January 1, 1874, Freedman’s Bank Closes

The 61,000 people who had deposited $3 million (over $63 million in today’s dollars) into the system lost what they had when the bank closed in 1874 due to fraud, mismanagement and the panic of 1873. When the Freedman’s Bank closed, people of color were relegated to high-cost financiers and other schemes in an effort to access credit for home and land purchases and other endeavors.

by IFHCIdaho August 18, 2021