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1931 Stock Certificate - Foreman State National Bank (American National Bank Building) in Chicago, Illinois For Sale

Price: $35
Type: Art & Antiques, For Sale - Private.

As thousands of spectators observed on the evening of June 8, xxxx, a parade of armored trucks flanked by hundreds of policemen and armed special guards formed a convoy carrying assets worth $200 million from Foreman State Bank at 33 N. La Salle St. to Clark and Monroe Streets, the site of the First National Bank, which absorbed the money, equipment and all other assets of Foreman State Bank after its collapse as America sank into the Great Depression.
As Chicago's third largest bank and largest Jewish-owned bank, Foreman-State's collapse dealt a rough blow to investors, including many Jews who believed that anti-Semitic bias contributed to the downfall because Foreman State did not receive financial support from other Chicago banks. Foreman State evolved from a family-owned bank established in xxxx.
In xxxx the great stock market crash signaled the coming economic depression such that a downward spiral began, businesses began to fail, and banks succumbed to hordes of borrowers who defaulted on their loans. In December xxxx, Foreman State made the fortuitous decision to rescue State Bank of Chicago and become the third largest Chicago bank, trailing only First National Bank and Continental Illinois National Bank, while Harris Trust and Savings Bank and Northern Trust Company trailed closely behind.
Foreman State underestimated the ensuing panic that would beset the nation's financial system. At that time, the Federal Reserve System did not have the power to exert itself in an emergency. The FDIC did not yet exist as a protector of depositor account balances. Rumors of bank failures proliferated and caused depositors to make "runs" on banks and demand their money back, thus crippling bank liquidity.
As rumors fanned about its ability to survive as an ongoing entity, three substantial Foreman State depositors (who happened to be owners of the Chicago Cubs including William Wrigley and two others) each provided $2 million of new deposits to shore up Foreman State liquidity as a public vote of confidence, but negative rumors accelerated. On June 4, xxxx, Foreman State called an emergency meeting of the largest Chicago banks in an effort to save itself, but nobody would help in its hour of need. The Chicago powerhouse banks denied loans to Foreman State, which would have saved the interests of Foreman shareholders, who lost everything, including their newly-constructed 40-story building at 33 N. La Salle Street, which later got taken over as a new entity (unrelated to Foreman State) called American National Bank.
First National Bank took over all the assets (including deposits) of Foreman State in exchange for honoring and guaranteeing all depositor accounts. Rumors circulated that First National Bank had spread the negative rumors of impending trouble at Foreman State in order to enhance its takeover bargaining position, but no hard evidence ever emerged to substantiate such allegations.
The authentic xxxx Foreman State National Bank stock certificate contains a red serial number and a vignette of its 40-story headquarters building located in downtown Chicago. Western Bank Note & Engraving Company (Chicago) created the document, which is light charcoal (almost gray) in color and contains a pinwheel at bottom center. Document measures 11 1/4 X 7 5/8 inches and is in Very Good condition. I also have one stock certificate dated xxxx and one dated xxxx with a very high serial number, which means the Bank must have had a short winding down period after its collapse in order to extinguish its business affairs.

State: Illinois  City: Chicago  Category: Art & Antiques
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