Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-07-13
THE FREEDMAN,S BANK.


credit to the energetic firm who have built
her.
THE FREEDMAN's BANK.
One Of the Blocl;est Chapters in the History
OJ'ti.e Republican Party.
New York Sun.
Last February Representative Muller of
New York introduced, and Congress passed,
resolution ordering three commissioners
| appointed by Grant to liquidate the affairs of
the bankrupt Freedman's bank to render
some account of their stewardship. The re-
| port reluctantly brought out in obedience to
| that resolution is now published, and it is
certainly one of the most remarkable docu-
ments ever given to the American people.
In order to appreciate the edifying per-
formances of this commission, it may be
well to recapitulate very briefly the events
which preceded its appointment. 1t will be
remembered that the Freedmans bank con-
trived in a few years to accumulate some
thing like $4,000, 900 from the savings of the
colored race. The success of this philan-
tropical institution was peculiarly gratify-
ing to such Christian heroes as Gen. o. O..
Howard and to those modern statesmen of
whom Boss Shepherd is shining rep
resentatiye. These gentlemen became SO
eager to forward the interests
of the depositors that they speedily evaded
or thrust aside the over-stringent restraints
of legislation. Thus the charter of the
bank debarred its oific rs from borrowing,
whereupon the Christian soldier, Howard.
resigned his Office of vice-president and
three days afterward borrowed 1924 600 on
rotten securities. Boss Shepherd, for his
part, was unwilling to take an active part in
the development of the institution until the
original restrictions combining loans to
first mortgages and national OF other
approved bonds had been swept away
and accordingly an act to that effect
was passed by Republican Congress
Thenceforward the process of substituting
second mortgages and the scrip of the Young
Mems Christian association, paving COM
panies, or other corporations equally sub
stantial, for the hard earned dollars of the
freedmen went on with startling rapidity.
Nevertheless, the coiored man and brother
would have probably continued to deposit
and allow his Republican friends to manlp-
ulate his deposits for an indefinite period,
but for the light thrown on these operations
by the SIN and other independent news
papers. AS it was, the bankruptcy of the
institutions was stoutly denied and studi
ously concealed by the eminent philantro
plsts who controlled it until at least fit,
per cent. of it's assets had disappeared.
When the club of Republican statesmen
and Christian soldiers organized to inves
the savings of the freedman had finished
their work, and the doors of the bank wer,
closed the most urgent business apparent,
should have been to determine on the quick
est method of liquidation to the end OF Sc
, curing as much as possible for the unlucky
depositors. A Republican Congress, how
| ever, did just the opposite of this. Insteat
of taking measures to obtain a receiver o
, well-known integrity and business capacity
it authorized the President to appoint
? board of three commissioners, each t,
, receive three thousand dollars
: year, payable out of the remnan
OF funds belonging to the bank
Grants selections in this instance were char
acteristic. For the first place in the com
mission he named Cresweu, who had Jus
resigned from the Cabinet to escape i'm
parchment. Next, with the sage declaration
that the board ought to include zone niger,
Grant appointed an aged black man with
benevolent face, named Purvis. who lived i
Philadelphia, and knew little about medi
cine, but of law or banking nothing. Til
third place was given to man named Leipolc
born in Germany, but hailing from Wisconsin
, and rejoicing in the special favor of Senate
Howe. These commissioners were appoint
ed on the 4th of July, 1874, but no accoun
was rendered, and nothing regarding thei
management could be ascertained until tn
report of the Beverly Douglass investigator
committee was made to Congress in MAY
1876 1t was then shown that j. A. ,
Creswell was too much engaged in othe
t business to give any of the valuable time t
the bank; that, accordingly, he paid Leipol
$500 for attending to his part of the bus
ness, and pocketed the remainder of his sa
airy. 1t appeared that the colored man Pun
1 Wis followed the example of CreswelI III eac
a particular, and that in the hands of Leopold
a thus invested with exclusive control, th
funds left to the bank on the morrow of il
] collapse were swiftly vanishing, under I'll
guise of an expense account. 1t was di
tinctly charged by Mr.. Douglass in h
g report that Grants commissioners "re
4 garding what remained of a sa
s wreck as legacy for the benefit
e themselves and their retainers.'' Of cours
!, the charges of Democratic Congressma
) were Indignantly replied, but now, after til
s lapse of some two years, they are more tina
: sustained by the statement wrung from th
Q commission by the Muller resolution.
r The fact is now admitted by the commi
e sioners that in three years their so-calIed q,
J, pense account has reached the enormou
: sum of $4,000, of which more than Sc
!. COO went to their own salaries and those
e their clerks. The amount paid in fees
j favorite lawyers was upward of $4,000. IL
larger share of this being secured by or
Enoch Totten, son-in-law of Senate
= Howe. No wonder the board has require
two years to pay dividend of ten per cent
t making but thirty per cent. in all yet r
t turned to the depositors.
a The Freedman's bank was created by Il
:. Republican party. It's managers, from {
n o. Howard down to Ex-senator Pomero
!, were Republicans SO are the commissions
n whose discharge of their trust we are no
I able to judge by their own report. Th
d statement was delayed until COMPRESSION
n action at the late session was improbabl
e But when it again meets, let Congress asse
a its prerogative, and wipe out scandal tn
: has become national, by snatching from Il
: hands of the present commissioners ar
3 their legal parasites, the scanty remnant ST
, belonging to the victims of the most colo
sal scheme of swindling hypocrisy that Il
e world has known.
: Sam Cary the great Greenbacker of Cinci
natl. is quite enthusiastic over the prospects
fho NofS lie IT,, H..