70 THE FREEDMEN’S SAVINGS BANK
in office on account of his popularity among the
Negroes.
The actuaries, first Eaton, and later Stickney,
the nephew of Eaton, conducted business very
much as they pleased, and as the speculators
inside and outside wanted them to do. As a
token of the regard in which he was held by the
speculators who borrowed money from the bank,
Eaton possessed a number of shares, which cost
him nothing, in one of the various public works
companies of the District. A great deal of the
bad paper held by the bank bore Eaton’s
endorsement.?
THE AMENDMENT TO THE CHARTER
The hoarded deposits of the Freedmen’s Bank
having attracted attention of the speculators in
Washington, an amendment to the charter was
secured in 1870 by those of the trustees who were
in sympathy with a more active loan and investment
 policy. The amendment merely provided
that one half of that portion of the deposits
formerly invested in United States securities
might be invested in notes and bonds secured
by mortgage on real estate of at least twice the
value of the loan. The bank was also authorized
to improve the real estate that it already held,
provided that none of the principal of the deposits
 should be used. The inference is that the
bank was already holding property in violation
of the original charter, which permitted no investments
 in real estate. The $260,000 spent on
2 Bruce Report, pp. 51, 58, 109, 110, 119, 178, 222; Douglas Report,
pp. 36, 89. 91, 95,