Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-11-29
THE FRAUD OF THE FREEDMANs
HANK

/ versus the treedmans Bank and Trust
Company. The argument is lucid and
forcible, and should be perused by all
who take an interest in the important
questions involved. The history of the
Freedman's Bank, is history and ex-
PLANTATION of Radical "love'' for the
negro-of their desire to use him for
their own promotion and profit. 1t is
a record of keartless yillainy, practiced
on an innocent and confding race, to
which past annals afford no parallel. 1t
is the climax of christian statesman
ship" of the o. o. Howard type. The
Nel0 York Sun urges upon the closing
Radical Congress that its first duty on
assembling next month should be ''to
order a rigid and exhaustive investiga-
ton into the condition Of the Freed
mans Savings Company at Washing
ton, and the real causes which led to
its bankruptcy; and there should be a
complete exposure of every name in
any way responsible for the robbery
and ruin Of that Institution. Conceal
ment of the truth is no longer possible,
bat it should be verified officially, in or
derthat the thieves may be brandedwith
public scorn now, and be vigorously
prosecuted as soon as the Department
of Justice shall be rescued from its
present pollution. The bank is rotten
from top to bottom, and has been so
for years. 1t needed emily the pinch of
the panic to tear away the deceptive
DISCUSSES and to grind to powder all
the false and fabricated statements.
1t is now certain that several millions
of the hard savings of poor freedmen,
their wives and their children, have
been heartlessly stolen
The ostensible design of the bank in
its origin was pure enough, and in a
measure philanthropic. No doubt it
encouraged habits of thrift and econ
Omy among many of the newly eman-
cipated, although it tended to breed a
dependence on Government and dis
trust of the people and institutions
among whom they lived that were IN
healthy. And now, a reaction is likely
to follow which may make the negro
give all banks a wide berth for many
years 10 come, discouraging all at
tempts TO save up for the rainy day.
The first charter was granted in
March, 1866, and protected the depos-
itors against loss by requiring every
dollar of their money to be invested In
bonds of the United States. Agencies
were scattered over the South, and as
the business increased, the cupidity of
vonal tricksters pToportionately ex-
panded. In 1870, coutemporaneous
with the scheme to organize
the Washington Ring, the charter
was so amended as to destroy
the best safeguard for the depositors.
The door to fraud was opened by add
ing the clause which authorized loans
to be made to the extent Of one-haf
the whole deposits on real estate IN
double the value Of the sum borrowed,
and also to hold and improve the real
estate Of the bank of Washington. In
terpreted by the light of events, it is
now certain that the amendment was
concocted by the Ring as the readiest
mode of stealing the earnings of these
poor people. J. W. Alvord, who grad
uated from an agency of the Freed
mems Bureau, had helped to organize
the negro vote for Grant in the South
ern States, and was a member of the
Christian Missionary Association, be-
came President. Gen. Howard was, of
course, a leading trustee, and most of
the others were Of the same kidney.
A Committee of Finance determined
all the loans and discounts, of course
with the privity of the active trustees
and officers of the bank, who were all
IN the same boat. Henry d. Cooke, his
cashier W. S. Huntington, and Lewis
Clephane, a Ring contractor, were a
majority of and controlled that COM
mittee. Cooke was then President Of
the First National Bank, and men,
Der of the firm of Jay Cooke & Co.
There are no recent data showing the
true state of the bank. 1t is therefore
necessary to take the figures furnished
blythe Treasury near the closeof the last |
session of Congress, which are a suf-
fcient guide for the present purpose.
In less than three years, or during the |
rule Of Shepherd and his crew, the |
loans on real estate for the city of |
Washington aggregated SLAB, 226.55,
and on ''sundry securities" 1856, 1906 |
So, COS, SSH. Add the overdue and |
unpaid interest, and the total exceeds |
two and quarter millions. A large |
portion Of the so-called real estate was
unimproved land in the county as
sessed at exorbitant values by Kill
bOurn & Latta, Ring brokers, who /
themselves were large borrowers.
Another portion of it was not
real estate at all, but worthless
chattel mortgages and notes of hand
unsecured. Ring leaders, jobbers, con-
tractors, and lobbyists were the set
who absorbed the deposits of the bank.
And for securities" and collateral
they pledged Seneca stone scrip, the
stock Of fictitious companies, and a lot
of trashy paper worth at the mills
about three cents pound. Cooke and
his confederates literally opened the
vaults to the ring, and they stripped
them clean to the iron walls. Of the
3,33S, S96.l5 due to depositors, but
$500, 1871 was available in leash and
limited Grafar Caouririas ~ rIa ,,,-,,,4 /