Freedman's Bank & Economic Disparities Today

Summary

Fresh Air Podcast Summary: "Freedman's Bank & Economic Disparities Today"

Host: Tanya Moseley
Guest: Justine Hill Edwards, Historian and Author of Savings and Trust
Podcast: Fresh Air
Episode Title: Freedman's Bank & Economic Disparities Today

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Introduction to the Freedmen's Bank

In this episode of Fresh Air, host Tanya Moseley engages in an enlightening conversation with historian Justine Hill Edwards about her latest book, Savings and Trust. The discussion delves into the establishment, rise, and eventual collapse of the Freedmen's Savings and Trust Company, a pivotal institution founded to empower newly emancipated African Americans in the post-Civil War era.

Establishment and Mission of the Freedmen's Bank

The Freedmen's Bank was established in 1865 by white abolitionists, notably John Alvord, a minister from Connecticut. Alvord's interactions with freed African Americans during General Sherman's march underscored the community's desire for financial independence and land ownership. Edwards explains, "They wanted the opportunity to buy land… to create a piece of the American dream for themselves" (02:09).

African Americans' Financial Acumen and Aspirations

Despite systemic disenfranchisement, African Americans possessed a profound understanding of money's value, rooted in their experiences of enslavement. Edwards emphasizes, "The enslaved understood what money meant… they knew the value of their bodies because capital was held in their bodies" (04:04). This financial literacy was a cornerstone for their trust in the Freedmen's Bank as a vehicle for economic uplift.

Marketing Strategies and Paternalistic Approaches

To attract depositors, the bank ran advertisements in black newspapers that combined moral imperatives with financial incentives. Edwards notes, "The idea that you can save a penny or a nickel…and take that money and put it in a freedman's bank account" (08:00). These ads not only promoted saving but also subtly imposed a paternalistic view on African Americans' financial behaviors.

White Supremacy and Economic Violence

Reconstruction was marred by intense white resistance, including violence against African Americans asserting their newfound freedoms. Edwards describes, "African Americans exercising their own independence, especially financially, was a real threat" (09:20). Incidents like the harassment and vandalism of Freedmen's Bank branches exemplified the economic violence inflicted to undermine black economic progress.

Shift from Savings to Commercial Banking and Mismanagement

Initially a low-risk savings institution, the bank's trajectory changed under the influence of trustees like Henry Cook. Edwards explains, "Cook... convinced them to support a bill… to transition from being just a simple savings bank to essentially a commercial bank" (14:16). This shift led to substantial loans directed predominantly at white businessmen, deviating from the bank's original mission.

Collapse of the Freedmen's Bank

By March 1870, the bank held approximately $12 million in deposits. However, mismanagement and risky loans led to financial instability. Frederick Douglass, a prominent African American leader, assumed the presidency in 1874 and swiftly realized the extent of the bank's insolvency. Douglass lamented, "Bad loans and bad management have been the death of it" (28:10), highlighting the betrayal of the bank's patrons.

Congressional Investigations and Lack of Accountability

In 1879, Senator Blanche K. Bruce led investigations revealing the bank's failings. Edwards notes, "None of the administrators who were culpable for the bank's failure were brought on criminal charges" (36:04). The testimonies exposed the deliberate mismanagement by white trustees, but justice remained elusive.

Long-Term Impact and the Racial Wealth Gap

The bank's collapse had profound ramifications, with African American depositors recovering only about 48-49% of their funds by 1900. Edwards asserts, "If something like this were to happen today… nowhere near the full amount" (38:54). She connects this historical injustice to the ongoing racial wealth gap, advocating for reparations and systemic financial reforms to address accumulated disparities.

Conclusion: A Legacy of Economic Betrayal

Savings and Trust by Justine Hill Edwards illuminates the Freedmen's Savings and Trust Company's tragic downfall and its enduring impact on African American economic stability. The podcast underscores the importance of recognizing historical financial exploitation as a foundational element of present-day economic inequalities.

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Notable Quotes:

• "They wanted the opportunity to buy land… to create a piece of the American dream for themselves." — Justine Hill Edwards (02:09)
• "The enslaved understood what money meant… they knew the value of their bodies because capital was held in their bodies." — Justine Hill Edwards (04:04)
• "Bad loans and bad management have been the death of it." — Frederick Douglass (28:10)
• "If something like this were to happen today… nowhere near the full amount." — Justine Hill Edwards (38:54)

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This comprehensive discussion provides listeners with a nuanced understanding of the Freedmen's Bank's historical significance and its lasting effects on economic disparities in America.

