82 THE FREEDMEN’S SAVINGS BANK
depositors had become alarmed, and three serious
 runs had been made within eighteen months
which reduced the deposits by $1,800,000. Business
 depression came, real estate declined in
value, the bank could realize on few of its
securities, and the bad loans could not be called.
Jay Cooke and Company and the First National
Bank failed, and, in order to pass the crisis, the
Freedmen’s Bank had to sacrifice its best securities
 and also borrow at ruinous rates. While
the “runs” were going on some of the trustees
and officers removed their own accounts. It was
understood among the officials that each would
look after the others’ “safety’ in case of a disastrous
 run.*
These “runs” came just as the deposits became
large enough to pay the expenses of the bank.
They were caused by rumors of the use of funds
for political purposes and by newspaper criticism
of the management and policy of the institution.
As a result of the heavy withdrawals the authorities
 were forced to require the depositors to
give sixty days or more notice before drawing
out deposits. This action, though legal and provided
 for in the regulations, did much to destroy
the now uneasy confidence of the Negroes, and
few additional deposits were made during the
latter part of 1873 and in 1874.% The Comptroller
 of the Currency reported in 1873 that there
was serious mismanagement in the affairs of the
bank, and in February, 1874, a national bank
2 Bruce Report, pp. 78, 181, 222.
41 have been unable to ascertain how much was deposited after
March, 1873.