Chelsea Bank (New York, NY)

Episode Information

Episode UID
9067267191572
Episode Type
Run → Suspension → Unsure
Bank Type
state
Bank ID
906726719 hash
Start Date
December 19, 1930
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ad0714811ad0c33a

Response Measures

None

Description

Articles report a rumor-driven run and subsequent closing with plans for reorganization but no clear evidence of a reopening in this set.

Events (3)
1. December 19, 1930 Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank was closed after heavy withdrawals precipitated by the whispering/rumor campaign; superintendent said closing conserved assets for depositors and stockholders.
Newspaper Excerpt
the closing of the Chelsea Bank
Source
newspapers
2. December 20, 1930 Run
Cause
Rumor Or Misinformation
Cause Details
Alleged 'whispering' campaign traced to Communist sources and bearish stock manipulators urging depositors to withdraw
Measures
State Banking Department intervened; prompt action checked further withdrawals and officials probed brokers and traced calls.
Newspaper Excerpt
run of nearly 1,000 depositors on the Chelsea Bank
Source
newspapers
3. December 30, 1930 Other
Newspaper Excerpt
CHELSEA BANK SOLVENT, REORGANIZATION PLANNED: revealed the bank sound and solvent ... hopeful be worked out for its reopening . . . closing on Dec. (sic) liquidation purposes opened ... Grand jury probe begun . . . (article indicates investigation and reorganization plans).
Source
newspapers

Newspaper Articles (14)
1. December 24, 1930 Times Union Brooklyn, NY
Article from Times Union, December 24, 1930

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Article Text

BANK WHISPERING (Continued from page city apread rapidly after the cir. curnstances surrounding the closing became known. reports, which amount attacks the soundness of some strongest institutions, are being spread the New York Merchants' Association declared meeting "The duty volves the general public of halting the activities of those who are breeding lack confidence." While the investigation into the source rumors was taken up to-day by State and national Joseph Broderick, prepared carry inquiry into affairs the Bank and the Bank United latter which has working for two weeks past. BRODERICK USES CAUTION "One thing and thing only about the present situadeclared Mr. after closed the Chelsea Bank at He comment further, but was ferring the paign' which closing the Bank United States weeks earlier Before he closed the bank the superhad his belief that an "organized and malicious campaign statement concerning the bank's assets liabilities closed will issued Broderick He nounced that auditors are going books alleged Communists arrested during disturbance the bank tioned Michael Mermaid Coney Lodge, West 144th street David bank, said phone calls had received Monday yesterday by several hundred attacking bank's credit and them withdraw their accounts. Reports the agitawas the either munists Wall bears are under investigation the State Bureau of Securities punishby assistant general in charge declared he would prosecute all such cases are brought to his tion. The men arrested for creating disturbance front the bank Monday night will also BANK APPARENTLY SOUND Weight was given the theory that the closing the Chelsea Bank was brought almost entirely false by the Broderick that far knew there nothing wrong with the condition institution. banking superintendent said that he took bank because that step seemed necessary to conserve its assets for stockholders depositors. The of the bank's caused reaction bankers unanimous declaring if its closing was interpreted affecting banks would simply case founded spreading. The Chelsea relatively small about 40,000 depositors. neither member the FedReserve System of the New York Clearing House. The deposits the bank have shown marked recent weeks. Oct. they amounted to on Dec. 19 to only over More and more depositors, was learned, have recently withdrawn money rumors bank's condition gained headway. At conference between Mr. banking ficials night was tide the its difficulties, but midday the runs its had that close its that he ready discuss plans for STORM BROOKLYN BRANCH The only branch of the on Bedford avenue near Crowds made appearance line until the doors were shut Meanwhile the plan devised the Banking per cent. lcans defunct Bank of United States function smoothly Lines of depositors who applied for week again front the designated Brooklyn branches morning. About persons in borough eligible receive their loans all the 8,000 depositors the made their branches the bank. figures, howavailable what the original loan cants applied for and cevied their money. The Brooklyn Depositors and

