Children Of Fire: An African-American TL

Only for banks incorporated under the National Banking Acts or under the laws of certain states. A specially incorporated bank wouldn't be subject to anti-branching issues unless they were specifically provided for in the act incorporating it.

EDIT: Actually, an interesting spillover of this is that a successful Freedman's bank might create broader support for liberalization of branching laws. IOTL, it just wasn't a big enough issue and the entrenched interest of small unit banks prevented much from being done about it until long after it became irrelevant. If the US maintains a network of larger branch banks instead of the hurricane of smaller unit banks of OTL, you might see a significantly more financially stable 19th century US. Faster recovery from Panics, with smaller over all dips after each one. Looking more like Canada than OTL 19th century US, in other words.

Yeah, if you manage to somehow get branch banking allowed nationwide, this should happen. Banks in that era were poorly capitalized because of their locations not allowing them to diversify easily. This lead to structurally weak banks.

Further, if you manage to allow branch banking, you might end up with no federal reserve untill much later. The US will probably get a central bank anyway, but without the structural weakness that most banks had, there will be less of n excuse for one. Banks will still have their problems (The US was not issuing enough debt, and private banks were required to back their private money with US debt), but without the massive bank failures due to poorly capitalized banks, we should see a later central bank.

I wonder if African Americans bankers might try to advocate for laxer regulations on branch banking, citing the success of the Freedman's Bank.
 
Really, some banks seem to have branches everywhere. Have they all just sprouted up since the 90s?

Yes. There was some major law changes at that time.

It's true that several banks had operations in multiple states, but they did it by incorporating subsidiaries in each state, but they were separate entities legally. In fact, my wife walked into a Norwest bank in Minnesota to pay off her student loan - and they couldnt take the money because the loan was in Iowa.

Now, they could have lots of branches IN ONE STATE, but branches in multiple states is tough.
 
Yes. There was some major law changes at that time.

It's true that several banks had operations in multiple states, but they did it by incorporating subsidiaries in each state, but they were separate entities legally. In fact, my wife walked into a Norwest bank in Minnesota to pay off her student loan - and they couldnt take the money because the loan was in Iowa.

Now, they could have lots of branches IN ONE STATE, but branches in multiple states is tough.

The laws were complex as the result of US federalization of banking laws. State banks in some states were perfectly free to create branches -- in state. Others shared the same unit bank animus of the National banks and the Federal Reserve System banks.
 
Really, some banks seem to have branches everywhere. Have they all just sprouted up since the 90s?

Yeah, untill the 1990s, branch banking was heavily restricted. It was often allowed in one state, but not across state borders, and often times there were restrictions imposed so that it was illegal within states as well.

But I like this timeline so far. It is an original idea that seems to lead to a much better result than OTL, without stretching much plausability. I have a passing familairity with the Gilded Age, so I plan to follow this with some interest.
 
Wilberfoce, Ohio: 1880

Martin Delany, a physician, retired to his bed after a long day of seeing patients. The old Civil War vet was tired, exhausted, but still upbeat. Not upbeat enough to resist the beckoning of a soft bed, but who could resist that particular siren?

He had received a letter earlier that morning from a friend working with the Liberian Exodus Joint Stock Steam Company, an organization Delany helped found. Apparently plans were underway for a second voyage. Delany had read this news with glee: mass-colonization of Liberia would be a reality, he could feel it! Delany knew, as did any Negro with common sense, that there was no future for blacks in America. Although Delany had always been a proponent of black emigration, the Civil War and emancipation had allowed him to believe that there was hope for his people. While he was still living in South Carolina he had become an active participant in politics. Delany mastered the art of using Negro voters as "swing votes" in order to get his desired result. However, Redeemers killed the budding Negro political machine in its cradle, along with actual Negroes in their quest for power. The disenfranchisement of blacks in the South convinced Delany that there was no hope for blacks in the U.S. An exodus was necessary.

It was with that in mind that he and others founded the Liberian Exodus Joint Stock Steam Company, a company that helped blacks emigrate to Liberia to start new lives. With his help, the company was able to secure funding from several sources. The Freedman's Bank was the largest sole financial supporter, having bought up large shares of the company thanks to Delany's personal appeal to the Bank. The Freedman's Bank had bought large quantities of stock in the company, enabling it to get a seat on the Board. Although many chaffed under their weight -including Delany himself- the Bank did ensure that there would be enough supplies for the trip, and that Monrovia would be ready to accept the new emigrants.

Delany thought that their precautions were unnecessary, but the Liberian Exodus' first trip went smoothly, an event for which the Bank took a good chunk of credit. Delany had to resign from the position in order to move to Wilberforce with his wife so they could support their college-bound sons, but he still had some shares in the company. His friend kept him abreast of developments and convinced him to hang on to at least part of his shares. They weren't worth much yet, but maybe his sons would find some value in it after he passed on. The Liberian Exodus' long term plans called for establishing a port in Monrovia and emigrating 160,000 Negros to Liberia over the next 47 years. So, if not his sons, maybe his grandsons would find some value in the stock.

