Jesse Binga
Jesse Binga | |
|---|---|
| Born | Template:Birth date Detroit, Michigan, U.S. |
| Died | June 13, 1950 (aged 85) |
| Occupation(s) | Entrepreneur, banker, real estate investor |
| Known for | Establishing Chicago’s first privately owned bank serving the African-American community |
Jesse Binga (April 10, 1865 – June 13, 1950) was a distinguished American entrepreneur credited with establishing Chicago’s first privately owned bank serving the African-American community. Arriving in Chicago during the 1890s with merely ten dollars, by the 1920s he had risen to become a bank president and a major real estate investor. He confronted private real-estate segregation head-on, facing resistance from white real estate interests, at times encountering violent opposition. Following the collapse of his bank amid the Great Depression, Binga was controversially accused of embezzlement, which incited protests and petitions that ultimately led to his early release and a full pardon in 1941.
Early life
Jesse Binga was born in Detroit, Michigan, in 1865 as the youngest among ten siblings and was the son of a barbershop proprietor. He acquired skills in barbering, assisted his mother with rent collection, and performed maintenance on properties. He discontinued high school to work for Thomas Crispus, an African-American lawyer. Despite promising prospects in Detroit, he relocated westward, engaging in various occupations and earning profits through land acquisitions on a former Native American reservation in Idaho. He arrived in Chicago for the 1893 World's Columbian Exposition and chose to remain there, eventually establishing a real estate enterprise between 1896 and 1898.
Significance of City Influence
At the dawn of the twentieth century, African Americans made up less than 2% of Chicago’s population—approximately 20,000 individuals—largely concentrated within the "Black Belt," spanning State Street to 35th Street southward. This demographic shifted as numerous African Americans migrated north to flee Jim Crow laws, Ku Klux Klan intimidation, and scarce employment opportunities in the South. The "Chicago Defender", a widely read African-American newspaper in Chicago, attracted these migrants who sought employment and affordable housing; these newcomers formed the foundation of Binga’s initial client base.
Realtor
In his role as a realtor, Binga acquired dilapidated properties which he personally refurbished, renovated, and managed. He leased them at premium rates due to the surge of African-American migrants from southern states. In 1905, he secured a long-term lease on the Bates apartment complex, prompting all-white tenants to vacate. His business expanded steadily, eventually leading him to contemplate founding a bank. Noted for his charitable contributions and recognized as an honorary member of Alpha Phi Alpha fraternity, Binga was also known as a demanding landlord who charged substantial rents to low-income tenants. His fortune grew after marrying Eudora Johnson, related to Chicago gambling figure John "Mushmouth" Johnson; when Johnson died in 1907, Eudora inherited $200,000. The couple purchased a residence at 5922 South Park Avenue (now King Drive), an area predominantly inhabited by white residents where their home and offices were subjected to multiple bombings. Nevertheless, Binga’s reputation and property portfolio expanded to nearly 1,200 leaseholds.
The Binga Bank
In 1908, Binga established a private bank primarily catering to African Americans who were excluded from other financial institutions. This institution was the first African-American-owned bank in northern United States cities. As it grew, the bank played a pivotal role in supporting black-owned businesses on Chicago’s South Side and became central to black economic advancement during the Great Migration. In 1921, Binga obtained a state charter and launched The Binga State Bank, relocating its operations to prominent new premises in 1924. Although he remained the largest shareholder, his impulsive management style caused friction with the board and contributed to subsequent difficulties.
The Depression
In 1929, during the collapse of the US stock market and the beginning of the Great Depression, Binga completed a $325,000, five-story office building featuring a rooftop ballroom, which became known as the Binga Arcade. His objective was to rejuvenate the neighborhood at 35th and State streets; however, the timing and location were not conducive to financial prosperity since the venture depended heavily on rental revenue. Despite these challenges, Binga announced intentions to establish a new South Park National Bank. Nevertheless, under financial strain, Illinois authorities required an additional $400,000 in cash deposits. When Binga requested support from the Chicago Clearing House Association, his appeal was rejected. Although the bank possessed substantial assets, most were invested in mortgage loans to black churches and fraternal organizations that were struggling amid widespread unemployment. Binga declined to foreclose on these properties, which ultimately led to the bank’s closure by the State Auditor General in June 1930, causing major losses for both Binga and numerous depositors.
Prison
After his bank was shut down, Binga faced criminal allegations and was charged with embezzlement in March 1931. Prosecutors contended that he had used inadequately secured loans for real estate speculation. His initial trial in 1932 ended without a verdict due to a deadlocked jury. In a subsequent trial in 1933, he was found guilty of depositing funds intended for a new bank into his personal account and received a ten-year prison sentence. This conviction generated considerable anger within his community, who believed racial bias contributed to the bank’s downfall. Notably, Clarence Darrow, serving as Binga’s defense attorney, made unsuccessful efforts to obtain early parole. Nearly two years later, in 1938, Binga was released on parole from Joliet Correctional Center under the supervision of Rev Joseph F Eckert. His release was aided by community demonstrations and a petition bearing 10,000 signatures.
Pardon and aftermath
Binga’s wife passed away in 1933. Following his parole in 1938, he worked as a janitor at St. Anselm's Church and lived in poverty for the remainder of his life. Throughout this period, he consistently maintained his innocence and was granted a full pardon by Governor Dwight H. Green in 1941. Later, he resided with his nephew until his death on June 13, 1950, at St Luke's Hospital. Binga was laid to rest at Oak Woods Cemetery.
See also
Further reading
- Don Hayner. Binga: The Rise and Fall of Chicago’s First Black Banker. Northwestern University Press, 2019.