19917. Bank of the State (Charleston, SC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 2, 1875
Location
Charleston, South Carolina (32.777, -79.931)

Metadata

Model
gpt-5-mini
Short Digest
bbf63346

Response Measures

None

Description

Articles describe the Bank of the State in Charleston as insolvent, with a receiver appointed, alleged defalcations and asset sales ordered. No article describes a depositor run; the bank is in receivership and assets to be sold — consistent with a suspension leading to permanent closure/receivership.

Events (3)

1. July 2, 1875 Receivership
Newspaper Excerpt
By consent of counsel and the Attorney-General, Col. Charles H. Simonton has been appointed referee... Judge Reed has also ordered the sale of the assets of the bank turned over to referee Simonton by the receiver, excepting currency, certificate of deposit and Laurens Railroad bonds, the sale to take place in not less than ninety days.
Source
newspapers
2. September 9, 1875 Other
Newspaper Excerpt
The Bank of the State cannot afford it, for there is nothing in the bank... The defalcation represented by the $43,000 is evidently outside of the $165,000... an investigating committee has already been suggested for this matter.
Source
newspapers
3. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Alleged defalcations and fraudulent certificates, large missing deposits (references to $43,000 and $208,000 missing), insolvency and mismanagement leading to inability to meet obligations
Newspaper Excerpt
the affairs of the bank were in a bad way... Judge Graham faced public opinion in changing the receiver of the bank, and appointed Puffer, one of the committee, the receiver
Source
newspapers

Newspaper Articles (3)

Article from The Daily Phoenix, July 2, 1875

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Article Text

# THE BANK OF THE STATE. By consent of counsel and the Attorney-General, Col. Charles H. Simonton has been appointed referee in the case of Dabney, Morgan & Co. vs. the Bank of the State. Mr. Ficken had declined to continue as referee. The compensation of the new referee is limited to $1,000. Judge Reed has also ordered the sale of the assets of the bank turned over to referee Simonton by the receiver, excepting currency, certificate of deposit and Laurens Railroad bonds, the sale to take place in not less than ninety days.


Article from The Sun, September 9, 1875

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Article Text

SOUTH CAROLINA'S MONEY. THE GAME OF POLITICS UNSCRVPULOUSLY PLAYED. Rumors about what Parker might have Done had be not been Liberated-Chamberlain Anxions about his Reputation, CHARLESTON, S. C,, Sept. 1.-On the 10th of December, 1873, Messfs. Swalls, Smalls, McIntyre, Jones. and Corwin, on the part of the Senate, and Messrs. Robertson. Puffer, Boston, Ellison, and Minart, OD the part of the House, were anpointed a joint committee from the General Assembly to investigate and report on the affairs of the Bank of the State. Gen. W. J. Whipper was elected their solicitor, and they were to report at the next session of 1874-'75. They did not report, and DO one has ever explained why they did not. As told to me, the affairs of the bank were in a bad way. Accordingly Judge Graham faced public opinion in changing the receiver of the bank. and appointed Puffer. one of the committee, the receiver, and gave him $30,000 down for his commissions. Puffer received out of this sum $3,600, and the balance was divided smong certain members of the committee to stifle the report. When Hardy Solomans's bank failed. he gave one of the reasons for his being short of funds In the face of $50,000 lately removed from the People's National Bank of Charleston to his bank, that he had to raise $50,000 for the-Bank of the State. There may be a connection between these two, and the deposit may have been made to meet the draft. At any rate the $50,000 for Puffer was divided as follows Puffer received for himself. $2,592. Puffer received for Simonton. now receiver. $4,408. Puffer received in certificate of deposit $43,000 -$50,000. There is another coincidence. The amount in all which was deposited with Hardy Solomans by the State was $207,000. The amount now due by Solomans to the bank is the $43,000, and Chamberlain's receipt for $165,000, making $208,000. These investigations have been induced by the statement lately made to me that Chamberlain is anxious and willing to account for the $165,000 of assets, for which Simonton holds his receipt. The history given me is as follows Chamberlain during the last campaign received these assets from Puffer. and upon them the money was raised for electioneering purposes in the campaign. The deposits of State funds by the Financial Board made this good. and relieved the assets from the pledge they were under. They were therefore returned to Chamberlain's custody, and be may be ready and willing to be rid of them. The defalcation represented by the $43,000 is evidently outside of the $165,000. The certificate given that such an amount was deposited by Puffer with Solomans is clearly false and fraudulent. and was intended. when produced before the court two days before Solomans failed, to cover the defalcation above the receipt. An investigating committee has already been suggested for this matter. Gen. W. J. Whipper and ex-Clerk of the Court A. C. Richmond expect to be put upon it. Where another $30,000 of hush money 18 to come from is yet to be seen. The Bank of the State cannot afford it, for there is nothing in the bank. and Col. Simonton is not likely to lend bimself to such a proceeding The $43,000 deposit of Hardy Solomans may have been prudentially reserved for that purpose. An irresponsible bank. with no responsible stockholders and with that amount loose, presents an inviting field for operators who know the figures behind the scenes. What a good time they will have ordering fine wines and good cigars from Hardy's mammoth grocery, to be paid for out of it! But this version is unnatural. and it is more likely the $208,000 and the $207,000 are both gone. Hardy has bis State claims to discount in full ag inst the latter. and he h S two certificates of 1864 from State banks given by the Bank of State, which will more than cover the claim of $208,000 due that bank, Besides. that will be an end.of. of an ---ill


Article from The Sun, June 28, 1876

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Article Text

SOUTH CAROLINA OPERATIONS. Another Effort to Raise Money to Pay Interext on the state Debt. To THE EDITOR OF THE SUN-Sir: Cardoza. the State Treasurer of South Carolina, was in this city to-day endeavoring to borrow $60.000 to Day the July interest on the consolidated debt of the State. The funding of the old State debt of South Carolina at fifty cents on the dollar in 1873 was a pet scheme of this colored Treasurer, and he is extremely anxious to pay the interest as it falls due. Last July the failure of Gov. Chamberlain's and Hardy Solomon's bank. whereby the State was defrauded of nearly $300,000, prevented payment of the interest falling que at that time. This year the payment of the bills of the old Bank of the State of South Carolina, in which Gov. Chamberlain was largely interested, to. gether with the defalcation of one or more of Chamberlain's County Treasurers, as well 88 extravagant and corrupt expenditures of the State Government prevents its payment. The taxes are collected in January of each year. and were all spent this year before the first of June, so that there is not a dollar in the Treasury to meet the current expenses of the State Government, to say nothing of the interest. The State Lunatic Asylum and other charitable institutions cannot get part of the amounts appropriated for their support. and are now begging for money. Dr. Ensor. the Superintendent of the Lunatic Asylum, bes recently been North endeavoring to procure means to keep the innutes from starving. How a State Government. which collects its taxes in January, and spends them all before the first of June, can be called a good Government, or be worthy of the name of a reform Government, is puzzling; and yet it Is claimed as such. As It will not take more than $30,000 to pay the July interest. the query 19. why does Cardoza want $60,000? Is it to have a balance of $30,000 to meet the campaign expenses this fali? Solomon & Co.'s bank paid them two years ago, when Chamberlain and Cardoza were elected. Puffer, the receiver of the bank of the State. who, under the authority of Chamberlain's friend. Judge Reed of Charleston, let Solomon & Co. have $40.000 of the funds belongtrug to the Bank of the State without security. when was a total loss to the bank when Chamberlain & Solomon's bank failed. has fled the country to save his friend Chamberlain - a fact which even the Charleston News must know but suppresses. TRUTH.