Word: harlem
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Dates: during 1960-1969
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Alternative sources of funds are hard to come by in Harlem. Because Negro businesses are small and few, and white businessmen are not interested in switching their accounts to Freedom National, large business deposits which would cost less per hundred dollars to maintain have not made up for the large number of small individual accounts. Therefore, the bank must rely on building up a large enough volume of small accounts to make handling them profitable. In the bank's present situation, where the costs of funds available to loan out are high, it is a normal banking reaction to minimize...
Unfortunately, it may already be too late for the bank to build up a solid financial basis inside of Harlem, because of its original non-Harlem supporters. The rapid growth of the bank's deposits in the first ten months after the bank's opening in December 1964--at the rate of almost a million dollars a month-- was largely due to a series of one-shot, goodwill deposits from a variety of large white businesses such as Bowery Savings Bank and the Chemical Bank of New York. As long as Freedom National wants to feel sure that these funds...
Just as limiting is the fact that three whites--Jack Blumstein, owner of Harlem's largest department store; Frank Schiffer, a owner of theatres all over Harlem; and Irving Altman, a retired banker--are on the board of directors. These men may not explicitly oppose the advancement of Harlem, but they are bound to support conservative stands on social issues or to advocate neutrality. As middle-class whites, they are inclined to conservatism where they are involved in final decision-making...
...survive. But the directors have made little effort to gain the sympathy of the masses. "When we have to read about what Freedom National is doing in the papers or hear about it over the radio," says one Negro social worker, "they can't be doing too much in Harlem...
...alternative is to seek a steady source of funds outside of Harlem by continuing to follow a moderate line which will not alienate moderate or conservative businessmen. If the directors believe that many more charter depositors can be attracted by this strategy, then this may be one feasible way out of the shortage of funds...