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Jesse Binga

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'''Jesse Binga''' (April 10, 1865 &ndash; June 13, 1950) was a prominent African-American businessman who founded the first privately owned African-American bank in Chicago. He was a notable pioneer of black business achievement in the early 20th century.<ref name="Chicago Tribute"/>

==Early life==

Binga was born in [[Detroit]], [[Michigan]] in 1865, the son of a barbershop owner and the youngest of ten children. He learned barbering, helped his mother to collect rents and made property repairs.<ref name="Kranz2004"/>{{rp|19}} He dropped out of high school to work in the office of Thomas Crispus, an African-American attorney.<ref name="InghamFeldman1994"/>{{rp|75}} Despite business opportunities in Detroit he traveled westwards, employed in various jobs and cities. He made a profit from buying land on a former Indian reservation in Idaho.<ref name="Kranz2004"/>{{rp|19}} He arrived in Chicago in 1893 for the [[World's Columbian Exposition]] and remained, having various jobs and eventually starting a real estate business between 1896 and 1898.<ref name="InghamFeldman1994"/>{{rp|76}}

== Significance of City Influence ==
At the turn of the century only 2% of the total population of Chicago was made up of African Americans, which is around 20,000 people. Most of which were densely populated in the "Black Belt" district, which covered a few blocks in each direction from State Street south 22nd Street to 35th Street.<ref name="InghamFeldman1994"/>{{rp|75}} However, this was not an unusual occurrence in Chicago at the time seeing as though many African Americans had migrated to Northern cities in the 1800s due to the harsh prejudices of Jim Crow segregation, [[Ku Klux Klan]] persecution, and poor agricultural employment opportunities. The mass circulation of Chicago's popular African-American newspaper the "Chicago Defender", brought the city to the attention of those seeking promising occupations and inexpensive housing. It was these new migrants that made up the majority of Binga's early clientele.<ref name="InghamFeldman1994"/>{{rp|76}}

==Realtor==
As a realtor he purchased run down properties which he repaired, renovated, and maintained himself. He was then able to rent them out at a premium due to the influx of African-Americans from the south.<ref name="InghamFeldman1994"/>{{rp|76}} In 1905 he took out a long term lease on the Bates apartment building <ref name="InghamFeldman1994"/>{{rp|76}} which resulted in the tenants who were all white, to leave; a practice which later became known as [[Blockbusting]]. He expanded this business plan continuing to prosper to the point where he was able to consider opening a bank. Binga was known for [[philanthropy]] and was an honorary member of [[Alpha Phi Alpha]] fraternity,<ref name="ParksBradley2011"/> but he was also described as a mean landlord to low income families by charging them the highest rents.<ref name="Kranz2004"/>{{rp|20}} Binga became even wealthier after his marriage to Eudora Johnson a relative of [[Timeline of organized crime in Chicago#1880s|John "Mushmouth" Johnson]], the city's gambling king pin.<ref name="Schlabach2013"/> When Johnson died in 1907, Eudora inherited $200,000 <ref name="Garb2014"/> Eventually Binga and his wife bought a house at 5922 South Park Avenue, which is now known as King Drive. This was a strictly white neighborhood and his house and offices were bombed on at least five occasions.<ref name="Cooley2008"/><ref>{{cite book|publisher=University of Chicago Press|title=The Negro in Chicago: A Study of Race Relations and a Race Riot|page=125|date=1922|url=https://books.google.com/books?id=3kErAAAAMAAJ&dq=binga%20bombings&pg=PA144-IA3#v=onepage&q=binga%20bombings&f=false}}</ref> Binga shrugged off these attacks and became even more popular amongst African-Americans and continued to prosper, attaining around 1200 property leaseholds.<ref name="InghamFeldman1994"/>{{rp|77}}

==The Binga Bank==
Binga founded a private bank in 1908, primarily for [[African-American]]s, mainly because many banks excluded them.<ref name="Hopkins-Bey2014"/> It was the first bank to be owned and run by African-Americans in the north. As the bank grew, other African-American businesses grew up around it and the area became the center of black business development on Chicago South side. When the [[Great Migration (African American)|Great Migration]] came, Binga grew ever more popular because he could provide a service to the black community where previously they had been discriminated against.<ref name="Kranz2004"/>{{rp|20}}Eventually Binga got a state charter for his bank and opened The Binga State Bank in 1921 which relocated to new imposing offices in 1924.<ref name="Smith2006"/>{{rp|40}} Despite the bank's new status, he still remained the largest shareholder and his tendency to act impetuously was a personal trait that annoyed his board of directors and would come to play a part in his downfall.<ref name="REED2011"/>{{rp|20}}
[[File:Binga.PNG|Binga Bank on opening day (January 3, 1921). Jesse Binga is fifth from left.<ref>{{cite news|last1=Taylor|first1=Julius F.|title=The Opening of the Binga State Bank|url=http://idnc.library.illinois.edu/cgi-bin/illinois?a=d&d=TBA19221230.1.1&e=-------en-20--1--txt-txIN-------#|accessdate=28 May 2015|work=Print|issue=28|publisher=The Broad Ax|date=January 3, 1921}}</ref>|thumb|left]]

