The Freedmen's Savings Bank

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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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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter V. Mismanagement and other troubles

Collection:: Economics Books

MISMANAGEMENT AND OTHER TROUBLES 71 a headquarters building and $170,000 paid for property at branches was illegally taken from the principal of the deposits, for only in 1872 was the annual income really sufficient to pay running expenses and interest on deposits. The amendment was secured principally through the efforts of one of the finance com- mittee, W. S. Huntington, who was cashier of the First National Bank? and who belonged to the District of Columbia ring. The reasons for the changes, as given before a committee of Con- gress, were: (1) That the United States debt would probably soon be refunded at a lower rate of interest and that the bank could not then get a sufficient income from its investments in bonds; (2) that money was worth more than 5 per cent, and that unless the bank paid at least 6 per cent interest on deposits the freedmen would place their funds elsewhere. Consequently the bank must make more money. It was claimed, particularly in the South whence came most of the deposits, that there was a general demand for loans and that a high rate of interest could be secured. It was also asserted that the new arrangement would enable the bank to con- tinue the 6 per cent rate of interest on deposits and would satisfy those depositors who thought that “the money ought to stay at home,” while under present conditions the Negroes regarded the branch banks as a “drag net” to bring the money into Washington.* Representative Cook, of Ohio, introduced the 2 See Oberholtzer, Jay Cooke, passim. 2 fo. Misc. Doc. No. 16, 43 Cong., 2 Sess., p. 66.

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