The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-07-04
THE END OF A DISGRACE.

I building o! the department OF justice VII
b rasoa IN few days The effects Of III,
attorney general have been removed K
". senator PAlmer's former residence.
The edlaee from which ;he department
o, Justice migrated has q history OF TO.
nance and injustice.
The Froeimen's Bureau came into exist.
eacc during the early days OF roconstruc-
ton. Its inception was from fond paren-
tai idea thar the freed slaves. and cspe-
eIalIy those who fought in the war, ought
TO have some one TO care for their money.
Agencies we're established at Beaufort and
Norfolk. Then came the Organization of
the Frecdmeus Saving and Trust company.
with ATTY trustees or directors, most OF
thom men OF National reputation. among
them being Peter Cooper and William Gull
len bryant, Headquarters were established
at Washington. and this buildingw as terc
~ Washington, and this building was
erected Al a coSt OF half a million dollars.
II was traudnlentiy constructed. 1t wa
unsafe.
When the Freodmen's bank failed. ten
years after It's organization, this part Of It's
assets was sold to the government for Just
a quarter OF million and the scene of
crime became the seat for the dispersal
tion OF the highest judicial opinion.
~
With the arm establishment OF the bank
the broadcast opportunities were afforded to
the freedmen OF the country to deposit
their savings. Auxiliary banks were put
In operation in New York. Baltimore and
Philadelphia. and no less than thirty four
agencies were scattered throughout The
South Money poured into the Golfers Of
the Institution, for il was an assumption
that the credit OF the whole Union was in
Solved in It's pcrpetuity and honest ad-
During the ten years of its
existence there were on the books upwards
OF 10000 deposi,ors, and the deposits ag-
gregated more than 50,000,000.
General o. o, Howard was tho president
He was q NAN OF the highest Christian
character. and eveyone had confidence in
his abilities and probiiy. The late Fred
erics Douglass was another OF the high
officials OF the institution. and his name
was guarantee 10 the colored population
OF the States
All the secrets of the operations OF the
bank Will never be known. hut strange
hing came 10 pass In 1870 when move (
nent wgs made IN congress- 10 amend the 1
charter OF the bank 10 permit investment /
~ the funds IN real estate. The charter /
tAF F4NflNNNl lbl investment only IN GON- /
'rnment or other easily negotiable secur- /
les, whose stability could not he quest |
Toned. When the proposition was made !
o give the managers the legal privilege (
" engaging in real estate speculation 1t I
vas easily recognized that there was lit |
rally Niger in the woodpile."
It is TO the lasting credit OF Senator ST.
non Cameron, who had come forth from
he furnace OF the war with something
more than the smell OF fire on his gar
nents, that he warned the senate and
ouse that such step would surely mark
he beginning Of the end OF the Freedmen's
1nk, As eloQuently as he had ever spok-
n on any subject, he iaveighed against
he granting of this privilege. telling of
Is own experience with banks that in
ested In real estate, and found II impos-
ihle 10 realize on their holdings in time
distress. He made the plain prediction
ha, IN the presence of the craze for real
state investment. the fictitious values ,
lat were quoted by reason OF certain con-
iiions brought about by the existing, Dis !
ret government, there would unqesiion-
Dry De made bad Investments, and that |
ne institution would surely be banrupted /
ne lobby In support OF the measure was /
ronser than any warning OF wisdom or \
Sperience. The circle of real estate SPEC !
iatoFe, strong in this day, when an on !.
oftunity Is presented for large invest !,
ent or government or banking funds =
as at that time in its hrst mature bloom !,
ld vigor. and in the vas, moneys OF the .
reeamens Savings and Trust company :
roht. Y
In an Incredibly short time it was found
at the bank was crippled. Within four
'ars after the solemn warning uttered
senator Cameron. the doors of the big r
own stone front across the avenue from q
G treasury department closed. and tens n
thousands of poor depositors who had
aoed all their savings there were plunged .
10 distress. g
Al the time of the failure there were ID
ore than Bi;OOo depositors, and there was h
lie them s2,9ST,se5. In those DAYS n, -
ne 1879. when IT was announced that the ',
NIX had failed there was gloom among 5,
Q coloFed population of the country NJ
no ehd OF stories of scandal every "
lere General Howard was investigated "a
I he was found innocent of any moral r
legal obliquity. ca
NOBODY was found worthy OF blame, n +
y TIME OF panic Many banking insti bl
lions eupposed TO be solid had failed. II to
9 a period Of fearful turpitude as we'll OF
ehureh circles the Tllton- Beecber ~ 50
I hhd shaken the social fabric 10 lie at
The Boss" Tweed reveIa- w
ms were at the front Pacific railraad N
oerles, salary grab. safe burglary, dis- TO
ot government affairs we're on the pnb- so
tongue throughout the country. hc
the failure OF the Freedmen's hsnL u,,s a.
y one oi many sensations that shook te
public mind and confidence in mar ~,
nal affairs. va MI
great measure the negro depositors
Inc Freedmen's bank received tho news -,
lthe failure with a sort OF dumb despair -,
~ only half understood the meaning NJ -,
occurrence. Nearly all OF them Ia
'sd that Uncle sam was the hacker q, -.
institution In which they had nlacsd orl
~ trust, and the blow Therefore faii 10
~ them with nothing like the yio,.nca ant
would have been felt II they had fullv 70
dprehehded the extent OF the disaster the
thousands OF negro soldiers who haa enj
sht IN inc battles for tho Union ana sar
OF thousands Of others who haa a. vii
seu Tue new :ound toy OF Iibcr,v ns IN
plhser OF untold riches. had denosit,ns OF
y penny OF savings earned nv wort, der
: moIe unceaslng and laboriolls man
hau ever endured under the eva 81
,seelS IN thls bank, which was sunno.sa n
&c as secure from pilfering or misnsnN
ment as tho store ~ 49, 's'sh- con