Clayton, Texas is located sixteen miles southwest of Carthage in the southwestern Panola County. The area was settled around 1845 by Jacob Cariker, a Georgia native. During the early 1870s residents from Reed’s settlement moved to the site. in 1874 the name Clayton was given to the that area in memory of Clayton, Alabama. Margie Neal, first woman elected to the Texas State Senate, was born near Clayton in 1875. The community has an estimated population of 79 in 2000. Pleas Fite owned a saloon and the area’s first store. The Great Depression caused the population to drop from 200 to 125 in the late 1960s.
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