This post was written by Lynn Weinstein, Business Reference and Research Specialist in the Science & Business Reading Room.
While researching for the library guide Banking History: Central Banking and the Currency Question in the United States, I stumbled upon fascinating pamphlets donated to the Library by the American Bankers Association. These early 1900s publications shed light on the remarkable history of the True Reformers Bank, a groundbreaking institution in African American financial history.
Founded by the formerly enslaved Reverend William Washington Browne (1849-1897), the True Reformers Bank secured its place in history on March 2, 1889, when it became the first legally chartered African American bank in the United States. This was followed by its public launch on April 3, 1889, at Reverend Browne’s residence in Richmond, Virginia.
The story of the True Reformers Bank is intertwined with the Grand Fountain of the United Order of True Reformers, a fraternal organization with roots in the temperance movement. A branch of the Grand Fountain evolved to provide mutual aid to its members, offering financial support during times of illness, hardship, or death. This system was an early form of insurance that relied on membership dues and contributions to a dedicated fund.
Recognizing the importance of financial literacy and independence, the Grand Fountain established the “Rosebud Department” in 1885. This innovative program encouraged thrift and entrepreneurship among children, providing financial benefits to families in the event of a child’s death.
A pivotal moment in the history of the True Reformers unfolded in Charlottesville, Virginia. A local chapter entrusted its funds to a white storekeeper for safekeeping. However, the storekeeper faced mounting pressure from his white neighbors. They objected to his holding the Black community’s funds, reflecting the racial tensions of the era. This revealed the vulnerability of Black communities who relied on white-controlled systems during segregation. To regain control of their finances and achieve economic independence, the True Reformers were driven to establish their own bank.
The Grand Fountain also launched The Reformer, a newspaper that became a vital source of information and community engagement. By 1906, the newspaper boasted a circulation of 10,000 subscribers, showcasing news, updates on the Order, and advertisements.
Further expanding their economic ventures, the organization established the Reformers Mercantile and Industrial Association in 1899. Within seven years, this department operated several successful stores, generating over $100,000 in annual revenue (around $3.5 million today).
The Grand Fountain’s entrepreneurial spirit extended to the hospitality industry with the founding of the Hotel Reformer, a prominent establishment in Richmond, Virginia. Renowned for its quality and accommodating 150 guests, the hotel was considered one of the finest Black hotels in the South. Additionally, the organization operated an Old Folks Home in Westham, Henrico County, Virginia, providing care and support to the elderly through the generosity of members and community contributions.
By 1906, the Grand Fountain’s Real Estate Department, established in 1892, had amassed a substantial portfolio, owning 27 buildings and 3 farms valued at a remarkable $400,000 (approximately $14 million today). The department also leased an additional 23 properties, demonstrating the organization’s significant financial clout and its dedication to real estate development. At the time of the pamphlet’s publication, the Grand Fountain’s main offices were located at 604, 606, and 608 North 2nd Street in Richmond, Virginia.
An enduring testament to the Grand Fountain’s legacy is The True Reformer Building in Washington, D.C. This historic landmark, the first building of its kind to be designed, financed, constructed, and owned by Black residents, served as a vibrant center for the community. Designed by the Black architect John A. Lankford, the True Reformer Building embodies the era of fraternal mutual aid organizations – vital institutions that championed self-help and cooperative efforts within the Black community. These organizations played a crucial role in empowering Black communities and fostering economic independence during a time of significant racial segregation.
The story of the True Reformers Bank serves as a powerful testament to the ingenuity and entrepreneurial spirit of the Black community in the face of racism and economic discrimination. The success of the Grand Fountain, its bank, and its related programs served as a model for other orders and financial institutions, such as that of Ms. Maggie L. Walker in Richmond, VA and the Saint Luke Penny Savings Bank, demonstrating the enduring impact of their pioneering efforts on the Black community.
Learn More:
- Review the library guide African Americans in Business and Entrepreneurship: A Resource Guide for additional historical information on accomplishments in specific businesses and industries.
- Review the “This Month in Business History” on Maggie L. Walker, First Black Woman to Charter a Bank
- Watch Black-Owned Banks of Jackson Ward: True Reformer’s Bank (Maggie L. Walker National Historic Site) In this video, a Maggie L. Walker NHS ranger discusses the origins and accomplishments of the first chartered black-owned bank in United States, which would serve as an inspiration for Mrs. Walker, the first African American female bank president in the U.S.
- Read:
- The Life and Public Services of Rev. Wm. Washington Browne, Founder of the Grand Fountain U. O. of True Reformers and Organizer of the First Distinctive Negro Bank in America by D. Webster Davis, A.M., D.D. 1910.
- Twenty-Five Years History of the Grand Fountain of the United Order of the True Reformers, 1881-1905 by W.P. Burrell and D.E. Johnson. 1970 (reprint)
- The Black Lodge in White America : “True Reformer” Browne and his Economic Strategy by David M. Fahey. 1994.
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