Transcript

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[Tanya Moseley]

This is FRESH AIR. I'm Tanya Moseley. In July of 1874, waves of black Americans rushed to their local bank branches to find out if the news they were hearing was true. The Friedman Savings and Trust Company, a bank for newly emancipated black Americans, was abruptly shutting down, and patrons at bank branches throughout the country were met with locked doors and cashiers who had to break the news. Most of their savings were gone. The rise and fall of the Freedmen Savings and Trust Company is the subject of a new book by my guest historian Justine Hill Edwards. And the years after the Civil War, tens of thousands of formerly enslaved people deposited millions into the Freedmen's bank with high hopes that as free people, they too could create a piece of the American dream for themselves. Abolitionist Frederick Douglass even encouraged black Americans to trust the banking system, but even his leadership as the president before its collapse could not save it. Hill Edwards book documents how the bank's white trustees drove the bank to the ground by lending out millions in loans to white finance financiers and businessmen. Justine Hill Edwards is a historian and associate professor of history at the University of Virginia. Her research explores the intersection of African American history, the history of slavery and the history of American capitalism. Her book is called Savings and Trust. Justine Hill Edwards, welcome to FRESH air.

[Justine Hill Edwards]

Thank you so much for having me. Tonya.

[Tanya Moseley]

The Freedmen's Bank. Let's get into how it was established. So white abolitionists established it in 1865. Take us back to that time period. Who were these abolitionists and why was a bank for newly freed black people a priority?

[Justine Hill Edwards]

So the Freedmen's bank was established by, well, it was really the brainchild of a white abolitionist minister named John Alvord. He was from Connecticut and he lived in New Jersey during the Civil war. And in 1864, he was traveling with the Union army in the south, especially in the summer and fall of that year following Union General William Sherman on his famed march to the sea from Atlanta to Savannah. And he took the opportunity to talk to recently freed African Americans. And what he found, what he gleaned from his conversations with them is that they wanted a few things during this new and ripe period of freedom. They wanted their families, because a lot of them had been torn away from their families during slavery. But they also wanted the opportunity to live independently. And importantly, they wanted the opportunity to buy land. And so he figured that he could really contribute to their experience. He could help them in this, again, new period of freedom by establishing a bank for them. And so he gathers in new york in January of 1865 with a group of about 50 white prominent abolitionists, Philanthropists, bankers, and politicians. And they came up with the idea for the freedmen savings and trust company.

[Tanya Moseley]

John alvert, he actually wrote letters Talking about his fears around the future of freed people and the nation. But one of the things that you say Is that he didn't understand that while black people had little experience with investments and the like, they did know about money. They earned it, and they saved it through their experiences as enslaved people. In what ways did they know that?

[Justine Hill Edwards]

Absolutely. I think even though most enslaved people didn't have access to banking accounts, for example, or savings accounts, Most americans didn't. In the 19th century, the enslaved understood what money meant. They understood the value of their bodies because capital was held in their bodies. Right. They were legally property. They understood what their work could garner, what they could be paid. They often worked for money, if possible. It was not uncommon for the enslaved to bargain with poor whites, with other enslaved people, Even with their enslavers. And so this idea that the enslaved and the newly free can enter the period of freedom without knowledge of money or savings or threats, as they called it, Was not true and really incompatible with the ideas that the white founders of the freedmen's bank held at this time.

[Tanya Moseley]

Land was so important at this time. I mean, that was something that you found that many newly freed black americans expressed that they wanted. They felt like that was the way that they'd be able to be Fully functioning members of society.

[Justine Hill Edwards]

Yes. And I think it comes from the reality that for the formerly enslaved, again, they themselves were property, and they could see and they understood the power of property ownership, of land ownership. And so, in addition to, again, connecting with their families and rejoining their families, African americans and the newly emancipated wanted access to land.

[Tanya Moseley]

What standards were created at the start to ensure people's money was secure? How were they telling them that they would be able to do that?

[Justine Hill Edwards]

Well, this was one of the supposed benefits of creating a savings bank. And so the freedmen savings and trust company, what we call the freedmen's bank, Was established as a simple savings bank. The bank was supposed to operate with the least amount of risk, as bank administrators were supposed to invest depositors money in government backed securities and bonds, which again were seen to be the lowest risk possible. Financial product. And depositors, if they kept their money in for a specific period of time, about six months, then they would get a small amount of interest back on their money. At this time it was between 4 and 6%. And so it was seen to be very low risk, very low cost, and the best way to help African Americans in their transition to freedom.

