7064. Chelsea Bank (Chelsea, MA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
December 22, 1930
Location
Chelsea, Massachusetts (42.392, -71.033)

Metadata

Model
gpt-5-mini
Short Digest
816be4ed73e62aa5

Response Measures

None

Description

Newspapers (Dec 24, 1930 and Jan 11, 1931) describe a run on Chelsea Bank driven by spread of false reports/telephone warnings. The bank's president (Broderick) closed it on his responsibility amid withdrawals but cash was supplied by National City Bank to meet depositors, indicating a temporary suspension followed by resumption of liquidity — hence classified as run → suspension → reopening. Dates are inferred from article publication (Monday night referenced in Dec 24, 1930 article = 1930-12-22).

Events (3)
1. December 22, 1930 Run
Cause
Rumor Or Misinformation
Cause Details
At least 100 depositors received telephone calls warning that the bank was to fail; communists alleged to have spread reports that banks were unsound.
Measures
National City Bank supplied cash through clearing channels to Chelsea Bank to meet depositors; president Broderick closed the bank on his responsibility.
Newspaper Excerpt
Officials have been informed that at least 100 depositors the Chelsea Bank telephoned Monday night ... and urged to waste time in withdrawing their money.
Source
newspapers
2. December 22, 1930 Suspension
Cause
Rumor Or Misinformation
Cause Details
President temporarily closed the bank after widespread telephone warnings and deposit withdrawals driven by false reports about the bank's solvency.
Newspaper Excerpt
As the Chelsea Bank, Broderick closed it on his responsibility was learned there was plenty cash ... been supplied by the National City Bank, the through which the Chelsea Bank cleared its checks.
Source
newspapers
3. December 24, 1930 Reopening
Newspaper Excerpt
there was plenty cash ... been supplied by the National City Bank, the through which the Chelsea Bank cleared its checks.
Source
newspapers

Newspaper Articles (3)
1. December 24, 1930 The Daily Worker Chicago, IL
Article from The Daily Worker, December 24, 1930

Click image to open full size in new tab

Article Text

ONE) lawyers and attempting to betray bank of Philadelphia trying hand the bunk that huge institution not effect" other banks The same story when the Bank Within two weeks Chelsea Bank and in deposits depositors crashed fact the the closing must have an effect on the entire structure the country crowds ga.hered the banks. H. Barker. president of the issued series of "optimistic" but was handed depositors, many of whom without their savings. Thouthem jobless and had themselves food while they could when out deposits are given them as

2. December 24, 1930 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 24, 1930

Click image to open full size in new tab

Article Text

Communists have been responsible for the spread of reports that banks are unsound. The inspector admitted there basis for the reports, explaining the method of to have been hint depositors in various banks that their accounts were in danger. Officials have been informed that at least 100 depositors the Chelsea Bank telephoned Monday night at their and given that the was to fail. and urged to waste time in withdrawing their money. As the Chelsea Bank, Broderick closed it on his responsibility was learned there was plenty cash million available depositors, been supplied by the National City Bank, the through which the Chelsea Bank cleared its checks.

3. January 11, 1931 The Sioux City Journal Sioux City, IA
Article from The Sioux City Journal, January 11, 1931

Click image to open full size in new tab

Article Text

BY JOSEPH VAN RAALTE greeting card from holiday bankers friends in around with street being passed comment. card includes reprint of bank photograph the present appeared Christmas day, northern armies had bombarded after the the And under the picture is the following think there's depression today, look painstaking perusal of surveys local financial, industrial admirthe the boys soft pedal pleasant Their jargon situation. Instead about of "contraction of industrial activthey want tell you that certain security dropped points, speak of "curtailed price, its "price recession." Any smash sometimes referring "drastic readjustment." security goes loco, loops the loop times into undergoing "corrective that encountered would call bank, they "liquidity MIX, with on the and his closed talking that didn't to said. Every into that boots skidded under house landed my 'Go an' laugh,' said the day, mouth. from floor. an laugh. just tryin' United States curled the Bank depositor with up the borrowed half amount town the carried the few days put up Chelsea bank which shutters. remarked the sadly, youth had specialized the days my instead intricacies the relative placing myself plumbing business.' phenomena the Broadway in Chelsea bank suspended. when the heart of But located good enough theatrical district dimes humble the nickels repository electricians, three day cabaret women of the formers. people stood on bunch of these shutdumb fascination staring their house. tered facade descending. feathery reigned little man eyed card fishy Our Thrift Account Away for Rainy queried the little ain't turned his gaze from flakes melting the the snow overcoat. theater the other sat next to the had Money had come evening and she it before the make most to in sight. spread Across marcelled thing that drops the circled by four neck addition pearl drop lap beside japanned hands not nails little chocolates perforated paper bold beaded bag watch heavily top, ruby ring her right hand the by Her black net which theater heavily Irish And the dotted net huge bunch the rested black seal the back of collar. She smelled latest the the the package perforated paper that be to the validity caused look. genuine, the last, glittering That reality all. half funny foolish and pathetic stuff had been and landing aiming the funny sheet.