1830s: Mississippi Politics and Banks

Who was John P. Stewart?

One of my first transcriptions of the Duncan McLaurin letters was dated 1831 and written by John P. Stewart from Covington County, Mississippi – probably from the home of his father, Allan Stewart, an immigrant from the Scottish Highlands via North Carolina. Though John Stewart says he is over twenty-nine years old and qualifies as a bachelor, he writes this letter from his father’s home while teaching nearby. The Stewart family had not been in Mississippi very long, perhaps since 1830, before John Stewart writes to Duncan his description of traveling in south Mississippi.

Stewart was not alone as a former student of McLaurin’s writing to their former teacher in Richmond County, NC from the new western states. John Stewart and Duncan McLaurin shared an interest — politics and the wider world. Born in November of 1805 in North Carolina, Stewart’s correspondence reveals his general curiosity in his new home and a strong interest in the political machinations of his time and place.

JPStewartFranklinCoHS
John P. Stewart is memorialized by his burial in the Franklin County, MS Courthouse Square Cemetery in Meadville.

Eventually, John P. Stewart would settle in Franklin County, Mississippi. Here he would serve as county clerk for many years, live out his life without ever marrying, and in old age could be found picking out hymns on his fiddle. No evidence exists that he sought political office beyond the clerkship. His service to the Meadville community and Franklin County, MS as county clerk is memorialized by his burial in the Court House Square and the monument bearing his date of death May 19, 1858 – never living to see the apocalyptic results of the politics (or failure of it) that he followed so fervently. Franklin County tax records from 1840 reveal that he owned about 320 acres of land situated on McGees Creek and paid taxes for owning one enslaved person. I have found no evidence that he was farming his land, though he may have been renting it out. Farming or not, John Stewart’s correspondence to Duncan McLaurin would continue at least from 1831-1848. He may have written more letters but none have survived. Certainly the 1850s, fraught with political controversies, would have provided plenty about which they could write. Stewart’s father Allan died in 1845 and his brother Hugh died in 1847. The loss of these two family members, who also had strong ties to Duncan McLaurin and North Carolina, may have resulted in diminished correspondence. After 1848 Duncan McLaurin became immersed in the care of his sister Isabel and her children, probably leaving him less time to correspond in nonessential matters.

Mississippi’s Economy and Politics in the 1830s

The John P. Stewart and Duncan McKenzie letters are referenced a number of times in Christopher Olsen’s Political Culture and Secession in Mississippi, published in 2000. Olsen contends that political affiliation in Mississippi generally was so personal before the Civil War that divisions along political party lines were not always very clear. However, in the 1830s major issues, the economy and banking, may have influenced the political parties to begin holding party conventions. The general farming population was quite rural and frontier condition roads made it difficult for even those most engaged in politics to attend conventions in distant locations. However, Mississippians such as John P. Stewart, not committed to farming, had the inclination and leisure to travel and follow politics, as he would in the 1840s.

At the time Duncan McKenzie and the Stewart family moved to Covington County, MS, Native American land began opening up to white settlement. The Federal Government sold this fertile land at low prices causing migrants to flock from the more settled western states to the newly formed deep southern states. In addition, cotton prices rose to unexpected highs, feeding the dreams of white migrants moving west, who often brought enslaved people with them.

During the late 18th and early 19th centuries textile Mills were increasing in England as well as the northern United States. International demand for cotton drove farmers to purchase land and slaves to work the labor intensive crop. Speculation in both land and slaves abounded. Especially in the deep southern states, a speculator could purchase the newly opened federal land cheaply, improve it minimally if he had the mind to, and resell it for far more than he paid. Many sincere farmers engaged in this practice, leaving one improved farm to settle on more fertile land that he could now afford due to the money made off reselling. This type of speculation existed in the slave trade as well. Slave traders brought enslaved people from other parts of the country and resold them in states like Mississippi where the demand for labor was great. A slave trader’s source of obtaining human chattel was not always a monetary or legal transaction. According to Max Grivno in “Antebellum Mississippi” at Mississippi History Now published online by the Mississippi Department of Archives and History, “…over 100,000 slaves were brought into the state by traders during the 1830s.”