[Tanya Moseley]

What was the average sum that people were depositing at the opening?

[Justine Hill Edwards]

Small amounts of money, a few dollars. So we're not talking about hundreds of thousands of dollars, we're talking about thousands of African Americans depositing money. And I think it is worth saying too that one of the kind of seed funds for the freedmen's bank came from the military sa banks established in 1864 for black soldiers. Even though most of the first depositors were depositing small amounts of money, A few of the bank branches, especially the ones in Norfolk, which was the first branch, Beaufort, South Carolina, in New Orleans, kind of got their seed funding from the military banks established for black soldiers in 1864.

[Tanya Moseley]

I'm really interested to know, in the book you show some of these ads that were put in black newspapers to get folks to deposit their money. What did some of them say in Promise?

[Justine Hill Edwards]

Yeah, the ads are a great source. Some of the terms, as I said, save the small sums was important. The idea that to be moral and to be godly is to save money. The idea that you can save a penny or a nickel or 25 cents and that help you to buy goods that you want to need to stop buying tobacco and liquor, whiskey in particular, and instead take that money and put it in a freedman's bank account. And so many of these ads were kind of moralizing. Some might call, I think I call them too paternalistic. The idea that white bank administrators believed that African Americans needed lessons in how to save and why they should save, and that that was a very strategic marketing campaign, Especially in the former confederate south with these bank branches.

[Tanya Moseley]

You can't really tell this story without talking about the specter of white supremacy and violence at that time too, because black people were free. But what were some of the ways some white Americans struggled to cope with this new landscape of black freedom, which also included earning, having money and saving money.

[Justine Hill Edwards]

Yes, absolutely. The reality is that Reconstruction, although a period filled with the ideas of freedom, the expansion of the franchise to black men, citizenship rights, the end of legal slavery, there was also white pushback. White violence against African Americans was rampant, especially in States such as Louisiana and Mississippi. And so the reality was that African Americans with money, African Americans exercising their own independence, especially financially, was a real threat, especially in the former Confederate south, where the Civil War was fought over the future of slavery in the nation. And white Americans in the south had a hard time letting go of the idea of black Americans as not being slaves but being free, having the autonomy to live and choose to work where they want, the ability for especially black women to decide not to work and to take care of their families. And so this resulted in often violent struggle between white Americans who had not fully accepted that slavery was over, and black Americans who were excited to exercise their newfound autonomy and freedom.

[Tanya Moseley]

You tell the story of a Houston branch of the bank from 1866. Someone documented all of the murders and brutal beatings that were happening and basically how freed people were afraid of retribution for any number of things from white perpetrators. It's always remarkable when we see documentation like this because, you know, it was pre everything. We're just talking about things being written down. Where was this document? Who was this person writing to? From the Freedmen's Bank.

[Justine Hill Edwards]

Sure. There is a great kind of digest of sources. It's called the records of murders and Outrages. And when we talk about the violence of Reconstruction, you can go to these records and read about the sheer scale and the sheer severity of violence against African Americans. I think it's apt to call it white terrorism. And so there is this compendium of records composed by Freedmen's bank and Freedmen's Bureau officials. And it details the fact that in some places, like Houston, for example, one of the reasons why the Houston branch was closed within a year was that white Americans began to harass and vandalize the bank branch, and white Americans began to harass the black depositors who were using the bank for perhaps economic uplift purposes. And so, again, one of the reasons why I use the term economic violence here is because economic violence is part and parcel with physical violence. And again, I think it's important to underscore the fact that, again, Reconstruction was a period of extreme hope politically, economically and legally. But African Americans were underespecially in the former Confederate setting, were under constant fears of white retaliation for their willingness to exercise their newfound rights.

[Tanya Moseley]

So, Justine, this was a bank for black people. But the people in charge, like the trustees, were any of them black at first?

[Justine Hill Edwards]

No. When the bank was established in March of 1865 and opened its first branch in April of 1865, all of the banks, trustees and the first cashier were white. They were a who's who of abolitionists and politicians and bankers and philanthropists, mostly from New York. And it didn't take long, but it did take a couple years. It took two years for the first black trustees to accept appointments to the bank's board of trustees.

[Tanya Moseley]

All right, now let's get into the mismanagement and ultimate demise of the bank. Take us to March of 1870. Friedman's total deposits at the time, according to your book, equaled out to about $12 million. That's about $292 million in today's money. How did the idea come about to loan out the money to white businessmen and investors?

