New national era. [volume] (Washington, D.C.) 1870-1874, 1874-06-25

out the nducement Of larger per centage Of
interest than was warranted by the earnings
of the Bank.
| Ofcoursc any corporation, nation or family
which spends more than it earns, will in due
time find its Golfers exhausted.
Second. Another cause of this deficit Of
/ 5000, 900 is found in the fact that the
/ former managers of the Freedman's Savings
! and Trust Co. undertook to do too much
work in another direction impressed rs they
! were with the sense of the many benefits OF
savings institutions among the freedmen OF
the South, they were tempted into a sort Of
banking missionary movement.
They started, established and SUPPORTED
branches of the institution in remote places
in the Southern States, and where it was
almost impossible that they could become
speedily self-sustaining.
| Third 1t cannot be doubted that q third
cause has in large measure operated against
| the success of the Frcedman's Bank, and
this cause happens to be one which it is most
difficult to deal with, because 1t is inherent
in the enterprise itself, and no wisdom which
the managers of the Bank can exercise, can
counterfeit or remove.
! This institution cOnspiCuously and pre-
eminenty represents the idea of progress.
and elevation of a people who are just now
emerging from the ignorance, degradation,
| and dies titutiOn entaied upon them by more
than two centuries of slavery.
A people who are hated not because they
have injured others, but: because others have
| injured Them This feeling of caste, this
race malignity, has naturally enough taken
about the same offence at the Freedman's
Bank, as it did at the existence OF the Freed
mans Bureau.
1t is as DESTROYS to destroy the former Is it
was to destroy the latter.
Fourth. Still another and greater source
of evil has been the senseless runs made,
from time, to time, upon the Bank. These
have compelled the withdrawal of large sums
of money from very safe and profitable in
vestments, and have diverted the regular
business of the Bank from making money
for its dcpositors, to the work of obtaining
the means of meeting the demands Of these
disastrous panics. The Freedman's Bank
has been subjected to no less than than
three of these raids during the last eighteen
months.
The run made upon the Bank by the failure
of Jaw Cooke Il Co., cost us not less than
fifty thousand dollars, and required the with
drawal of half million of dollars from safe
and profitable investments.
Add to these causes the general prOstra-
ton of business, the great loss of confidence
in all moneyed Institutions, the disturbed
condition of affairs, especially in the District
of Columbia, where most of our loans have
been made, and you will easily understand
why the Freedman's Bank is now under
heavy strain, and found It Necessary to seek
protection in the recent amendments TO its
charter.
| In respect to the future of the Bank, some
| of the main sources of danger and ruin have
been entirely removed.
The trustees governed by an increasing
concern for the safety of their depostors
| rather than for large profits in the way of
interest, have abandoned their unwise COM
petition with others in the offer of a high
per centage of interest. and have now re-
solved to pay only such a rate as the net
earnings of the Bank will warrant them in
paying.
| They have also given up their wild and
visionary schemes Of banking, and have aban
doned the policy of establishing branches in
remote corners of the country.
They will now establish none where there
is not a very strong likelihood of their be-
coming self-sustaining. Not only have they
discarded the policy of extension, they have
adopted the policy of closing up as speedily
as is convenient and practicable the non
paying branches now in operation. They
are not only for decreasing the number of
branches, but also the number of employees.
and for reducing the salaries of their agents
to the lowest point consistent with securing
the services of good men.
With this retrenchment in expenses, with
wise and vigorous management, and with
the returning confidence of our people, it is
believed that the Freedman's Savings and
Trust Company, which has already been
powerful instrument in promoting the moral,
social, and intellectual welfare of our people
will survive and flourish despite the machi-
| nations of its enemies
The effect of the legislation recently en-
acted upon the Bank will naturally inspire
confidence. 1t is indirectly a strong endorse
ment of the honesty and the ability of the
trustees of the institution.
1t puts the destiny of the Freedman's
Savings aud Trust Company more completely
than heretofore within their power and dis
erection. 1t devises an honest method of
keeping the institution in continued and sue
cessful operation, while it at the same time
enables it to accomplish all the objects usu-
ally sought in suspension. 1t completely
divorces the past from the present and future.
1t separates the old from the new, and
allows the dead past to bury its dead 1t
aims to protect the new depositor from all
| the mistakes and misfortunes connected with
the management and past condition of the
| Bank.
For the interests of the old depositors it
enables the trustees to hold their securities
as long as may be necessary to reap the full
amount of interest they are capable of draw
ing, and then allows the trustees to fill up
the chasm which may exist between assets
and liabilities.
1t puts it in the power of the officers and
agents OF the Freedman's Savings and Trust
Company to say with confidence and truth
to all our old depositors, give us time and
we will pay you every dollar due you from
the company.
To the new depostOrs it enables us to say
with even more confidence, you may deposit
with safety and profit. You are neither
affected by past losses, nor past mismanage-
ment.
Your money shall not be in any way
mixed up with the old, nor taken to pay old
debts. 1t shall be held as special, and in
vested for your special benefit.
In one aspect this bill may be said to place
the old Bank in liquidation, while it at the
s,me time creates a new one. 1t preserves
the old body, but informs it with new life,
and gives it better assurance of continued
existence.
What is now needed is wisdom, courage,
skill, and determination. With these the
Freedman's Savings Bank may be made not
only success in itself, but a grand means
OF success to the cOlored people of the South,
to whom it has already taught important
lessons OF industry, economy, and saving.
The history Of civilization shows that no
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