People, Locations, Episodes

Capital Savings Bank Opens

On this date in 1888, Capital Savings Bank of Washington, D.C., one of the first banks for Blacks, was organized.

The beginnings of Black capitalism in America have a strong history.  Despite Jim Crow segregation during the first 30 years of the 20th century, Black capitalism began to thrive.  Because economic empowerment was another vehicle for equality, a great entrepreneurial spirit showed in the escalation of the founding of Black banks, insurance companies, newspapers, and other enterprises that served the Black community.

By 1892, Capital Savings Bank's deposits had grown to over $300,000.  The Black Church and fraternal organizations raised and channeled that economic spirit into empowerment.  At first, Black churches didn't have businesses traditionally, but they owned buildings and real estate, the only major assets owned by Blacks. These institutions collected large contributions and soon established the first Black banks. Because of their enormous growth, Black businesses began to grow strongly, with receipts in the millions of dollars from products sold primarily to a black consumer market.

This couldn't have materialized without the capital and credit that Black banks provided and white-owned financial institutions were unwilling to give.  For example, Richard Wright established Citizens and Southern Bank and Trust Company and played a vital role in launching many small enterprises, including groceries, bakeries, cleaning establishments, and caterers.

Between 1888 and 1934, 134 Black banks were established, while from 1867 through 1917, the number of black businesses increased from 4,000 to 50,000. Capital Savings Bank helped many businesses and property owners until it closed in 1902.

The site on which it stood, 609 F Street, NW, Washington D.C., was designated a DC Historic Landmark.

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