[Justine Hill Edwards]

Well, the bank was incredibly successful. In its first few years, African Americans were depositing hundreds of thousands and millions of dollars into their bank accounts. But in 1867, John Alvord, who at that time was working with the bank as one of these administrators, he had convinced other trustees that it would be a great idea to move the bank's main office from New York city to Washington, D.C. and at the same time, while he was encouraging the trustees to embrace this idea, he invited a group of bankers onto the board that would dramatically shape its history. Led by banker Henry Cook, the brother of Jay Cook, who founded Jay Cook and Company, the nation's first investment bank. He was invited onto the board and accepted a board appointment and more. He accepted the chairmanship of the bank's financial committee, the committee who decided what to do with the bank's deposits in terms of investments. He brought with him two of his colleagues who worked at the Washington, D.C. branch of Jay Cook and Company, First National Bank. And these three men decided to kind of shift the bank's investment strategy. And so in 1869, Cook embarks on a lobbying campaign to members of Congress, many of whom were his friends. And he convinced them to support a bill, an amendment to change the bank's charter to allow the bank to transition from being just a simple savings bank to essentially a commercial bank, which meant that the bank could then make loans and specifically make business loans. And so the members of Congress who were kind of on the bank's side or on Cook's side, decided to approve the amendment. And so in 1870, the bank started to legally make loans, and that would dramatically change the ways that the bank's investment portfolio would kind of shake out. But it also shifted the bank's major foundational goal, which was to support the economic aspirations of newly freed African Americans.

[Tanya Moseley]

Right. And a lot of it, a lot of the loans went to real estate ventures, which is ironic because owning land and property was a major goal for many of the formerly enslaved and many people who had invested their money in this bank.

[Justine Hill Edwards]

Absolutely. The bank started to make hundreds of thousands and then millions of dollars in loans to businessmen, even to politicians in and around D.C. to buy land, to buy property, and to make those types of real estate investments. And a miniscule volume of loans went to African Americans. And this dramatically reshaped, again, the bank's fundamental mission.

[Tanya Moseley]

What kinds of ventures were those folks, the small numbers of black folks who were able to get loans, what types of things were they using those loans for?

[Justine Hill Edwards]

So the small number of loans, and we're talking in terms of the overall loan volume, about 5% of the loans went to African Americans. Those loans went to, by and large, churches, and so a handful of black churches in Washington, D.C. and Baltimore in particular.

[Tanya Moseley]

What made getting a loan from Freedmen's bank enticing to these white guys? Because I would assume that they could get loans from other banks, too. Right. Was it the ease of them being able to get the money, the percentage on, like the interest? What was it?

[Justine Hill Edwards]

Yes, exactly. It was the ease with which they could get loans. The fact that the majority of the loans went to colleagues and business partners of members of the board of trustees. And so the loans had variable interest rates, oftentimes very low or no interest would accrue on the bank loans. The borrower could write a letter or physically ask a member of the board of trustees if they could have an extension, and those extensions would be granted. The amendment approved by Congress required that borrowers have collateral worth at least two times the loan amount. And oftentimes those who borrowed money wouldn't have to give collateral. And so the kind of foundations of these loans, the creditworthiness of those who wanted to borrow money, was not fully evaluated or vetted by members of the Finance Committee. And so millions of dollars were just flooding out of the bank to these businessmen at the expense of the formerly enslaved who were putting their money in the bank.

[Tanya Moseley]

Our guest today is author and historian Justine Hill Edwards. We'll be right back after a short break. I'm Tanya Mosley, and this is FRESH AIR.

[Justine Hill Edwards]

Hi.

[Tanya Moseley]

This is Molly C.V. nussberg, digital producer at FRESH AIR.

[Justine Hill Edwards]

And this is Terry Gross, host of the show.

[Tanya Moseley]

One of the things I do is.

[Justine Hill Edwards]

Write the weekly newsletter, and I'm a newsletter fan. I read it every Saturday after breakfast. The newsletter includes all the week shows, staff recommendations, and Molly picks timely highlights from the archive. It's a fun read.

[Tanya Moseley]

It's also the only place where we.

[Justine Hill Edwards]

Tell you what's coming up next week. An exclusive, so [e-mail] freshair and look for an email from Molly every Saturday morning.

