The broad ax., 1914-05-09
BY RALPH W TYLER.

tons and insurance companies by
AfrO-Americans. Banking and inSur
ance are usually regarded as possibly
the two highest forms of business &C
tiyity and requiring more care and
financial acumen that any other forms
OF business. The chances of success
In each are more limited and the pos
sibilities Of failure greater than in any
other line of business.
They are. too. the only two branches
Of business intn whose mysteries the
Negro has had no opportunity TO be
come verSed. since. with perhaps but
few. rare and Isolated instances. white
banks and white insurance companies
have afforded the Negro no OppOrtuni
~ to learn. have not employed him eX
cept as janitOr. which position is sc
far removed from contact with the nc
tual business operations as TO make It
impossible for one thus employed t.
gain an adequate knowledge Of the
business.
How he has succeeded In mastering
the banking and insurance businesses
without opportunities to learn is al
most as great wonder as any enumer-
ated In Mother Shipton's prophecies
made several centuries ago. That he
has learned the banking and i:ISur-
ance businesses. has developed them
and is now conducting these branches
of business with signal success cOnsti-
tutes one Of the best possible answers
to the statements by anti-race men that
the Negro is an inferior race.
Or. w. r. Pettiford as Pioneer Banker.
AS l recall. Dr. Pettiford, president
Of the Alabama Penny Savings bank.
was the pioneer Negro banker. He
evolved from a minister of the gospel
to a banker possibly because Of having
read so often In the Bible Of the virgin
who returned with 10 talents after
having been given 8. When DR.. Petit
ford established his bank at Birming
ham incredulous white men did not re-
gard it as serious enough to last and
many colored men regarded IL with
distrust. as a sort Of chateau en-
Espagne. Today a magnificent steel
building Is the home Of that bank and
over $4,000 in resources and regular
annual dividends paid attest Its wise
and conservative management. In
spired by the success Of this bank.
other hanks have sprung into existence
in other states.
In every city have visited I'm which
was lU.ated Il bank or insurance COM
pnny made il my business to call
upon each and ascertain facts about
its establishment and its conduct.
IT'S assets and liabilities and the per-
SnnnpI of its officers. was &C.
rOrlrd every opportunity to get at the
facts-to learn the real condition OF
the institutions at the time. There
WAS no restriction as to how far ]
should go nor any reservation of facts
and figures.
or the sixty-four Negro banks that
have been established from time to
time not over ten have failed. and Of
those which failed perhaps not more
than two can charge their failure to
fraudulent peculatiOn on the part Of
officers. This speaks well for the hon
esty Of the men who have controlled
the colored peoples money -intrusted TO
these banks. The record Of white bank
failures shows a very much larger per
cent of failures due to fraudulent
transactions Of officers. The greater
number Of Negro banks that have fail
ed can honestly attribute their failure
to either the failure Of some big white
bank regarded as a financial Gibraltar
through which they cleared, TO strin-
gency which made IL impossible tn
realize upon good securities or to e1-
cessive loans honestly made on what
was regarded as fair security.
Percentage OF Failures Very Small.
And the record OF failures Of white
banks shows a very much larger per
centage Of white banks going down
either in good or In panicky times. than
colored banks. Banking records also
show that. In proportion to numbers. In
lIouidating. colored banks that have
failed have paid a larger percentage of
their liabilities than have the white
banks. This is indeed a splendid show
ing and a high commendatiOn for the
Negro as a banker. ! have visited
banks conducted and controlled by Ne
groes in Montgomery. Ala: Tuskegee
Ala: Birmingham. Ala: Jackson.
Miss: IndianoIa. Miss: Memphis.
Tenn: BOIey. Okla: Mound Bayou.
Miss: indianapolis. Ind, and Washing
ton and Philadelphia. Pa. All appeared
10 be inteIIigentIy and conservatvely
conducted. and each had resources sui
acieut IN excess Of liabilities as to rem
der them safe and sound" and able tn
stand the most serutinizing investiEa-
ton by the bank examiner.
with the decreasing number Of Negro
hanks being established and the safe
and successful operation Of those al
ready established. an opportunity 3 b