Charles Banks, already a successful businessman in Clarksdale, moved to Mound Bayou with the plan of greater accomplishments in the all-black town. Banks quickly became involved in the community, both politically and economically, and worked with Booker T. Washington and Tuskegee. Although some historians have characterized him as a shrewd manipulator who worked for his own self-interest, D.H. Jackson (A chief lieutenant of the Tuskegee machine: Charles Banks of Mississippi) constructed a more positive view of Banks’ service to Mound Bayou, and his efforts to support economic development for “racial uplift” as well as to subvert the racism that underpinned everyday life in Mississippi during those years.
Banks’ most important financial efforts were the establishment of the Bank of Mound Bayou and the founding of the Mound Bayou Cotton Oil Mill. Banks was also influential in securing funds from Andrew Carnegie in 1909 for a town library.
Washington called him “the most influential Negro business man in the United States” (A chief lieutenant). The establishment of a locally owned bank, with residents purchasing shares, meant they could invest in their community, as well as have local access to borrow.
The 1911 decline in cotton prices had a financial impact on the bank’s daily operations, and state regulators closed the bank in 1914. Banks thought they had sufficient assets, but nonetheless, the bank closed. Following the bank failure, white-owned banks raised interest rates and black farmers had to use white-owned gins, further impacting the economic self-sufficiency of the community. A year later, however, Banks had helped to begin a new bank, the Mound Bayou State Bank, and began attempting to pay off the investors from the Bank of Mound Bayou closure.
The Mound Bayou Cotton Oil Mill was an all-black enterprise founded with Banks’ help. Families purchased shares for a dollar each. Banks was able to secure funding from Julius Rosenwald and a Memphis cotton broker named Benjamin Harvey. The mill failed when Harvey reneged on his agreement to repay the Rosenwald bonds, and the mill’s failure helped end the Bank of Mound Bayou for the second time. Under Banks’ leadership, the bank had purchased $40,000 in stock and closed in 1922.
The cotton-price crash of 1923 brought foreclosure to many businesses in the community, and the depression would continue to add to the economic problems experienced in the community.
In spite of hardships, the town has remained an African-American run government and continues to seek not only to preserve its historical significance, but to move into the future in new and empowering ways. Once a center of a busy financial enterprise, what could the Bank of Mound Bayou become with vision, investment, and preservation?
Categories: African American History, Banks, Historic Preservation, Mound Bayou
Thanks for info on the dates 1911 and 1923 on cotton price drops. This building looks to be very well built and kept up, as if it could be reopened again today.
Charles Banks of Mississippi is my grandfather. I was happy to know what a contribution my direct ancestor made to the South and especially Mound Bayou. Get the book ” Charles Banks of Mississippi. A chief luietensnt of the Tuskegee Machine. Excellent read!
I understand that it is in the best shape of the remaining historical buildings, and there are plans for it. More on that on Friday.
Wow I am HAPPY to know this It’s a piece of my family’s history.
Yes it is we are the Descents of this property all of us should get together and buy this property lets keep it in the Family
My Grandma Mable STURKEY and Lonnie Banks is my Grand Dad…….Yes it is we are the Descents of this property all of us should get together and buy this property lets keep it in the Family
Cast down your bucket where you are…~ Booker T. Washington
Dyanasty Brook · Works at Self-Employed
Im a desent of Charles Banks I am his Cousin but I spoke to many peoples and the town is in need of Funds trying to perserve and keep the historic buildings from crumbling down and there are tons of repairs need so if any one can help please do so and Contact the Mayor for more infomation Thank you in Advance
https://polldaddy.com/js/rating/rating.jswho own the club in mound bayou in mound bayou miss us the bank for club
i like to know mrs broomfield real name who used this bank in mound bayou for her club bank in the 50’s or 60’s