1994. Freedman's Bank (Washington, DC)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
ea27eb5b

Response Measures

None

Description

The articles discuss the winding up, investigation, and congressional action to purchase the Freedman's Bank building and to allow the receiver to pay dividends. There is no description of a depositor run in these excerpts; the bank is being wound up and under receivership, so this is a suspension leading to permanent closure. Dates of original suspension/failure are not given in these excerpts; articles range 1879–1882 and describe ongoing receivership and congressional measures.

Events (2)
1. * Receivership
Newspaper Excerpt
the proposed purchase of the Freedman's Bank building ... to enable the receiver of the bank to declare an additional dividend ... the Freedman's Bank Investigation ... commissioners appointed to wind up the institution
Source
newspapers
2. * Suspension
Cause
Government Action
Cause Details
Institution being wound up by appointed commissioners/receiver following bank failure and examination; closure under receivership.
Newspaper Excerpt
commissioners appointed to wind up the institution
Source
newspapers

Newspaper Articles (6)
1. August 28, 1879 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, August 28, 1879

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step, in the presence of his family by Mosby's guerrillas, applied for a position in the Treasury Department, having the names of fourteen members of Congress indorsing her ability and respectability; but Mrs. Barnes not being able to organize for Sherman, was unsuccessful, while the Departments are overrun with the proteges of Confederate soldiers. The wife, daughter, son and son-inlaw of Yerger, the ex rebel who assassinated Col. Crane of Dayton, Ohio, of the United States army, at Jackson, Miss, in 1866. are all in the Department here. Secretary Sherman can be asked how it is that the Sherman family are all saddled on the public. Here is the roster of the Sherman family who are now making sacrifices on the altar of their country: W. T. Sherman, General of the Army, $17,700; $4200 is commutation of quarters and fuel, although he has a suite of quarters in the War Department, with fuel and gas, that can not be duplicated in the city for $5000. Secretary John Sherman, $8,000 with carriage and forage. John Sherman j'r, Marshal of New Mexico. $6,000. R. H. T. Lenold, husband of John Sherman's niece, appointed out of the Treasury as commissioner to close up the Freedman's Bank, $5.000. Roger Sherman Bartley, Sherman's nephew, clerk in the New York postoffice, $2500. Frank. Bernard, who married young Bartley's sister, is a $1600 clerk in the Auditor's office of the Treasury, and was detailed from the Treasury to take U.S. bonds to the Syndicate. He has been traveling with his wife several months, and is paid out of the appropriation to place the loan. - Huggins, married to John Sherman's niece, $1800; was in the Treasury Department; now in the public service in California. O. L. Pitnev. Sup't of the U. S. Treasury building, $2400. Pitney was a confidential clerk of John Sherman j'r, and was assigned to that important office, in which he is the purchaser of the furniture and supplies for all the National buildings in the country. The office has been abolished by an act of Congress, the law is evaded by keeping Pitney on the rolls of the Treasury in another capacity, while he is continued on this duty. It is said that Pitney is the right person to consult by the tenants in the forty three-story pressed brick houses owned by Sherman, three squares north of the Capitol building. It is further said that a residence in one of these houses insures an employe of any of the Departments his place indefinitely. I have refrained from mentioning the cousins. and the neices, and the aunts of the female persuasion who are aiding their distinguished relative in his race for the Presidency by drawing Govern. ment salaries, believing the public will give the Sherman clan due credit for what the males are doing.-Cincinnati Enquirer.

