Chapter I] 
ORIGIN OF THE FREEDMEN?’S 
SAVINGS BANK 
THE ALLOTMENT SYSTEM AND THE 
MILITARY BANKS 
EFORE the close of the Civil War several 
B experiments had been tried with savings 
banks for Negroes. Nearly all of these 
were established at large army posts for the pur- 
Pose of Preventing the soldiers from squandering 
their pay ang bounty money—almost the first 
money they had ever handled. 
When the United States government began to 
Pay the Negro soldiers as white soldiers were 
Paid, it was found that few made good use of 
the money received. The regimental sutlers as 
well as swindlers of every kind were always ready 
for pay day in a Negro regiment, and had little 
difficulty in getting most of the soldiers’ cash. 
In Massachusetts the friends of the Negro, anx- 
ious for the black troops to save something, in- 
duced the state authorities to establish in Negro 
regiments accredited to that state the savings or 
“allotment” system then in operation among the 
white troops.” Under this plan the regimental 
Paymasters were authorized to permit the sol- 
diers to “a]lot” 4 certain part of their pay each 
month to a relative for the use of the latter, or 
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