Chapter V
MISMANAGEMENT AND
OTHER TROUBLES
WEAKNESSES OF THE BANK
OTWITHSTANDING the popularity
of the institution, the rapid accumulation
 of deposits, and the good intentions
of the founders and some of the later officials,
there were grave weaknesses in the system, some
of which existed almost from the beginning. The
trustees were not bound to any responsibility by
the charter, nor were they obliged to have a
financial interest in the institution; the system
was too rapidly expanded, and several branches
were established that did not pay expenses; some
of the officials were corrupt, and more were inefficient;
 many Negroes were appointed to positions
 which they were not competent to hold;
the accounts were badly kept, and inspections
were infrequent; the connection of the officials
of the notorious District of Columbia government
 with the bank made people suspect corruption;
 the bank’s connection with the Freedmen’s
Bureau brought discredit upon the former and
involved it in politics; the better trustees in disgust
 withdrew or neglected their duties, and
control passed into the hands of the District of
Columbia clique; many bad loans were made and
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