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.