4005. South Side Trust & Savings Bank (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust
Start Date
June 1, 1931*
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
7e94f38cb2b19dcb

Response Measures

None

Description

Articles report the South Side Trust & Savings Bank (Chicago) failed to open June 8, 1931; closures are linked to depleted reserves and depositor uneasiness after publicity surrounding the Foreman group. This indicates depositor runs/withdrawal pressure tied to failures of affiliated/local banks, the bank turned its affairs to examiners and did not reopen (closure). OCR errors in articles corrected (e.g., 'Southside' vs 'South Side').

Events (3)
1. June 1, 1931* Run
Cause
Local Banks
Cause Details
Runs and depositor uneasiness triggered by publicity and failures in the Foreman group/related banks in Chicago, causing withdrawals from outlying institutions including South Side Trust & Savings.
Measures
Affiliates acted to turn their affairs over to examiners; invoking examiners and savings withdrawal clauses mentioned for similar banks
Newspaper Excerpt
the Foreman merger and uneasiness among depositors
Source
newspapers
2. June 8, 1931 Receivership
Newspaper Excerpt
acted to turn their affairs over to examiners because of publicity given the Foreman merger and uneasiness among depositors.
Source
newspapers
3. June 8, 1931 Suspension
Cause
Local Banks
Cause Details
Failed to open due to depleted reserves and shrinkage of deposits; affiliated with the Foreman group and affected by publicity and depositor uneasiness after Foreman mergers/failures; turned affairs to examiners is reported for the affiliates.
Newspaper Excerpt
Six Chicago neighborhood banks... failed to open for today. ... South Side Trust and Savings Bank
Source
newspapers

Newspaper Articles (4)
1. June 8, 1931 Muncie Evening Press Muncie, IN
Article from Muncie Evening Press, June 8, 1931

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Article Text

CHICAGO BANKS ARE CLOSED Small Institutions Report Loss in Deposits. CHICAGO, June 8.-Six Chicago neighborhood banks, two national and four state, failed to open for today. Three of the banks were affiliated with the Foreman group, involved in one of the two loop bank mergers made over the week-end. These three were the Washington Park National Bank, South Side Trust and Savings Bank and Sheridan Trust and Savings Bank. The other institutions which closed were the Cheltenham Trust and Savings Bank, Industrial State Bank and Inland-Irving National Trust and Savings Bank. Reserves Depleted. All six closings were declared due to depleted reserves and shrinkage of deposits. In addition, the three affiliates of the Foreman group were said to have acted to turn their affairs over to examiners because of publicity given the Foreman merger and uneasiness among depositors. The Washington Park National Bank had $600,000 capital and $439,000 surplus. The Inland-Irving Trust and Savings Bank reported $525,000 capital and $250,000 surplus. Figures on the deposits in these two were not available. Figures on the state banks, as announced by the state auditor's office, were: South Side Trust and Savings, capital $1,000,000, deposits $7,000,000; Sheridan Trust anl Savings, capital $1,000,000, deposits $12,242,000; Cheltenham Trust and Savings, capital $200,000, deposits $535,000; Industrial State, capital $100,000; deposits $650,000.

2. June 18, 1931 The Black Dispatch Oklahoma City, OK
Article from The Black Dispatch, June 18, 1931

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Article Text

Negroes Lose Heavy Deposits (Continued from page one) Deposits Increase. "The National is an institution which Negro should pride. During the first quarter this year, was the only national bank in the city show an increase its deposits. This record worthy note and everyone should glory in During the of years its operation has weathered storm and has under the every sound conservative banking policy the people of the South Side How Crash Came. The began with the the Foreman State National Banks, the First National. This was the culties estate interests sucked the old Foreman The bankers of the city, fearing the feet of crash the town upon public sentiment, rallied to insure orderly but failed to provide support for half dozen outlying institutions which Foremans controlled. These "orphaned' banks deprived of the connecting institution through which cleared forced close doors in most they were said to have been in reasonably shape." Starts. the city Runs the institutions. Twentyfour of closed. scarcely recovering Binga, Banker's State, Citizens Trust crashes, suffered severely Lincoln State, 31st and State Streets, with deposits, good portion of which said to have longed to colored people, closed when threatened with run. The South Side Trust and Savings, 43d Cottage Grove Avenue, with $4,000,000 deposits and Washington Park National with of which touch populated colored and the Industrial at 47th and State Street, smaller instituamong sation business affected colored people most. Negroes' holdings, are scattered about depositories so that difficult how much of the group's funds are tied up. Chances For In most of the banks affecting colored people, plans are foot The Lincoln State which Louis B. Anderson director, number Negro stockholders including Charles Jackson and Dr. Wilberforce Williams, announce plans for early reopening. Financial state that Side Trust and Washington Park National likewise have chance reorganize resume Clause. The Douglass remarkable strength. van load money was out by the Continental through which it clears. The money

