Pioche daily record. [volume] (Pioche, Nev.) 1872-1876, 1875-12-11
The Freedmen's Savings Rank

The New York Nation, in a recent
article entitled THE Winding Up of the
Freedmen's Savings Bank" urges upon
Congress, at its next session, the duty of
thorough investigation into the manner
in which the affairs of the bank were
conducted while in operation and are
being wound up, now that it is defunct.
The subject, the Nation pertinentIy OBJ.
serves. is not savory one for Republi-
can newspapers, and expos urs of it is
not now to be expected at Republican
hands. Therefore, it says, 1--WE earnestly
commend it to the notice of the honest
men of the Democratic party when
in Congress they begin the great
work of investigating the dark places in
Republican history" The pitiful story,
as the nation epitomizes it, is not new.
For all that. it is worth telling again.
wherever and whenever the politicians
OF the dominant party in national politics
asserts paramount or exclusive claim TO
the undivided confidence and support of
the colored voters, as the especial prote.
ges and wards OF the Republican party.
In matter that concerned helpless and
ignorant class more than anything else
oesides-the care and safety of their
scanty and hard earned savings-it Is
well worth while TO consider how the
dominant party, in the full Possession of
political power and responsibility. dealt
with its trust. The Freedmen's Saw.
lngs Bank in Washington city was char.
tered by Congress in 1865, for the pur.
pose OF encouraging habits of frugalty
among the newly enfranchised blacks,
and AS the charter recites, for the exclu-
siVe use "of persons heretofore held in
slavery and their descendants. The
trustees were charged with the duty sim.
ply OF receiving the deposits of persons
OF this class, and of investing them in
the stocks, bonds, Treasury notes and
other securities of the United States. +"
lhe institution was not designed to be
money making. but charitable; it was q
savings bank, and so the poor, ignor-
ant, credulous co!ored people understood
1t. The subsequent establishment of
more than thirty branches of the parent
institution IN various portions Of the
south. tor the purpose of extending its
business and enlarging the line of its op-
erations, does not appear to have been
authorized or contemplated by the origi-
nal plan or act of incorporation, but
might have been pardoned il the bust
ness itself had been confined within le-
climate channels, and the operations
had been honestly conducted. In April.
1870, however, an amendment of the
original charter was procured which ena-
bled the trustees to lend upon mortgage,
and to hold and improve real estate in
Washington city. Then began the work
OF wasting the funds OF the bank, the
savings of its depositors. by loaning them
upon every sort OF wildcat security.
Everybody within the favored ring "
of spectators and adventurers in Wash.
iDgton city got loans upon such security
as they pleased to offer-upon stock OF
the "Seneca Stone Company. the "Met.
ropolitan Paving Company, "the "Capila
Publishing Company" upon furniture
upon pictures, upon Southern plantations
NC. &c. Then came the inevitable anG
| dismal denouement-the failure of the
bank and its branches and the ruin o.
the poor, ignorant confiding and de
ceived depositors. All this is bad enough
and shameful enough, as the facts show
But the shame does not stop here. In
stead of leaving the affairs of the insol
vent concern to be wound up and admin
istered under the general bankrupt law
applicable to other similar and ordinar,
cases, Congress, by special act of Jun,
rs. 1874, devised special machinery TO
winding up the affairs of this particula
institution by means of commissioner
nominated by the very trustees who ar
accused of having proved thus unfaithfu
to their trusts. The legality. as we'll a
fairness of this mode OF winding mp,
the Nation vigorously calls in question
1t asks where does Congress under tn,
authority given by the constitution at,
pass uniform bankrupt law" get tn
power, in the face of and in derogatiol
Of the provision of that law, to Great,
such especial agency for settling tn,
affairs of one bankrupt" 1t submit
this question. along with all others sug
gested by the history and failure Of tn
bank, to the consideration Of Demo
cratic House of Representatives..
Despairing of getting justice for tn
depositors OF the bank at the hands o
the party which established the concern
as a great boon to the freedmen and thsi
descendants, it almost supplicates thu
Democrtic party not to pass by or trea
eighty as passing joke" "the cheating
Of the emancipated blacks by their liber
ators and protectors.