4723. Washington Park National Bank (Chicago, IL)

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: national
Bank ID: 3916
Charter Number: 3916
Start Date: June 7, 1931
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 21da09eb

Response Measures

Full suspension, Books examined

Other: Reorganization plans submitted to Comptroller; committee of depositors formed to plan reopening; receiver confusion noted in later reports.

Description

Articles report depositor runs and the bank closed June 8, 1931 after publicity about the Foreman group/merger and runs on affiliated banks. Plans and committees formed to reopen; by June 12 depositors were bringing funds back and reopening plans were underway. Reorganization paperwork was pending with the Comptroller in July. Cause attributed to distress among local affiliated banks and publicity (chain effect).

Events (3)

1. June 7, 1931 Run

Cause: Local Banks
Cause Details: Runs developed because of publicity and depositors' uneasiness about the Foreman group/merger and the closing/distress of affiliated banks (chain effect).
Measures: Invoked savings-withdrawal clause requiring notice (30/60/90-type restriction) as a precaution; depositors' committee convened and reassurances given.
Newspaper Excerpt: Runs developed on several of the banks of the chain, Bain said. These were the result of the closing of the Washington Park and South Side Trust...
Source: newspapers

2. June 8, 1931 Suspension

Cause: Local Banks
Cause Details: Closed after depleted reserves and shrinkage of deposits following runs and publicity around the Foreman group; affiliated banks turned affairs over to examiners amid depositor uneasiness.
Newspaper Excerpt: Six Chicago neighborhood banks ... failed to open for today. ... these three were the Washington Park National Bank ... All six closings were declared due to depleted reserves and shrinkage of deposits.
Source: newspapers

3. June 12, 1931 Reopening

Newspaper Excerpt: Plans were already under way today for the opening of most of the 15 banks which suspended business ... At the Washington Park National bank ... committee appointed the depositors, met night plans reopening the bank quickly ... many persons who had had brought their funds back to the bank.
Source: newspapers

Newspaper Articles (9)

1. June 8, 1931 Muncie Evening Press Muncie, IN

Article from Muncie Evening Press, June 8, 1931

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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 10, 1931 The Philadelphia Inquirer Philadelphia, PA

Article from The Philadelphia Inquirer, June 10, 1931

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Chicago Banks Move to Conserve Assets Continued From Page 17 banks closed their doors yesterday, awaiting determination of their position as a result of the merger. Three others were closed to prevent runs, making of eighteen outlying institutions locked up in days. Banks May Be Absorbed Bankers said the chances were favorable the or absorption later of most, if not all, of these banks. John Bain. Jr. said the closings were the result of "the general pub"Runs developed on several of the banks of the chain, Bain said. "These were the result of the closing of the Washington Park and South Side Trust. of which were affiliates of the Foreman-State group. As such situation in one chain might affect others, we found it desirable to close Auditor ordered the doors closed on the Elmwood Park State Bank. a suburban institution with deposits of slightly more than million dollars, pending an investigation.

3. June 10, 1931 Dziennik Dla Wszystkich Buffalo, NY

Article from Dziennik Dla Wszystkich, June 10, 1931

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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

4. June 12, 1931 Suburbanite Economist Chicago, IL

Article from Suburbanite Economist, June 12, 1931

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SPEED UP REOPEN Financial Houses Plan as Flurry Ends Plans were already under way today for the opening of most of the 15 banks which suspended business in Southtown this week following the which struck the financial centers. At the Washington Park National bank, 6306 Cottage Grove committee appointed the depositors, met night plans reopening the bank quickly flurry Tuesday after closing the Bain banks completely and yesterday most the reported that back normal and that many persons who had had brought their funds back to the bank. Chicago City Busy The Chicago City Trust the bank and the Marquette Park State bank, Western reported the openmany accounts well the return many old ones. As precautionary measure to safeguard interests of its depositors. South side banks invoked clause their requiring depositors give days' notice before draw-

5. June 18, 1931 The Black Dispatch Oklahoma City, OK

Article from The Black Dispatch, June 18, 1931

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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

6. June 20, 1931 The Afro-American Baltimore, MD

Article from The Afro-American, June 20, 1931

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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.

7. June 25, 1931 The Northwest Enterprise Seattle, WA

Article from The Northwest Enterprise, June 25, 1931

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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.

8. July 24, 1931 Suburbanite Economist Chicago, IL

Article from Suburbanite Economist, July 24, 1931

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NELSON FORESEES FULL RETURN FOR DEPOSITORS (Continued from page 1) pay more. Their salaries are paid from the individual bank in which they are placed.' Mr. Nelson confirmed n report that Kirkland, Fleming. Green and Martin had been appointed attorneys for Mr. Gilruth. Adrian L. Hoover, attorney for that firm, will be in direct charge of all legal matters. It was said. Report on Bank At Mr. Gllruth's headquarters In the West Englewood bank, no official confirmation on the appointment of assistants nt the various banks was forthcoming. The state nuditor has released a report on the Cheltenham Trust and Savings bank. Frank M. McKee has been appointed receiver and Sims, Stransky. Brewer and Poust. attorneys. The nudit report is follows: Balances at date of closing (June 8, 1931): Total resources Total deposits 307,489 Bills payable 10,000 Collections by receiver: Interest collected $ 803 Total collected 49,531 Disbursements by receiver: Auditor's Inventory and examination expenses $375 Clerk hire 552 Plans Are Approved At the Washington Park National bank reorganization depends on an official indorsement of plans submitted to the comptroller of currency nt Washington D.C. Watson Vanderploeg. president, announced that the plans been approved the Federal Reserve Bank Chicago and the chief nntional bank examiner of this city. They were then forwarded the Washington department and definite word is expected soon from the national comptroller.

9. July 31, 1931 Suburbanite Economist Chicago, IL

Article from Suburbanite Economist, July 31, 1931

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AS Circuit Court Ruling Provides For Accounts Against Cheltenham Southtown's during the week has flowed along in orderly channels, with the publication of depositors' and creditors' notice by the chain and the Cheltenham Trust Savings bank, and the pointment of receiver for the South Trust and Savings bank. Last Monday order entered circuit that firms any the Cheltenham bank, file their demands with Frank M. McKey. at 2900 79th claims must be filed on or October 1931. attorneys Mr. McKee are Sims, Brewer and Poust, Clark Name Carrol Receiver similar notice, which under IIIIbanking law must published weeks, appeared the signature of receiver of the banks. The publication on the "Bain" banks appeared Respecclaims must filed with the receiver, on or before October 1931. From State Auditor Oscar Nelson learned yesterday that John Carroll been appointed ceiver the South Side Trust Savings bank, 47th and Cottage At State Bank of Beverly Hills, Nelson bank officials trying to the bank, selling securities. Announce H. president Park National bank, yesterday that the committee the bank would their for opening the near future. From receiver the Park stateissued of National Safe Dethe closing of the bank some confusion existed regard to the these by ceiver of the bank," Mr. McCandless said. To 5,000 Renters "This has now been straightened and advised that use these boxes can continued withreleases and denial of under Mr. announcement 5,000 renters safe deposit boxes the building of the Washington Park bank. The receiver's salary at the Washington Park bank, disclosed the state auditor's office, year.