As US President Andrew Jackson watched this speculation phenomenon, he worried about the solvency of banks. This caused him to issue his Specie Circular. The Circular required that public land had to be bought with gold or silver or money backed by such. Jackson’s move alone might have caused a problem.  However, the Mississippi crisis was enhanced because, in a frenzy of optimism, the unregulated Banks had filled their coffers and indiscriminately loaned most of that money to people for the purchase of land and slaves. The people taking advantage of these loans were not prepared to pay when the notes came due.

As a result of the uncertain atmosphere, the Bank of England raised its interest rates. Thus the cotton factors in New Orleans and Mobile, who gave credit to finance a crop, raised their lending rates. The result was the Panic of 1837. Mississippi’s banks had grown to about 13 with many branches by 1837. When the banks collapsed, the Mississippi legislature supported the creation of the Union Bank that would run on specie. The legislature also guaranteed the bank’s bonds. When this bank failed, the question arose whether or not to pay back the loans or repudiate them. This would be the larger issue that consumed the state in the early 1840s.

Adding to the uncertainty, growing cotton is somewhat risky in the best of circumstances. The weather and insects can quickly destroy a farmer unless strategically prepared. Farmers and lenders in the state during the outset of the 1830s were so overly optimistic about cotton that the unexpected drop in the price of cotton was quite a blow. To many in Mississippi during the early 1830s the demand for cotton made it as sound a currency as gold.

Mississippi’s Constitution of 1832

In 1832 Mississippi created a new “more democratic” Constitution, but it was restrictive by today’s standards.  For example, property ownership was no longer required to vote or hold office, though suffrage or office holding was not extended beyond free white men. Native American, Chickasaws or Choctaws, were allowed citizenship if they left the auspices of their tribal governments. This was a ploy to force them out of the state in order to be able to live under their tribal laws. Every office from military rank to judgeships was elective, and the setting of term limits made elections more frequent with incredibly long ballots to count. It was forbidden for the legislature to pass laws that would free slaves. Though slave owners could bring slaves into the state, slave traders were not allowed to carry on business in the state, likely a very difficult activity to regulate considering the demand for slave labor and the capacity for fraud. In 1837 Duncan McKenzie would lament the state’s inability to provide for a militia. He cites the state’s recent impotence in calling up any military help to fight the Indian wars in Alabama and Florida. The fact that dueling would no longer be legally allowed in Mississippi did not appear to diminish the prevalent violence or actual dueling. It was evidently an easy thing to set up a duel across state lines where it was legal. In 1840 former Governor Hiram G. Runnels, a bank president, and Volney E. Howard a Mississippian newspaper editor, dueled. Runnels injured Howard, who lived to disparage Runnels in the news. Dueling continued in a masculine culture often characterized by extreme individuality bordering on arrogance. Runnels maintained his political viability enough to be elected to the legislature the next year.

DuelRunnelsHoward1840
This brief account of the Runnels/Howard duel appeared in the Vicksburg Daily Whig on Saturday, 11 July 1840 on page 2. Dueling in Mississippi had been outlawed in the state since 1832.

Duncan McKenzie’s economic and political views – 1830s

Generally, Duncan McKenzie appears to be a more cautious individual, not as eager to place himself in debt. In an 1837 letter from Mississippi to Duncan McLaurin in North Carolina, he writes of three mutual acquaintances who have bought, “each of them a negro man for which they are to give $1,650 each.” McKenzie questions how long it will take for the friends to pay back their loans with the hiring out rate for “such boys” at $175. It was common practice to hire out labor that was not being utilized by the owner. Later he wonders, “What will become of Black Lachlin the carpenter who bot a negro man for which he promised $1,650 to be paid next January,” and adds, “Many others are similarly situated.” In contrast McKenzie is pleased with himself in not being, “bound for another in one cent.” He seems to believe that he might be hard pressed if he lost his cotton crop altogether, but he has managed to pay off some of his debt by selling corn and pork. Even a small farmer like Duncan might find himself beholden to the cotton factor who helped finance his crop or by going into debt to purchase slave labor.