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[Tanya Moseley]

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[Tanya Moseley]

This is FRESH air. I'm Tanya Moseley and my guest today is author and historian Justine Hill Edwards. She's written a new book about the rise and betrayal of the Freedmen's Bank. Titled Savings and Trust, the book looks at the years immediately after the Civil War when tens of thousands of formerly enslaved people deposited millions of dollars into the Freedmen's bank, only to experience the bank's collapse nearly 10 years later. Edwards charts how members of the bank lost millions and it was the bank's white financiers who caused its demise. Justine Hill Edwards is a historian and associate professor of history at the University of Virginia. Her research explores the intersection of African American history, the history of slavery and the history of American capitalism. Her previous book, Unfree Markets the Slave's Economy and the Rise of Capitalism in South Carolina, dissects the economic lives of the enslaved. There is this powerful illustration from Harper's Weekly titled Blood Money from 1876, and it illustrates a bank with money falling from it into a bag with the words KKK that is such A powerful image. It also makes me think and realize that this was well known what was happening, that it was wrong.

[Justine Hill Edwards]

Absolutely. The idea that is conveyed in this Thomas Nast picture that I think is so provocative is that African Americans money was going into the bank, but all of that money, all of that capital was being funneled, even stolen, by white Americans in the North. And one of the most powerful parts of this is that at the bottom it says kk. And so I think it is worth saying that members of the bank's administration, especially white members, would not be considered members of the Ku Klux Klan. That had begun to emerge in this period. But the reality was that the economic violence that the white bank administrators waged on African Americans, especially with their money, was seen as being a violent and extractive experience for African Americans, not unlike the physical violence and terror that African Americans in the south were experiencing. And so that's why in the book I make sure to use the term economic violence and plunder, because for African Americans, that's absolutely what it was.

[Tanya Moseley]

How did people find out that their bank branch was going under?

[Justine Hill Edwards]

Well, I think this is where the famed Frederick Douglass comes in. He's asked in 1874, after John Alvord steps down at the beginning of that year, he's asked in March to become the bank's president. And he is, he has a bit of trepidation, but he also understands the importance of the institution. He and his family, he and his sons were depositors. And so once he gets into the role of the presidency, he accepts. And In April of 1874, he sits down for his first trustee meeting. And he learns that the bank's finances were in horrible shape. He learns that the bank is over leveraged. There are millions of dollars unpaid in loans, that the loan terms had been extended, that interest, interest was not being collected, that black depositors were not having access to their money, which was a problem for him. And news reports are starting to come out that the bank is underwater, that they cannot fulfill their obligations to depositors. And so while Frederick Douglass is figuring this out, depositors are starting to realize that, hey, I can't go to my bank branch and withdraw my money. I have to wait 60 or 90 days to withdraw the few dollars that I have in my account. And so this terrifies not only Douglas, but the tens of thousands of bank depositors across the country.

[Tanya Moseley]

Remind us of Douglass place in society at this point because his role had been promoting self sufficiency for black people.

[Justine Hill Edwards]

Yes, he was by far the most famous African American. He was the most photographed man of the 19th century, which I think is a stunning fact. And he is incredibly recognizable. And he is well respected among African Americans and many whites alike, especially white Republicans. And so his decision to accept the presidency of the Freedmen's bank, he took that very seriously. He had been considering moving more fully into political life. There were calls for him to move to a state in the south and run for a seat in the U.S. senate. And so he saw this decision to become the bank's president as a move in that direction. And as he writes in his autobiography that he publishes in 1881, it was one of the worst decisions of his life. And I think that is saying a lot given what he had been through in his life, fighting for his freedom as an enslaved young man.

[Tanya Moseley]

Right. He actually writes, despite my efforts to uphold the Freedmen's savings and trust, it has fallen. It has been the black man's cow, but the white man's milk. Bad loans and bad management have been the death of it. I was ignorant of its real condition till elected as its president. What did he do to try to save the bank, though? Because really, even after finding out all of that information initially, he wasn't telling people to, hey, pull out your money. And he did not even pull out his money initially, right?

[Justine Hill Edwards]

No. When he gets to that first board of trustees meeting, he is flanked by John Alvord, who was the outgoing president, and the bank's actuary, George Stickney. And he is basically shown the books and kind of looks in horror at the state of the bank's finances. And Alvord kind of jumps on him and says, well, there is a run on one of our branches, and so we need you to deposit $10,000 of your own money in this bank account. And when I first read that, I was stunned. I was shocked because I'm thinking about Douglas getting to this very beautiful building. The building that they built in Washington, D.C. was one of the most expensive buildings at that time. It was one of the most stunning buildings in the city. And so he's sitting there with the trustees at that time, there are two other black trustees. And he is looking around, I imagine, at the white faces and saying, of all of these men, none of whom have my background, minus the African American trustees, but the white men in this room could all gather money to loan, and they're asking me, the former slave, to do it. I just think about that, and it's kind of mind blowing.

