THE FREEDMEN’S SAVINGS BANK
The incapable ones were controlled by the few
efficient ones who, after 1869-1870, were the
District of Columbia members. The latter
formed a kind of “ring” for their mutual benefit,
and were involved in financial operations that
made their connection with the Freedmen’s
Bank of considerable value to them. They were
at once officials of the bank, and officers of the
Bureau, or of the army, or of the government
of the District of Columbia, and some were interested
 in corporations which wished to borrow
from the bank. The two Howards, Balloch,
Whittlesey, Alvord, and Smith were Freedmen’s
Bureau officials and were connected with Howard
 University, and with other extensive borrowers;
 Cooke’ and Huntington were officials
in the First National Bank, which unloaded some
of its bad loans upon the Freedmen’s Bank;
Cooke, Eaton, Huntington, Balloch, and Richards
 were connected with firms that borrowed
large sums, notwithstanding the fact that officials
 of the bank were prohibited by law from
borrowing from it, directly or indirectly. Several
were also connected with the Building Block
Company of Freedmen’s Bureau fame. There
was hardly an officer after 1871 who was not
connected with some outside interest that borrowed
 from the bank.”
The trustees were under no bonds to secure
7 Henry D. Cooke, brother of Jay Cooke, was the first territorial
tl fas District of Columbia (1871-1873).—National ye. Biog.,
, 510; Cyclopedia Amer. Biog.; Oberholtzer, Jay Cooke, 11, 556.
18 For example, the Seneca Sandstone Company and the Metropolitan
Paving Company.
© See Peirce, Freedmen’s Bureau, pp. 117, 123.

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