BrandonBank1837
This piece appeared in The Natchez Daily Courier of Natchez, Mississippi on Thursday, 30 November 1837 on page 3. Perhaps Duncan McKenzie read this in the newspaper before penning his letter.

In 1838 Duncan writes, perhaps a bit sarcastically, to his brother-in-law regarding Mississippi’s banks:

it is reported abroad that our State is involved more

than her worth, but how can Such a report be

true when the world knows that our legislature

can charter a bank of $15,000,000 in less time than one

day, whose paper the moment when Struck will be

at par with gold or Silver in every part of our State

Except at the post and law offices — the Brandon

Bank this far has succeeded in buying cotton in

preference to letting the commition merchants of

New orleans shave us as usual, I know not how

that Bank will do in the future, but it has

Sustained it Self in credit this far —

the new charterd Bank calld the Union

bank of Mississippi will go in operation

in the course of the summer — is it not

surpassing singular that in every state of the

Union the legislative boddies find little or no diff

=culty in passing a charter for a bank it is only neces

=sary that it should be called bank and its charter

is passed and in the grand council of our nation

the greatest and the best smote to death the best

Institution ever known by the name of Bank —

query will we ever have such an other paper currency or

will a national Bank spring up in its stead

Clearly, he is expressing concern about the easy-come easy-go banking that has evolved in the state of Mississippi, and acknowledges his belief, or at least the bank’s assurance, that cotton is still as valuable as gold in the state. He also takes a shot at Andrew Jackson’s struggles with the Second Bank of the United States, where federal funds had once been deposited. Jackson, who saw the bank as too powerful and a potential political tool against himself, worked for years against bank president Nicholas Biddle to end its charter. Biddle continued to fight to keep the bank open and was not above bribery in the effort. Alas, in 1836 after Jackson moved federal money to specific state banks, the Bank of the United States closed when its charter was not renewed. Instead of a centrally managed bank, each state had its own banks, managing them in as unregulated a manner as it saw fit. Jackson countered with the Specie Circular, which required speculators in land to pay for it with gold and silver. The Panic of 1837 ensued.

In 1839 McKenzie writes, “I was wating the result of an impending stormy looking cloud which will eventually decide the fate of many in Mississippi, who the victims of the furious blast will be, whether the honest creditor the philanthropic security or the thot less debtor is a matter not yet decided.” McKenzie ends this letter by mentioning a friend whose land is being, “sold at value on the last of this month.” The friend is “going to Texas,” the choice of many Mississippians during the several decades before and after the Civil War.

In the same 1839 letter, Duncan disparages banks in general when he says, “The Union Bank of Mississippi is in full operation but your servant has backd out from being a stockholder this far I am lord of my own soil I do not like to give up the title (to a) speculating crew of Directors who would in all probability direct all of the increase into their own pockets.” This small farmer in Mississippi had decided that he did not care to be manipulated by the banks. He claims to be a Southern Whig, and Whigs generally had supported a national bank.  

John P. Stewart’s economic and political views – 1830s

“Raising cotton absorbs all their politics & meditations – The first salute to a neighbor is how does your cotton look…” John P. Stewart writes this line to Duncan McLaurin in 1831 when the flush times were causing a rash of extreme optimism among seasoned planters and Mississippians, many of whom were migrants from the worn out land of the eastern states. He also writes of the Choctaw removal and the preparations for a state Constitutional Convention – “The result has been 19 to 1 for a convention which must meet within 3 months from the first of August next.” He thinks the idea of electing the Judiciary will fail for fear of corruption — it did not fail.

By 1834 the bank issue and economic downturn had almost overwhelmed Mississippi’s obsession with cotton. According to Stewart, “The Bank has been the common Topic of Conversation in this state for the last eight months it has supplanted ‘General Cotton’ himself and that I tell you is hard to do.” He continues this topic by mentioning the “public functionaries in the Land Offices” and accusations of speculation “defrauding both the government and the bona fide settlers.” Following this train of thought, Stewart says, “The late Choctaw purchase I am told is settling very fast.”

