The Story of The Freedmen's Bank

 

The Story of The Freedmen's Bank is a documentary presentation produced by the US Department of the Treasury. The Freedmen's Bank was the creation of abolitionists, philanthropists, and business leaders. The formerly enslaved and African American veterans needed a secure place for their money. Those who had been enslaved so long never made a wage or obtained a bank account. Much of the foundation of racial inequality was that wealth was concentrated in white communities. Labor exploitation through slavery and the working class created the basis of economic inequality in America. The bank was created in 1865 and one of the last important acts done by the Abraham Lincoln administration. According to records the total amount of deposits were estimated to be about $57 million ( today that would be $115 billion ). The wealth was lost due to government corruption and a change in the Freedmen's Bank's charter. The banking panic of 1873 and mismanagement resulted in the bank's demise. The failure of the Freedmen's Bank demonstrates the weaknesses of capitalism and the US government's dishonesty when it comes to confronting economic inequality.