The Founder Of The First Ever Black-Owned Bank Was Once A Slave!
The history of The Savings Bank of the Grand Fountain United
Order of True Reformers tells a fascinating story about the struggles and
triumphs of a former Georgia slave who founded the first ever black-owned bank
in America. Founded in 1888 by Reverend William Washington Browne, the bank
opened the very next year with deposits on the first day totaling $1,269.28.
The Founder Of The First Ever Black-Owned Bank Was Once A
Slave! From Slave to Bank Owner
Reverend William Washington Browne established the bank to
serve the financial interests of Black depositors. He wanted a bank that would
serve to protect the finances of Black clients to ensure their finances could
not be monitored by whites.
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Rev. William
Washington Browne, founder of first black-owned bank
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The name of the bank came from the Grand Fountain United
Order of True Reformers, a Black fraternal organization established by Browne
in 1849. Racial tension remained high after the Civil War, so Browne
established the first Black-owned bank in Richmond, Virginia, which initially
operated out of his home. Two years later, the bank moved to its location
several blocks away at 604-608 North Second Street.
Thrived despite the economic depression
The bank did very well. When the U.S. economic depression of
1893 hit and people were panicking and rushing to the banks to withdraw their
money, Browne’s bank was one of the few that survived. In fact, it was the only
bank in Richmond that was able to pay out the full value of it’s customers’
accounts and remain in full operation.
After Browne’s death in 1897, the bank continued in
operation. It also expanded into other areas, such as newspaper, real estate, a
retirement home and a building and loan association. It’s growth included
operations in 24 states.
The downfall
However, under the new president, Reverend William Lee
Taylor, the bank was mismanaged, often making unsecured loans which defaulted.
The straw that broke the camel’s back was a bank embezzlement of $50,000 by the
bank’s cashier. By 1910, the State Corporation Commission ordered the bank
closed. But, it remains in history as the first bank owned by African Americans
in the United States.
EX: africanglobe
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