In 1837 Stewart writes that although in the winter the price of cotton was still high, it was lower than other commodities on the market, and “Money was scarcer here .. than I ever saw it since I have been in the state.” He again references the wild land speculation that has contributed to the economic hard times but adds the purchase of slave labor as a contributing factor also:

Some few men in this State have made fortunes by purchasing

plantations and Negroes which engendered such a rage for

speculation that in the upper counties almost every man

that could get credit purchased a farm and a great many

of them at such extravagant prices that they could not

pay even the interest of their purchases without diminishing

the principal of their debts …

… where the Credit System is so extensive … the sudden depression

in the money market and the consequent fall in the price of cotton

there must necessarily be a great scarcity of money — But credit

often two three four five and six years has injured this state more …

Stewart continues in his 1837 letter to recount the banking crisis in the state:

The two principal Banks in Natchez have suspended specie payment and all the other Banks in this State have or will be obliged to follow suit We have in this State ten Banks that is Mother Banks exclusive of the various Branches with a net or purchase capital of about 25 millions authorized to issue Bills to three times that amount and the Legislature has lately chartered two Banks one the Mississippi Union Bank with a capital of fifteen Millions in said bank real estate is to be pledged and money only to be borrowed on real estate…the Mississippi bank is to be titled the Mississippi Railroad Bank.

In 1838 Stewart follows up on the bank issue by writing to Duncan McLaurin that the “stir at hand” is the banks. The four banks at Natchez have passed resolutions to pay specie beginning the first of January. Stewart says these banks have been following Nicholas Biddle’s earlier raises in the interest rates, which is how Biddle had responded to President Jackson taking federal funds from the Bank of the US and placing them in some state banks. In addition, the Mississippi legislature appointed three commissioners, all from the dominant Democratic Party, to oversee and examine the state banks. He says that one of them is an anti-bank newspaper editor and the other two were moderates. The newspaper editor was opposed to all banks, implying that there was not much favorable sentiment among the commissioners for banks in general. Many banks refused to be examined.

The state of the economy and the bank issue seems to have driven Mississippians to partisanship. Stewart writes in this 1838 letter, “Our State is about to become like New York a Democratic convention is to meet at Jackson on the 8th January to nominate candidates for the several state offices A Whig Convention is also to assemble at the same place on the fourth Monday in January for the same purpose.”

Stewart’s commentary on politics in 1838 involves the current Governor Alexander McNutt, a Democrat. It seems to have annoyed John Stewart when McNutt, “delivered himself of a violent Phillippic against both the Whigs and the Scotch.” McNutt evidently said or implied that the name Whig derived from the followers of the Pretender, “whose followers were the Scotch and Whiggin wherever they went.” One would think McNutt would have been more politically cautious than to offend the many Mississippians of not so distant Scottish ancestry, but he did. He followed this by saying, “Flora McDonald came to this country and was the leader of the Whigs in this country then called Tories.” Here McNutt tries to disparage the American Whig part by insinuating that it grew from people who were loyal to England during the American Revolution. Stewart ends by saying, “This speech lost his excellency (McNutt) thirty or forty votes among the Scotch democracy in Jefferson County … he ought to throw away the mac from his name.”

One last issue that would survive for the next two decades was addressed by Stewart in this 1838 letter – nullification: “The Democrats of this State have lately been billing and cooing the nullifiers attempting to form a junction with the party supposing they would follow Calhoun in all his charges — They do not succeed well in their undertaking.” The Calhoun reference is to John C. Calhoun, the politician who argued for nullification, the right of a state to disregard a federal law. Calhoun led South Carolina’s attempt to declare the tariff on imported manufactured goods null and void. This tariff generally hurt the southerners because it raised the price of manufactured goods that they purchased. South Carolina was emboldened after it successfully ignored a U. S. Supreme Court ruling declaring one of its state laws unconstitutional. The law in question was a state law incarcerating free black international sailors when in port to keep them from conspiring with Carolina slaves.  Calhoun was defeated in his argument largely due to Jackson’s political acumen and a lack of nullification support from Mississippi and other southern states. However, as President Jackson predicted, the next time nullification and secession arose it would be over the institution of slavery – even in the 1830s an issue roiling in Congress.

