Chapter V 
MISMANAGEMENT AND 
OTHER TROUBLES 
WEAKNESSES OF THE BANK 
OTWITHSTANDING the popularity 
of the institution, the rapid accumula- 
tion of deposits, and the good intentions 
of the founders and some of the later officials, 
there were grave weaknesses in the system, some 
of which existed almost from the beginning. The 
trustees were not bound to any responsibility by 
the charter, nor were they obliged to have a 
financial interest in the institution; the system 
was too rapidly expanded, and several branches 
were established that did not pay expenses; some 
of the officials were corrupt, and more were in- 
efficient; many Negroes were appointed to posi- 
tions which they were not competent to hold; 
the accounts were badly kept, and inspections 
were infrequent; the connection of the officials 
of the notorious District of Columbia govern- 
ment with the bank made people suspect corrup- 
tion; the bank’s connection with the Freedmen’s 
Bureau brought discredit upon the former and 
involved it in politics; the better trustees in dis- 
gust withdrew or neglected their duties, and 
control passed into the hands of the District of 
Columbia clique; many bad loans were made and 
g3 
=