Lincoln State Bank (Chicago, IL)

Episode Information

Episode UID
2020071442
Episode Type
Run Only
Bank Type
state
Bank ID
202007 routing
Routing Number
2-0200
Start Date
February 25, 1920
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3b47da6d6789511f

Response Measures

None

Events (1)
1. February 25, 1920 Run
Cause
Rumor Or Misinformation
Cause Details
Unreliable reports that bank officials refused a loan and later rumors that the bank was insolvent and tied to Hyde Park and Kenwood association.
Measures
Paid depositors as clerks could handle, backed by larger white banks (Continental and Commercial National), displayed $450,000 in cash to stop the run; offered full interest to redepositors through March 15.
Newspaper Excerpt
The report caused a run on the bank and between five and ten thousand of the fifteen thousand depositors withdrew their money.
Source
newspapers

Newspaper Articles (6)
1. February 28, 1920 Phoenix Tribune Phoenix, AZ
Article from Phoenix Tribune, February 28, 1920

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Article Text

R. W. HUNTER BANK OF CHICAGO INSOLVENT; MANY LOSE SAVINGS (By Associated Negro Press.) Chicago, Feb. 25.-The people of our group in Chicago are having many experiences in banking lines and it is expected that thousands, if it is discovered that they have become weaker financially, will at least be very much wiser when things again reach a normal state. To begin with some months ago, the R. W. Hunter bank ing es tablishment, a private concern, became involved in difficulties and the matter now is in the hands of the court, with business suspended. Following this ,the concern of R. W. Woodfolk, another private bank, became involved in difficulties and it has been placed in the hands of the receiver, and business suspended. During the current week, a number of reports were circulated concerning the Lincoln State bank, which is officered and controlled by whites, but the majority of whose depositors are Colored. The report caused a run on the bank and between five and ten thousand of the fifteen thousand depositors withdrew their money. The bank, however, is in a substantial condition and is paying off all depositors as fast as clerks can handle the business. The Lincoln State bank is being backed up through this crisis by the white banks of the city, particularly the Continental and Commercial National bank, one of the strongest institutions in the world. One of the officers of the Lincoln State bank states that the run was caused by an officer of one of our Building and Loan company who was refused a loan of $5,000 at the bank, for his company. There are also rumors to the effect that the Lincoln bank has an interest in the Hyde Park and Kenwood Association propaganda, but the officers flatly deny any such connections, stating that the bank has come to the relief of a I number of residents in the district whose mortgages have fallen due and they were refused assistance by other banking institutions. Chas. A. White, vice president, says: "The directors of the bank wish to assure the public that this in no way influences their feelings towards the Colored people, and we shall continue in the future to loan E them money and help the same as we ) have in the past." Some o fthe most prominent busiI ness men of the community, including Wm. Adams, R. S. Abbott, Dan Jackson, Alderman Louis B. Anderson, George Holt, Chas. Travis, Tony , Langston, and others, are heavy de. positors in the Lincoln State bank. A charter has been issued to Jesse Binga and others for the establishe ment of a State bank, under the control and supervision of a number of e our own group.

2. March 6, 1920 The Dallas Express Dallas, Houston, TX
Article from The Dallas Express, March 6, 1920

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Article Text

RUMOR CAUSES RUN ON BANK BY NEGRO DEPOSITORS. (Associated Negro Press). Chicago, Feb. March 4.-The people of our group in Chicago are having many experiences in banking lines and it is expected that thousands, if it is discovered that have become weaker financially, will at least be very much wiser when things again reach a normal state. To begin with some months ago, the R. W. Hunter banking establishment a private concern became involved in difficulties and the matter now is in the hands. of the court with business suspended. Following this the concern of R. W. Woodfolk, another private bank became involved in difficulties and it has been placed in the hands of the receiver and business suspended. During the current week, a number of reports were circulated concerning the Lincoln State Bank which is officered and controlled by whites, but the majority of whose depositors are Colored. The report caused a run on the bank and between five and ten thousand of the fifteen thousand depositors withdrew their money. The bank, however is in a substantial condition and is paying off all depositors as fast as clerks can handle the business. The Lincoln State bank is being backed up through this crisis by the white banks of the city, particularly the Continental and Commercal National Bank, one of the strongest institutions in the world. One of the officers of the Lincoln State Bank states that the run was caused by an officer of one of our Building and Loan Companies who was refused a loan of $5,000 at the bank for his company. There are also rumors to the effect that the Lincoln Bank has interest in the Hyde Park and Kenwood Association segregation propaganda, but the officers flatly deny any such connections, stating that the bank has come to the relief of a number of resigents in the district whose mortgages have fallen due and they were refused assistance by other banking institutions. Chas. A. White, vice-president says, "The directors of the bank wish to assure the public that this in no way influences their feelngs towards the Colored people, and we shall con-

