Reverend William Washington Browne and the First Black-Owned Bank in America

 

Reverend William Washington Browne, a Georgia-born freed slave, made history when he established the first Black-owned bank in America. The True Reformers Savings Bank, which was formed in 1888 and opened officially in 1889, was the first Black bank to be chartered in America. This bank was a product of Browne's earlier work with the Grand Fountain United Order of True Reformers, a Black fraternal order he founded in 1849. The bank's name was literally taken from the mission of self-improvement and economic betterment of African Americans of this organization.

 

Early Life and Education

Browne was born into slavery on October 20, 1849, to Joseph and Mariah Browne in Habersham County, Georgia. He was given the name Ben and was sold to a horse dealer at the age of eight, who encouraged him to adopt the surname William Washington. During the American Civil War at the age of fifteen, he escaped into slavery and joined the Union Army when they captured Memphis. After the war, he pursued education and then was a school teacher in Wisconsin, Georgia, and Alabama before entering the ministry in 1876.

 

Founding the True Reformers Savings Bank

Browne's dream of Black economic empowerment was shaped by his experiences as a minister, teacher, and entrepreneur. He envisioned fostering African American financial knowledge, property ownership, and sobriety in post-Civil War South. To this end, he founded a mutual aid society that eventually evolved into the True Reformers Savings Bank.

 

The bank maintained its initial office at Browne's home at 105 West Jackson Street in Richmond's Jackson Ward neighborhood, a once-African American cultural and commercial hub. The bank accepted deposits of more than $1,269 during the first day that the bank operated business in 1889. The bank symbolized financial solidity, remaining open throughout the Panic of 1893, an economic panic which resulted in scores of banks closing down. The True Reformers Savings Bank was reported to be the sole bank in Richmond that continued to operate in full capacity, clearing all checks and cashing out the whole account value amidst this financial crisis.

 

Historian James D. Watkinson added: "Browne's entrepreneurial acumen helped lead the True Reformers in developing and organizing a bank that would become the country's first chartered Black-owned banking institution and a model to be followed by others, including Maggie Lena Walker."

 

Browne's Impact and Legacy

Browne's leadership extended beyond the bank. His fraternal lodge provided death and illness benefits to members, promoting economic self-sufficiency and communal prosperity. His activities encouraged Black people to purchase land, save money, and work towards economic independence.

 

W.E.B. Du Bois described the significance of Browne's work, referring to his organization as "probably the most extraordinary Negro organization in the country." In addition, Browne was among eight African American leaders invited to represent the Black community at the Cotton States and International Exposition in 1895, along with Booker T. Washington.

 

By 1907, the True Reformers Savings Bank had amassed over $1 million in deposits, marking its position as a pillar of Black economic progress. The bank expanded into various enterprises, including a newspaper, a real estate company, a retirement home, and a building and loan association. New branches were established as far away as Kansas, and by 1900, the bank had branches in 24 states, with property valued at $223,500.

 

The Bank's Decline

Although after Browne's death in 1897 the bank also prospered initially, after it came under Reverend William Lee Taylor, it was mismanagement that led to turmoil in the bank's finances. In particular, the bank cashier embezzled $50,000, which proved to be a heavy crippling blow for the bank. The State Corporation Commission closed down the bank in 1910 due to it being insolvent.

 

Although the bank ultimately failed, its place in history is safeguarded as the first Black-owned and chartered bank in America. Browne's efforts created the foundation upon which future Black banking and economic empowerment movements emerged, including galvanizing the likes of pioneers Maggie Lena Walker, the first Black woman to charter a bank in America.

 

 

Reverend William Washington Browne's life was one of resilience and vision. He was born into slavery yet grew up to become a successful minister, educator, and entrepreneur, building institutions that provided economic empowerment to African Americans. His funeral was the biggest ever seen in Richmond's African American community, a testament to the deep respect he had earned during his lifetime. His pioneering work in Black banking today is a colossal milestone in American history.