The Alabama treasury had many Confederate notes received in taxes. Before April 1, 1864, (when such notes were to be taxed one-third of their face value), these could be exchanged at par for 20-year 6% Confederate bonds. After that date the Confederate notes were fundable at 33⅓% of their face value only.[14] After June 14, 1864, the State treasury could exchange Confederate notes for 4% non-taxable Confederate bonds, or one-half for 6% bonds and one-half for new notes. The Alabama Legislature of 1864 arranged for funding the notes according to the latter method.[15] The Alabama Legislature of 1861 had made it lawful for debts contracted after that year to be payable in Confederate notes.[16] Later, a meeting of the citizens of Mobile proposed to ostracise those who refused to accept Confederate notes. Cheap money caused a clamor for more, and the heads of the people were filled with fiat money notions. The rise in prices stimulated more issues of notes. On February 9, 1861, $1,000,000 in State Treasury notes was issued and in 1862, there was a similar issue of $2,000,000 more. These State notes were at a premium in Confederate notes, which were discredited by the Confederate Funding Act of February 17, 1864. Confederate notes were eagerly offered for State notes, but the State stopped the exchange.[17] December 13, 1864, a law was passed providing for an unlimited issue of State notes redeemable in Confederate notes and receivable for taxes. Private individuals often issued notes on their own account, and an enormous number was put into circulation. The Legislature, by a law of December 9, 1862, prohibited the issue of “shin-plaster” or other private money under penalty of $20 to $500 fine, and any person circulating such money was to be deemed the maker. It was not successful, however, in reducing the flood of private tokens; the credit of individuals was better than the credit of the government. Executors, administrators, guardians, and trustees were authorized to make loans to the Confederacy, and to purchase and receive for debts due them bonds and Treasury notes of the Confederacy and of Alabama, and the interest coupons of the same. One-tenth of the Confederate $15,000,000 loan of February 28, 1861 was subscribed in Alabama.[18] In December 1863, the Legislature laid a tax of 37½% on bonds of the State and of the Confederacy unless the bonds had been bought directly from the Confederate government or from the State.[19] This was to punish speculators. After October 7, 1864, the State Treasurer was directed to refuse to receive for taxes (except at a discount of ⅓) Confederate notes issued before the date of the Funding Act (Feb. 17, 1864). Later, Confederate notes were taken for taxes at their full market value.[20]