2. January 12, 1880 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, January 12, 1880

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amount to $800,000,000. It proposes to issue new bonds running fifty years, and bearing 84 per cent. interest. He contends that these will be as good as the 4 per cents., which only run thirty-six years, and which are now above par. There is a strong feeling in favor of the lowest possible rate of interest, especially among southern and western members. The 5's and 6's mature between December, 1880, and July, 1881. Mr. Tucker, who is on the Committee of Ways and Means, favors the issue of bonds bearing 31 per cent. to the extent of two or three millions, so as to ascertain if bonds for the residue at a still lower rate of interest cannot be maintained at par. HON. FAYETTE M'M. SPEAKETH. Governor McMullin followed Denis K. at the Greenback meeting last night. He was down on Chinese, in favor of a heap of greenbacks, and expected to see Greenback clubs all over Virginia. There had never been such a crisis, in his judgment, as this since Noah's flood. He was opposed to secession, but when it came he went with his State. There were a good many people who asked, Who is that speaking ? and when told. had actually never heard of Governor Mc. in their far-off homes. But they will know him when he comes to Congress, others said. BRIEF NEWS ITEMS. Judges Hugbes and Bond will sit in the trial of the Atlantic, Mississippi and Ohio Railroad case, to be tried before the United States District Court at Alexandria next week. There was no session of either House today, but the beautiful weather induced a number of persons to visit the Capitol. The Ways and Means Committee has SO far been engaged on private bills. The Senate Military Committee agreed to report in favor of the confirmation of a large number of military officers recently promoted. The American Minister writes that American manufactures are superseding those of Europe in Mexico. The Senate Pension Committee-Senator Withers'chairman-recommends that $72 a month be given to soldiers who lost both legs, both eyes, or both arms in the service. The Treasury holds United States bonds for the national banks amounting to $366,954,050. The banks deposited $879,550 in bonds this week, and withdrew $946,500. The receipts of national-bank notes for the week were $647,000 against over $2,000,000 for the same week in 1879. The examination of the Ute Indians when they arrive here will be secret. A sub-committee of the House Committer on Public Buildings is investigating the question whether it is best for the Government to build or to continue to pay the rents it is now paying. Messrs. William Lovenstein, J. M. Brown, J. P. Jeter, and W. P. Holtzworth were in the city to-day. [Associated Press Reports patch.] by telegraph to the DisWASHINGTON, January 10.-The Senate Committee on Freedman's Bank to-day examined the commissioners appointed to wind up the institution regarding terms employed in the schedules appended to their reports, but nothing of general interest was elicited. The committee meet again Tuesday. The Senate Committee on Privileges and

3. February 2, 1880 National Republican Washington, DC
Article from National Republican, February 2, 1880

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CURRENT CAPITAL TOPICS. The Forthcoming Report on the Freedman's Bank. Purchase of the Building to be Recommended - A Pension Asked by the Widow of Admiral Paulding Complimentary Letter to General Garfield - The Exodus Committee. The Freedmen's Bank Investigation. The Senate select committee on the Freedman's Bank are still taking testimony in regard to the affairs of that institution, and will examine additional witnesses at a series of meetings throughout the present week, but the investigation has now drawn nearly to a close. During the past few days the committee have examined George W. Stickney, the bank's actuary; John O. Evaus, one of its heavy borrowers; Dr. J. L. Kidwell, president of the Seneca Saudstoue Company; Dr. Charles B. Purvis, a trustee of the institution, and several of its depositors. Their testimony showed great looseness in the bookkeeping and a lack of proper care in scrutinizing the securities accepted on loans. Dr. Purvis testified that the failure of the bank was due solely to the panic, although he admitted that there were irregularities in the management. The committee, it is understood, will report that, in consequence of the deaths of some of the persons responsible for the bank's bad management, and the present impecuniosity of the remainder, nothing now can be done for the further relief of the depositors, except to consummate the proposed purchase of the Freedman's Bank building in this city by the United States Government, a bill for which purpose has heretofore been recommended by the Commissioners and once passed by the Senate. The building is now rented for the use of the Department of Justice and the Court of Claims, and the price asked for it is $275,000.

