The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-07-02
THE FREEDMEN's SAVINGS BANK.
PAYMENT SUSPENDED AND THE CONCERN
TO GO INTO THE HANDS OF COM
MIssIONERS FOR LIQUIDATION.
Some Interesting Facts about the Pet
of Congress.

some Interesting Facts ABOUT tne l'et
of Congress.
THE COLORED PEOPLE OF RICHMOND
INVOLVED TO THE AMOUNT
OF. $4,000.
On Tuesday Mr.. Charles Spencer, cashier
OF the branch Of the Freedmen's Savings and
Trust Company located in Richmond, great
ly to his establishment, received the follow
ing telegram:
WASHINGTON, June 80, 1874.
Charles Spencer, Richmond, Va.,-Trus-
tees voted to elect commissioners. Take or
pay no deposits. GEO. w. STIckSsY.'
Mr.. Stickney is the actuary of the con-
pany, and his authority is not to he dis
puted by the officers. But Mr.. Spencer,
having previously had no suspicion tnat the
concern was about to collapse, would not at
first believe in the genuincness of the tele-
gram he had received. He. therefore, tele-
graphed back to Washington, asking Mr..
Stickncy If it was all right, and. the latter re-
piled that it was " genuine" Thereupon the
instructions were obeyed, but it being rather
late i'll the day, and Us no great amount of
business was being done, the fact of the SuS-
pension was known only to few persons in
the city.
The banking.place Of the company was not
opened for business yesterday, though the
cashier was behind the counter, and 20 the
best of his ability answered the numerous
inquiries addressed to him by depositorS. A
small crowd Of colorcd meu fingered about
the door all day. They murmurcd consider
ably at their misfortunts, but made no dis
orderly or noisy demonstration.
In February last, in accordance with the
instructions OF the Comptroller of The Cur
rency, Mr.. Charles A. Meiss Investigated The
affairs Of the company, and reported the re-
sources and liabilities Of the institution as
follows:
Resources, Liabilities
Cash loans and invest
msnls ..:.;.;:;;::; i,;,;;:;; a3'o275lo
Less bad and doubtful
CcDtS.. lU0,5UU
Amount due deposi-
orS................. So,Z9S'0oo Il
ing.................... 31,o2G Oh
collateral ........... $500 90
Total.............. s3,121,O1O s3.33S.S96 10
"Showing deficiency OF S21T ,SSG.15, or
in other words, the depositorS are secured 10
the extent Of about nnety.three cents on The
dollar"
Mr.. Meigs said the causes which led to this
deficiency were:
|. The large expenses attendant upon the
erection and maintenance OF branches which
have been established upon the basis of
business beyond what has resulted in the
way Of deposits received of said branches.
=. Hopes arising from the authority Origi-
naly given to the cashiers OF the branches
to make loans and 10 enter into me1 clntile
transactions foreign to the business Of lie.
gitimate savings bank.
3. The effort TO follow the example Of
other savings banks, who were not liable to
such heavy expenses, in allowing six per
cent. interest on deposits has induced the
managers, in the hope Of realizing large
rates of interest, to make loans looking more
to profit than to safety OF the principal sums.
4. Sacrifices made TO raise money during
the late panic, and shrinkagc in investments.
The amount of deposits at the various
branches of the company in this State when
this examination was made was as follows:
Alexandria, S21.5S4; Lynchburg, $l9,9G7 !;
Norfolk, Sl26,337 ; Richmond, $16G,U00
The following special mention was made
of the Richmond branch:
"RlcHMoSD, VA, February 81, 1874.
"The business Of this branch is confined
to the receipt Of deposits, payments on the
same, aud the remittance TO the parent bank
of all moneys on hand over and above
moderate working balance Of cash to meet
the daily demands of dcpo-itorS. Amount
on deposit at this date. SlGS:33l; amount Of
cash on hand, SS0004. Number of open ac-
counts of depo>itors, $3.50; amount OF over
drafts, Sj115, mostly considered good.
"The force employed consists of cashier
(whitc many, salary $1,000; clerk (colored),
salary $500; rent of clearinghouse, 800.
"The great majority of the depositors are
colored people, and the average amount due
each depositor is less than $40.
"CHARLES A. MEIGs,
"National Bank Examiner"
The Richmond branch seems, from this
raoort, to have been as well il not better con-
Quoted than any branch OF its importance in
the country.
On the 14th Of May Hon. Frederick G.
Bromberg, OF Alabama, made speech IN
the House OF Representatives, in which be
assailed the report Of the examiner. He
charged that considerable sums of money
had been loaned on worthless securities, and
according to statement prepared by him
the deficiency was not less than S7S5,3 34S.20.
and the bank held 81 100000 less of cash and
United States securities than was required by
law.
As the result of the Investigations made,
Congress amended the charter of the COM
pany so as to allow the trustee; TO close up
its entire affairs, if they thought necessary
to do so, by placing its effects in the hands
of three commissioners, persons not hereto
fore connected with the management Of the
company, and to be approved by the Comp
trolIer Of the Currency. The suspension OF
business has without doubt taken place
under this provision of law.
Mr. Spencer, cashier Of the Richmond
branch, however, only one day before the
receipt of the telegram from Mr. Stlckney,
was advised by circular from Hon. Frede-
rick Douglass, president Of the company,
that with retrenchment In expenses and fIg-'
Orous management, "the Freedmen's St-
wings Bank, which has already been pow
erful instrument in promoting the moral,
social, and intellectual welfare Of our people,
will survive and flourish pite the machi-
nations of its enemies" Further, said he:
"The mission of the Freedmen's Bank is to
show our people the road to share Of the
wealth and well, being of the world. 1t
has already done much to lit the race into
respeclability, and with their continued
confidence and patient cooperation. it will
continue to reflect credit upon the race and
promote their welfare" The result has
been jest as different as possible.
On The 30th ultimo the Richmond branch
had about 5000 depositor$, having to their
credit about S14l 200. 1t is impossible to
.ln..s chnr AZ