Delany began to drift into sleep, faint dreams of Liberia fluttering under his eyelids, before a knock on the door startled him out of his nap. "Martin" his wife called, "I know you're beat, but our sons have come to surprise us with a visit. They want to know if you are able to come out, or... or does the old man need his sleep." Delany heard snickering from the other side of the door.

Old man huh? Smiling, Delany rose out of bed and put his shoes on. Rest would have to wait, it seemed he would have to remind his sons what he got all those medals in the war for.

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Author's Note: Martin Delany is a real person. He was born free and was an ardent proponent of Liberian colonization. Also rose to the rank of Major in the Army during the Civil War, becoming the first black line field officer.

He did found the Liberian Exodus Joint Stock Steam Company, which had the long-term goals stated above. OTL, the company fell apart after a badly organized trip to Liberia in which 24 people died. TTL, the Freedman Bank's advice and capital results in a smoother journey and ensures the survival of the company for the moment.

As happened in OTL, TLL Martin Delany quits the company in order to support his sons who are enrolled in Wilberforce University.

Just to keep in mind, in case some think I'm making the Bank do too much: the Freedman's Bank is right now engaging itself in small ventures. The purchase of the CMRDC was the largest deal it's made under its current board. By comparison the purchase of shares in the Liberian Exodus Company is small potatoes, but has the possibility of big butterflies.

Links for the interested:

http://www.archives.gov/atlanta/finding-aids/barque-azor.pdf {info on the Liberian Exodus Company}

http://en.wikipedia.org/wiki/Martin_Delany {info on Martin Delany}

Delany.jpg
-Martin Delany in Civil War uniform
 
Hell yeah Martin Delany! I'd guess that many Freedmen's Bank directors have mixed emotions about this loan: on the one hand, it will make Liberia stronger, but on the other, it might drain off some of the best and brightest that they need for the struggle in the United States.
 
Hell yeah Martin Delany! I'd guess that many Freedmen's Bank directors have mixed emotions about this loan: on the one hand, it will make Liberia stronger, but on the other, it might drain off some of the best and brightest that they need for the struggle in the United States.

Kooluk Swordsman, congratulations on the timeline and on making JE show visible signs of excitement. That by itself is probably a compliment!
 
Hell yeah Martin Delany! I'd guess that many Freedmen's Bank directors have mixed emotions about this loan: on the one hand, it will make Liberia stronger, but on the other, it might drain off some of the best and brightest that they need for the struggle in the United States.

I'll explore the Freedman Bank's inner feelings on their actions a bit later, but yes there's beginning to be some division in the ranks. Douglass in particular isn't pleased.

Ah, Liberia, where the oppressed became oppressors. How much immigration did Liberia get IOTL?

Wikipedia places their number at 150,000-200,000, or at around 5% of the total population of Liberia. I'm sure those numbers are pre-Samuel Doe.

Warning: I'm considering changing up the way I write this. Originally I was planning to write it all through the eyes of people and characters like rast's A Shift In Priorities, but upon reflection I've realized how insane it would be to write 150 years of history through characters.

Instead, I'm taking a page out of Jonathan Edelstein's book. The story from now on will be largely historical overviews broken up every-so-often through characters and events. It'll be easier and quicker for me, and I'm really in a rush to get out of the 1880's anyway.

And of course, thanks everyone for the kind words :D
 
Cool update! It will be interesting to see how this might effect Liberia - I wonder if it will be more stable and developed compared to OTL, or even keep some of the land carved off of it by the French?
 
I'll explore the Freedman Bank's inner feelings on their actions a bit later, but yes there's beginning to be some division in the ranks. Douglass in particular isn't pleased.

Booker T. Washington won't like it either - he wants his talented tenth right here. (I assume he'll still be prominent in TTL, given that nothing about your POD would prevent the Tuskegee Institute from existing.)

Will you be working Ida Wells into this? And Madam Walker? She might do well from a Freedmen's Bank loan.

Wikipedia places their number at 150,000-200,000, or at around 5% of the total population of Liberia. I'm sure those numbers are pre-Samuel Doe.

The best figure I can find for the number of 19th-century settlers is 14,000-15,000, some of whom didn't survive their first year. If Delany can get another 10,000 there, that will be a substantial boost to the settler population. Maybe it will also make them secure enough in their position to start setting up the adoption bonds with the indigenous population that they established in the 20th century OTL, although it also might not, given the evangelist/civilizing-mission complex that many of them had.
 
Hope Gives Way
End of Chapter One

The 1880's would proved to be a mixed bag for African-Americans of the era. The massive gains made in the 1860's and 70's were rolled back by racist reactionary elements -"Redeemers"- in the 1880's. Throughout the Southern States the Democrat Party -backed by terrorist organizations like the Red Shirts- rose to power by black suppression, violence, assassination, and even a coup d'teat in a North Carolina city. The black population slowly found themselves with a hostile government over them, opening the way for a life beyond their imagination.