4. January 18, 1881 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, January 18, 1881

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FORTY-SIXTH CONGRESSSECOND SESSION. WASHINGTON, January 17. SENATE. Mr. Wallace, from the Committee on Appropriations, reported with an amendment en the appropriation bill. Mr. Pendleton, from the Committee on Census. reported bill on appropriation for completing, compiling and publishing returns with the census. Mr. Garland presented the report of the Congressional visitors to West Point, and a bill amending existing laws relating to the Military Academy at West Point: referred to the Committee on Military Affairs. Several bills were introduced and referred. On motion of Mr. Bruce, bill authorizing the purchase by the Secretary. for public use. of the freedmen's bank and eal (3 ate, on the Pennsylvania Avenue, Washington, was taken up, amended and passed. On motion of Mr. Burnside, by unanimous consent, orders were suspended for the Senate to take up the Senate bill for the relief of Gen. Ord. The bill passed without debate. The Freedman's bank bill appropriates $25,000. A joint resolution. creating a Yorktown, Va., Centennial Commission, was passed. The calendar occupied the remainder of the morning hour. Mr. Saulsbury moved to lay aside the regular order, the Ben Hailiday bill, and take up the Kellogg case. Negatived, yeas 20: nays 34. A motion that the Halliday bill be tabled in order to proceed with the Kellogg case was defeated. Discussion of the Halliday bill was resumed but without action. Senate adjourned until to-morrow. HOUSE. By Mr. Newbury, providing for a joint commission by the United States and Great Britain, to investigate the alleged false and fraudulent statistics used before the Halifax fishery; the commission to consist of three persons, one to be appointed by the United States, one by Great Britain and one by the two governments conjointly. Mr. Ford's resolution, declaring the opinion of the House that every interest demands immediate construction of telegraph lines by the government to protect the people from monopoly. The speaker ruled it was not in order under this call. and it was not admitted. At the conclusion of a call of States several resolutions were offered and referred. The speaker laid before the House a communication from the Secretary of the Interior transmitting the report of the superintendent of census returns, showing the population of the United States to be 50,152,866. Referred to census committee. The regular order was then announced to be a motion to suspend rules and pass the bill authorizing readjustment of salaries for postmasters in accordance with the act of June 8th. 1866. The House under a suspension of rules passed the bill granting titles of settlers on the Des Moines river lands in Iowa, after which, adjourned.

5. November 11, 1881 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, November 11, 1881

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From the N. Y. Sun. Bank Examiners. Recent experience has shown that the examiners appointed by the Comptroller of the Currency to test the condition of the national banks are either incompetent or become the in. struments of thieving officers. Baldwin, the defaulting cashier at Newark, who speaks from experience and knowledge, says these examinations, as a protection for the public, are of no value whatever, because the officials charged with the duty are unfit for it. Under this system, defalcation has been made easy. The Comptroller at Washington sends out his favorite for a pleasant journey: at large pay to report on the state of the banks. Few of them have any solid knowledge of bookkeeping. Some of them are glad to make the most of their opportunities. Between the dupes and the jobbers, the people are plundered by ignorance on one hand and by corrup. tion on the other. The frequent recurrence of these bank explosions 18 not the result of accident. Three of them took place right under the eye of the Comptroller of the Currency, all within a few hundred yards of his office in the Treasury. Each of these broken banks had been reported to be sound by the examiners chosen by the Comptroller. In every instance there is a strong suspicion of collusion, because in the face of the least honest investigation it was almost impossible to conceal the rottenness of Joy Cooke's First National Bank, the Freedman's Bank, or the German-American Bank. In the case of the German-American Bank, the facts justify the most serious misgiving. The Comptroller appointed his own brotber-in-law to examine that institution, and he reported favorably. Soon after this report it was found that the officers and a few directors had stolen the deposits by fraudulent devices, which ought.to have sent them to the penitentiary long ago. After the failure the Comp. troller appointed this same brother in law receiver of the broken bank, which he had officially reported to be in good condition; and he has nursed that place for three years, with profit to himself. Certainly such transactions do not look well for the administration of the responsible office of Comptroller.This officer is sup posed to stand as the protector of the public against frauds and robbery in the national banks. The present mode of examination is a farce. Instead of being a security to depositors and stockholders it IS a snare and delusion. The charters of many of these institutions are about expiring. Congress will soon be called upon to adopt some positive policy in regard to them. Whatever that policy may be, it is clear that some safeguards must be provided by which these robberies may be prevented. A thoroughly efficient and impartial Comptroller must be chosent, and, if exlisting there be law, any imperfections such changes in must the be made as will forever shut the door against corrupt collusions.

