vicissitudes of the next four years destroyed their financial standing. In 1866 an act was passed enabling them to close their business. A revival of banking came only during 1890-1900.
The condition of the banks in 1902 is shown on the preceding page.
Government. The present Constitution was adopted in 1868. An amendment requires a three-fifths vote of each House, and approval by a majority of the popular vote. A proposal to call a constitutional convention must receive a two-thirds vote of each House and a majority of the popular vote.
Voters must have resided in the State two years, in the county six months, in an election district four months. Persons who were not entitled to vote in any State prior to 1867, or are not descendants of persons entitled to vote prior to that time, must be able to read and write any section of the Constitution in the English language. Privileged illiterates must register before December 1, 1908. Suffrage is further conditioned upon the payment of poll tax.
Legislature. The Legislature consists of 50 Senators, representing districts of undivided contiguous counties, and 120 Representatives, at least one for every county. All members are elected for two years and receive $4 a day and mileage. They meet biennially on the Wednesday after the first Monday in January, and the session is limited to sixty days. State elections are held biennially on the Tuesday after the first Monday in November. The power of impeachment rests with the House, the trial of impeachment with the Senate.
Executive. The Governor, Lieutenant-Governor, Secretary of State, Auditor, Treasurer, Superintendent of Public Instruction, and Attorney-General are elected for four years. The Governor has the usual power to convene extra sessions of the Legislature and grant pardons. The Secretary of State, Auditor, Treasurer, and Superintendent of Public Instruction constitute a Council of State to advise with the Governor.
Judiciary. The Supreme Court consists of a Chief Justice and four associates. The State is divided into judicial districts, a judge being chosen in each district. A Superior Court must be held in each county at least twice each year. The Legislature provides special courts for cities and towns. Each county elects a clerk of the Superior Court every four years. A solicitor serving four years is elected in each judicial district.
Local. Each county elects a sheriff, coroner, treasurer, register of deeds, surveyor, and five commissioners, who hold office for two years. The commissioners have charge of the penal and charitable institutions, schools, roads, bridges, and finances. Each township elects biennially a clerk and two justices of the peace, who constitute a board of trustees. They act under the supervision of the county commissioners. The townships also elect for a similar period a constable and a school committee of three persons. These provisions, however, may be changed by statute.
Miscellaneous. Atheists are disqualified for office, and also all persons who have been convicted of treason, perjury, or other infamous crimes, and not legally restored to the rights of citizenship. The property of a married woman is her own, and not liable for the debts of her husband. Personal property is exempt for debt to the value of $500. There are also provisions for liberal homestead exemptions. A local-option liquor law was passed in 1887. The legal rate of interest is 6 per cent.; 8 is allowed by contract. The State has ten members in the Lower House of the National Congress. The capital of the State is Raleigh.
Finances. North Carolina had no debt until the advent of the epoch of railroad building. In 1848-58 several issues of bonds were authorized in aid of railroad, plank road, and canal companies, and as security the State received stock in these companies. At the beginning of the Civil War the debt of the State amounted to $18,167,000. The financial troubles of the war greatly aggravated this condition, but the enormous loans for war purposes were repudiated by order of President Johnson in 1865. Great injury to the finances of North Carolina was done during the five years of the ‘carpetbag’ régime that followed. Large issues of bonds for purposes of railroad construction followed one another in rapid construction. The Constitution of 1868 forbids the issue of any bonds unless a special tax for payment of interest be levied. But this did not stop the growth of the debt, for in the following two years more than $16,000,000 of the ‘special tax bonds’ were issued. Another cause for issuing bonds was the refunding of old obligations and their unpaid coupons. Altogether, in 1865-70, $24,375,800 of bonds were issued, and the total debt exceeded $42,000,000. As against this the State held $22,000,000 of railroad stocks, out of which only $3,000,000 paid dividend. The rest were worthless, as the money obtained from sale of the State bonds was squandered. The burden of the interest on these bonds lay very heavily upon the State, and there was constant defaulting.
This condition of affairs caused great popular dissatisfaction and a tendency toward repudiation. Payment of interest on the ‘special tax’ loans was stopped in 1870, the special tax laws were repealed, and all the efforts of the bondholders to enforce payment through courts remained futile. In 1879 a compromise was reached with regard to the rest of the State debt. Under this compromise the old bonds were refunded at the rate of 15 per cent. to 40 per cent., according to issues. The conversion proceeded from 1880 to 1900, and the debt remained almost the same. The compromise has improved the finances considerably. The budget of the State is small, but instead of the large deficits there is a small surplus. On November 30, 1902, the State debt was $6,527,770. The total receipts for the year were $1,924,134; expenditures, $1,866,640; the balance in the treasury, $111,280. The main sources of income are a general property tax (about 40 per cent.), North Carolina Railroad dividends (10 per cent.), railroad and corporation taxes, earnings of the State prison, etc. Of the disbursements almost $300,000 a year goes for payment of interest.
Militia. The State had 326,202 men of militia age in 1900. The militia numbered 1860 in 1901.
Population. The following figures show the growth of the population: 1790, 393,751; 1820, 638,829; 1850, 869,039; 1860, 992,622; 1870, 1,071,361; 1880, 1,399,750; 1890, 1,617,947; 1900,
