Chelsea Bank & Trust Company

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: December 20, 1930
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: f1275696

Response Measures

Full suspension

Other: State Superintendent of Banks took possession; articles blame 'whispering' campaign and short sellers, possibly financed by Communists.

Description

Newspaper reports (Dec 24–26, 1930) state a run (around Dec 20, 1930) precipitated heavy withdrawals; state superintendent closed/took the bank Dec 23, 1930. Reports attribute the run to an organized whispering/rumor campaign (accused Communists) and alleged short-selling to depress the bank's stock. No reopening reported in the articles provided.

Events (2)

1. December 20, 1930 Run

Cause: Rumor Or Misinformation
Cause Details: Organized whispering campaign (accused Communist sources) and rumors/telephone calls warning depositors to withdraw; alleged short-selling of Chelsea Bank stock preceded the campaign.
Measures: Prompt state banking department intervention; bank later closed by state superintendent to safeguard assets.
Newspaper Excerpt: run of nearly 1,000 depositors on a bank last Saturday ... whispering campaign which precipitated heavy withdrawals
Source: newspapers

2. December 23, 1930 Suspension

Cause: Rumor Or Misinformation
Cause Details: Closure followed heavy withdrawals precipitated by the whispering/rumor campaign and stock short-selling; state action (taking the bank) closed it to safeguard assets.
Newspaper Excerpt: The Chelsea Bank Trust company ... was taken by the State Superintendent of Banks Joseph Broderick today following heavy withdrawals
Source: newspapers

Newspaper Articles (6)

1. December 24, 1930 The Knoxville Journal Knoxville, TN

Article from The Knoxville Journal, December 24, 1930

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Article Text

BRIEF NEWS Now He Can't Stop Them! WASHINGTON, Dec. 23 Speaker Nicholas most valued office the which he limits debate the House. Expect Writs Monday! DANVILLE, Va., Dec. possession requiring strikers owned homes are expected served Monday Constable R. M. Foster said tonight. granted today by Magistrate Griggs, resulttaken the Riverside Dan River mills, whose union employes are strike Take Up Collection! ATLANTA (AP)-Grand jurors who indicted H. Walton today for an attempted blackmall also collection for negro who Walton hired him to bring to him age containing money from mechanic arrested several days by tectives negro Samuel Perry after he had picked the foot telephone pole by Major Ragsdale Unrest Is Reported! BOGOTA the today ported that unrest Capital caused there 19 persons, dead and totaled the dispatch related 'Hot' Money! bills of one ten tice of here, reported bills are split and pasted together so as look like two $10 notes casual They are crude easily detect though, the wayning to busi ness men Five Killed In Accident! Dec. His obstructed by fatling snow, engineer Plain field-New York Express drove his train into midst of gang nine laborers clearing tracks today Five men were killed and one was hurt. Air-Rail Hookup Made! NEW Dec. air rail pascities East and Texas been incombined schedules augurated of and Air luc., and the Boeing Air Lines. it announced here today Hunted In Four States! SALEM Charles who wriggled the Salem County his last night seven hours jail he had been sentenced to after death in electric chair still large tonight although postates cooperating in the search for him. Indian Ruler Wounded! LAHORE, India, Dec. Geoffrey De Gover nor Punjab wounded today youth wounded the police official same Registrations Drop! NEW Dec. first thirty states report net registra passenger total for of per from the 68,662, reported for October decrease of per cent. from the reported last year. Campaign For Court! NEW YORK, campaign for ratification world or special the Senate alone was resolution adopted the day National World Court Committee. Bank Is Closed! NEW YORK, The Chelsea Bank Trust company small institution patronized by theatrical people. mostly of taken by the State Superintendent of Banks Joseph Broderick today following heavy with Retain Dec. Locals of the TypoUnion voted the the complete official results the referendum showed today