[Tanya Moseley]

Did he feel overall that he had been used?

[Justine Hill Edwards]

I think so. I think he comes to that point fairly quickly. That year, in February, there was a report issued by the Office of the Comptroller of the Currency, the first bank regulator to examine the banks in Washington. And the Freedmen's bank was one of them. And the OCC examiner shows a pretty damning report of the bank's finances. They sent out examiners to the various branches, and it comes out. And depositors learn that the bank's finances were being mismanaged and that their money perhaps was not as safe as they had hoped. And so Douglas comes in and essentially tries to right the ship. And what he does is he writes to try to assure depositors that their money is still safe and essentially not to pull their money out from the bank. And he ends up depositing $10,000 of his own money in the bank as a show of his confidence.

[Tanya Moseley]

You actually got a hold of some of the. This went before Congress, I should say, and you got a hold of some of the testimony. Douglas really showed a lot of anger towards John Alvord, who was responsible for actually founding the bank. What are some of the things he was able to say to Alvord, and how did Alvord respond or defend what was happening?

[Justine Hill Edwards]

Well, so after the bank collapses In July of 1874, there are a series of congressional investigations. The most interesting, I think, occurs in 1879. The head of the investigation was the first black senator to serve a full term, actually Blanche K. Bruce from Mississippi. And he uses this as his last chance because he knows that he's not going to be reelected. And so he uses this as his last chance to make public what happened with the bank's collapse and its failure. And so he brings John Alvord, he brings Frederick Douglass to testify. And Alvord is less forthcoming than Douglas and Bruce hoped that he would be. He claims that he's old, and he's in his 60s by this point, and he claims that he's old and he's not sure what happened and that the bank's failure was really not his fault. He says that perhaps he should have been more forthcoming in terms of. Or perhaps a sterner president. But he essentially tries to escape responsibility for the bank's failure. Douglas, on the other hand, when he testifies, he is pretty clear about the fact that he came into the bank's presidency while the white administrators understood that the bank was insolvent and that it probably would not survive. He believes that he was strategically kept out of important conversations. Some of the bank's administrators were writing in code, a vestige of the strategies that Henry Cook used in his own business. He would often communicate with his partners in code. And so there were communications in code that Douglas couldn't decipher. And so Douglas quickly again understands that the bank was not salvageable. And he was placed in that position to be the head of the Freedmen's bank when it failed and collapsed.

[Tanya Moseley]

Let's take a short break. If you're just joining us, my guest is author and historian Justine Hill Edwards. We're talking about her new book about the rise and betrayal of the Freedmen's bank, titled Savings and Trust. We'll continue our conversation after a short break. This is FRESH air. If you listen on the regular to the FRESH AIR podcast, then I know you'll love some of the other NPR podcasts, too. Here's why NPR is worth your time and money. Money. You get perks like sponsor free listening, bonus episodes, early access, shop discounts and more for over 20 different NPR podcasts like this one. Support what you love and stop hearing promos like this [e-mail] on the code.

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[Tanya Moseley]

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[Justine Hill Edwards]

No. Unfortunately, none of the administrators who were culpable for the bank's failure were brought on criminal charges. If anything, they used their testimonies before Congress to try to explain away their behavior. Henry Cook, for example, is finally called in front of Blanche K. Bruce in his congressional hearing and he evades. He says he doesn't remember. He. He testifies that his decision making in terms of investments was sound. And so unfortunately, no one was brought on charges. And the bank's depositors, when the bank failed, were left to deal with federal authorities to hopefully, they hoped, get their money that they still had in the bank when it failed in July of 1874.

[Tanya Moseley]

Did they ever get money back from those that they loaned to?

