The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-05-22
Hobbing Seventy Thousand Poor Me-
grOes.


gr0es.
II Is now about four years since THE srv
began its exposures Of the rotten cond-
ton of the Freedman's Savings and Trust
Company, generally known Us the Freed.
mans Savings Bank. Before the Presi-
dental election of 1879 we published the
fact that the deposits were being filched
by the sharpers Of the Washington Ring,
who were getting loans upon false securi-
ties, such as the pledge Of shares or bonds
in the notorious Seneca Sandstone Com
pany. In fancy paving companies, and
mortgages upon Ring real estate appraised
at fictitious values. Later we gave de-
tailed accounts OF the various transactions
by which the Ring were systematically
plunderlng the freedmen. and we con-
tinued our exposures up to tue time of the
final collapse Of the hollow concern. which
followed shortly upon that Of the wildcat
banking Arm of JAY COOKE < Co. During
the whole time that we were pleading for
justice to the poor negroes, who were be-
Ing so numerically swindled, THE SUN
was the subject of abuse from GRANT or
gans oil over the land for daring to tell
the truth about this and kindred atrocities
for which the present Administration must
he held responsible.
The Freedmau's Savings Bank was insti-
tuted by act of Congress in 1885. It's object
was explicitly set forth in the fifth section
OF Its charter as follows:
.sIc s. And os q n.rtasr enacted. That the general
may b. from time 10 time offered therefor oy or on be-
half OF persons heretofore held in slavery 10 the United
tatcs, their descendants. and iuyest N
ns Noct Oeni, nred'nry notes. or other securities Of
Had the original design OF the institution
been faithfully carried out, the depositors
would have been secured from loss, would
have received interest on their savings
regularly, aud would thereby have been
encouraged in habits of frugality and
thrift. The first managers OF the bank
were manly men of character. animated
by sincere desire to help the inexpe-
rienced freedman in his struggles for
livelihood under the new condition in which
he found himself at the conclusion of the
war. But when the savings OF these poor,
helpless creatures-who were delight
ed ut the idea Of having q bank
Of their own-came rolling in until
the aggregate reached millions. the
was aroused, and the honest men in the
direction were soon crowded out, to be re-
placed by special friends OF Gen. GRANT,
like HENRY ID. COOKE and his confederates
OF the SHEPHERD Ring.
The result Is but too well known. Hav-
Ing seized the direction of the bank, the
Ring began their work OF robbery forth
with. As SHEPHERD and COOKE were
among the Most cherished personal friends
of the PRESIDENT, they had no difficulty in
getting from the Republican majority in
Congress whatever legislation was neces-
sary to enable them to carry out their
predatory designs. Their hrst step was to
secure an amendment to the charter re-
moving the freedmen's infallible safeguard
for the security of their deposlts-the wise
provision that the funds OF the institution
should be invested only "in the stock,
bonds. Treasury notes, or other securities
of the United States" This barrier to
fraud removed, the remainder Of the work
was simple enough. All they had to do
was to help themselves, and they did il
with a vengeance. 1t is not necessary &c
repeat the various devices resorted to by
the conspirators TO absorb the deposits
the story has frequently been told in THE
SUN, and again in the abstract OF the re-
port of Mr.. DOUGLASS committee. who
more than sustained all that we have ever
charged against these robbers of the Ia clip
less freedmen.
The amount OF distress which has been
occasioned by the failure of the Freed.
mans Bank may be family estimated, wheI
II is known that the unpaid depositor
number no fewer than 70, 900, scattered al
over the Union, but mainly in the South
ern States The funds OF many charitable
societies were lost in the general wreck
Hundreds Of instances of individual hard
ship OF the most pitiable character have
been related in the Southern newspapers
doubtless thousands more have existed OF
which no public mention will ever b.
made. To add TO the iniquity of this
gigantic larceny the ignorant negroes OF
the South were told that they were lend
Ing their money to the United States Gov
eminent, and the CONSERVATION Of the
deluded Victims may be imagined when
they discovered their mistake. In many
OF the thirty -four branch banks which
without authority OF law, had been estab
lished in various parts of the country as
feeders to the main concern, the officers II
charge seem TO have folio wed the example
of those in the parent institution, by
apprOpriating the funds In their control
without even the form of ceremony.
The sequel 10 this swindling history ex-
hibits in striking light the insensibility q
GRANTS low nature. II has been show,
that the robbery of the oonf.dluE freed
men was accomplished by intimate per
sonal friends Of the Presi dent, who acquire
their opportunities Tor plumber throug
the power his friendship gave TO them.
Is also known that while the robbery wa
going on, the President was q large shar,
holder IN the Seneca Sandstone Compan,
which drew so largely from the funds {
the bank; while 1t is generally believe
that he is, or was, a partner with Bo,
bHEPHERD and Measurer DABcocK In Rim
real estate operations. Under these eli
cnmstanoes IL would naturally be sur
posed that 1t would have appeared to hin
Aap point OF personal honor that he shout
sAert himself to the utmost TO procure a