2. December 26, 1930 The Clarksdale Press Register Clarksdale, MS

Article from The Clarksdale Press Register, December 26, 1930

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Article Text

IN GOTHAM BEING INVESTIGATED Attempts are Made to Trace to Inspired Sources Run on N. Y. Bank. NEW YORK, Dee 26. (AP) and short -selling brok of bank stock equally sus. peeted today in official intempts to trace inspired sources the run which resulted in the closing of the Chelsea Bank & Trust Company this The closing of the Chelsea Bank Trust Company, small institu tion patronized largely by stage. people, was blamed flatly by Jo upon run which gained in pr portions until the doors be closed to safeguard the assets Assistant Attorney General Wat Washburn 18 seeking evidened that operators selling the Chelsea Bank stock interested in depressing its value, and Assist int District Attorney Pilatsky has assigned run down rumors that concerted Communist con spiracy 195 been under way to start bank runs

3. December 26, 1930 The Pittsburgh Press Pittsburgh, PA

Article from The Pittsburgh Press, December 26, 1930

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Article Text

REDS BLAMED FOR BANK RUNS New York Probes Whispering' Campaign Against Institutions United NEW YORK Communists were by the State Banking Detoday of starting to undermine in New York banks Officials claimed to have traced to Communist sources run of 1.000 depositors on bank last Sat urday It was said that Communist money may have financed the short selling in stock of the Chelsea Bank & Trust Company prior to the whispering campaign which precipit heavy withdraw. als and caused the bank to be closed Records of eight brokerage houses examined today by Watson Washburn Attorney General in charge of the State Securities Bureau an effort to determine for whom they sold Chelsea and other bank District Attorney Crain has signed an assistant to investigate the alleged Communist whispering campaign An effort is being made to trace telephone calls that warned depositors of the Chelsea Bank to withdraw funds The Communists talk openly at their of their campaign against the banks mentioning the names of the banks against which their campaign is directed and exhorting their followers to co-operate. said one official We have been able to trace definite instances in which Communists have gone from store to store spreading their rumors That the campaign has not been without results was shown only last Saturday when run on one bank began only hours after information reached us that the Communists had made it their target.

4. December 26, 1930 New Britain Herald New Britain, CT

Article from New Britain Herald, December 26, 1930

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Article Text

RADICALS BLAMED FOR BANK TROUBLE Started Communists Claim Rumors Leading to Run New York. Dec. 26 (UP)-Com- munists were accused by the state banking department today of starting "whispering" campaigns to undermine public confidence in New York banks. Officials of the state banking department claimed to have traced to communist sources a run of nearly 1,000 depositors on a bank last Saturday. Prompt and energetic action by the banking department checked the withdrawals. Officials ex pressed the belief that communist money may have financed the shortselling operations in stock of the Chelsea Bank & Trust company prior to the whispering campaign which precipitated heavy withdraw als and caused the bank to be closed. Records of eight brokerage houses were examined today by Watson Washburn, assistant attorney general in charge of the state securities bureau, in an effort to determine for whom they sold Chelsea and other bank stocks. District Attorney Crain has assigned an assistant to investigate the alleged communist whispering campaign. An effort is being made to trace telephone calls that warned depositors of the Chelsea bank to withdraw their funds.

5. December 26, 1930 The Berkshire Eagle Pittsfield, MA

Article from The Berkshire Eagle, December 26, 1930

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NEWSPAPER SPECIALS Small Wine Crop NEW Paris cable says French wine crop this year was only that of previous harvest. Production amounted to gallons, against 1,663,200,000 gallons in preceding year and 1,768,800,000 in record This year has been poorest both in quanity and quality in decade. More German Idleness NEW special says number of unemployed in Germany increased by 278,000 to in first 15 days of December. This was 600,000 more than on January 15, 1929 More Idle Here BOSTON Herald Washington special says total number of unemployed in United States is to preliminary estimate for December by President Green American Federation of Labor. This is increase of 300,000 over November. Started Bank Run NEW Brady of Hardy & Hardy counsel for closed Chelsea Bank Trust company of New York says: "We have evidence that at least 100 were called on telephone Monday night and advised to take their money out of the bank Run bank attributed by officials of bank to unfounded and malicious rumors for which among others, were held responsible. of rumors begun by state attorneygeneral and District Attorney Crain and investigation ed likely by federal authorities. Many Yachts Built NEW YORK shipyards in 1930 built private yachts estimated to have cost and contracted to build others that will exceed this figure in 1931. according to MacDonald, president of Henry Gielow, Inc. naval architects. Yards at Bath, Maine, alone are engaged in construction of yachts estimated to cost $5,000,- 000 and it is expected additional work will be undertaken there before end of winter. More Group Insurance NEW YORK insurance covering employees of Armour has been increased to $100,000,000 through purchase of 000 additional from Metropolitan Life Insurance Co., effective Dec. 29, and employee to share costs. will have $80,000,000 with Metropolitan Life and $20, 000,000 with John Hancock Mutual Life Insurance Co. On Full Time SAN Pacific Co. announced that 2262 shopmen, who have been working part time for some months will be put on full-time schedule after Jan. This will make total of 3462 shopmen on full-time. To Cut Fares NEW Southwestern railroads granted special permission by Interstate Commission to reduce railroad fares to meet bus and airplane tion. St. Louis-San Francisco, St. Louis, San Francisco & Texas and Fort Worth & Rio to sell one way coach tickets for cents mile. Standard passenger rate is 3.6 cents mile.

