Year: 1874

EFFORTS TO KEEP REPORT ON IT SECRET AFTER


II HAD BEEN PUBLISHED-A PLAIN QUESTION


OF BUSINESS ETHICS.


lrRoM A REGULAR CORRESPONDENT OF THE TRrBUSE.l


WASHINGTON, April 26.-It was amusing to those
who knew that the report on the condition of the
Freedmen's Savings Bank appeared in The TRIBUNE
os saturday to hear Gen. Hawley on that day OPP
posing in the House the motion of Mr. Bromberg to
have il printed The Speaker, who, like Hawley,
supposed that the important document had been
safely lodged in the Banking and Currency Commit
tee room before anybody saw it, told Bromberg that
the only way to get at it now was by motion 10
reconsider the reference. This motion was entered
upon the Speakers suggestion. Hawley's Objection
to printing the report was that the Committee
had not determined whether it ought TO be made
public or not He, perhaps, did not know that OIL
cial reports sent to the House in compliance with its
express directions public matters, which every
member has right 10 see which are always printed
unless the House thinks they are not of sufficient
importance to warrant the expense, and which 1t is
manifesty improper to smuggle into committee
room and put under lock and key.


The sole object in passing the resolution calling
for the report on the Freedmens Bank was TO get
the facts before the House and the public In at
tempting to cover up these facts the Committee of
which Gen. Hawley is member, have no doubt
acted on the belief that such course was BEST III
order to protect the bank against run Of alarmed
deposltOrs and that il would ultimately work to
the advantage of the creditors of the insovent insi
tuition There is another side of the question, how
ever. which the Committee do not appear to have
considered


Every day hundreds of new deposits are being
made in the parent bank and its branches. is 1t
lust to the persons making these deposits that the
House having in its possession official information
that the liabilities of the institution exceed It's as
sets by the sum of 217SS6 should conceal this in
formation, which, if made public, would save them
from losing their money! The plainest principles
of business ethics appear to require that the true
condition of the concern should at once be pub
6shed Congress chartered the institution, and the
beef is general among the colored people who place
their savings in il for safe keeping that the Govern
ment guarantees its stability. 1t is already ABOUT
four months since the condition OF the bank was
discovered by Examiner Meigs, and II the Committee
had been able to control the matter there Is no tell
inc how much longer the information would have
been kept from the public, and people allowed TO go
on making deposits.


Among the assets Of the Freedmens Bank par
tial list of which was printed in The TRIBUNE OF
Saturday was an item of S14i,1G4 to j. V. w. Van
derbureh on Board of Public Works Auditors GER
tGcates and District of Columbia bonds of the face





that yanderburgh who was a contractor with the
Washington Board of Public Works, was unable to
ce+ his nav or to 90 on with his work without re-
ceivino some of the money which the Board owed
him but as was generally the case in the Fall OF
1872 and Winter of 1S73 the Board had no funds
Gov Sbepberd then executive officer OF the Board
induced the officers of the FTeedmens Bank, how
ever 70 advance money the securities held by
Vanderburgh and promised that when Congress
made An appropriation the certificates, etc., shouid
he maid. This promise was not kept with the Freed
mems Bank though the certificates held by the TWO
Ring hanks. the First National and National Metro
politan. were paid out of the money voted by Con-
o,ress If the Board of Public Works was
able TO meet its liabilities, and the bonds and stock
of the Seneca Sandstone Company, another OF the
Washington Ring speculatiOns. conld be redeemed,
the deficiency of the bank would be nearly II not
quite made up.


II is the opinion of the members of the Committee
on Banking and Currency, who have spent two


months in investigating the condition of the Freed
mems Bank that the concern is now In honest and
nrudent hands and that the managers are doing all
thew can to correct the of their predecessors
by drawing in insecure loans and closing up the
weak and Improbable branches in the South. The
Committee also believe that the bank, If not forced
into IQuIdation can in course of time, be brought
into condition OF solvency.