[Justine Hill Edwards]

Well, there were five disbursements. The first disbursement was about 10%, and then it went up to like 10%, 10%, 15%, and then 5%. And so there was a very complicated process, though, for depositors to get money, they had to submit their bank books, which was just a re recording of how much they had in their accounts, how much they had saved. And with withdraw, they had to submit their bank books within a certain period of time. They had to comport with certain guidelines to submit other information in terms of their identities, which I'm sure you can imagine in the 19th century, especially for African Americans, was very complicated. And so it was a very complicated process that was made even more complicated because as the bank, as the bank's commissioners, Congress appointed three commissioners to figure out how to liquidate the bank's assets and to figure out how to repay the depositors. They had a hard time selling off the bank's assets, the buildings that they had purchased for bank branches across the country. The commissioners themselves were getting paid. And so all of this kind of chipped away at the money that African Americans could claim. So at the end, by 1900, black depositors had claimed about 48, 49% of what they had in their accounts, and so nowhere near the full amount of money that they had when the bank collapsed.

[Tanya Moseley]

Have you charted just how much wealth many of these people might have had if they hadn't lost their money?

[Justine Hill Edwards]

It's in perhaps a trillion dollars. I mean, it's really hard to say. When the bank failed, their. Their depositors had about $2.9 million in their accounts. At its height, though, the bank had taken in about $57 million. And now that's about 1.5 billion. The math on this is not exact, but if we think about how that money could have accrued, how interest could have accrued on that, we are talking about billions, if not trillions of dollars in wealth that African Americans could have now if not for the failure of the bank.

[Tanya Moseley]

Are you making the case for reparations.

[Justine Hill Edwards]

That is a good question. I think so. I think there needs to be a reckoning. I think one of the major aspects of not just this work, but longer, broader conversations about the continued influence of slave is that African Americans have been stripped of wealth. And that was strategic. It wasn't just with the failure and plunder of the Freedmen's Bank. We're talking about discriminatory housing practices, lack of access to credit, being credit invisible, not trusting financial institutions. And so taking yourself out of the traditional financial marketplace. And research shows that that having and maintaining a relationship with a financial institution and trusting that your money will be safe with that financial institution is a vehicle to build wealth. And so if African Americans historically have both been left out of and on the other side, don't trust these institutions, we're talking about one of the origins and roots of the racial wealth gap in America.

[Tanya Moseley]

Justine Hill Edwards, thank you so much for this book and this conversation and your research.

[Justine Hill Edwards]

Thank you so much. This was wonderful.

[Tanya Moseley]

Justine Hill Edwards is an associate professor of history at the University of Virginia. Her new book is Savings and the Rise and Betrayal of the Freedmen's Bank. Coming up, book critic Maureen Corrigan reviews Katherine Rundle's new book, vanishing Treasures. This is FRESH air. On Short Wave, we know the human body is this amazing, singular thing capable of facing down all kinds of infection and disease, from managing UTIs to cancer to Long Covid. Our show is dedicated to destigmatizing our relationship to our bodies. Listen to the shortwave podcast from npr.

[Justine Hill Edwards]

The Code Switch team spent Election Day talking to folks about how the outcome might impact them. It's a time capsule of people's hopes and fears before they knew the results.

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One way or another, there's a change coming.

[Justine Hill Edwards]

I wanted to vote for Trump, but I voted for her.

[Tanya Moseley]

Gays for Trump. I cried this morning. I've been crying on and off.

[Justine Hill Edwards]

I'm terrified. Listen to Code Switch, the podcast about race and identity from npr.

[Tanya Moseley]

Ever look up at the stars and.

[D]

Wonder what's out there?

[Tanya Moseley]

On shortwave, we ask big questions about our universe.

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From baby galaxies to the search for.

[Tanya Moseley]

Alien life, we explore the celestial science behind these questions. Listen now to the shortwave podcast from npr. This is FRESH air. Our book critic Maureen Corrigan wasn't exactly looking for escape reading this week, but rather for something that would give her a more expansive view of life on Earth. She found it in a book by Katherine Rundle called Vanishing Treasures. Here's her review.

[D]

