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New Negro Bank

[[image: Portrait Photograph entitled Mr. W.W. HADNOTT)

The Birmingham district of Alabama, alive with industry and already the seat of leading Negro enterprises, is soon to have a new $25,000 banking institution.  Two of Birmingham's aggressive and capable Negro leaders, Dr. U. G. Mason and Mr. W. W. Hadnott, are the prime movers in the new enterprise.  The following is their prospectus sent out some weeks ago:

The development of the Birmingham district is bound to increase the numerical strength, the earning capacity and the business enterprise of its colored population.  Their surplus earnings must be concentrated and used to the best advantage in safe investments or else be frittered away and the various businesses handicapped by the lack of proper banking facilities which are absolutely necessary to safe and profitable expansion.

To increase the present facilities which are admittedly inadequate and anticipate the needs of the future it is proposed to organize a bank upon the following basis:

Capital Stock to be $25,000, divided into 250 shares of $100 each.  An allowance of one share only to each individual until $15,000 of the capital stock is received in bonda fide subscription.

Subscribers for stock may pay for same in cash or make a cash payment of $5 per share, the balance to be secured by notes payable at such times as suits the convenience of the subscriber, provided that the full amount is paid by November 1, 1909.

Funds secured by payment of subscriptions are to be held in trust by a board properly bonded, who shall deposit same on interest until the bank is ready to open for business.  If the proposed bank is not ready to open for business within eighteen months from date of subscription any subscriber may at their option withdraw the amount to their credit with 

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169  THE COLORED AMERICAN MAGAZINE 

[[image - black & white portrait photograph entitled DR. U. G. MASON]]

the accrued interest.

It is expressly understood that the by-laws of the proposed bank shall stipulate that all salaried officers and the committee that passes on loans shall be prohibited from borrowing any of the funds of the bank.

Men of large experience assert that