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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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter V. Mismanagement and other troubles

Collection:: Economics Books

82 THE FREEDMEN’S SAVINGS BANK depositors had become alarmed, and three seri- ous runs had been made within eighteen months which reduced the deposits by $1,800,000. Busi- ness 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 se- curities 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 dis- astrous 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 au- thorities were forced to require the depositors to give sixty days or more notice before drawing out deposits. This action, though legal and pro- vided 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 Comptrol- ler 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.

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