2. December 26, 1930 The Brooklyn Citizen Brooklyn, NY
Article from The Brooklyn Citizen, December 26, 1930

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Article Text

OFFICIALS RED ACTIVITIES Action to Be Taken Against Communists, working hand in hand with bearish stock traders, are accused by the State Banking Department causing the run on the Chelsea Bank, which resulted in that institution's closing last week. The precise charge of "undermining the public confidence in New York banks" by "whispering campaigns" be handed over to District Attorney Crain in Manhattan for criminal prosecution. The disclosures were made by vestigators of the Banking Department, under Superintendent Joseph Broderick, after an investigation which followed small run on unnamed bank on Saturday. The series withdrawals from this bank, which checked by prompt and energetic action the part of the State on thorities, is said to have been traced Communist rumors. Almost 1,000 depositors had withdrawn funds fore the check was effected. Connection between the short selling of bank stocks and the alleged Soviet disrupt confidence financial institutions, which has seen the closing of two large banks here in the last few weeks, being investiseek out the possibility that gated to Communist funds were used in the short selling of the stocks. also alleged that whispering camled to the closing of the Chelsea paign Bank Records of eight brokerage houses examined to-day by Watson were Washburn, Assistant Atorney General of the State Securities ncharge Bureau in an effort to determine for whom they sold Chelsea and other bank stocks. District Attorney Crain has signed assistant to investigate the alleegd Communist whispering An effort being made paign. trace telephone calls that warned positors of the Chelsea Bank to withfounds. "The Communists talk openly their meetings of their campaign against the banks, mentioning the names of the banks against which their campaign directed and exhorting their followers to co-operate," said one official in close touch with the high situation. "We have been banking able trace definite instances which Communists have gone from store to store spreading their rumors. the campaign has not been without results shown only last Saturday, when run bank only two hours after information reached that the Communists had made their target."

3. December 26, 1930 Times Union Brooklyn, NY
Article from Times Union, December 26, 1930

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Article Text

BANK WHISPER CONTINUES (Continued from Page ceived phone similar to those which precipitated Chelsea closing. Last was small started on one averted only the quick the Department. Mr. to-day that he heard John inquiry affairs Bank United which. reported. several of depositors are begin. name of Steuer has been mentioned as the counsel might institute proceedings. The hispering campaign." according to bankers, carried lesser degree the past three they say. are frightened by action of the Police partment State and Federal authorities. phone calls among small shopkeepers, have been conitnued. SUSPICION ON REDS It generally agreed financial circles that bulk the propaganda banks being ried Communists, probably acting concert 'bearish' stock manipulators who have been bank Mr. Broderick and other banking officials refused to on the They branded hearsay the reports that many the phone recent days have deftraced that the Comtalked their meetings campaign against banks have. known instances. actually spread propagand among reassurance to depositors in other banks prominent bankers unanimous their statement that the run on the Chelsea Bank subsequent closing were brought about almost entirely whispering camaffairs of the tion are still being by the and will prob ably made public BROKERS UNDER INQUIRY plan for lending money to the the Chelsea Bank will be formulated unafter been concluded. however several banks stand ready money on the same terms the now effect with Bank United Few believe the Chelsea Bank will need extensive financial The part of Wall Street bears in the closing of the bank is to be revealed within days by the investigaof Assistant General Watson Washburn of State Bureau Washburn eral brokers Wednesin regard of stocks. he has sent letters 100 other brokers questing information bearing the situation.

