The silver state. [volume] (Unionville, Nev.) 1870-1903, 1880-03-09
TEE 7FREEDmEN,s BANK.

seine Washington philanthropists, who
saw they could turn their benevolence
to personal advantage, while protesting
to be actuated by unselfish motives, or
ganized what they called the Freed
mems Savings Bank. The parent bank
was established in Washington, with
branches in many of the principal cities
of the South, under charter granted
by Congress. The express purpose of
tie incorporators was to give the poor
freedmen an opportunity to deposit
their savings in bank that would in.
vest them for their benefit. The char
ter restricted the investments to
Government securities, which were then
selling below par and drawing high
rate of interest. General o. 0. Howard,
who, in consequence of his piety and
general solicitude for the welfare of the
poor freedmen, became known as '"The
Christian Soldier" was one of the
promoters and Directors of the bank.
lie and the other Directors loaned the
freedmens savings deposited in the
bank and consigned to their especial
care, to political spectators on worth
less securities, and Howard, who was
considered a poor man when the bank
was opened, contributed $lO0,000 to
build what was called the Howard
University" at Washington, for the
education of colored men. The restric-
tons placed upon the Directors of the
bank by its charter were ignored, and
over $1,000 600, the savings Of hun
dreds of thousands of poor negroes, de-
posted in the bank, were loaned by the
Directors to themselves and their
friends on worthless securities. Of
course, the bank collapsed, and the poor
depositors were swindled out of their
hard earned savings. As this was dur
ing the good old days of ring rule, when
Boss Shepherds power in Washington
was equal to Tweed's in New York
City, and rings controlled legislation in
Congress, and it was rank treason to
comment unfavorably on anything done
Under the sanction of the Government,
the Directors were not even censured.
The military being more sensitive than
the politicians, however, tried General
Howard by court-martial, the officers
of which were more politicians than
1ldlers, and Whitewashed him. A
commission was appointed by Congress,
at salary Of $1,000 per annum, aud
clerk hire and incidental expenses, to
wind up the affairs of the bank. The
three Commissioners took possession Of
the assets, and though they have been
drawing their salaries regularly for
years, until the assets, which, when
they assumed charge, amounted to two
or three hundred thousand dollars,
have been almost used up in defraying
their expenses, they have never ac-
complished anything that redounded to
tie benefit OF the depositors. Now that
the assets are reduced to mere moth
ing, tae commission is to be abolished
aad the affairs Of the bank placed in
charge of Government officer, who is
to receive a salary of 81, 900 year.
Congress is now investigating the
conduct of tie managers Of the institu-
ton; but it is too late. The Christian
soldier, General Howard, has been be-
tone the Investigating Committee, but
though the books show his personal ac-
count to be ovcrdrawn TO the amount
OF several thousand dollars, he claims
t at this was reduced by "deposit
s PSI and drafts, to $500, and this he
neither admits nor denies. The man
a ,ers fixed the books to suit them
selves, and will 60 unpublished, and the
swindled depositors will get nothing
1t was announced by telegraph some
time ago that member of Congress
from South Carolina introduced a bill
to appropriate $1,000, 900 to reimburse
the depositors in the Freedmen's Bank, |
bat nothing has been said of the bill |
lately. In justice to the freedmen, that
bill should pass. as Congress was in a