Peoples Bank - Scranton, PA

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: March 26, 1898
Location: Scranton, Pennsylvania (41.409, -75.662)

Metadata

Model: gpt-5-mini
Short Digest: 8d08b53e

Response Measures

None

Description

Article (The Scranton Tribune, 1898-03-26) reports Peoples Bank closed its doors after discovery of large unauthorized loans to Richard T. Loper and deception by Cashier Hopkins; describes likely insolvency and the bank being closed pending examination. No explicit depositor run is mentioned; closure appears permanent in context (no reopening reported). Bank was incorporated under state law, so classified as state bank.

Events (1)

1. March 26, 1898 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Large undisclosed loans (~$600,000) to Richard T. Loper secured by poor collateral and deception by Cashier Hopkins; discovery prompted bank to close for examination and concern about solvency; apparent embezzlement/unauthorized lending problem leading to closure.
Newspaper Excerpt: In consequence of these relations, the bank closed its doors.
Source: newspapers

Newspaper Articles (1)

1. March 26, 1898 The Scranton Tribune Scranton, PA

Article from The Scranton Tribune, March 26, 1898

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Article Text

had curing the past two years the bank's funds in large amounts to Richard T. Loper, general manager of the Guarantors' Finance company. These loans, which remain unpaid, and aggregate, it is said. over $600,000. were made wholly without the knowledge of the officers and directors of the bank. The securities given by Loper as collateral for the loans were found, according to the statement of one of the bank's officials, to have very little value. In consequence of these relations, the bank closed its doors. The state insurance commissioner on Wednesday asked the court to appoint a receiver for the Guarantors' company which did ar insurance business and it is believed that Hopkins, on learning that the company could not make good its indebtedness to the bank, and knowing that exposure would follow on investigation of the Guarantors' affairs, concluded to end his troubles by taking his life. President James McManes, of the People's bank, said today that he had the utmost confidence in Cashier Hop= kins and that his deception in the extensive transactions with Loper was an unpleasant surprise. It is the general belief in financial circles that the bank will may dollar for dollar to its creditors 'resident McManes is reputed to worth at least $10,000,000 and he is credited with the statement that he would see that no creditor of the bank lost a cent. The directors are James G. Wells, Clay Kemble, Allen B. Rorke and John Wiseman. Cashier Hopkins was also a director. Clay Kemble, a director and also assistant cashier, represented the wealthy Kemble estate which has large holdings of the bank's stock. The bank was incorporated in 1870 under the state laws and for years was known as the "Political bank" becaused it attended to the financial transactions of nearly every city or state politician of note. In recent years, however, the bank has not been so extensively patronized by politicians as formerly. MR. QUAY NOT AFFECTED. United States Senator Quay has had extensive dealings with the bank but a telegram received today from Mr. Quay stated that he was not affected in any way by the failure. The bank has a capital stock of $150,000 and is an official depository for the city and state. The active deposit of the state fund is $505,000 and of the state sinking fund there is on deposit about $250,000 City Treasurer McMichael says there is $52,000 of city money on deposit. this being about 13 per cent. of the deposit to which the bank is entitled by law. The bank officials were very reticent today in speaking about its affairs. merely repeating the statement that the bank has closed until its affairs can be examined. One gentleman closely connected with the institution stated that the liabilities amount to about $1,500,000. He expressed the belief, however, that the bank is solvent. It was also rumored that the Philadelphia Traction company is a heavy depositor in the People's bank, but it was learned definitely this afternoon that the deposit to the credit of the Traction company is insignificant. Prior to the date of paying dividends the company usually placed heavy deposits in the bank. Dividends will be paid on April 1, but the company had not yet placed the usual amounts in the bank. LOPER ASSIGNS. Following the assignment of the Guarantors' company and the sensational developments concerning Cashier Hopkins and the People's bank, Richard F. Loper, general manager of the Guarantors' company, today made an assignment. No real estate was conveyed. The People's bank was incorporated under the state law in 1870, and was rechartered in 1890. The par value of the stock of the bank is $100, and the last sale reported, September 29, 1897, was at $200 per share. Its last dividend paid in November, 1897. was at the rate of 5 per cent. annually. state's fund were on in the bank. Of deposit the there The last $505,000 bank ailure in this city, the Chestnut Street