Schrader v. Manufacturers' National Bank of Chicago was a case heard by the Supreme Court of the United States in 1921. The case involved a dispute between the Manufacturers' National Bank of Chicago and the Schrader family over the ownership of a piece of real estate. The Schrader family had purchased the property in 1891, but the bank had taken possession of it in 1895 after the family had defaulted on a loan. The bank then sold the property to a third party in 1898. The Supreme Court held that the bank had acted in good faith and that the Schrader family had no legal right to the property. The Court found that the bank had acted in accordance with the law and that the Schrader family had failed to take the necessary steps to protect their rights. The Court also held that the bank had acted in good faith and that the Schrader family had not been able to prove that the bank had acted in bad faith. The decision of the Supreme Court in this case was important because it established the principle that a bank can take possession of a property if the borrower defaults on a loan. This decision has been cited in numerous cases since then and has been used to protect the rights of banks and lenders.

In the dissenting opinion of Schrader v. Manufacturers' National Bank of Chicago, Justice McReynolds argued that the majority's decision was wrongfully based on a misinterpretation of Section 5200 of the Revised Statutes. He believed that this section did not give banks any special rights or privileges and should be interpreted to mean that all creditors have equal rights in bankruptcy proceedings. Furthermore, he argued that it would be unjust for banks to receive preferential treatment over other creditors when they are no more deserving than them. In conclusion, Justice McReynolds believed that Congress had never intended for Section 5200 to grant banks such an advantage and thus disagreed with the majority's ruling in favor of Manufacturers' National Bank of Chicago.