1993. Freedman's Bank (Washington, DC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
October 29, 1876
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini
Short Digest
3e5b74af

Response Measures

None

Description

Articles refer to the Freedman's Bank as suspended with commissioners paying a dividend to creditors and describe it as 'busted'/'lost all the colored people's money.' No article describes a depositor run prior to suspension; instead documents insolvency and receivership actions. Classified as a suspension leading to closure (receivership).

Events (3)

1. October 29, 1876 Other
Newspaper Excerpt
Some fool of a Democrat's been tellin' you lies... I went over to Sister Harriet's, and she made her son-in-law ddle up and go right straight to the bank... This bank is as good as gold? Don't you know Gen. Grant would die before he'd see your money lost. Some fool of a Democrat's been tellin' you lies... Freed. Douglass is head man in Washington... the concern in Washington, I hear, has fallen into the hands of swindlers what is stealing all the money
Source
newspapers
2. * Receivership
Newspaper Excerpt
THE Commissioners of the suspended Freedman's Bank... stating that a dividend of 10 per cent. would be paid... to the creditors of the institution, that being all their present available cash balance, and that no doubt will be all they will ever realize.
Source
newspapers
3. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Institution was insolvent due to mismanagement/fraud and lost depositors' funds; commissioners appointed and issuing dividend to creditors.
Newspaper Excerpt
THE Commissioners of the suspended Freedman's Bank, at Washington, have issued a circular to the creditors of the institution...
Source
newspapers

Newspaper Articles (4)

Article from The Sun, October 29, 1876

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Article Text

low words to you. Buyin' property and all dat sounds very good. but a mule is perishable. and you are liable at any time to lose it. 80 much money gone. Your former owner, you say. will sell you land. well! kia you be certain de tities Is good. Can you know of It is not tied up in mortgages? Your risks are very great: you may lose all your money. Let me advise you to wait awhile. Taxes now is very high. de people here are growin' each year less able to meet dem. the State will soon own large estates, and much property will be sold at public sales. By waitin you will be able to buy a plece of land by merely payin' de taxes, and your Publican friends will see dat de title is made good. We expect BOOD to crowd out dese land owners. I'm a good friend of yourn, Mrs. Trap. and I love de colored people. I feel very sorry for dere condishun, poor creatures. I want to see dem rise to de world. crush these stiff-neck rebels out. and take dere places as far better citizens. Now we have a bank called de Freed man's Bank, run in deintrust of de colored people. where we will guard your money as de apple of our eye. No rebel sb 11 touch a penny of it. Put your money In our bank and we will pay you six per cent. intrust- very handsome income for you. Only think white you are laying back in your chair 'joicing your pleasure your money will be growin'. No mule to perish. no land devoured by taxes. but when you want money jist tote yer book to de bank. and draw! He talked beautiful. and I was getting greedier and greedier. and could see myself switchin my silk coat gwine round to dat Freedman's Bank to draw my intrust. while de storekeepers were a-bowin and scrapin' axing Mrs. Trap to walk in an examine dere time charge things. I felt rite qualityBed. I'll you nuffin for my services." sed he thro' bis seedy red nose. I'is a pleasure I issure you. Let me look at your money, lady.' I handed him de roll. You think you'll deposit in bank?' Yes. I belieb I will, said. He brightened up. Jist wait here, and I will flx it all for you in ten minutes." Den he stepped off and soon came back with a little book in his hand. All rite! here's yer bank book. Look when you want your money carry dat book to de bank and you be 'tended to. I went home happy as a frog. I laid awake all night, and counted de strings of sassengers and de smoked hams I'd swing from de joists. de pipes I'd smoke. and de chickens I'd hab in coop. I met old Marse one day he will hab bis joke; besed: Well, old lady. how is de Freedman's Bank Fus trate! I done drawed two dollars, sir.' Two dollars 1 am fraid dat's about all you will eber draw. "Why,sir?" De concern in Washington, I hear. has fallen into the hands of swindlers what is stealing all de money, and you'd better go and git yours while you kin. went ober to Sister Harriet's, and she made her son-in-law ddle up and go rite strait to de bank. When de boss man found Witson done come to draw out de money be was "stonished. What do you want to do that for? Dis bank is as good as gold? Don't you know Gen. Grant would die afore he'd see your money lost. Some fool of a Demoorac's been tellin' you lies. Come in here. man. He took Wilson in an showed him a drawer full of greenbacks. Do you think ais bank kin break and all dat money dere? Wilson was shamed of hisself, come back home. and sed Mary, don't be a fool! You're allus flyin' off de bandle. Your money is jist as fe in dat bank as if you had it here. Fred. Douglass is head man in Washington : he is a colored man like weall. and be ain't gwine let us suffer. De Gubberment will hab to brea up before dat bank. feel rite mean! Dem men at de bank's doin' all de good for we all. and we ain't willing to trust 'em.' So I didn't say no mo': but I'd better minded old Marster, and I wouldn't be scratchin' a poor house head now! I cried all de way here. and leff Sister Harriet on de rodeside broke down wid trubble. Like me, she lost both her husband and sons in de arm v. and now her money has been cheated. and fooled off it's more dan we pore critters kin bar. You don't know how desolate and lonesome we feel since our last hope's been swept away. We ve no prop to stand OD. no Marster, no Misstiss. DO husband. DO sons. no money, no friends. Our friends was our wuse enemies. Dey roboed us to our last loaf. We hab nuff Our bank books ain't worf a crooked stick, and den we get laffed at for trustin' to our friends. who sneak across de streets when dey sees us comI in'. I can't car to go back to my cabin If gits sick what I got to pend on? I'm 'bout skuffled out! Here, overcome by the picture of her unhappy condition that she had drawn. Mother Trap gave way to another hysterical outburst of sobs and mournful ejaculations. rocking her withered form to and fro in the intensity of her grief. Greatly touched by her distress. her kind white friends endeavored to comfort her with words of encourazement. and before she left they provided her with a basket of those household luxuries which the colored people specially prize. At last, wiping her eyes and armuring her thanks. the poor victimi of Washington ras cality tottered off toward her home-which she was never again to leave. The next day the good. pious old creature was found dead in her lonely cabin. She had died of a broken heart|