Sources

“Digital Archives: Tax Rolls (Mississippi), 1818-1902.” Mississippi Department of Archives and History. Franklin County. 1840.17. www.mdah.ms.gov/arrec/digital_archives/taxrolls/Franklin/1840/Combined/17. Accessed 23 April 2018.

“A duel was fought.” Vicksburg Daily Whig. 11 July 1840. 2. newspapers.com. Accessed 28June 2017.

Grivno, Max. “Antebellum Mississippi.” Mississippi History Now: An online publication of the Mississippi Historical Society. http://www.mshistorynow.mdah.ms.gov/articles/395/antebellum-mississippi. Accessed 10 April 2018.

“John Patrick Stewart Monument Photo.” Photo by Mary Renna. U.S., Find A Grave Index, 1600s-Current. https://www.findagrave.com/mem… Accessed 24 April 2018.

Letter from Duncan McKenzie to John McLaurin. 13 November 1836. Boxes 1 and 2. Duncan McLaurin Papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Letter from Duncan McKenzie to Duncan McLaurin. 14 April 1837. Boxes 1 and 2. Duncan McLaurin Papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Letter from Duncan McKenzie to Duncan McLaurin. 20 June 1837. Boxes 1 and 2. Duncan McLaurin papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Letter from Duncan McKenzie to Duncan McLaurin. 25 February 1838. Boxes 1 and 2. Duncan McLaurin Papers. David M Rubenstein Rare Book and manuscript Library. Duke University.

Letter from Duncan McKenzie to Duncan McLaurin. 16 June 1839. Boxes 1 and 2. Duncan McLaurin Papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Letter from Duncan McKenzie to Duncan McLaurin. 14 August 1839. Boxes 1 and 2. Duncan McLaurin Papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Letter from John P. Stewart to Duncan McLaurin. 30 June 1831. Boxes 1 and 2. Duncan McLaurin Papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Letter from John P. Stewart and Allan Stewart to Duncan McLaurin. 29 November 1831. Box 1. Duncan McLaurin papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Letter from John P. Stewart to Duncan McLaurin. 6 August 1834. Box 1. Duncan McLaurin Papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Letter from John P. Stewart to Duncan McLaurin. 17 May 1837. Box 1. Duncan McLaurin Papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Letter from John P. Stewart to Duncan McLaurin. 25 December 1838. Box 1. Duncan McLaurin Papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Letter from John P. Stewart to Duncan McLaurin. 30 July 1840. Box 1. Duncan McLaurin Papers. David M. Rubenstein Rare Book and Manuscript Library. Duke University.

Meacham, Jon. Andrew Jackson: An American Populist. TIME special edition. Time Inc. Books: New York, NY. 2017. 46, 52.

Olsen, Christopher J. Political Culture and Secession in Mississippi: Masculinity, Honor, and the Antiparty Tradition, 1830-1860. Oxford University Press: Oxford. 2000.

“Resolved.” The Natchez Daily Courier. Natchez, Mississippi. 7 July 1840. 3. Accessed from newspapers.com. 22 March 2017.

Rothman, Joshua D. Flush Times & Fever Dreams: A Story of Capitalism and Slavery in the Age of Jackson. University of Georgia Press: Athens, Georgia. 2012. Kindle version. Location 90 and 124 of 7796.

Skates, John Ray. “The Mississippi Constitution of 1832.” Mississippi History Now: An online publication of the Mississippi Historical Society. http://mshistorynow.mcah.state.ms.us/articles/101/the-mississippi-constitution-of-1832. Accessed 23 April 2018.