Many blacks, seeing which way the wind was blowing, opted to get out while they could. Called Exodusters, these African-Americans left the South for the lands of Kansas and Oklahoma, hoping to found all-black towns and escape persecution. For a time these people were able to accomplish this, living in relative seclusion -some of them even began to prosper as small business owners.

Despite the loss of political influence and protection, many blacks were able to make their way in the world. The largest and most financially secure group were the Civil War veterans. Having received a reasonable pay for service, and instilled with military discipline, this group was ready to take their place in the new America. Many of them had taken their pay and squandered it. Others deposited it in white-owned banks that either collapsed in the Panic of 1873 or were denied their deposits completely by racist bankers -in effect losing everything. Many others, however, deposited their money in the Freedman's Bank, which had weathered the storm and survived. These men thus had the savings for a rainy day or the capital to invest.

By far the largest investment made by blacks of the era was in education. Former slaves immediately recognized the value of education in America -they even recognized it as slaves- and they did everything in their power to get an education themselves or ensure their children had one. White philanthropists and Northern blacks often built schools themselves in rural areas to educate blacks in basic topics like reading and math. Despite attempts by racist paramilitary groups and a total dearth of funding by the state, black literacy climbed inexorably upwards.

The Freedman's Bank itself was undergoing a split in philosophy. The investment in the Liberian Exodus Joint Stock Steam Comapny, while small, produced a fiery debate in the Board. Frederick Douglass and his faction were completely against any funding of Liberian colonization efforts, arguing that it sent the message that blacks didn't belong in America. The other faction led by Charles Jackson -author of the buyout of the CMRDC- weren't particularly proponents of colonization. Instead they saw the long-term potential of a presence in Liberia and would not let idealism stand in the way of profit, which to them was the most important consideration a bank should have. Both groups wanted to help uplift the black community, but they had two different ways of going about it. Tellingly, Douglass' faction was losing ground. By 1885, mostly due to health, Douglass would step down as Chairman.

However, for most blacks the world of finance and debate was above them. Expecting a fresh start once freed, instead these people found themselves tied to the land as sharecroppers, drowning in a debt made worse by the decline of cotton prices. Everything they dreamed of, for themselves and their children, was submerged under the weight of racism and peonage. Even worse than sharecropping was the convict leasing system spreading through many of the southern states. Under this system, convicts would be leased out to certain parties in order to build infrastructure. That in itself is nothing new. Unfortunately, the system sparked a demand for convict labor, and blacks found themselves as the most targeted group for arrest. Forbidden to serve on juries, blacks arrested for anything could be assured a conviction, and they often faced much longer prison terms than whites for similar crimes. Unpaid and mistreated, convicted blacks were slaves in all but name.

Of course, we can also assume that many of them were innocent.

It is with this mixed bag that blacks made their way into the 1890's. Uncertain of what the future would bring, they found a vision of it in Paris, Texas. In 1893, a black man named Henry Smith was captured by a mob for the killing of a three-year old girl {a crime for which he was never tried or convicted, also a crime for which the police found no clues}. After being paraded on a float through town, he was tied onto a scaffold and tortured for an hour by the victim's family in front of a crowd of 10,000. As his torturers stabbed him with red hot irons, the crowd cheered at every scream. Eventually, they inserted two red hot irons into his eyes and down his throat.

Unfortunately for Henry Smith, he was still breathing. Upon discovering this, they poured hot pitch over his body and set him on fire. Smith, burning alive, tore off his bounds and fell to his death off of the scaffolding. The whites in the crowd fought each other in his ashes, rushing to claim his teeth and bones as mementos.

This would not be the last moment of barbarism and brutality blacks would suffer. The Nadir has begun.

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Author's Note: The Lynching of Henry Smith in an OTL event. Info for the interested here

Henry-smith-2-1-1893-paris-tx-2.jpg
- Photo of the Lynching of Henry Smith
 
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Art

Monthly Donor
HOLY SMOKE! ! !

Never heard about that incident. . . But I have heard about the James Byrd Jr. murder in 1998, where a black/African-American was dragged behind a truck, like the death of Hector by Achilles in the Iliad.

Gruesome, VILE shit. I have a slight stake in TLs like this, as my Maternal ancestors were from West Virginia, and both fought on the side of the Confederacy. Scots/Irish and German, and poor white trash.
 
Never heard about that incident. . . But I have heard about the James Byrd Jr. murder in 1998, where a black/African-American was dragged behind a truck, like the death of Hector by Achilles in the Iliad. Gruesome, VILE shit.

Yeah, I remember that, too. :(

I have a slight stake in TLs like this, as my Maternal ancestors were from West Virginia, and both fought on the side of the Confederacy. Scots/Irish and German, and poor white trash.

Slightly different on my end; I had people on both sides of the war, too, but most of my maternal ancestors, including several Kentuckians, fought with the Union(paternal, even more so) though some Confederates could be found, as well.
 
Jesus, that's pretty brutal, even by lynching standards. And those were already pretty terrible standards to begin with.
 
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