Kailin Zen

“The scheme began to unravel following the Panic of 1873 when railroad investments failed. The bank experienced several runs at the height of the panic. The panic would not have affected the bank if it had been a savings bank, but by 1866, the business of the bank had become…reckless speculation, over-capitalization, stock manipulation, intrigue and bribery, and downright plundering…. In a last ditch effort to save the bank, the Trustees appointed Frederick Douglas as Bank President in March of 1874. Douglass did not ask to be nominated and the Bank Board knew that Douglass had no experience in banking, but they felt that his reputation and popularity would restore confidence to fleeing depositors….Douglas lent the bank $10,000 of his own money to cover the bank’s illiquid assets….Douglass quickly discovered that the bank was full of dead men’s bones, rottenness and corruption. As soon as Douglass realized that the bank was headed towards certain failure, he imposed drastic spending cuts to limit depositors’ losses. He then relayed this information to Congress, underscoring the bank’s insolvency, and declaring that he could no longer ask his people to deposit their money in it. Despite the other Trustees’ attempts to convince Congress otherwise, Congress sided with Douglass, and on June 20, 1874, Congress amended the Charter to authorize the Trustees to end operations. Within a few weeks’ time, the bank’s doors were shut for good on June 29, 1874, leaving 61,131 depositors without access to nearly $3 million dollars in deposits. More than half of accumulated black wealth disappeared through the mismanagement of the Freedman’s Savings Bank. And what is most lamentable…is the fact that only a few of those who embezzled and defrauded the one-time liquid assets of this bank were ever prosecuted….Congress did appoint a commission led by John AJ Cresswell to look into the failure and to recover as much of the deposits as possible. In 1880, Henry Cook testified about the bank failure and said that bank’s depositors were victims of a widespread universal sweeping financial disaster. In other words, it was the Market’s fault, not his. The misdeeds of the bank’s management never came to light.”
― Mehrsa Baradaran, The Color of Money: Black Banks and the Racial Wealth Gap

“The frontier works only through connection, fixing its failures by siphoning life from elsewhere. A frontier is a site where crises encourage new strategies for profit. Frontiers are frontiers because they are the encounter zones between capital and all kinds of nature - humans included. They are always then, about reducing the costs of doing business. Capitalism not only has frontiers; it exists only through frontiers, expanding from one place to the next, transforming socioecological relations, producing more and more kinds of goods and services that circulate through an expanding series of exchanges. But more important, frontiers are sites where power is exercised - and not just economic power. Through frontiers, states and empires use violence, culture, and knowledge to mobilize nature's low cost. It's this cheapening that makes possible capitalism's expansive markets.”
― Raj Patel, A History of the World in Seven Cheap Things: A Guide to Capitalism, Nature, and the Future of the Planet

“What happens next is unpredictable at one level and entirely predictable at another. Regardless of what humans decide to do, the twenty-first century will be a time of "abrupt and irreversible" changes in the web of life. Earth system scientists have a rather dry term for such a fundamental turning point in the life of a biospheric system: state shift. Unfortunately, the ecology from which this geological change has emerged has also produced humans who are ill equipped to receive news of this state shift. Nietsche's madman announcing the death of god was met in a similar fashion....The twenty-first century has an analogue: it's easier for most people to imagine the end of the planet than to imagine the end of capitalism.”
― Raj Patel, A History of the World in Seven Cheap Things: A Guide to Capitalism, Nature, and the Future of the Planet

“If Capitalism is a disease, then it's one that eats your flesh - and then profits from selling your bones for fertilizer, and then invests that profit to reap the cane harvest, and then sells that harvest to tourists who pay to visit your headstone.”
― Raj Patel, A History of the World in Seven Cheap Things: A Guide to Capitalism, Nature, and the Future of the Planet