sunday-school house and library." On the 25th of April, 1883, the money was paid to Mr. Alfred Baker, chairman of the board of trustees. The plans were made by Mr. Jacob Snyder, of Akron, O., a church architect, with the light of suggestions from Mr. J. W. Wallace, the sixth superintendent of this Sunday-school, who has held his place for twenty years. On the 6th of August, 1 883, the building was contracted for.

The corner-stone was laid in September, 1883, and work begun. Mr. Baker resigned in January, 1884, and General M. A. Stovall suceeded him as president of the board, directing the construction, at the head of a building committee, consisting of George T. Jackson, W. F. Alexander, J. A. North, and John D. Butt. The building was completed, and on Sunday, June 22d, 1884, it was dedicated by imposing ceremonies.

It has been put up after the pattern of several successfully operated halls, and is an improvement upon each, and finer than them all. The great difficulty with Sunday-schools heretofore has been to separate the different departments and cl.isses during the time for instruction, and yet save time and prevent confusion upon the reassembling of classes, as well as to economize space in providing for these changes. " Complete separation," says an experienced authority, " where teacher shall be brought face to face with his class, yet union, speedy and quiet, together with capacity to accommodate each member of the school, was the problem." The Sunday-school room is the largest and central room in this new building, and is most spacious and finished and ingenious in its arrangement.

The superintendent's desk is in the center of the semi-circle, and the level space in front of him is filled with walnut chairs, while back of these, in easy view of the superintendent, yet separated from each other by walls and sash doors, are the different compartments for the intermediate and primary classes. The seats for the smaller children are arranged tier upon tier, resembling

"gently sloping hillsides " encircling the teacher. The doors closed, the class is entirely to itself, without the danger of interference from the outside ; a signal from the superintendent, however, the doors are opened, and that officer stands as the easy focus of every eye. This spacious Sunday-school auditorium occupies the height of two stories, and is fifty-three feet by forty- five in length and breadth, and twenty-eight feet in pitch. Over the lower class rooms are symmetrical Bible class apartments, similarly opened and closed, and all within easy sight of the superintendent's desk. From the second story a balcony projects, which is reached by half spiral steps from the vestibules below, and which is arranged in tiers for the accommodation of visitors, so ordered, however, that the view of the second story class-rooms is not obstructed from the superintendent. The plan of one central or main room connected with two stories of radiating class-rooms, made radiating to secure a mutual view between the occupants of the superintendent's platform and those of the twelve radiating class-rooms, is a capital one, and affords exceptional advantages for officers and pupils. Both the intermediate and infant class-rooms down stairs have a separate staircase from the outside, and these lower apartments will accommodate two hundred and ten children. The Bible-class rooms up stairs enable older children and adults to enjoy quiet for their meetings and exercises, and yet give them the advantage, if not the publicity, of the song and prayer service of the whole school. This main room is elegantly ventilated from the cupola overhead, and four arched windows of colored cathedral glass, with the light of the class-rooms, furnish sufficient sunshine for the afternoon or morning exercises. The room is beautifully finished. The ceiling is a delicate blue, upon which the projecting oak work of the Elizabethan style is massive and elegant. The walls are cream color, the carpets bright, and the oak and bronze railing of the gallery is very handsome. Upon the walls of the main room is the inscription, " and they search the Scriptures daily whether those things were so." Back of the superintendent's stand is a marble tablet with the words, "held in grateful remembrance, Mary Telfair, of Savannah, through whose munificent bequest has this edifice been erected and furnished."

The front room on the first floor, reached upon entering the building from the vestibule, is the lecture-room, richly carpeted, with trim little pulpit, confronted by comfortable . mahogany chairs. The pitch of this room is twentyeight feet, and its dimensions are thirty-six by tliirty feet. It is large enough, and yet as cosy and finished as an office. On the right is the Sunday-school library, through which the scholars will pass in entering the main room, and change their books. This is twenty- five by twelve feet; it is well supplied, and contains cells for three thousand books. To the left of the lecture-room is the pastor's library, study and office, a counterpart to the library, where the pastor will have his headquarters. Upstairs, over the lecture-room, is the ladies' society room, thirty-six by thirty feet, elegantly fitted up and supplied with toiletrooms and kitchen, designed for church entertainments, charity suppers, etc.

Taste, ingenuity, experience, care and money have been expended without stint to make the structure what it is confessedly, the finest and most complete in the country. The inside is of pure cathedral architecture; the outside is of solid and symmetric Gothic build. There are in this beautiful structure ninetysix windows, and the building is illuminated at night with one hundred and fifty gas burners. The chairs are moveable and are solid walnut; the glasses are colored cathedral style ; the rooms are warmed w ith furnaces, and the mantels are exquisite stone pieces. The building cost throughout $32,000.

As originally incorporated this church was called Christ Church, but by act of December 29. 1836, this name was changed to First Presbyterian Church in Augusta, by which it has since been known ; the act also required the election of trustees on the first of January annually. In 1859 anoth ^r act was passed which minutely regulates the matter of pews, and rights of pewholders. It provides that the trustees may call a meeting of pew- holders at any time on one week's notice in any city paper and oral notice from the pulpit on the Sunday before the meeting; that at such meeting, which shall be held in the church or at the lecture room, each pew-holder shall have one vote, in person or by proxy, and that all assessments made at such meetings shall be binding on all pew- holders and may be collected by law. It further provides that if any pew-holder be in arrears for two years' annual assessment, the trustees may, by resolution entered in the minutes, declare such pew forfeited, and it shall tiiereupon revert to the church, or if the trustees so elect the pew may be sold by execution issued on judgment obtained for the amount of unpaid assessment, as in case of other property. All pews belonging to estates on which there is no representation for two years shall revert to the church, and no one shall vote for a deceased pew-holder except his legal representative, but the trustees may transfer such pew to the decedent's widow or children on payment of all assessments due. " All pews held by business firms or by two or more persons jointly," shall on the death of one joint owner rest absolutely in the other who shall be liable for all assessments thereon. Lastly the title to pews are transferable by the owners on the books of the trustees, if clear of assessments, and not otherwise. These provisions forjn a more complete body of ecclesiastical law on this subject than can be found as respects any other denomination in Georgia. The same act empowers the trustees to convey and dispose of any real estate theretofore or thereafter conveyed them unless expressly prohibited by the terms of the grant.

By an act of February 21, 1850, the trustees are empowered to take and hold land for a parsonage and a missionary church, to be under the care of the parent church.