4. December 26, 1930 Times Union Brooklyn, NY
Article from Times Union, December 26, 1930

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Article Text

BANK WHISPER PLOT CONTINUES (Continued from Page celved phone similar to those which Chelsea Bank closing Last Saturday, small was actually started one institution, and serious were averted only by the quick the Department. Mr. Broderick to-day that he had not heard of John into affairs Bank United which reported. several of begin The name Max Steuer been mentioned the counsel might institute proceedings The campaign," according to bankers. has been on lesser degree the past three agitators by threatened the Department State Federal and however, have been conithued. SUSPICION ON REDS generally agreed financial circles that the of the propaganda banks being ried by probably acting concert stock who have been bank Mr. Broderick and other banking officials refused They branded hearsay the reports that many the alarmist phone calls of recent definitely traced sources. It known, however, that the Communists have talked their ings campaign against banks and have. in known actually spread propagand among depositors. reassurance depositors in banks in city prominent bankers in their that the run on the Chelsea Bank closing about almost entirely the campaign. affairs the tion still being by the will prob ably made public BROKERS UNDER INQUIRY definite plan lending money to the of the Chelsea Bank be until after the has been however that several stand ready to lend money on the same terms as effect with of United States depositors. believe the Chelsea Bank will need extensive financial The part of Wall Street bears in the closing of the bank expected revealed within few the investigation Assistant Attorney General Watson Washburn State Bureau Securities. Mr. Washburn now in eral brokers subpoened Wednes regard to bank stocks. In addition. he has sent letters 100 other brokers requesting information bearing on the situation.

5. December 26, 1930 Times Union Brooklyn, NY
Article from Times Union, December 26, 1930

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Article Text

BANK WHISPER PLOT CONTINUES Continued Page ceived phone similar to those which precipitated Chelsea Bank closing Last revealed small run tually started serious consequences averted the Banking Department Mr. that he had heard into the Bank United reported. several of prepared begin The name of Max Steuer has the counsel might institute such The "whispering campaign." cording to bankers. has carried to lesser in the three days. they say apparently the threatened the partment and authorities. and small shopkeepers, however, have been conitnued. SUSPICION ON REDS generally agreed financial circles the of the propaganda banks being by probably acting concert 'bearish stock who have been bank Broderick other banking officials the They branded hearsay the reports that many the alarmist phone calls of recent days have been definitely traced Communist is the Communists talked their meetbanks and have. known actually spread propagand among depositors. giving reassurance to depositors banks in city. prominent bankers in their statement that the run Chelsea Bank subsequent closing were brought about almost entirely by paign. The of the institustill being by and will ably made public BROKERS UNDER INQUIRY No definite plan for lending money the the ChelBank will be formulated until after the concluded. several banks stand ready money on the the now in effect Bank of United Few authorities believe the Chelsea Bank will need extensive financial The part of Wall Street bears in closing of the bank is expected revealed within few days by the investigation Assistant Attorney General Watson Washburn the State Bureau Securities. Mr. Washburn engaged in questioning brokers subpoened Wednesregard to the he has sent 100 other questing information bearing on the

6. December 26, 1930 The Brooklyn Daily Times Brooklyn, NY
Article from The Brooklyn Daily Times, December 26, 1930

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STATE TO PROBE REDS' ACTIVITIES IN BANK CRASHES Fraud Bureau and Banking Dept. Keep Close Watch on Communists Here. Two State the Bank ing Departme Fraud reau of Attorney General's fice. are watch to. day activities of Communists officially held responsible measure for the of two the first of month. attempted attack on third which checked after had been started. Strong on the of the Department discovery the third plot revealed today by an official of the in ing the run after line of about 1,000 depositors had formed in front on of the branches this bank line the depositors fears Banking Department official learned last of Com munist campaign being discussed to launch the attack on this institution Run Checked Within hours this learned. the but it quickly nothing regarding learned by the general With this example them coupled the runs on the Bank of United and the naBk & Trust officials are convinced of strong to one bank with faiding the munist world revolution against capitalism and all its instiWatson Washburn assistant At. torney General charge bureau. questioned heads eight brokerage houses and their records. out for other and relating to deals in bank time in pressing charges against brokers whom find had slightest connection whispering and against he said He question 100 brokers about Chelsea Bank trading. learned today that District Attorney of New County also taking an interest in the To Probe Red Activities Assistant Attorney Charles Pilatsky has directed look into activities of Communist to foundation for that the Reds are plotting against the and he has quietly tracing calls depositors bank to withdraw their Broderick of the banking questioned garding reported run on the third Institution run there was that one being ed. by to thousands of depositors another two or three days, the said, he would be in position to make complete statement the conditions of the bank He 80 far he knew no tion was done the of the Bank of "nited States He denied he had issued that the Chelsea bank were assured of 100 on the dollar He had not discussed this phase he and would no on until his was to tonight Girls Commercial H. 883 Classon to discuss Max D. Steuer. chief counsel for the Depositors tion. is to make revelations startling made to broadcast his remarks

