The times. [volume] (Richmond, Va.) 1890-1903, 1898-07-17
A Treasury Official Tells Something
Of Its History.
SAVINGS INSllIUllON'
Had Thirty Branches Located In the
Southern states and over Seventy
Thousand Depositors-Ihe
Available Assets ofCompany'

,tto, ,ooosi1re failed OF passage because
Republican Congressman could not 10
induced 10 act until II was 100 lale'
II IS safe 10 say that very Re" pe9P'
know anything about the bank anu q
briaf history given a few days ago TOT
no benefit Of The Times readers by Mr.
n = Kane. of the Office OF the onnp-
trolIer of the Currency will prove OF
interest.
Durlng the progress Of the war re-
tvveon me states when the colored sol
diers became a considerable element III
the military service Of the UnlieI olaleS'
n was deemed necessary 10 mAtc soiio
provision for the safe Keeping o. W." va.
nav and bounty moneys FOR tec teLent
~ themselves and their families. 10
meet this exigeucy a military saVinEa
hank was established at Beaufort - =.
another at Norfolk, Va. centers az that
time Of colored troops.
THE SUGGESTION.
The subsequent emancipation or the
race increased the necessity Tor aaa sub
rested the advsablity or establishing
some financial agency which would more
fully meet this demand, and congress
under date Of March g. 1868, passed an
act constituting Messrs. Peter Cooper
William = Bryant and fOrty-eight 9th
era a body corporate. under the title
of the "Freedman's Savings and trust
Company ito receive on deposit such
sums Of money as may from time 70 time
be offered therefor by OF on behat or
nersons heretofore held I'm slavery IN the
Ivnited states or their descendants and 10
invest the same In the stocks, bonds
treasury notes or other securities OF the
United states" No capital stock was
required but in lieu thereof the charter
permltted not exceeding one-third or the
deposits to be retained In readily con
vertlble form for the purpose OF meeting
Withdrawals and TO defray the operat-
Ing expense OF the bank.
The principal office OF this institution
was located in Washington opposite tho
north front OF the Treasury Department
in a four-story brown-stone bulldlHg
After the failure Of the bank this bmld-
ing was purchased by the Government
FOR the sum Of $4,000 and has since been
occupied by the Department Of Jusuce
and the Court Of Claims.
FRIEDMAN BANK SYSTEM
At the date OF failure the banking
company had thirty-four branches or
agencies I'm active operation which were
located at colOred centers or population
throughout the Southern States except
one each In New York, Philadelphia ana
Baltimore.
During the ten years OF It's active
existence the deposits I'm the institution
aggregated over -. 'W anu lN' "NF"'''N'-
numbered over 10000.
From 1865 TO 1870 the bank seemed 20
have been honestly and iudiciously con-
Quoted by the trustees I'm charge OF US
affairs and aDparently 90 have enjoyed
the fuU confidence of it, deposltOrs I'm
the knowledge and belief that their
moneys were required by the charter act
10 be safely invested I'm the stocks. bonds.
treasury n6Tes and other securities of
the United States.
In MAY. 1870. however. Congress amend
ed the act OF Incorporation empowering
the trustees 20 invest One-halt OF the
deposits received lin bonds or other notes
secured by mortgage or real estate In
double the value OF the loan rms
amendment opened the door 10 the wild
speculation I'm real estate which imme-
dlately followed It's passage and TO other
culpahle transactions which soon an
sorbed the funds Of the bank and led
TO the failure OF the institution
MR. CAMEBONS PLEA.
When this proposed amendment was
under discussion In the Senate, MT.
Cameron. Of Pennsylvania, strenuousy
opposed its adoption and declared IL
would lead to the disruption OF the IN
stituton. as the funds Of the bank, he
said. once invested in real estate would
be difficult 10 get back. He contended
that the principle proposed was dam
gerous one. and one which should not
be incorporated into any banking insttu-
ton. lie said his experience had been
whenever a bank Of that character in
vested its funds In real estate 10 went
10 destruction. This prophecy was iul-
filled four years later.
At the time this radical change was
authorized in the character o. securities
10 be taken for loans the deposits
amounted 10 at least S2OW,OO Had the
original act been allowed 20 remain as II
was and its requirements been compiled
with the face value Of the United states
securities which the bank should nave
then held would have exceeded the sum
stated by a very large percentage ana
their market value would nave beeh
much greater, but al the date Of the
failure of the bank only 800 i'm United
States securities We're found among us
assets
TO WIND IT UP.
The same amendatory act provided Tor
the winding IN Of the bank and all or
its branches. whenever the trustees
might deem Il advisable, by the appoint
ment by them Of three commissioners
10 he approved by the Secretary OF the
Treasury. one OF whom should be COLI
ored man.
on June q. 1874. the bank having been
ascertained to be insolvent was closed
nv a vote OF the trustees who appointed
three commissioners TO wind no its at-
fairs They served from July II, 1874. 10
Febr,iarv n 1851, on which later date
bv act OF Congress all the remaining as
sets of the bank were transferred 10 the
custody and supervision OF the Comp
trolier Of the Currency. who. since that
time has had charge OF the liquidation
OF its affairs and whoever holds the Of
fee OF Comptroller Is ex-ofticio commits
sioner of the trust
At the time OF the failure OF the bank
there were 81 1S1 depositors 10 whom was
due s.. 1893 925.22. Between November ].
1875. and May T. 1883. five dividends were
declared amounting 10 60 per cent and
aegregating 81. SO. 1862 OF this amount
there was called for and paid 81 LESS 25949
leaving slS4 494l3 unpaid and barred by
the act approved February p. 1881, which
act required all claims against the trust
TO be presented within six months from
the date OF It's passage and all dividends
TO be called for within two years from
the date OF their declaration.
CLAIMS PROVED.
Claims 10 the number OF 1876 were
proved by depositors In the Washington
branch to whom was paid 1872 2o3. 50.
.rhe act OF February n ISL was
amended by the act OF February T. lS8
which authorized the payment OF all
claims filed within the two years llmita-
ton fixed by the former act Under this
amendment 81 4Si.l0 barred claims were
revived. OF which amount there had been
paid up n December 4. 1897. sl0,735. sS.
leaving still uncalled for on that date
$685.
The report for the year ended Deem