New national era. [volume] (Washington, D.C.) 1870-1874, 1874-05-21
The Freedman's Banks

There is a great deal of anxiety about the
condition of the various freedman's savings
banks, throughout the country, predicated
upon the ugl rumOrs that are atlOat concern
ing the parent institution at Washington.
This bank the New York Sun, with charac-
teristic energy, denOunces as rotten con-
Germ. brought to its present position by the
plumber of its treasury by the Washington
ring and its coniederates. If the statements
Of the San are to be believed, and they are
in part sustained by the report of bank ex-
aminer Meigs, the institution holds some
rather doubtful securities to say the least.
Among these are loans on certain pieces of
Washington real estate, which is now very
much deprecated, as also loans to which
certain more than doubtful mining aud patent
rights shares are pledged as collateral. 1t
is probable that many of the loans will be
lost and the larger portion of them cannot
be collected at its face value.
The Freedman's Savings Bank at Wash
ington has suffered from the despoiling touch
of the ring, which it would seem might at
least have had the grace to refrain from rob-
bling the poor African of his little earnings
but it has been utterly constituencies in its
dealings with all classes of citizens. The
rich and the poor alike have felt its evil in
fluence. AS a consequence of the revelations
W tnSi HaNC UCCu IiduC, tuC UlilN ldS Iltu
three heavy runs upon its deposits, within
the last eighteen months, and the various
branches throughout the Southern States
have also been troubled with demands of a
more or less imperative character. Thus far,
these banks have attracted to their vaults a
large amount of money, considering who their
depositOrs have been and the comparatively
short period which they have had for making
their accumuations. There could be no no.
bier enterprise, in theory, than the induce
ments which these institutions have held out
to the enfranchised race to deposit their
earnings in place Of safety. They are at
once the incentive to economy and the pre-
MUM on industry. Carefully managed, they
would prove Of incalculable benefit to the
freedman in giving him correct ideas of his
responsibilities, in increasing in self-respect,
and enlarging his sphere of action.
In the main, we believe phianthropsts
have managed, as they certainly originated.
the scheme of the freedman's savings but
it is evident that in some of the details
rogues have had a share. 1t were a shame
if these benefcent institutions should 90
down in ignominy, bringing ruin and distress
upon thousands of that race for whose nro.
lection and advancement the republic is in
honor bound to make special exertions. If
any citizens should be specially guarded
from imposition and rapacity they are these
wards OF the nation yet ignorant and de-
fenceless- incapable Of properly taking care
OF themselves. 1t were burning reproach
if the freedman were plundered in the house
of their friend. We hope for the best.
Frederick Douglass whose name is a guaran.
tee for honesty and fair dealing, has lately
been elected president Of the WASHINGTON
Freedman's Savings Bank, and is diligently
engaged in an examination of its affairs and
those of its branches. He writes that the
liabilities Of the bank, after the severest
valuation OF Its property, rating articles at
their lowest cash value, in these dull times.
exceeds its assets by s2l7,O He holds
that the bank with its assets, amounting to
more than $4,000, 600, if only tolerably we'll
managed and let well alone, will be enabled.
in a few months, to overcome the small
excess Of liabilities and pay all its depositors
small amount Of interest. Quieting tele-
grams have been sent to all the branches of
the bank, assuring depositors that. if thew
Will only exercise reasonable degree Of
patience, they will be paid dollar for dollar.