70 THE FREEDMEN’S SAVINGS BANK 
in office on account of his popularity among the 
Negroes. 
The actuaries, first Eaton, and later Stickney, 
the nephew of Eaton, conducted business very 
much as they pleased, and as the speculators 
inside and outside wanted them to do. As a 
token of the regard in which he was held by the 
speculators who borrowed money from the bank, 
Eaton possessed a number of shares, which cost 
him nothing, in one of the various public works 
companies of the District. A great deal of the 
bad paper held by the bank bore Eaton’s 
endorsement.? 
THE AMENDMENT TO THE CHARTER 
The hoarded deposits of the Freedmen’s Bank 
having attracted attention of the speculators in 
Washington, an amendment to the charter was 
secured in 1870 by those of the trustees who were 
in sympathy with a more active loan and invest- 
ment policy. The amendment merely provided 
that one half of that portion of the deposits 
formerly invested in United States securities 
might be invested in notes and bonds secured 
by mortgage on real estate of at least twice the 
value of the loan. The bank was also authorized 
to improve the real estate that it already held, 
provided that none of the principal of the de- 
posits should be used. The inference is that the 
bank was already holding property in violation 
of the original charter, which permitted no in- 
vestments in real estate. The $260,000 spent on 
2 Bruce Report, pp. 51, 58, 109, 110, 119, 178, 222; Douglas Report, 
pp. 36, 89. 91, 95,