Monthly Archives: July 2013

HBCU Money™ Histronomics: The 1st African American Started & Owned Bank – Capital Savings Bank


After the demise of Freedman’s Savings and Trust Company, it would take 14 years for African Americans to rally behind another bank. The first bank organized and operated by African Americans was Capital Savings Bank in Washington, D.C. Just four years after it opened, its deposits had grown to over $300,000.

Capital Savings Bank provided the capital essential to the growth of black businesses, capital that white-owned banks were unwilling to lend. The community proudly deposited its money in Capital Savings Bank. The public’s confidence in Capital was rock solid in the early days, enabling the bank to exert a strong, positive economic impact on the community it served. During the Panic of 1893, the bank rode out the tide and was able to honor every obligation on demand. Capital Savings Bank helped many African-American businesses and property owners until it closed in 1902.

Early on, African Americans realized the necessity of accumulating wealth and the subsequent benefits of collective financial security. The Free African Society, the Free Labor Bank, and the Freedman’s Savings and Trust Company laid the groundwork for black capitalism in America. Capital Savings Bank gave African Americans a venue in which to learn about and participate in the business of banking. It was set up to reach all classes of the community so that everyone could learn the valuable economic lessons of being industrious, seeking employment, saving their money, and getting homes.

African-American churches and fraternal organizations built further on that foundation by serving as pooling places for the capital needed to open a bank that was sensitive to the needs of the African-American community. 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.


The HBCU Endowment Feature – Johnson C. Smith University


School Name: Johnson C. Smith University

Median Cost of Attendance: $25 862

Undergraduate Population: 1 543

Endowment Needed: $798 101 280

Analysis: Johnson C. Smith University needs approximately $800 million for all of its undergraduates to attend debt-free annually. The university is located in Charlotte, NC. North Carolina is a crowded region of colleges and universities and at times can be both a gift and curse. In such a crowded area it can be hard to stand out and recruit top tier academic talent but there is an appeal to high school students wanting to gravitate toward multi-college hubs. Johnson C. Smith has the current distinction of leading the CIAA with the highest student debt loads among graduates. A distinction that does not bode well for generating future alumni donations and should be an imperative for JCSU leadership to address. US News reports that Johnson C. Smith’s endowment is currently $50 million which makes it one-sixteenth of the needed endowment. One of the highest current to needed endowment ratios of all HBCUs which shows of development strength. The university is well on its way into the $100 million club at its current clip. Given its large initiative in the STEM field mixed with its liberal arts atmosphere has the opportunity to produce an unique graduate that will be in high demand among graduate schools and employers. This could be quite beneficial with North Carolina’s Research Triangle Park right up the road and could pay huge dividends in producing high quality donors in the coming generation. The connection to the Duke Endowment is certainly a strong assistance for its growth. Ultimately, this is one of the few HBCUs whose endowment outlook appears quite stable. The question is whether it can move into a next gear and grow and expand its clout in one of the most important economic centers in the south for African America is yet to be seen. If it addresses the student loan debt concerns and push its population towards 4 000 students it has a real chance to break into the upper echelons of HBCU endowments. Regardless, Johnson C. Smith University is an HBCU with an endowment that should allow for the institution to see success for generations to come.

As always it should be noted that endowments provide a myriad of subsidies to the university for everything from scholarship, faculty & administration salaries, research, and much more.

HBCU Money™ Business Book Feature – Hawaii – The Fake State: a nation in captivity


The book comes from an evaluation of findings after more than
twenty eight years of political review and lawful study; investigation and determining facts of law; and, of actual events and of unlawful actions by the Federal United States Government; its deceptive and fraudulent claim over a foreign, sovereign and “neutral” nation; actual evidence of misleading legal documents of false claim for a Statehood in the American Union of States that does not lawfully exist and that can never exist. It is a revelation of past historical events with supporting documentation revealing to a new generation of Americans and Hawaiian Citizens on how they have lost their birth names and birthrights, as well as their Citizenship as “Private Citizens” within their respective nations. How they have been deviously removed from their birth State’s Constitutions and “State’s common-law” and their National Constitutions (of the American Republic of States and of the Hawaiian Kingdom) to a lesser Washington D. C. “Federal Emancipated Slave citizenship” (14th Amendment) under Article 1 Section 8 of that very same Constitution of the American Republic and its Union of States.

HBCU Money™ Dozen Links 7/22 – 7/26


Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.


8 tips to enhance your online privacy l CSOonline

Prevent barn fires l KY Equine Research

Lighter-than-a-feather circuitry could serve as wearable sensors l New Scientist

Can Rain Barrels and Gardens Help Keep Sewage in the Sewers? l EPA Research

U.S. Army foresees robots becoming squad members l ComputerWorld

Light has been completely stopped for a record-breaking minute l New Scientist

Federal Reserve, Central Banks, & Financial Departments

Need research on international development? l World Bank

Business activity in #Maryland continued to improve for second consecutive month l Richmond Fed

Rwanda completed its national registration program (10.3 million parcels of land) in less than 5 years l World Bank

Investors should take advantage of mREITs transformation l Housing Wire

Agencies encourage lenders to work with student loan borrowers l Federal Reserve

Treasury Expands List of Basic Medical Supplies Authorized for Export to #Iran Goods l US Treasury

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.

The HBCU Money™ Weekly Market Watch

Our Money Matters /\ July 26, 2013

A weekly snapshot of African American owned public companies and HBCU Money™ tracked African stock exchanges.


African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $5.70 (0.00% UNCH)

Radio One (ROIA) $2.08 (3.25% DN)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  207.12 (0.30% DN)

Botswana Stock Exchange (BSE)  8 679.38 (0.14% UP)

Ghana Stock Exchange (GSE)  1 904.01 (58.70% UP)*

Nairobi Stock Exchange (NSE)  123.71 (N/A)

Johannesburg Stock Exchange (JSE) 40 497.81 (0.59% DN)

International Stock Exchanges

New York Stock Exchange (NYSE) 9 592.66 (0.44% DN)

London Stock Exchange (LSE)  3 475.18 (0.46% DN)

Tokyo Stock Exchange (TOPIX)  1 167.06 (2.93% DN)


Gold 1 320.80 (0.60% DN)

Oil 104.54 (0.90% DN)

*Ghana Stock Exchange shows current year to date movement. All others daily.

All quotes reported as of 3:00 PM Eastern Time Zone