Bank of Calhoun Falls - Calhoun Falls, SC

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: *
Location: Calhoun Falls, South Carolina (34.092, -82.596)

Metadata

Model: gpt-5-mini
Short Digest: 606b6393

Response Measures

None

Description

The article discusses prior failure of the Bank of Calhoun Falls and describes internal shortages (cashier short ~$18,000) and irregularities found by examiners/auditors. There is no mention of a depositor run in the text; the bank is described as having failed, so I classify this as a suspension/closure due to bank-specific adverse information (internal fraud/shortage). No precise date of failure is given in the excerpt.

Events (2)

1. * Receivership

Newspaper Excerpt: if three years before the Bank of Calhoun Falls failed such letters had been mailed ... this shortage would have been discovered while the shortage was still small.
Source: newspapers

2. * Suspension

Cause: Bank Specific Adverse Info
Cause Details: Examiner/auditor discovered irregularities; cashier was reportedly about $18,000 short over several years (internal shortage/possible embezzlement).
Newspaper Excerpt: if three years before the Bank of Calhoun Falls failed such letters had been mailed ... this shortage would have been discovered
Source: newspapers

Newspaper Articles (1)

1. July 28, 1915 The Abbeville Press and Banner Abbeville, SC

Article from The Abbeville Press and Banner, July 28, 1915

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Article Text

# THE BANK EXAMINER. State Bank Examiner Mauldin has made a confession. In an article carried in the Sunday News, replying to some statement previously made in that paper to the effect that a bank in the lower part of the State was short of necessary funds, and that the bank examiner in a récent examination had failed to discover this fact, Mr. Mauldin indicates that some irregularities were discovered at the examination and that these were called to the attention of the President by letter and then adds-"The fact is, as I am informed, it was the report of this examination and the letters pursuant thereto which brought about the employment of auditors for making a MORE COMPLETE AUDIT of all the books and accounts of the bank THAN WAS POSSIBLE FOR THE BANK EXAMINER TO MAKE WITHIN THE LIMITED TIME AVAILABLE FOR THAT PURPOSE. In the above quotation, we have italicized certain words to call attention thereto. In the first place, we are informed that it costs the banks as much now to have their books examined by the bank examiner as it did, before this office was created, to employ competent auditors once a year to audit the books. It is true that the bank examiner comes around three or four times a year, while the auditor came but once a year; but with the latter we had a real examination of the books and accounts of the bank, while with the latter, to use his own words, such an examination is not possible in the limited time available for that purpose. Take the case of this bank. Did anybody know the condition of the bank after the examiner left? It seems that it was impossible to get at the real status of the bank without employing expert auditors, an entirely useless expense if the office of the bank examiner was doing thoroughly the work assigned it by law. And we do not mean to say that the bank examiner is neglectful of his duty. We only call attention to the facts, and prefer to believe that the trouble lies just where Mr. Mauldin says it does, and that it is not possible to make these examinations in a thorough manner with the time available. Only last year a small bank in this county was checked up by the bank examiner, and some small discrepancies found; it had been regularly checked before and no discrepancies found, and yet the cashier of this bank, at the last examination, was some eighteen thousand dollars short, and had been short for a period of four years in some amount, which amount constantly grew larger. We are willing to allow that this discrepancy could not be discovered on the face of the books; it never can. And an examination which looks to nothing but the face of the books is no examination. When the books of the large corporations are examined, and it appears that there are a thousand accounts on the books, a letter is mailed to each of the debtors stating the condition and amount of the account, and asking if it is correct. If three years before the Bank of Calhoun Falls failed such letters had been mailed to those persons who appeared to owe obligations to this bank, and to the depositors thereof, as would have been done by a good auditor, this shortage would have been discovered while the shortage was still small. But this examination was prevented by the fact that the legislature had provided that the banks should pay four fees a year to have their books inspected by a state officer, and they did not feel that it was necessary to have a further inspection, especially in view of the added expense. All of which goes to show that the office of state bank examiner may be a fat political job, but it does not furnish the people with the proper inspection and examination of the condition of these financial institutions. The truth is that the State should have nothing to do with examining banks. The state might properly