What Selma should mean to credit unions

by: Henry Meier

This weekend the nation marked the 50th anniversary of the march on Selma. The “bloody Sunday” riots jolted the nation into passing the Civil Rights Act in 1965 by making it impossible for the entire nation to ignore the fact that racial inequality and injustice were ultimately incompatible with American ideals. It also got me thinking about the role that financial institutions play in bringing about equality.

Regardless of your political persuasion, I would hope that all of us could agree that a secure place in which to place one’s money and get a loan at a fair price is fundamental to achieving equality. Last week marked the 150th anniversary of the chartering by Congress of the Freedman’s Savings and Trust Company. Within weeks of Congress’ passage of the 13thAmendment abolishing slavery, abolitionists realized that freed slaves needed a place to save and grow their money.

Unfortunately, the creation of the bank also symbolizes just what a complicated and winding road the march toward racial equality can be. Despite its noble ideals, the bank was closed down in 1874. The meager savings of tens of thousands of African-American depositers were lost – remember this was in the age before Share Insurance. According to Comptroller Thomas J. Curry, the bank failed as a result of expanded investment authority it was given in 1870 which allowed it to invest half of its deposits in riskier assets.

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