==The Depression==
In 1929 the US stock market collapsed and the [[Great Depression]] began. Despite the recession Binga completed the construction of a luxurious $325,000 five storey office block complete with a roof-top ballroom, known as the Binga Arcade. He had hoped that this investment would revitalize the area of 35th and State streets.<ref name="InghamFeldman1994"/>{{rp|78}} However, this wasn't to be and it has been described as being built in the wrong place at the wrong time for financial success, relying too heavily on revenue from rental income.<ref name="Reed2011"/> Binga was still outwardly full of confidence announcing his intention to start a new South Park National Bank,<ref name="REED2011"/>{{rp|18}} but his fortunes were about to change as he sought support to meet the bank's financial commitments. He was able to gain an offer of financial support, but State of Illinois officials required additional payments of $400,000 in cash.<ref name="Jr.2011"/> Binga then turned to the Chicago Clearing House Association to cover this amount as Binga State Bank was a member, but he was refused.<ref name="REED2011"/> Despite having solid assets, Binga was unable to liquidate these immediately as the banks assets were too heavily invested in mortgage loans to black churches and fraternal societies, many of which could not meet their payments after their members lost their jobs. Binga refused to seize the properties of these community institutions and in June 1930 the Auditor General of the State of Illinois closed the bank down.<ref name="Reed2011"/> Binga lost his personal fortune as well as that of many depositors.

==Prison==
As soon as the bank was closed down, Binga's activities were investigated, leading to criminal charges. He was indicted in March 1931 for embezzlement. The prosecution argued that Binga took out inadequately secured loans to speculate in real estate,<ref name="Fuller2011"/> but his first trial in 1932 ended in a hung jury. He was then charged with depositing money that was intended for investment in a new bank, into his personal account and when he was tried a second time in 1933, he was found guilty.<ref name="Smith2006"/> He was sentenced to ten years in prison and this caused resentment within his community who felt that racism was part of the Bank's failure.<ref name="InghamFeldman1994"/>{{rp|79}}<ref name="Smith2006"/>{{rp|41}} [[Clarence Darrow]] was Binga's attorney and although virtually retired, attempted to persuade a parole board hearing for his early release.<ref name="chicagolawyer"/> He didn't succeed and it was nearly two years later that Binga was paroled from [[Joliet Correctional Center|Joliet Prison]] to the custody of a catholic priest Rev Joseph F Eckert in 1938.<ref name="Schlabach2013"/> Protests and a 10,000 signature petition from the community who themselves had suffered losses in his dealings, were considered a contributory factor in his release.<ref name=AfroAmerican/>

==Aftermath==
His wife had died in 1933 <ref name="Kranz2004"/>{{rp|21}} and on his release from prison, he was given a $15 a week job as a janitor at St. Anselm's Church, spending the remainder of his life in poverty.<ref name="Smith2006"/> Binga always maintained his innocence in the affair <ref name="Jr.2011"/> and was given a full pardon by state Gov. Dwight H Green in 1941.<ref name="Fuller2011"/> He eventually went to live with his nephew and died June 13, 1950, in St Lukes Hospital. He was buried in Oakwood Cemetery.<ref name="SawyersKogan2012"/>

==References==
{{reflist | refs=
<ref name="ParksBradley2011">{{cite book|author1=Gregory S. Parks|author2=Stefan M. Bradley|title=Alpha Phi Alpha: A Legacy of Greatness, The Demands of Transcendence|url=https://books.google.com/books?id=05nYrnfC3PYC&pg=PA362|date=22 December 2011|publisher=University Press of Kentucky|isbn=0-8131-4007-2|pages=362–}}</ref>

<ref name="Kranz2004">{{cite book|author=Rachel Kranz|title=African-American Business Leaders and Entrepreneurs|url=https://books.google.com/books?id=NCHX6P8ETI0C&pg=PA20|date=1 January 2004|publisher=Infobase Publishing|isbn=978-1-4381-0779-0|pages=20–}}</ref>

<ref name="InghamFeldman1994">{{cite book|author1=John N. Ingham|author2=Lynne B. Feldman|title=African-American Business Leaders: A Biographical Dictionary|url=https://books.google.com/books?id=TTha3NavN-sC&pg=PA79|year=1994|publisher=Greenwood Publishing Group|isbn=978-0-313-27253-0|pages=79–}}</ref>