If you, too, have been intensely concentrating on the presidential election, you may be ready for a shift of focus. Vanishing Treasures, an extraordinary book by Katherine Rundle, originally published under the title the Golden Mole in the uk, lifts readers out of the here and now and invites us to train our eyes on wider horizons. Rundle is a publishing phenom. Her 2013 middle grade children's book Rooftoppers drew inspiration from her own adventures as an undergraduate at Oxford, where she climbed brick walls and scale drain pipes to take in the views of that city of dreaming spires from on high. More recently, Rundell has written an acclaimed biography of the metaphysical poet John Douglas sun, as well as a best selling fantasy novel called Impossible Creatures. In short, Rundle is something of a Renaissance woman who writes with the elegance and erudition that distinguish that era. This book is a bestiary, a collection of creatures both odd and mundane, all of whom are more astonishing than you might expect, all of whom, as Rundel tells us, are endangered or contain a subspec that is endangered because there is almost no creature on the planet now for which that is not the case. Rundle begins her book with an epigraph from an author whose reputation is itself approaching extinction, the British essayist and mystery writer G.K. chesterton. The world will never starve for want of wonders, Chesterton says, but only for want of wonder. What follows are 23 very short essays on creatures ranging from the wombat to the spider, the raccoon to the tuna. For anyone whose capacity for wonder could use a jumpstart, Rundle's essays are essential reading. Listen, for instance, to these sentences from the opening paragraph of her essay on the swift, a common creature so named because it's the fastest bird in flight. The swift, Rundle says, is sky suited like no other bird, weighing less than a hen's egg, with wings like a scythe and a tail like a fork. It eats and sleeps on the wing. Swifts mate in brief mid sky collisions, the only birds to do so and to wash. They hunt down clouds and fly through gentle rain slowly, wings outstretched. As you can hear, Rundle's essays are no mere Wikipedia entries about the natural world. Rather, they're deeply felt, lyrical, often witty, and occasionally grisly evocations of the living marvels she's surveying. Her essay on the hermit crab, for instance, begins with a joke. It was perhaps a hermit crab that ate Amelia Earhart, Rundle goes on to explain. It seems that the uninhabited island in the western Pacific where Earhart's plane may have gone down, and where 13 but only 13 human bones were discovered that matched Earhart's size is to this day also home to a colony of coconut hermit crabs, the world's largest hand crab. The oldest crabs, Rundle adds, live to more than a hundred and grow to be up to 40 inches across, too large to fit in a bathtub, exactly the right size for a nightmare. The interconnectedness, both savage and beautiful, of the animal and human world is the message thrumming through these essays, Earhart's possible fate notwithstanding. It's, of course non human creatures who suffer most from their contact with us. The greatest lie that humans ever told, Rundle says, is that the earth is ours and at our disposal. We must cease from telling that lie because the world is so rare and so wildly fine. Vanishing Treasures makes readers see, really see some of the miraculous creatures we still share this fragile world with. Like any wise environmentalist, Rundle also leavens terror with possibility. I leave you, then, with Rundle's tribute to the Greenland shark, the planet's oldest vertebrae, an animal who can live over 500 years, Rundle says, I find the very idea of them hopeful. They will see us pass through whichever spinning chaos we may currently be living through, and they will live through the currently unimagined things that will come after that the transformations, revelations, the possible liberation that is their beauty. And it's breathtaking. They go on. These slow, odorous, half blind creatures are perhaps the closest thing to eternal this planet has to offer.

[Tanya Moseley]

Maureen Corrigan is a professor of literature at Georgetown University. She reviewed Vanishing Treasures by Katherine Rundle. If you'd like to catch up on interviews you missed, like our conversations with actors Al Pacino and Saoirse Ronan, check out our podcast. You'll find lots of Fresh AIR interviews. And to find out what's happening behind the scenes of our show and to get our producers recommendations on what to watch, read or listen to, subscribe to our free [e-mail] FreshAir Fresh Air's executive producer is Danny Miller. Our technical director is Audrey Bentham. Our engineer is Adam Staniszewski. Our interviews and reviews are produced and edited by Phyllis Myers, Roberta Shorak, Ann Marie Baldonado, Sam Brigger, Lauren Krenzel, Teresa Madden, Monique Nazareth, Susan Yakundi and Anna Bauman. Our digital media producers are Molly CB Nesper and Sabrina Seward. Thea Chaloner directed today's show with Terry Gross.

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[Tanya Moseley]

Wild Card podcast, comedian Seth Meyers talks frankly about his early career.

[Justine Hill Edwards]

I was a far more temperamental when I was younger, younger, and things ran very hot at snl. And there were definitely times where my instincts were to say something that would have been relationship ending to people.

[Tanya Moseley]

I'm Rachel Martin. Seth Meyers is on Wildcard, the show where cards control the conversation.

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If you need a moment to catch your breath and calm your nerves, listen to the latest All Songs Considered from NPR Music.

[Justine Hill Edwards]

We've got an all new mix of.

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Songs to slow the blast blood and recalibrate your day. Plus reflections on gratitude, joy and the power of kindness. Listen to new episodes of All Songs Considered every Tuesday. Wherever you get podcasts.