7. December 26, 1930 The Sentinel Winston-Salem, NC
Article from The Sentinel, December 26, 1930

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Charge Communists Started Bank Runs (CONTINUED FROM PAGE ONE) may have financed the the Bank and Trust Company prior the campaign which precipitated withdrawals and caused Examine Records Records houses by Watson charge of the State securities in an effort deterwhom they sold Chelsea and other banks District Attorney Crain has signed assistant to investigate alleged paign. An effort being made trace calls that positors the Chelsea Bank to withdraw their funds. Talk Openly "The Communists openly at their the mentioning the of the against their directed and horting their followers cosaid one official with the banking able trace definite Communists to the has not been without was only last Saturday, when run one bank began two hours after information had us that the Contmunists had made it their target.

8. December 26, 1930 The Atlanta Journal Atlanta, GA
Article from The Atlanta Journal, December 26, 1930

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Communists Active In Financial Attacks, Department Charges NEW YORK Dec. accused the State Banking of starting "whisto public confidence New York banks Officials the State Banking Department claimed to have traced to Communist sources run of nearly 1,000 depositors on bank last Saturday Prompt and energetic action by the banking department checked the Officials expressed the money may the opin of the Company prior the campaign which precipitated heavy withdrawals and caused the bank to be closed Records ight brokerage houses examined Friday Watson general In charge the State Securities Buan effort determine for whom Chelsea and other Crain has assigned assitant alleged Communist whispering campaign An effort is being made trace telephone calls depositors of the Chelsea Bank to withdraw their funds Communists talk openly at their meetings their campaign against banks, mentioning the names the against which their campaign and exto said one high official in close touch the We have been definite in which Comunists gone from store spreading their rumors. "That the campaign has not been without results was shown only last Saturday when a on one bank began hours information had reached us that the Communists had made it their target.

9. December 30, 1930 The Buffalo News Buffalo, NY
Article from The Buffalo News, December 30, 1930

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CHELSEA BANK SOLVENT, REORGANIZATION PLANNED From Bureau NEW YORK. Dec. of the of the and by its books on the closed by Joseph superintendent banks, was made public yesterday. The revealed the bank sound and solvent, according to state Directors of the revealed several of the bank. are hopeful be worked out for its reopening. BANK OF U. PROBE OPENS From New York NEW YORK, Dec first the the aside the Interest its by the following its closing on Dec. liquidation purposes, opened trict Crain before Grand jury today.

10. January 1, 1931 Plentywood Herald Plentywood, MT
Article from Plentywood Herald, January 1, 1931

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Blame 'Reds', Bank Losses NEW YORK, Dec. 26.- (UP)and Trust company prior to the whisCommunists were accused by the pering campaign which precipitated state banking department today of heavy withdrawals and caused the bank to be closed. starting "whispering" campaigns to Records of eight brokerage houses undermine public confidence in Ney York banks. were examined today by Watson Officials of the state banking deWashburn, assistant attorney general in charge of the state securities bupartment claimed to have traced to communists sources a run of nearly reau, in an effort to determine for whom they sold Chelsea and other 1,000 depositors on a bank last Satbank stocks. urday. Prompt and energetic action District Attorney Crain has asby the banking department checked the withdrawals. Officials expressed signed an assistant to investigate the the belief that communist money may alleged communist whispering camhave financed the short-selling operpaign. An effort is being made to withdraw their funds. ations in stock of the Chelsea Bank

