Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1875-06-24
THE FREEDMAN'S BANK.

THE FREEDMAN'S BANK.
Of all the dishonest transactions which
have been dragged into light, within
the past few years, the most wicked and
heartless are those which resulted in
the failure Of the Frecdman's Bank, in
Washington City, Ii. c., and in the rob-
berry Of thousands of poor colored peo-
pie, struggling in the face of almost in
surmountablc obstacles to become use
full and thrifty citizens. If the negro
has one natural vice, hich il is harder
to overcome than another, it is that Of
improvidence. The condition Of slave
ry under which the present generation
has been reared of course accounts for
this; the colorcd man in the South had
no inducement or opportunity to pro-
vide for the future either of himself or
his children, and il is not. therefore. I'd
be wondered at, that when thrown upon
his own resources hc should subordinate
present en- joymcnt to future wants.
To encourage the freedmen to culti
vatc habits of thrift aud economy, the
Freedman Savings and Trust Cont
Iany WAS formed. Chartered hv th,I
United States, and to some extent m-
der the supervision of the Governments
the colorcd people had confidence in il.
and intrus'"d to it their small surplus
earnings, which, but for it, they would
not have saved at all, or would havcI
placed IN Lc hands Of their old mas-|
tcrs. How they were swindlrd is nowI
an old story, little light having Lc,.I
thrown uron the subject bv tle rc2or.s'
81 the Crmnl'ssl, ,ncra ,,po'nteit ind,
up its affairs. The Washington Rin.l
got control of TIE bank and robbed id
most numerically. Having got posi-
SESSION ct It's Fmanc" Committee, i'd
lent cut It's money to Ring contractors
and Ring operators on insufficient : II
rity, or no security at all, and now
while many of the men VIII" share thl
responsibility for the collapse uf tht
institution have grown rich. the pool
freedmen are unable to Recover thcii
morev. and the prospect Of ever getting
m":c than small Percentage of it is
far from good
The reports concerning this institu-
tion since its failure has given NO more
information than was absolutely ncccs-
sarv, but now and then some purtiru-
lars leak ont which disclose the wick
edness of its mana cement III the very
darkest colors Robert j. Fleming "f
this city recently made an assignment
of his property for the benefit If his
creditors. and an examination of his as
sets hy Il committee Of the latter was
made about Il month ago. The report
Of that committee | row have before
me. Tie very first item of assets con-
siSts of two building lots in this citv
assessed lcash valuc) at SlS.266 -. but
estimated hy Mr.. Fleming to he worth
S25,25i 10. On this the Freedman =
Bank holds deed Of trust for - ,Ol6 66.
and hasi ailtaNcs samouutingto to >663 80,
baking S3l.6So.Ol without the inter
est or expenses. The committee do not
think that the lots will sell for enough
to pay the deed Of trust. In this case
Mr.. Fleming obtained a loan amount
ing to nearly $4,000 more than the as
sessed value Of the property on which
be gave n mortgage for security But
ii Is when we examine the schedules Of
personal property accepted from Mr.
Fleming as security for loans that the
recklessncss Of the management of the
bank becomes most apparent. For iu-
stance, he gave rs security for note uf
S26. 300 and interest Auditors ccrtiti-
Gates at 20 cents, worth S9.1O1 -:
bonds Of the Young Mems Christian
Association at 80 cents, worth 81 500.
and two deeds Of trust amounting to
$4,000; total. Sl5.301 o. Hadall,hese
securities been valued a; par they would
have hccn worth only ST.. sol SS. or
more than $4,000 less than the face cf
the note. In addition IL this, the bank
holds another note Of Mr.. Fleming's for
slO,992 SS. for which i: has not a dol.
lar for security. Mr.. Fleming Isl build
er, and among other work which he did
IN the District was the construction Of
houses for Gen. Howard. Gen Balloch
Prof. Langston. and William J. Wilson.
the colored cashier Of the bank. He
seems to have been kept ahoat solely
by loans from the Frecdman's Bank
If TIE accounts of other Ring men with
the hank could he examined an equally
disgraceful state Of affairs would y. dis.
covered.-N. !. Tr.bEne.