4514. Industrial State Bank (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
June 7, 1931
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
fe3aaac8

Response Measures

Full suspension, Books examined

Other: Closings linked to depleted reserves and shrinkage of deposits; some Foreman-affiliated banks turned affairs over to examiners.

Description

Multiple contemporaneous articles (June 1931) list Industrial State Bank among several Chicago neighborhood banks that did not open and were closed after heavy withdrawals/depleted reserves connected to runs on Foreman-affiliated banks and related publicity. The sources indicate a run/withdrawal wave preceded the suspension; no clear evidence in these articles that Industrial State later reopened, so classified as run → suspension → closure.

Events (3)

1. June 7, 1931 Run
Cause
Local Banks
Cause Details
Run and heavy withdrawals triggered by publicity and distress among Foreman-affiliated/other local banks, producing depositor uneasiness and mass withdrawals.
Measures
Bank closed to withdrawals; state authorities/examiners intervened in several related banks; temporary restrictions on payouts (allowing limited sums for household needs).
Newspaper Excerpt
Tysiące depozytarjuszów stoi dziś przed bankiem, domagając się wypłaty deponowanych sum... zamknięcie banku spowodowane było przez nagly run na bank dniu wezorajszym.
Source
newspapers
2. June 8, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Depleted reserves and shrinkage of deposits following heavy withdrawals and depositor panic tied to local bank failures and mergers; bank failed to open for business on June 8, 1931.
Newspaper Excerpt
Six Chicago neighborhood banks... failed to open for today... The other institutions which closed were the Cheltenham Trust and Savings Bank, Industrial State Bank and Inland-Irving National Trust and Savings Bank.
Source
newspapers
3. June 10, 1931 Other
Newspaper Excerpt
Dzis oprócz Banku Northwestern zytow do ostatniego dolara... Dziennik ... zamknięto 20 banków Chicago. ... Cheltenham Trust Company, Industrial State Bank, Sheridan State Bank, South Side Trust, Washington Park National ... tłumy przed bankami nie mogą wyciągać pieniędzy.
Source
newspapers

Newspaper Articles (3)

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.


Article from Dziennik Dla Wszystkich, June 10, 1931

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Article Text

Bank Założony Przez Smulskiego Przeszto Dwadzieścia Pięć Lat Temu Oraz 20 Innych Zostato Zamkniętych Dyrekcja Oświadcza, Le Bank Będzie Wypłacalny 90 Dniach. Tłumy Przed Bankami Nie Mogą Wyciągać Pieniędzy. (Depesza Własna) rano zamknał swe podwoje "The North Western Trust and Savings Bank", który został założony niemal éwieré wieku temu przez Jana F. Smulskiego. Tysiące depozytarjuszów stoi dziś przed bankiem, domagając się wypłaty deponowanych sum, lecz bez skutku, gdyż bank jest W rękach urzędników stanowych wszelka wypłata depozytów Zamknięcie banku spowodowane było przez nagly "run" na bank dniu wezorajszym. Gdy dziś run trwał W dalszym ciągu władze stanowe objely bank posiadanie wstrzymały wypłaty. Dyrekcya Banku wydała oświadczenie, ze jest pewna, ze wszelkie należytości będą wypłacone W zupełności W przeciągu 90 dni kiedy spodziewają się, iz kwidacya będzie dokonana. Chodzą pogłoski, iż śladem banku Northwestern pójdą inne banki chicagoskie. Bank North Western byt pierwszym bankiem polskim W Ameryce i należał do W ostatnich dwóch dniach zamknięto 20 banków Chicago. A dzis oprócz Banku Northwestern zytow do ostatniego dolara. gdyby wymagala tego konieczność.Ale zaden Bank ,bez względu na to jak wielki bogaty, nie może jednym dniu czy tygodniu wy dac wszystkich depozytów, jesli chce normalnie sie zystować, wha tow znajdowała sie W kasie banku. Reszte zdobywa sie sprzedazy bondów, zwrotu pożyczek innych wpływów, które przychodzą normalnie, biegiem czasu, lecz nie jednym dniu lub godzinie. dlatego wyjątkowej sy tuacji, jak obecna, prawo pozwala ograniczenie natychmiasto wej wyplaty depozytów na pewien okreslony czas. To wlasnie czyni sie obecnie W naszym Banku. Tymczasem, aby ulzyc rodzinom wogóle osobom, pozwalamy na wyciąganie pewnej sumy oszczedności, po trzebnej dla normalnego życia domowego wedlug uznania urzędnikew bankowych. Zatem dla Waszego własnego dobra prosimy Was wsrystkich cierpiiwość wspólprace dzisiaj." Następujące banki zostaly zaFirst North Western State Bank, Second North Western Bank Inland State Bank. wszystkie trzy tak zwane Smulskiego banki. Cheltenham Trust Company, Industrial State Bank, Sheridan State Bank, South Side Trust, Washington Park National, Armitage State, Auburn Park Trust Company, Breinard State Bank, Bryn Mawr Bank, Chatham State Bank, Chicago Loan Bank, Elston State Bank, Rich State Bank, Stone Illinois State Bank, West Engleton State Bank, West Highland State Bank, West Lane State Bank. Jest wiadomem, 12 W Banku Northwestern mialy depozyty najwieksze polskie organizacye, jak N. Zwiazek Polek, Zjednoczenie inne. Wszystkie pieniadze Konsulatu Polskiego Chicago lokowane byly W banku Smulskiego. Dziennik dla Wszystkich rozmowie Henclem, skarbnikiem Związku N. zyt ZNP. W Northwestern Banku innych zamknietych nie prze wyższał sumy $25,000 ze to sume spodziewają sie odebrać W calości po Sa pogłoski, iz Zjedn. P. R. K. zdołało wyciagnac większą czesc swoich depozytów przed zamknię ciem Banku North Western, tak, dzie sie bez straty. Do tego czasu Dziennik nie mógł sie skomunikować zarządem Związku Podowiedzieć się 0 stanie ich depozytów W zamkniętych bankach. Dzis calem Chicago panuje chaos thumy ludzi przed kazdym bankiem, nie tylko tak zwanym Loup, ale mieściu. Wszedzie domagaja sie wyplaty depozytów. Nawet kolosalny First National Bank, wezoraj uratował tak zwane man Banks" przechodzi


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