Studies reveal that more than one in four Americans are in some form of debt collection. Even the nation’s best President was not immune.
Abraham Lincoln was hammered by debts during his New Salem days, and was subject to levy of his personal property. It was one of many financial headaches for Lincoln, who worked multiple jobs to support himself during that time.
The levy was the result of -Lincoln’s failed partnership in a general store with William Berry, who had served under Lincoln in the Black Hawk War. The son of a minister, Berry had a penchant for heavy drinking, unlike Lincoln who had a distaste for alcohol.
Still, the pair opened a store together in New Salem in 1832, and later moved the store to another location in town. New Salem was a log cabin village, 20 miles north of Springfield, that Lincoln called home from 1831-37. But business was slow, and Berry’s habits did little to help.
Scholar Benjamin Thomas wrote in 1954 that Berry “devoted himself to the consumption of the firm’s whiskey, while Lincoln spent most of his time talking, joking, and reading books.” As a result, Lincoln recalled in 1860 that the store “did nothing but get deeper and deeper in debt.”
Lincoln ended the partnership in April 1833, possibly because of Berry’s decision to obtain a liquor license. Six months later, the mortgage notes on the store came due and, after several assignments, Lincoln and Berry were sued in November 1834 for the balance.
Unable to pay, Lincoln’s horse, saddle, bridle, and surveying instruments were eventually -levied by the sheriff. The move left Lincoln without one of his sources of income, as he had been hired as deputy surveyor of Sangamon County (where New Salem was then located, before the creation of Menard County) in 1833.
It was one of several jobs for Lincoln, then 25, in that time of his life. From 1833-36, he also served as postmaster of New Salem, and would be elected to the first of four terms in the Illinois House in November 1834, around the time of his judgment in the Berry case.
Fortunately for the beleaguered Lincoln, friends stepped in to help. One was William Greene, who had actually sold Berry and Lincoln the stock for their store, and submitted his own horse as part of the judgment. Meanwhile, “Uncle Jimmy” Short, a prosperous area farmer, bid on the saddle, -bridle, and survey equipment, unbeknownst to Lincoln, and returned them to him.
Berry died in January 1835, and though Lincoln was only responsible for half of the debts of the partnership, he insisted on paying the entire total of $1,100. He was still paying on the amount in the 1840s.
Lincoln would later read law, and began practice in 1837. Ironically, debt collection was a significant part of his practice, as he frequently sued to recover debts for his clients.
Known for his strict adherence to the law, Lincoln even sued friends for nonpayment. One example was Mentor Graham, who was famously Lincoln’s old teacher from his New Salem days, though many of Graham’s claims are now suspect.
On Nov. 4, 1845, Lincoln represented Nancy Green as -plaintiff against Graham in an unpaid debt. Graham admitted to the debt of $112.23, including a note and interest. It was one of many times that Lincoln found himself on the other end of the debt collection issue.
Tom Emery is a freelance writer and historical researcher from Carlinville, Ill. He may be reached at (217) 710-8392 or ilcivilwar@yahoo.com.