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This chapter examines the “contested terrain” associated with the founding of Chicago’s Douglass National Bank in 1921. Anthony Overton, one of history’s most prominent African American entrepreneurs, is widely regarded as the founder of the second national bank organized by African Americans. Yet, the evidence indicates that this distinction should go to Pearl W. Chavers, a relatively obscure early twentieth-century black business person. The story of Anthony Overton’s ascent and P.W. Chavers’ descent in the Douglass National Bank’s administrative hierarchy reveals the power of money and influence. It also illuminates the nuances of both group and individual entrepreneur-based strategies for African American economic development.

This chapter examines black business activities in Chicago in the 1920s. Robert S. Abbott, Jesse Binga, and Anthony Overton dominated the business activities of the Black Metropolis with their control over finance and information like no others in their community and very much like the business titans found throughout other major Chicago economic enclaves. Business was national king at this time and their collective presence provided a significant part of the foundation of making the Black Metropolis a reality. The economic influence of the 1920s built to such a crescendo that other interests and activities were virtually submerged to it as an epicenter. In fact, one internal memorandum of the NAACP concluded the following: “There are so many diversified interests in Chicago that the N.A.A.C.P. really suffers greatly from indifference on the part of the people.” These diversified interests were related to economics and the emergence of a consumers'society—working for extra money from which to increase spending and buying; spending for recreation and leisure rather than just for necessity; buying property, automobiles, and the new technological devices such as the refrigerator and record player; and investing in oil exploration, stocks, bonds, and real estate.

This chapter surveys the evolution of African American-owned businesses in Chicago from the mid-to-late nineteenth century until the early twentieth century. During the nineteenth century, the most successful black entrepreneurs, such as tailor John Jones and caterer Charles H. Smiley, primarily served white clients. By the early twentieth century, as Chicago’s African American population grew, a new breed of black entrepreneur emerged. Even before the World War One “Great Migration,” persons such as newspaper editor Robert Abbott, real estate professional and banker Jesse Binga and personal care products manufacturer Anthony Overton saw the enormous profit potential associated with catering to the needs of the city’s burgeoning “Black Belt.”

From its inception the African American press was a major voice in the African American struggle against violence and discrimination. The unquestioned dean of the black press was Robert Abbott, publisher of the Chicago Defender. This chapter examines two aspects of Abbott’s life. First, it analyzes how Abbott developed and implemented his vision for building a successful business in an environment hostile to black entrepreneurial success. In doing so he helped lay the foundation of the Chicago network of mutually supporting black business people and demonstrated through his actions their role in the community. Second it illustrates how, through the Defender, Abbott and his paper served as an inspirational and intellectual leader in African American’s struggle for rights in Chicago and throughout the United States.