6. December 26, 1930 The Buffalo News Buffalo, NY

Article from The Buffalo News, December 26, 1930

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New York Curb Market Special to the BUFFALO EVENING NEWS NEW YORK bonds traded the New York Curt market volume sales and the When only one given it that were made the same first column are hundreds shares Bond sales in $1000 Sales Sales High Low Close National Co Gulf Gulf 95% Fuel Investors National Un Stocks. Nestle Sales New 79% Acme Steel Underw Invest evt CentP&L Mills Co Steam Austin Car Capital Com Cyan Equities Nor Am 15 Nor Fgn war Invest Mot Light Gas Sup Pennroad Tel Post Gas Gas&El G&E Fish Rainbow Am Watch Cable Tube Co Man Un Hud G&E Str Service Shenandoah Ind Min Starrett Corp Unit Founders Foreign Bonds 40 Pow Assoc Empire deb Fairchild Mot Ltd Foremost Mines Garlock Pack Aviation Bonds. Domestic Bak Un Pow Elec Ltd 103 Empire COMMUNISTS ACCUSED Thea Pow 102 OF STARTING BANK RUN Glen Alden Coal Underwrit Coin Gold Seal Elec Attack Halted by Prompt State Action. From NEWS NEW YORK Communists G are accused of starting run on anOil other bank in the city last Saturday. Corp Pa It checked by strong intervention on the the State Banking destate official was told of Walker Gold meeting of Commun where camHudson Bay M&S paign to Humble in banks bank Hygrade was for attack Two after information of this meeting had Oil CanNorRyEq been conveyed to the State Banking department run began this bank persons in line for their Nor Am funds 60 By action and to Holding that the bank was sound, Internat Pet 99% 100 the was Prod CinStCar Officials say there to be. lieve that money may have financed short selling operations Util stocks of the Chelsea Bank & Trust company to the whispering Hosiery 98% 99 about the run Ital Superpower ConsGasBalt that the state. ConsGasBalt Since the aim the CommunJonas Naum pf 6% Ists to bring revolution Oil the capitalist the current Kerr Lake 14% world depression offers the Reds an obvious shake public Realty 18% confidence in banks and through their C&N Pack closings stir up discontent Detroit 105 assistant attorney Co general, has the records and heads Star 22 eight houses at his offices DetIntBridge 52 22 in effort to whom they 1% 55 Chelsea or other bank stocks Mangel I'm going lose no time in press* Mangel 30% against any said ing charges Mapes Mr Washburn "who find have the Wire Ltd 2030 Empire O&R slightest connection with these Mavis 5½ Mayflow 39% pering and destructive attacks against Rad Fed Water Fisk Johnson Memphis Nat Gas Fla Pow&Lt 54 Mercant Strs 21% 21% BUSINESS NAMES Gatineau 91% West Util West 17 53 Rayon Josephine's Beauty Shoppe- Rosina CopMidland new xd Vend 5% Pow 98% Mo Kans Mo Kans 85% Huron Georgia Charles P. Faso Jr. Mountain 4% 4% Pow Niagara street,