19956. Peoples State Bank (Charleston, SC)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 2, 1932
Location: Charleston, South Carolina (32.777, -79.931)

Metadata

Model: gpt-5-mini
Short Digest: 925bdbe6

Response Measures

None

Description

The Peoples State Bank (Charleston, SC) was closed/suspended in early January 1932 (article dated Jan 5 says it closed Saturday), placed in the hands of the state bank examiner for a 30‑day audit and later had federal receivers appointed and proceeded to liquidation. Audit reports (Apr 1932) attribute failure to management/statutory violations. No clear contemporaneous article explicitly describes a depositor run prior to suspension; sequence supports a suspension followed by permanent closure/receivership.

Events (4)

1. January 2, 1932 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was closed and placed in hands of the state bank examiner for a 30-day audit; later audit and reports cite management/statutory violations and insolvency of the chain and branches leading to closure.
Newspaper Excerpt: The Peoples State bank closed Saturday, announcing at the time affairs being placed in the the examiner for 30-day period pending
Source: newspapers

2. January 23, 1932 Other

Newspaper Excerpt: $10,000,000 Suit Against Closed Bank Dropped ... The Chemical Bank & Trust Company, correspondent bank for the Peoples Bank, which had 44 branches in the State and more than $24,000,000 on deposit, holds large amounts of the Charleston institution's collateral. (Brooklyn Eagle, Jan. 23, 1932).
Source: newspapers

3. January 27, 1932 Receivership

Newspaper Excerpt: Judge Glenn signed an order directing the to proceed with cash liquidation ... the receivers of the bank he named several weeks ago. filed here the bank's headquarters were in Charleston. ... Elliott, McDill and Gage as receivers of the bank (Apr 1932 report referencing earlier receivership appointment).
Source: newspapers

4. March 11, 1933 Other

Newspaper Excerpt: M'DILL RESIGNS BANK RECEIVER ... The resignation of M. McDill as co-receiver with William Elliott and Robert Gage of the Peoples State Bank South Carolina's 44-branch chain bank which closed in January, 1932, was announced in Charleston late yesterday.
Source: newspapers

Newspaper Articles (8)

1. January 5, 1932 The Greenville News Greenville, SC

Article from The Greenville News, January 5, 1932

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Article Text

RHETT BANK Auditors Going Over Books Of Peoples State Bank All Over State CHARLESTON Jan. While bank examiners began their tasks of auditing the affairs the Peoples State bank chain, which suspended Saturday, the chairman of the apWashington to urge aid from the $500,000,000 R. Goodwyn Rhett the chairman, plea at the session of the Senate finance subcommittee that the recently organized corporation empowered to make loans to closThe hearing was executive. Mr Rhett Dowling. president of the bank chain, granted appear request of Senator Ellison Smith Almost at the same time, resoluconfidence faith in the banking institutions by group business Charleston, the location bank of the Peoples URGE COMMON SENSE The Peoples State bank closed Saturday, announcing at the time affairs being placed in the the aminer for 30-day period pending The group business men also urged all citizens to ercise and sound judgement in the present situation In the an air plane arbringing 1,000,000 from the Federal Rebe by other banks money was placed in the vaults South Carolina Na. tional which temporarily converted reserve substato serve South Carolina banks. The day was quiet one in banking circles. No additional failures reported the office of Albert Fant, state bank examiner, in Columbia. In cities, banks remained past the closing depositors the privileges drawing money Columbia, where the closing hour was extended from until was reported that deposits exceeded withdrawals. Columbia, Mr. Fant announced his force, aided by accountants from various South banks, was moving to complete the audit He announced that W. Royden Watkins, first bank aminer. has taken charge of the fairs of the Peoples State bank in The work of auditing the chain Warner Pictures 2% 2% Maryland 34 Air Mfg Motor Mach Overland Woolworth 37 Wright Wrigley 51 51 51 Yellow Trk and Youngstown Total Stocks in trading for the day those particular shares,