3. June 20, 1931 The Afro-American Baltimore, MD
Article from The Afro-American, June 20, 1931

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Article Text

COIN IS STACKED OF CUSTOMERS Douglass National Bank Weathers Storm which Closed 24 Others. 400 IN LINE Savings Clause is Invoked. CHICAGO. cago suffered the worst financial flurry in its history last week. white banks, several of them with heavy deposits, closed their doors within a space of three days. The Douglass National, the only remaining colored bank in Chicago, withstood the storm. interview President Anthony Overton stated to the Associated Negro Press that the depositors of the Douglass National need have no fear to the stability of their instituaddition to the bank's liquid condition, it has back of it the Federal Reserve System well as its correspondent the Continental and Commercial, which the largest bank west New York and the strongest banks the world,' said erton. The disthe merof the Foreman National banks, $300,000,000 institution, First Half dozen important outlying institutions which the controlled were forced close the city became panicky Runs began the smaller institutions. of which closed in Southside Close Colored people, scarcely recovering from the Binga, Banker's State, Citizens Trust crashes, suffered verely The Lincoln State, 31st and State Streets. with deposits, good portion which said to belonged colored people, closed voluntarily when threatened with run. The Southside Trust and Savings, 43d and Cottage Grove Avenue, with $4,000,000 deposits and the Washington Park National with $9,000,000, both of which heavily populated districts and the dustrial 47th and State Street, smaller institution. were whose cessation of business affected colored people In most the banks affecting colored people plans foot open. Lincoln State in which Alderman Louis B. Anderson rector, and number Negroes stockholders, including Charles Jackson, and Dr. Williams, announce plans for early reopening Van Load of Money The Douglass showed remarkable strength. van load of money sent by the Continental and Commercial through which it clears. The money stacked up in sight the depositors on Tuesday gathered in numbers. At one time there four hundred people in the bank intent upon making withdrawals. Finally after assuring speech, President Overton invoked the clause on savings and the run rapidly subsided. Only Bank Open The Douglass National the only bank open from 22d Street 63d Street and Cottage Grove to Wentworth Avenues, territory comprising some 400 square blocks and including most the colored inhabitants of the city Within the year ten banks have closed this trict. The directors are said to be considering plans capturing as much of this business as possible.

4. June 25, 1931 The Northwest Enterprise Seattle, WA
Article from The Northwest Enterprise, June 25, 1931

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Article Text

Van Load Of Money Halts Run On Bank (Continued from Page One.) ple, closed voluntarily when threatened with a run. The Southside Trust and Savings, 43rd and Cottage Grove Avenue, with $4,000,000 deposits, and the Washington Park National with $9,000,000. both of which touch heavily populated colored districts, and the Industrial at 47th and State Street, a smaller institution, were among those whose cessation of business affected colored people most. The Douglass National, the only remaining colored bank in Chicago, withstood the storm. Van Load of Money The Douglass showed remarkable strength. A van load of money was sent out by the Continental and Commercial through which it clears. The money was stacked up in sight of the depositors who on Tuesday morning gathered in numbers. At one time there were four hundred people in the bank intent upon making withdrawals. Finally after a reassuring speech, President Overton invoked the sixty-day clause on savings withdrawals and the run rapidly subsided. Only Bank Open The Douglass National is the only bank open from 22nd Street to 63rd Street and Cottage Grove to Wentworth Avenues, a territory comprising some 400 square blocks and including most of the colored inhabitants of the city. Within the year ten banks have closed in this district. The directors are said to be considering plans for capturing as much of this business as possible. In an interview President Anthony Overton stated to the Associated Neoro Press that the depositors of the Douglass National need have no fear as to the stability of their institution. "In addition to the bank's liquid condition, it has back of it the Federal Reserve system as well as its correspondent bank. the Continental and Commercial, which is the !argest bank west of New York and one of the strongest banks in the world," said Mr. Overton. In most of the banks affecting colored people plans are on foot to reopen. The Lincoln State. in which Alderman Louis B. Anderson is a director. and a number of Negroes stockholders, including Charles S. Jackson, and Dr. A. Wilberforce Williams, announce plans for early reopening.