Studies in American History 
69 
within its bounds the Bank of Kentucky with its thirteen 
branches, and the two federal branch banks. 
Very soon after the legislature repealed the independent 
bank charters, it continued its relief work and passed an act 
extending the power of replevying judgments from three 
months to twelve months; if the plaintiff should refuse notes 
of the Bank of Kentucky in discharge of the debt, the defend- 
ant could replevy for two years. This act greatly alarmed 
the creditor classes, and if they could not collect their money 
on the dates they had expected to, it was obvious that they 
could not lend, nor would they if they could under the legal 
restrictions set up. Everything tended to further stagna- 
tion.'^® When the election of state officers was held in August, 
1820, candidates for governor and for the state legislature 
loudly demanded relief for debtors and, in the absence of 
other issues, ‘‘relief’ won. General John Adair was elected 
the “relief” governor by a small margin."^^ On November 3 
additional time was granted to pay debts due the state for 
vacant lands. 
As before stated, the Bank of Kentucky was doing well 
before it was crippled by the creation of the forty-six inde- 
pendent banks. The United States Bank held large sums of 
its paper, and by forcing collection it drove the Bank of 
Kentucky to temporary suspension and to compromise in the 
late fall of 1818. Its notes were at 15 per cent discount by 
the beginning of 1820.'^® Soon the stockholders voted to sus- 
pend specie payments, and the vaults were permanently 
closed.®® The legislature finally repealed its charter in 1822, 
but gave it time to wind up its affairs. 
Another banking experiment, which, thru no fault of its 
own, involved the Bank of Kentucky, must be considered. 
When the Bank of Kentucky had finally suspended specie pay- 
ments, the two national branch banks had the whole banking 
business of the state under control. In an effort to control the 
Bank of Kentucky and furnish a supply of cheap money, the 
politicians of the state induced the legislature, November 29, 
1820, to create the Bank of the Commonwealth. The new bank, 
Kentucky Gazette, January 81, 1820. 
McElroy, Kentucky in the Nation’s Hist<rry, 384. 
Doolan, in The Green Bag, XI, 180 (1899). 
Collins, Histwy of Kentucky, I, 29. 
Sumner, Andrew Jackson, 160. 
National Intelligencer, January 25, 1820. 
6—34488 