<ref name="Schlabach2013">{{cite book|author=Elizabeth Schlabach|title=Along the Streets of Bronzeville: Black Chicago's Literary Landscape|url=https://books.google.com/books?id=VW8PBAAAQBAJ&pg=PA58|date=1 September 2013|publisher=University of Illinois Press|isbn=978-0-252-09510-8|pages=58–}}</ref>

<ref name="Garb2014">{{cite book|author=Margaret Garb|title=Freedom's Ballot: African American Political Struggles in Chicago from Abolition to the Great Migration|url=https://books.google.com/books?id=x4dFAwAAQBAJ&pg=PA155|date=28 April 2014|publisher=University of Chicago Press|isbn=978-0-226-13606-6|pages=155–}}</ref>

<ref name="Hopkins-Bey2014">{{cite book|author=Azeem Hopkins-Bey|title=Prophet Noble Drew Ali: Saviour of Humanity|url=https://books.google.com/books?id=WCbzBgAAQBAJ&pg=PA61|date=7 August 2014|publisher=Lulu.com|isbn=978-1-312-37348-8|pages=61–}}</ref>

<ref name="Reed2011">{{cite book|author=Christopher Robert Reed|title=The Rise of Chicago's Black Metropolis, 1920-1929|url=https://books.google.com/books?id=f6WdTUlpPigC&pg=PA87|date=14 April 2011|publisher=University of Illinois Press|isbn=978-0-252-09317-3|pages=87–}}</ref>

<ref name="REED2011">{{cite book|author=Christopher Robert Reed|title=The Depression Comes to the South Side: Protest and Politics in the Black Metropolis, 1930-1933|url=https://books.google.com/books?id=SOBAQ4HPf0AC&pg=PA18|date=5 October 2011|publisher=Indiana University Press|isbn=0-253-00552-3|pages=18–}}</ref>

<ref name="Smith2006">{{cite book|author=Jessie Carney Smith|title=Encyclopedia of African American Business|url=https://books.google.com/books?id=-VYN_LWZwf4C&pg=PA41|year=2006|publisher=Greenwood Publishing Group|isbn=978-0-313-33110-7|pages=41–}}</ref>

<ref name=AfroAmerican>{{cite news |author=<!--Staff writer(s); no by-line.--> |title=Banker leaves Joliet Prison after 3 Years |url=https://news.google.com/newspapers?nid=2211&dat=19380305&id=wQQnAAAAIBAJ&sjid=SAMGAAAAIBAJ&pg=4453,22344&hl=en |newspaper=The Afro American |location= |date=5 March 1938 |access-date= 1 September 2015}}</ref>

<ref name="SawyersKogan2012">{{cite book|author1=June Skinner Sawyers|author2=Rick Kogan|title=Chicago Portraits: New Edition|url=https://books.google.com/books?id=qojgLBuEFEUC&pg=PA39|date=31 March 2012|publisher=Northwestern University Press|isbn=978-0-8101-2649-7|pages=39–}}</ref>

<ref name="Jr.2011">{{cite book|author=James L. Conyers, Jr.|title=Racial Structure and Radical Politics in the African Diaspora|url=https://books.google.com/books?id=e7uVp3ipwW0C&pg=PA11|date=31 December 2011|publisher=Transaction Publishers|isbn=978-1-4128-1570-3|pages=11–}}</ref>

<ref name="Cooley2008">{{cite book|author=Will Cooley|title=Moving Up, Moving Out: Race and Social Mobility in Chicago, 1914--1972|url=https://books.google.com/books?id=OIw-MTFXnboC&pg=PA68|year=2008|publisher=ProQuest|isbn=978-0-549-90846-3|pages=68–}}</ref>

<ref name="Fuller2011">{{cite book|author=Robert Lynn Fuller|title="Phantom of Fear": The Banking Panic of 1933|url=https://books.google.com/books?id=d0AUvHWKMOgC&pg=PA63|date=29 November 2011|publisher=McFarland|isbn=978-0-7864-8685-4|pages=63–}}</ref>

<ref name="Fuller2011">{{cite book|author=Robert Lynn Fuller|title="Phantom of Fear": The Banking Panic of 1933|url=https://books.google.com/books?id=d0AUvHWKMOgC&pg=PA63|date=29 November 2011|publisher=McFarland|isbn=978-0-7864-8685-4|pages=63–}}</ref>

<ref name="Chicago Tribute">[http://www.chicagotribute.org/Markers/Binga.htm Chicago Tribute]</ref>
<ref name="chicagolawyer">[http://chicagolawyermagazine.com/Archives/2013/02/Michael-Hyman-Judging-History.aspx Chicago Lawyer]</ref>
}}

{{DEFAULTSORT:Binga, Jesse}}
[[Category:American bankers]]
[[Category:1865 births]]
[[Category:1950 deaths]]
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