11. January 2, 1931 Poughkeepsie Eagle-News Poughkeepsie, NY

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Can these letters square? Which president of the pasecheese as levees Where the great catacombs antiquity ON LAST PAGE) The policeman didn't know any about than she did but harry the poor woman further by display of Don't worry. said the cop. got ten grand in there, meself- OPTIMIST AND PESSIMIST Tragedy descended on Mazda Lane in earnest when the Chelsea Bank suspended big But located In the heart of the theatrical district good enough as pository for the nickels and dimes of humble folk of the penters, electricians men and womof the three day cabaret per. formers. little bunch of these people stood the curb dumb fascination facade their Treasure House. soft feathery snowflakes were descending upon Mazda Lane. Melancholy reigned supreme. little man In stared the window "Open an Account Our Thrift Department NOW. Put Away for Rainy Day rainin', ain't queried the man turned his gaze the bank flakes melting on the of his overcoat. they'll pay us, all right." spoke up The Optimist in the group "Suppose they interposed tall man, with scared eyes, "that ain't goin' buy food my trainseal, over the is It? An' now. FOLLY TO BE WISE They tell The Street of midtown having read Fred Kelly's the psychology of opeculationYou Win drew from his bank and fared south the Bradstreet Belt to engage high finance on his own count. me that that indicating Several continuing its frolle down the Greased Chute On before the lows. the Worthy Brother check book hand down the borkerage office take his and quit Street forever He through Never again would he from refining influence of Garment "How much do he Gently the customer's man broke the can cover with profit of replied you 'Sell sold the stock short for you or lose! "Sea "shark "Iceland "turtle and were the names of shoes made cod and salmon skins shown recently

12. January 3, 1931 The Waukesha County Freeman Waukesha, WI

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Bo Broadway JOSEPH By Central NEW YORK Next time about the materialism of the day generation, recount the story Old Fashioned Father just brought suit against his tutor having imparted Little Rollo the tion that No Santa Claus. BANKING PROBLEMS. When Bank United States curled the other day, depositwith balance of $4,000 borhalf the amount at cent carried the $2,000 crosstown to the Chelsea Bank which few days later put up its shutters. remarked The Depositor sadly, "that in the days youth in the and peculiarities banking. instead placing myself continguous the relative and phenomena of the plumbng SMILING. All day long, round the various little groups of gloomy, philoophic depositors gather, extract(ing what comfort they can from the propinquity and rehearsing details of The Calamity They the seasick. At saunter suggesting the groups disperse and retire peace. An elderly woman in of the admonished, paused assail the bluecoat's with reiteration of the futile query 'When do you think the bank will open The didn't more about than did; but harry the furwhy ther by display ignorance Don't worry, lady, said the cop. got ten grand in OPTIMIST AND PESSEMIST descended on Mazda Tragedy Lane earnest when the ChelBank suspended. isn't bank. located the big heart the theatrical district good enough repository for nickels dimes humble folk of the men and women the three day cabaret performers. little bunch of these people the curb staring in dumb fascination the shuttered facade their Treasure soft. snowflakes were Mazda Lane. Melscending upon ancholy reigned supreme. man in too-wellstared fishyeyed at card in the bank "Open an Our dow: Put Thrift Away for Rainy day. queried little man, he turned his the from bank window gaze contemplate the snowflakes melting on the arm of his they'll all right, pay The Optimist in the spoke up Suppose they do." interposed with scared eyes, that man. buy food for my ain't goin' trained seal, over it? An we ain't workin' FOLLY TO BE WISE. They The Street of midtown who, havread Fred Kelly's masterpiece on the psychology of specuYou Win drew $25,000 from his bank and fared south to the Bradstreet Belt engage high finance on his account "Sell me o' that, an' that, that,' he ordered customer's indicating "blue chip favorites. elapsed, the market continuing its Mardi Gras paths that may tread; will have resentment when another gets ahead. not be swayed by envy when my rival's strength shown; will not deny merit, but to prove my try see the beauty spread before me, or will to preach YOUR duty more concerned MINE.

