The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1874-12-24
-COLUMDIA,aS. C.
Thdrsday Moraing December "a, 1874
-The Frssedmsn's Bank sw.,iadlo.


The Frs.dmsn's Bank swiadle. y
Resolutions were adopted by the
South Caroline Legislature, asking
Gongress to make good to the deposi.
tors in the Freedmen's Savings Bank
the amounts deposited by them in it,
The freedmen in other States are send.
ing up similar petitions. The colored
people of Louisville, Kentucky. are
interested in the bank to the amount
Of $l65, 900, and in a memorial p.ay
Congress to wind up it's affairs, and re-
't0rn the dues resulting from deposits.
They say. by way OF argument for their
plea, that the institution was chartered
by Act of Congress; that it reserved to
itself the right to inspect the books
aud general condition of its affairs at
:any time during business hours; and
Che charter had been aagrantly vio-
lated, from time to time, without the
knowledge of the depositors. There
fore. they hold that Congress is mornlly
'5eund, &c. This view is further
strengthened by the fact that in the
'9reedmen's idea, the Fresdmen's Bu-
-seau and the. Bank were closely con-
nected. Officers Of the Bureau were
made it's cashiers. and drew pay from
the Government while establishing the
branches. Payments Of different
axinda-bounties, pensions aud back
>spaYsdnei colored soldiers-were made
through the bank. Advertisements
were put forth in these words: This
'!5sak is chartered by the United States
Government. and is, therefore, per.
fectly safe. all deposits being secured
deg United States bonds. The Govern
'nent guarantees all deposits" It is
: evident that pains were taken to make
:she colored depositors believe that it
was an institution OF tho Govern ment,
; and that deposits in it would have its
protection and patronage. A pretty
'-aaear>nase OF moral liability is made ont
against the Government, if the parties
Ohio ussd its name and credit had any
authority to do SO. In that case it
would itself be guilty OF fraud. It is
more likely, however, that its conf
: dence was abused by the cashiers and
asss;s:zss1 ss5ats, who took advantage Of
the peculiar oiroumstanoes of the coun.
try at the time to help on project
from which they expected benefits to
themselvas and others. We do not
conceive that the Government, under
-this latter view, is either legally or
'noralIy bound to make good these
At the same time, and for
reasons which arc obvious, We should
be glad il it would take control of the
assets. wind up the concern. aud pay
f5ack the deluded depositors, either
Yin whole or in part, the sums they
placed in it. They are victims in any
: case, and can ill afford to bear the
'onoertainty and losses to which
,they have been subjected. While
'we should like thfs magnapi-
NOUS course to be pursued to.
wards the freedmen, it would be fully
7as gratifying If the fellows who we're
the original Instruments Of the decep-
tion and those who have proated by the
s2lunder and swindling Of their money.
: could bs brought to condign punish
ment. An examination has brought
to light astounding evidences Of cor
cGpsion i'll the management of the
bank. The exhibit of assets contains
s0ch entries as these: james G.. Benet,
President of the Washington Ring
Club House, $28. 500, secured by
lsw; ~ Howard University, SIS. 900,
secured by mortgage on college lands,
of small value; E. II. Nichols, Trea-
surer, Sl75, 900, secured by assignment
of contract of sale of tho Northern
'Centra! branch of the Union Pacific
Railroad Company; J. j. Kidwell.
81, 600. secured by stock of the Seneca
Stone Company, utterly worthless; j.
@. Kennedy, $4,000. secured in the
same bad way; Kilbonrn, So, 900, with.
out collateral; Huntington, tsince de.
ceased. 50. 800, no collateral: Eyans.