2. January 23, 1932 Brooklyn Eagle Brooklyn, NY

Article from Brooklyn Eagle, January 23, 1932

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Article Text

$10,000,000 Suit Against Closed Bank Dropped Columbia, S. C., Jan. 23 (A)-The $10,000,000 suit brought by depositors of the closed Peoples State Bank South Carolina, the Chemical Bank Trust Company of New York and Jerre Dowling. will be dropped. it announced here early today Statements announcing the move were issued by Thomas, Lumpkin & Cain, Columbia attorneys. and N. Baxter Jackson, president of the Chemical Bank, after lengthy conferences. The suit was filed last week in the name of S. W. Parham, the Bluebird Taxi Corporation and "other depositors, stockholders and credIt alleged Dowling. president of the Peoples Bank prior to its closing Jan. and the Chemical Bank, of which he was formerly assistant vice had drained the resources of the Charleston bank. The statement of the Columbia law firm. which the plaintiffs, said "the Chemical Bank & Trust Company, through its officers and attorneys. in the presence of representatives of Columbia depositors of the Peoples State Bank would co-operate every way possible with the Peoples Bank with its receiver if one is appointed. feeling assured the purposes of filing the suit in the interest of thousands of depositors have been obtained, has authorized his attorneys to end and dismiss the action.' The statement continued to say that the agreement had the advantage of allowing R. Goodwyn Rhett of Charleston to with his plans for reorganization of the bank with the help the newly authorized Federal Reconstruction Corporation. After the conferences ended this morning Mr. Jackson said he had been "quite certain that the suit arose through of the attitude the Chemical Bank & Trust Company that full of our position would result in the withdrawal of the The Chemical Bank & Trust Company. correspondent bank for the Peoples Bank, which had 44 branches in the State and more than $24,000,000 on deposit, holds large amounts of the Charleston institution's collateral.

3. January 23, 1932 Florence Morning News Florence, SC

Article from Florence Morning News, January 23, 1932

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Article Text

Peoples State Expects To To Start Re-Organization CHARLESTON, C., Jan. Goodwyn Rhett. the board of the chairman Peoples State Bank, announJerre tonight Dowling. president of the bank. return to expected to Charlesson tomorrow from Washington. Shortly after the Peoples State was placed in the hands the state bank examiner the first Mr. the Dowling went to Washington keep in touch with legislative for aiding closproposals banks. nance reconstruction corporation has received final approcongress and carries provision aiding closed banks. officials of the Peoples State Bank expected forward with re-organization Mr. Rhett said few days the plans for the bank would pend upon the final set of national corporation.

4. April 21, 1932 Florence Morning News Florence, SC

Article from Florence Morning News, April 21, 1932

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IS ATTACKED Statutory Violations jority of Losses In Main Office At Charleston and Other Florence Bank cluded. April report of state bank aminers today estimated the closPeoples State Bank South Carolina will pay return 18.4 cent to unsecured creditors and depositors. The report put responsibility for the condition bank when closed last December the management, saying. however, ramifications of the bank and its branches such that the sponsibility cannot be placed on any one officer. said that "relative to statutory noted by the separate report "states that loans made various general officers are in violation of Section 4000, code of South Carolina.' Report Filed in Federal Court court here Glenn. was transmitted to him the three receivers of the bank he named several weeks ago. filed here the bank's headquarters were in Charleston. When the federal receivers appointed, the state bank examiner's office already had begun audit of the bank. To the time and expense of new dit, the receivers paid the penses of the state bank examiners complete the audit, receiving the report from them. Judge Glenn also signed an or. der directing the to ceed with cash liquidation the trust funds held by the bank. The receivers in Columbia said they would comply at once. estimating the funds totalled approx$95,000. consolidated report of the audits of the separate branches the bank located in section every the state submitted by the bank examiners, together with other reports and schedules. Due Depositors In their consolidated report, the examiners put the amount due unsecured creditors and depositors of January 29 and estimated the net total left for turn at Application of the usual rules, they reported. "shows return to unsecured creditors and depositors of 18.4 per After estimating the probably good assets of the bank examiners deducted per cent for depreciation CONTINUED ON PAGE THREE