13. January 5, 1931 Press and Sun-Bulletin Binghamton, NY

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Broadway BY VAN RAALTS New York, Jan. 5-Next time you low" about someone the materialism of the present day and recount the story the Father just against imparted Little Rollo the stunning information that There Ain't No Santa Claus. Banking Problems When Bank of United States curled up the other day. depositor with JOSEPH VAN balance of RAALTE borrowed half the amount and carried $2,000 Chelsea Bank to the crosstown few days later up its remarked The Depositor days of my youth the the intricacies of of and placing myself phenomena to the corelative relative plumbing business." of the Keep Smiling round the various day long, of two suspended branches banks, little groups of gloomy. vooutraged and philosophic ciferous. depositors gather, extracting what can from the comfort of and by pinquity details of The Calamity They are all in the same boat-and all seasick. At intervals policemen saunter by suggesting that the groups disperse and retire to their domiciles in peace. An elderly woman one of the paused to bluecoat's ears with assail the iteration of the futile query: 'When do you think the bank will open The policeman didn't know she did: but more about why harry the poor woman further display "Don't lady," said the cop. got ten grand in there, meself- Optimist and Pessimist Tragedy descended on Mazda Lane in earnest when the Bank big But located in the heart the theatrical district was good enough as pository the nickels and dimes of humble folk of the and penters, women of the three day cabaret performers. little bunch of these people stood the staring dumb on shuttered facade of their Treasure House. Big. soft descend Mazda Lane. Melancholy upon reigned little brushed stared card in the bank window Account Thrift "Open an Department NOW Put Away for Rainy quired the rainin' little he turned his gaze from the bank window plate the snow melting on the his they'll us. all right. spoke up The Optimist in the they tall eyes, "that ain't goin' food my trained over is ain't workin' Folly to Be Wise They in Street of midwho, having Fred Kelly's on the speculation You Win $25,000 from his bank and fared the Belt to in high on his own me some an' chip favorthe market continuing its Mardi Gras frolle down the On certain before the recent the Worthy in ankled the to his and quit He Never again

14. January 9, 1931 The Lexington Herald Lexington, KY

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NEW YORK, time about the materialism of the present generation, the day story the Old has just brought suit against his son's tutor having Little Rollo the tion that There Ain't No Santa Claus. Banking Problems When the Bank of United States curled up the other depositor balance $4,000 borrowed half the per cent and carried the $2,000 Chelsea Bank which few days put its shutters. The positor sadly, "that in the days youth had in intricacies and banking, placing myself contiguous to the phenomena of the plumbing Keep Smiling All day long, round the various branches suspended banks, little gloomy. vocif. erous, outraged and philosophic depositors gather, extracting what comfort they from the propinand by hearsing details The Calamity. They all the same all intervals policemen saunter by, suggesting that the groups disperse retire domiciles in peace. An elderly woman one groups, thus paused the bluecoat's ears with reiteration the futile query: "When do you think the bank will open The policeman didn't know any about than did; but harry the poor woman further display ignorance? worry, lady," said the got ten grand there, Optimist and Pessimist Tragedy descended on Mazda earnest when the Chelsea Bank suspended. big bank. the heart the district good enough repository nickels dimes folk the electricians, men and women of the three day cabaret bunch of these people stood on the curb staring dumb the their House. Big, soft, feathery ing Mazda Lane. Melancholy reigned man in brushed stared card in the bank window: an Thrift NOW. Put Something Away Rainy rainin', queried the little man, he turned his from the bank window contemflakes melting the of his overcoat. they'll pay all right," spoke the Optimist the "Suppose interposed man, scared eyes, "that goin' buy food for my trained seal, over An' ain't workin' Folly to Be Wise They The Street town who, having read Fred Kelly's the psychology of You $25,000 from his bank and fared south Bradstreet Belt finance on his count. me some this, an' that, ordered customer's indicating "blue chip favorSeveral weeks elapsed, the continuing its Mardi Gras frolic down the Chute. On morning before the recent lows, the Worthy Brother, check book in hand, down brokerage office to take his