Article from Puget Sound Weekly Argus, May 11, 1877

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Article Text

# FOLLOWING HIGH EXAMPLES. When in Franklin, Simpson county, Ky., a gentleman gave me an account of a negro who played the role of banker in a very sharp manner; in fact, equal to any of his carpet-bag friends down South. He ran short of funds, and, strange to say, for a penniless man, he proposed to start a bank. He started out among his country friends to "talk up" the bank and get them to take stock, saying: "Do you know why the white folks can always get money when they want it and we colored people can't" "No, we don't know." "Well, I has found it all out since I been living in town." "Well, how is it, Uncle Jim?" "It's just 'cause the white folks have banks. When they need any money, they just checks on the bank and gets it. We colored people always will be poor and hard run for money till we have banks like the white folks." In this manner he soon talked up a bank fever among the negroes. When they asked: "But how are we to manage it? We don't know how to 'tend to these things like the white folks," he replied: "I has done learned all about it since I been living in town. You see, you just has to take stock 'cording as you is able. Some put in five dollars, some four, some three, some two, and so on. I'll manage the bank, and in four or five months after the bank gets a start you all can begin to check on it when you need money." He soon made up seventy or eighty dollars among his friends, who were much elated at the idea of holding stock in a bank. Jim returned to Franklin and lent out his banking funds to the grocers for flour, bacon, sugar, coffee, whiskey, and other luxuries of life-in fact, he lived like a banker as long as the seventy dollars lasted. In the course of time, some of the stockholders being "hard up" for funds, came into town to check on the bank. Imagine their surprise when Jim very coolly said to them: "The bank is done broke." "Why, how is this? Didn't you tell us you was gwine to manage it just like the white folks, and we would all have plenty of money? Now you done cheat us out of our money, and we've a great mind to beat you for it, you nigger you." "Why, you fool niggers you, don't you know the white folks' banks sometimes break, and does you 'spect me to be smarter than the white folks? Where is you been all this time, that you ain't hern tell of the Freedman's Bank bustin' up at Washington, and losin' all the colored people's money; and the white folks was managing it, too." From the Religious Herald.


Article from The Daily Clarion, February 9, 1878

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THE Commissioners of the suspended Freedman's Bank, at Washington, have issued a circular to the creditors of the institution, stating that a dividend of 10 per cent. would be paid about March 20, next, that being all their present available cash balance, and that no doubt will be all they will ever realize.


Article from The Weekly Clarion, February 20, 1878

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THE Commissioners of the suspended Freedman's Bank, at Washington, have issued a cireular to the creditors of the institution, stating that a dividend of 10 per cent. would be paid about March 20, next, that being all their present available cash balance, and that no doubt will be all they will ever realize.