5. May 8, 1932 The Index-Journal Greenwood, SC

Article from The Index-Journal, May 8, 1932

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BANK RECEIVERS REPLY TO ACTION (Continued From Page One: Depositors' Action In their complaint, the depositors of the bank pointed out an action for themselves and other depositors was brought an Hichland county court of common pleas against the stockholders of the bank "for the purpose of enforcing payment of their statutory liability as such stockholders." In connection with this action. an order was signed April 26 by Judge M. M Mann, of circuit court, "enjoining and restraining the prosecution of any action by any and all depositors of the bank against stockholders of said bank, except in said action. The next day. Federal Judge Lyles Glenn filed an order at Charleston containing a provision authorizing the receivers of the tank to take action for enforcement of stock liability. In their complaint before the state supreme court. the depositors instituting the action. held the order of the federal court naming Elliott, McDill and Gage as receivers "to take charge of the assets of the closed bank. was based wholly, as ap- pears from the language of said der, on the assumed power of testeral court of equity, independently of all statutory considerations." "The functions. of the receivership." the complaint continued, "were limited to handling the atfairs of the corporation: and neithor in the petition on which said order of receivership was based, nor in the does there appear any that the right to collect the stockholders statutory IIability for the benefit of the depositors was regarded as being part of the dusets of the closed bank." Asks Supreme Court Ruling The complaint assed to ra determination of the Issues in the matter by the Supreme court. In contending for their right to collect the stockholders liability, the receivers. in their return, held "said method will furnish a unity in the whole receivership.' "The recevers," the return continued, "have possession of all of the original records as to the stockholdcrs. attempted transfers of stock, etc.; the provisions of the statute authorizing them to sue fixed the commission of the receivers and the fees of attorneys, which provision would not be effective if this court should hold the act of 1929 does not apply." In addition to the Biltrite Building company, others listed as depositors of the bank joined in the complaint as follows: L. Brown, C, T. Fuller, trading as Wales Garden grocery, T. c. Carter, Mrs. o. W. Jordan, L. M. Jordan, Cormack, all of Columbia; H. Van Epps, of Lake City: J. M. Ringel, A. I. Woodcook. H. L. Smith, A. Equrry, Harry Fogel, and the Georgetown Grocery company, all of Georgetown: Logan Robinson Fertilizer company; South Carolina Produce association, the Charleston Paper company, Christopher P. Sheridan, Palmetto Fixture and Notion company. Lily c. Devereux, John McAllister, Incorporated, Anna W. Richardson. and c. L. Rawls, all of Charleston. Named as defendants were E1liott, Gage, N. M. McDill, receivers of the Peoples State bank; W. H. Cary and J R. Allison, stockholders, "as being representative of the numerous stockholders" of the bank.

6. March 11, 1933 The State Columbia, SC

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M'DILL RESIGNS BANK RECEIVER Judge Glenn Files Order of Acceptance. TWO WILL CARRY ON Court Will Not Appoint Successor to Aid in Liquidation Peoples Bank. Charleston, Mar. Judge Lyles resignation of M. Peoples bank Carolina. acceptance recorded filed federal stating that the the court' more than necessary of general McDill of the National was taken the comptroller the after closing last Saturdav. Barnett, tional National the State Robert Chester William Elliott receivers were appointJanuary 27, 1931. Judge Glenn was Rock Hill today that would fect the institujudge saying "signed formal order accepting resignaThe bank closed January when positors than $24,000,000 The text the order follows: dated William Robert Gage and McDill Peoples State of South an this said Elliott, Robert Gage M. McDill ceivers Peoples State South Carolina the Western South Carolina; and whereas has this appearthe that said resignation should upon court being opinion that under existing economic conditions longer advisable than necessary "That the resignation of M. McDill Peoples Carolina accepted and effective as of this in any orders of this court this giving and to that and shall hereafter by said William Elliott and Robert Gage receivers without necessity procuring further orders this court in connection after this date the said William and State bank Carolina the authority heretofore power conferred receivers and all this court any the the the Robert Gage and the said William and Robert Gage have the power an authority all respects upon the William Elliott, Gage and all this court said ceedings. (Signed) Lyles Glenn "United States District Judge."

7. March 11, 1933 The Macon Telegraph Macon, GA

Article from The Macon Telegraph, March 11, 1933

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Charleston Bank Receiver Resigns CHARLESTON March resignation Dill, of receiver the Peoples State Bank South CaroLyles order filed here Friday. president NationExchange Bank which closed and taken Thursday the comptroller the currency IS CALLED Pinafore night under the Edgar chorus asked

8. March 11, 1933 The Asheville Times Asheville, NC

Article from The Asheville Times, March 11, 1933

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Hoover Calls His Wife By Telephone After Earthquake NEW YORK. March 11.-(AP)Former President Herbert Hoover was in touch with Mrs. Hoover and other members of his family in Southern California by telephone early today his Lawrence Richey and was assured they were safe. Mrs. Hoover visiting Mr. and Mrs. Herbert Hoover, Jr. who live just outside Pasadena outside the danger zone. Richey said the former president will remain in New York few days longer and that he has not yet fixed the date of his departure. BANK RECEIVER RESIGNS of N. M. McDill's resignation as co-receiver with William Elliott and Robert Gage of the Peoples State Bank South Carolina's 44-branch chain bank which closed in January. 1932. was announced in Charleston late yesterday FALLS STORIES TO DEATH Dan P. Hoover. 47. vice president of the Hoover company. manufacturers of vacuum cleaners, dropped to his death from fifth floor window of the Cleveland clinic this morning. NOTICE OF SALE LAND