42 THE FREEDMEN’S SAVINGS BANK
New York, took a genuine interest in the bank,
attended the board meetings, helped with affairs,
and gave advice to the inexperienced administrative
 force.”
Before the charter was amended in 1870, no
loans could be made by the principal bank or by
the branches, for, by the law of 1865, two thirds
of all deposits must be invested in United States
securities and the remainder held as an available
fund. After 1870, when Congress permitted the
bank to make loans on real estate, the branch
banks in a few cities were permitted large privileges;
 but, as a rule, to the last, the branch banks
simply gathered in the money and sent to Washington
 all that they did not pay back to depositors
 as interest or as withdrawals.
An inspector traveled constantly among the
branches, examining the books and endeavoring
to keep the accounts in good order. The first
inspector was ex-Paymaster A. M. Sperry, who
had assisted in organizing some of the branches
and who had secured large sums for deposit from
the Negro soldiers. Sperry, who was a good man
for this post, did much to keep the business in
order, but he was heavily overworked. After a
time he was given an assistant inspector.
TRAINING OF NEGRO BUSINESS MEN
In the branch banks, and at Washington after
1868 when the headquarters were removed to
that city, a body of Negro business men was
being trained. There was a growing sentiment
that, since the bank was for the benefit of the
2 Bruce Report, p. 178.