6. March 16, 1882 The Eaton Democrat Eaton, OH
Article from The Eaton Democrat, March 16, 1882

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WASHINGTON BRIEFS. THE admission of Dakota as a State will resolve itself into a party question. FIVE thousand copies of the Garfield memorial card will be printed for distribution. EVERY Territory in the United States has applied for admission into the Union as a State. AT THE conclusion of the arguments in the Mason court martial, the court adjourned sine die. THE report that Gen. Benj. F. Butler has been retained as Guiteau's counsel is denied by him. THE nomination of General Rufus Ingalls to be Quartermaster General will be favorably reported. JOHN W. DEFREES, Public Printer, is dangeronsly ill, only his most untimate friend being allowed to see him. LOGAN, nominated as Olive Logan, DAVID DAVIS, Logan, and Mahone an invitation to participate in 4th of July celebration at Lake Bluffs, III. THERE is a general feeling of satisfaction in Washington over the announcement that there is no prospect of a paid base ball club being organized there for the next season. UNDER the decision of the Chairman of the Committee of the Whole the tariff commission bill must take its regular place on the calendar, where it stands fifty-fourth in order. THE large number of people now in Washington suffering from various ailments is causing comment. Several Congressmen and Senators are among those on the sick list. A STATUE to the memory of Chief Justice John Marshall, formerly of the Supreme Court of the United States, is to be erected in a reservation in Washington, and to cost $20,000. SCOVILLE'S pay for five months' service in the Guiteau case amounts to $50. He says that when he completes the record and files his bill of exception he will withdraw from the case entirely. THIRTY-FOUR bills authorizing the erection of buildings in twenty States, which will cost $5,500,000, have been reported to the National House. The chances of any individual bill are not very good. GUITEAU has received a box containing small coffin, with the effigy of a man inside, who has apparently died by hanging. The present was marked, From the school children of Dayton, Ohio." THE Life-saving Office has received from the Board of Trade of Louisville, Ky., a resolution of thanks for the gallant services of the lifesaving crew at that place during the recent freshet of the Ohio River. To DISCOVER a peculation of less than $100 in the Treasury Department, a Senate Committee has been at work all winter, taking over 1,400 pages of printed testimony, at a cost to the of nearly THE government period $10,000. of mourning for the death of 20th the late President Garfield will expire on the of this month, after which the customary pub- held lic at the White House will be twice week on days to be receptions a named hereafter. CAPT. EADS has given a second ship-railway dinner at Wormley's, to distinguished statesCapt. Eads wants Congress to approprimen. ate $25,000,000 to help a scheme of his along, Eads we have repeatedly stated. Capt. his as understands how to get into the hearts of countrymen. IT IS reported that Sergeant Mason, who shot Guiteau, is likely to be brought a second of time at before a court martial upon the charge of insulting the surgeons who, in the course the late trial, were sent to his cell for pur- him the pose of examining the wound received by in the late war. THE unclaimed bounty money due colored the which it was proposed to allow will to resoldiers, of certain colored institutions, for support in the possession of the government Edumain session at any rate, the Committee on adthis cation and Labor having decided to make bill. an verse report to the House upon the THE bill proposing to purchase the the FreedBank Building for the use of governman's passed the House, and will probably in Conment law at last, after many trials of the become a This will enable the receiver of 2 gress. bank to declare an additional dividend far. percent., a total of 60 per cent. so JUDGE GRAY, of Massachusetts, has Bench aston by his associates on the Supreme ished a prominent part in the Court proceed all tra taking the first day, thus violating a ings from of that august body, which requires and re ditions member to be somewhat modest with th junior tiring for a few months, until Court. familiar practice and customs of the