Summer 1931

The National City Bank calls in $1,000,000 loan to Steinway & Sons. The company doesn’t have enough money to pay back the loan. Theodore Steinway takes series of loans in Chemical Bank, New York Trust Bank, and Chase Manhattan Bank, borrowing money from one bank to pay another. Finally the banks demand that Steinway & Sons sells its inventory before building any more pianos. The banks’ demand forces Theodore Steinway to make an unprecedented decision to close the factory.