3. March 13, 1920 The Dallas Express Dallas, Houston, TX
Article from The Dallas Express, March 13, 1920

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Article Text

Negroes Deposit Again in Lincoln Bank. Chicago, Ill., March 11.-It is offlcially estimated that from 50 to 100 people have returned daily to the Lincoln State Bank, 31st and State streets, to re-deposit their funds, withdrawn recently following the announcement from unreliable sources that the bank officials were members of the Hyde Park and Kenwood association. At a meeting of the board of directors of the bankyit was decided that all former depositors who desired to redeposit will be allowed the full interest on their money, provided the funds are returned on or before March 15. Interest Goes On This action was taken when it was learned that people who withdrew their money during the 'run" on the bank were under the impression that the interest due them would be automatically canceled. Under ordinary rules of the bank this principle would apply, but the directors haye withdraw this ruling for the benefit of depositors who were led "astray" by false reports. Bank Examiner's Statement. When informed of the Lincoln Bank situation, Harry T. Ellis, chief of the Chicago division of the state bank examiners, in, New York city on a visit. wired the following telegram to Pres. Geo. F. Leibrandt: "Your bank was in good condition at the recent examination and hope that funds being withdrawn by paricky depositors will be re-deposited as soon as they realize that you can pay them, and that a state bank is supervised. and not allowed to do business as did the private banks in your locality which recently failed."

4. March 27, 1920 Phoenix Tribune Phoenix, AZ
Article from Phoenix Tribune, March 27, 1920

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Article Text

DISPLAY OF CASH SAVES CHICAGO BANK FROM DESTRUCTION (By Associated Negro Press.) Chicago, March 24.-The "flash" of $450,000 bank roll stopped the recent run on the Lincoln State bank of this city. A rumor that the bank officials refused a reputable Colored business man a mortgage loan on solid real estate collateral is said to be the fix cause for the "run." Later a sinister rumor was started to the effect that the bank was really insolvent and that was the reason why the officials refused to loan the aforesaid business man money on the securities he offered the bank. The "run" lasted several days but was finally checked by the display of the big "bank roll."

5. March 27, 1920 The Tulsa Star Tulsa, OK
Article from The Tulsa Star, March 27, 1920

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Article Text

ASSOCIATED NEGRO PRESS NOTES. Chicago, III., Mar. 27.-The "flash" of $450.000 bank roll stopped the recent run on the Lincoln State bank of this city. A rumor that the bank officials refused a reputble Colored business man a mortgage loan on sold real estate collateral is said to be the first cause for the "run". Later a sinister rumor was started to the effect that the bank was really insolvent and that the reason why the officials refused to loan the aforesaid business man money on the securities he offered the bank. The "run" lasted several days but was finally checked by the display of the big "bank roll."

6. April 3, 1920 The Dallas Express Dallas, Houston, TX
Article from The Dallas Express, April 3, 1920

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Article Text

RUN ON BANK STOPPED BY DISPLAY OF "COIN." Chicago, April 1.-The "flash" of of $450,000 bank roll stopped the recent run on the Lincoln State bank of this city. A rumor that the bank officials refused a reputable Colored business man a mortage loan on sold real estate collateral is said to be the first cause for the "run." Later a sinister rumor was started to the effect that the bank was really insolvent and that was the reason why the officials refused to loan the aforesaid business man money on the securities he offered the bank. The "run" lasted several days but was finally checked by the display of the big "bank roll."