18987. Peoples Bank (Stephens City, VA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 9, 1932
Location
Stephens City, Virginia (39.083, -78.218)

Metadata

Model
gpt-5-mini
Short Digest
804488241b0fa68e

Response Measures

None

Description

The People's (Peoples) Bank at Stephens City voluntarily suspended operations May 9–10, 1932 and placed its business in the hands of State Banking Department representatives. The suspension was driven by losses tied to declines in real-estate values and impaired assets (local shock / asset-quality problems), not by a depositor run or misinformation. A receiver was in place by December 1932 and the bank remained closed and subject to liquidation/closing actions through 1933. OCR in articles shows both People's Bank and the prompt uses Peoples Bank; I've used the provided name but note the printed form was People's Bank.

Events (3)
1. May 9, 1932 Suspension
Cause
Local Shock
Cause Details
Decline in values of real estate led to losses and impaired assets; earnings below expenses and deposits had fallen under $150,000.
Newspaper Excerpt
The People's Bank at Stephens City suspended today, and two representatives of the State banking department took charge.
Source
newspapers
2. December 16, 1932 Receivership
Newspaper Excerpt
order has been entered in Circuit Court directing C. Feller, receiver for the People's Bank, Stephens City ... release the directors ... the bank suspended business. ... Mr. Feller asked the court to instruct him relative to cancellation of the bond. (Dec. 16–17, 1932 articles).
Source
newspapers
3. July 20, 1933 Other
Newspaper Excerpt
Harry K. Benham, Winchester attorney, will take charge of the defunct People's Bank of Stephens City on August 13 ... directed to close out the entire business of the institution, bring suit if necessary to collect its notes receivable and sell the business property.
Source
newspapers

Newspaper Articles (6)
1. May 10, 1932 Evening Star Washington, DC
Article from Evening Star, May 10, 1932

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Article Text

STEPHENS CITY BANK REOPENING IS PLANNED Special Dispatch to The Star. WINCHESTER, Va., May 10.-Efforts are to be made at an early date, it was said today, to reorganize the Peoples' Bank at Stephens City, near here, which yesterday voluntarily suspended operations and placed its business in the hands of representatives of the State Banking Department. Directors and stockholders were given encouragement by Winchester banks, which were willing to advance funds, provided proper security was forthcoming. John A. Hinkle, president of the suspended bank, said opportunity will be offered for a possible reorganization. The bank had a capital stock of $30,000 and assets and liabilities of $220,000. Deposits had declined recently to less than $150,000.

2. May 10, 1932 Richmond Times-Dispatch Richmond, VA
Article from Richmond Times-Dispatch, May 10, 1932

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Article Text

Small Frederick County Junior Market Bank Suspends Operations [Special to The Times-Dispatch Holds Steady, WINCHESTER VA., May 9-The People's Bank at Stephens City suspended today, and two representatives of the State banking department took charge. A statement by John A. Hinkle president said: "Due to decline in values of real estate, losses of the directors of this bank that its operations should be suspended and conserved for the benefit of its depositors He expressed hope for "possible reorganization.' The bank's capital stock was $30,000. Deposits had declined to less than $150.000 Assets were listed at of which some may not be collected. Earnings were said to be below expenses Winchester banks offered aid, but the Stephens City Bank was furnish and also could not its would if loans were forth-

3. December 17, 1932 The Roanoke Times Roanoke, VA
Article from The Roanoke Times, December 17, 1932

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Article Text

DIRECTORS OF CLOSED BANK ARE RELIEVED Winchester, Dec. 16 (Special) order has been entered in Circuit Court directing C. Feller, receiver for the People's Bank, Stephens City release the directors of that institution from bond of which they were post prior the closing the bank to the raising $7,000 in cash the The order states that the acted in good faith and produced the required $7,000 in but before the bond could be released the bank suspended business.

4. December 18, 1932 Evening Star Washington, DC
Article from Evening Star, December 18, 1932

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Article Text

BANK DIRECTORS SEEK RELEASE FROM BOND WINCHESTER. Va., December 17 (Special) - An order has been entered in Circuit Court directing C. S. Feller, receiver for the People's Bank. Stephens City. to release the directors of that institution from a bond of $14,000 which they were required to post prior to the closing of the bank to guarantee the raising of $7,000 in cash for the bank. The order states that the directors acted in good faith and produced the required $7,000 in cash. but before the bond could be released the bank suspended business. Mr. Feller asked the court to instruct him relative to cancellation of the bond. Directors who gave the bond were J. F5. Beatty, Charles E. Staples, Benjamin Massie, F. B. Cadwallader, L. D. Pifer. R. A. Shryock, John A. Hinkle, W. D. O'Neal and F. Estes Kline.

5. July 20, 1933 Evening Star Washington, DC
Article from Evening Star, July 20, 1933

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Article Text

ATTORNEY TO TAKE OVER CLOSED VIRGINIA BANK Special Dispatch to The Star. WINCHESTER, Va., July 20.-Harry K. Benham, Winchester attorney, will take charge of the defunct People's Bank of Stephens City, near here. on August 13. Benham will succeed C. S. Feller, receiver since the bank closed more than a year ago. By the terms of an order in Circuit Court of Frederick County, Benham is directed to close out the entire business of the institution, bring suit if necessary to collect its notes receivable and sell the business property. He is under $20,000 bond.

6. January 11, 1935 The Washington Times Washington, DC
Article from The Washington Times, January 11, 1935

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Article Text

100 Defendants In Court, Judge Is Absent WINCHESTER, Va., Jan. 11. Nearly 100 Frederick county farmers and their wives appeared to defend a suit here brought on a $3,000 note. But when they arrived at the court house they found Judge Philip Williams absent attending court in Warren county. The suit was brought by the receiver of the People's Bank of Stephens City, now defunct, against the Farmers Exchange, also defunct.