The Freedmen's Savings Bank

Bibliographic data

Monograph

Identifikator:: 175265076X

URN:: urn:nbn:de:zbw-retromon-129631

Document type:: Monograph

Author:: Fleming, Walter Lynwood http://d-nb.info/gnd/120660560X

Title:: The Freedmen's Savings Bank

Place of publication:: Chapel Hill

Publisher:: Univ. of North Carolina Press

Year of publication:: 1927

Scope:: x, 170 S.

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter V. Mismanagement and other troubles

Collection:: Economics Books

MISMANAGEMENT AND OTHER TROUBLES 59 ence and ignorance of cashiers at the branches. They had not always the courage to refuse re- quests for favors made by influential men, and from the beginning certain favored individuals were frequently permitted to overdraw their accounts. Before 1870 when loans were forbid- den the prohibition could be avoided by allowing overdrafts. Although in the long run not a great deal was lost in this way, in many instances it was quite difficult to secure the payment of this money when it was badly needed. The Negro officials were sometimes over-persuaded by a certain strenuous kind of speculator, such as Vandenburg, the District of Columbia public works contractor, who usually managed to make “Daddy” Wilson, the Negro cashier in Washing- ton, allow his overdrafts even when Wilson had positive instructions not to permit such favors. It was easier at some places for a white man to borrow money than for a Negro, and many whites secured loans on too easy terms. Churches which were in debt also found the Freedmen’s Bank a too considerate creditor. After the charter was amended in 1870,° the cashiers at the principal branches were permitted to make loans on real estate. This amendment of the charter was designed to overcome the many objections to the original policy of the bank in gathering deposits all over the South while lending or investing mainly in the District of Columbia. As soon as the cashiers were given authority to make loans, they were besieged by a dangerous class of borrowers, who would have 9 See Appendix, p. 136.

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