State of Franklin - Independent Republic

Independent Republic

After the failed statehood attempt (and still at odds with North Carolina over taxation, protection, and other issues), Franklin operated as a de facto independent republic. Up to this point, the government had been assembling at Jonesborough, mere city-blocks from the rival, North Carolina-backed, seat of government. Because of this, Greeneville was declared the new capital. The first legislature met there in December 1785. At Greeneville, the delegates adopted a permanent constitution, known as the "Holston Constitution," (and heavily modeled on that of North Carolina). John Sevier also proposed to commission a Franklin state flag, but it was never designed.

The new legislature made peace treaties with the Indian tribes in the area (with few exceptions, the most notable being the Chickamauga Cherokee). It opened courts, incorporated and annexed five new counties (see map below), and fixed taxes and officers' salaries. Barter became the economic system de jure, with anything in common use among the people allowed in payment to settle debts, including corn, tobacco, apple brandy, and skins. (Sevier was often paid in deer hides). Federal or foreign money was accepted. All citizens were granted a two-year reprieve on paying taxes, but the lack of hard currency and economic infrastructure slowed development and often created confusion.