19980. First National Bank (Cheraw, SC)

View Charter #9342 on SPMC

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
national
Bank ID
9342
Charter Number
9342
Start Date
November 13, 1928
Location
Cheraw, South Carolina (34.698, -79.883)

Metadata

Model
gpt-5-mini
Short Digest
65f2ff51

Response Measures

Full suspension, Books examined

Other: Temporary alternate banking arrangements mentioned (South National and South Carolina Savings opened a temporary bank in the vacated building). Some OCR errors in articles corrected (e.g., 'Iortage' -> 'shortage'; 'cashier' name S. G. Godfrey; 'examainer' -> 'examiner').

Receivership Details

Depositor recovery rate
30.0%
Date receivership started
1928-11-14
Date receivership terminated
1935-07-20
OCC cause of failure
Fraud
Share of assets assessed as good
20.0%
Share of assets assessed as doubtful
43.5%
Share of assets assessed as worthless
36.5%

Description

Cashier S. G. Godfrey confessed to embezzlement (~$55,000). Articles report heavy withdrawals/a run that prompted the bank to close (suspended) on/around Nov 13, 1928. One article mentions temporary relief by other banks and an examiner's comment that the shortage might be made good, but there is no clear statement that the First National Bank resumed regular operations; therefore outcome is uncertain.

Events (4)
1. February 13, 1909 Chartered
Source
historical_nic
2. November 13, 1928 Run
Cause
Bank Specific Adverse Info
Cause Details
Withdrawals and loss of confidence triggered by discovery/announcement of a $55,000 embezzlement by cashier S. G. Godfrey (confession/speculation in futures).
Measures
Bank closed (suspended payments) to prevent further withdrawals; law enforcement arrested the cashier; examiner involvement.
Newspaper Excerpt
Tuesday run started on the First National To prevent the run the bank closed
Source
newspapers
3. November 13, 1928 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suspended operations after the embezzlement shortage (~$55,000) was discovered and to prevent/dampen a run by depositors following the revelation and arrest of the cashier. Examiner involved in assessing condition; other local banks opened a temporary institution to calm depositors.
Newspaper Excerpt
The First National Bank of Cheraw ... closed November 13.
Source
newspapers
4. November 14, 1928 Receivership
Source
historical_nic

Newspaper Articles (3)
1. November 16, 1928 The Columbia Record Columbia, SC
Article from The Columbia Record, November 16, 1928

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Article Text

EVERY POSTOFFICE IN EXCEPT 4TH CLASS, BOUGHT AND SOLD, SAY AFFIDAVITS "LEP" GODFREY ARRESTED UNDER SHORTAGE CHARGE Warrant Against Cashier of First National Bank Sworn Out by Examiner Senator Brookhart, Probe Committee Head, States He Has SHORTAGE IS $55,000 Sworn Statements as to Traffic in Federal Jobs in This State-Probe Resumed Next Week, Probably Taking Up Godfrey Admits Guilt and South Carolina Matters Backed by PresiExplains Use of Money-dent-Elect, Further Declares lowa Senator. Out on $10,000 Bond davits in the possession Senator Brookhart, of Iowa charge that postoffice South Carolina except those of the fourth under and clared today the leston Greenville," Brookhart "That means every postoffice in the senate tigate the of federal patron "The are not yet such that make them hope to have them time next week. Every affidavit down until lished the truth falsity Senator Brookhart the only member the now Washington He said he expects before days and the commit interested prob"But the only member here, shall begin hearings next week, probably up South Carolina matters Brookhart The probe the Herbert Republican nom- CHERAW, Nov. with embezzling funds of the First National Bank of Cheraw, S. G. Godfrey, vice president and cashier, was taken into custody today on a warrant sworn out by Thomas H. Davis of Columbia. National Bank examainer. Later he obtained liberty on $10,000 bond. The First National Bank of Cheraw, which was capitalized at $50.000 with deposits of $240,000 closed November 13. Mr. Davis said today that the shortages would probably approximate $55,000. Apparentthe defalcations, he said, had been going on for over William Godfrey, brother of the accused cashier, is president of the bank. Mr. Godfrey is charged speculated markets under the reported. Following arrest Mr. Godfrey was taken the bank and there explained the whole affair. He had sheets from ledger and hiding them. discovered yesexaminer. reported that Mr. Burof assurances be made Burroughs prominand wealthy business man of arrested today the bank Godfrey might the whole trouble and Mr. Godfrey breast of the whole affair and the exact amount shortage The Bank Cheraw and Chesclosed Monday night Tuesday run started on prevent the bank the amine: reports institution, the shortage made good, condition. There is nothelse irregular connection he said Cheraw excited city terday The was somequieted down today by the opening temporary bank by the South National and South Carolina building occuMerchants and FarmBank which closed years $50,000 laid out people the combegan to feel better. Godfrey has cashier of the bank since started years ago. He popular business known among his friends as "Lep." Godfrey in Cheraw today though reports had gone following the giving bail.

2. November 17, 1928 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, November 17, 1928

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Article Text

CHERAW BANK CASHIER CHARGED WITH $55,000 IORTAGE CONFESSES TO EMBEZZLEMENT Admits Speculating in Futures Under Assumed Name: Bank Is Closed. CHERAW C., Nov. cashier of the First National bank Cheraw, arrested charge shortage of $55,000 in the bank's funds. In He was charged with embezzlement in warrant sworn out by Thomas H. Davis of national bank examiner. He released several after the arrest on $10,000 bond. Mr. Davis said that the shortage was and Godfrey admits the whole thing. he said. The defalcations had been on for Godfrey speculated in futures, the assumed NO name Mr. Davis said. BANK The First National bank was cap italized at deposits to $240,000. closed on November 13. William Godfrey brother of the cused cashier, president of the Following his arrest Godfrey was taken the bank and there explained the shortage He had drawing sheets from the and hiding them. The shortage discovered this bank examiner is reported that Burroughs, Conway ago. of has assurances the shortage be and made Mr. prominent and wealthy When today the bank aminer said he Godfrey he might well "come clean" with whole story and thereby trouand more God made clean breast the and exact amount of Davis ON Bank and Chesterfield county Monday night Tuesday run started the First National To prevent the run the bank closed, but the exam ther reports the with the shortage made good, is splendid condition There noth ing else connection with he Cheraw excited city yes. what down by by the Nation) bank and its affiliated South Carolina Savings bank This opened in the building once the Merchants Farmers which closed two years Mr. Godfrey has cashier of the since the started 18 He popular business man known among his friends "Lep."

3. November 17, 1928 The State Columbia, SC
Article from The State, November 17, 1928

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Article Text

NATIONAL GRANGE ARREST CASHIER HEARS COOLIDGE OF CHERAW BANK BRITAIN LASHED BY VIOLENT GALE Co-operative Marketing Is S. Godfrey Released on Much Property Damaged. Stressed by President. Bond. Shipping Buffeted. FARMERS WARNED MONEY IN DEFAULT LOSS OF LIVES Subsidy Proposal and PriceFixing Held Dangerous Remedies for Depression. Washington, Nov. 16 (By A. was stressed tonight by Coolidge in address delivered the National Grange, which he reviewed the problems of the farmer and described proposals of sidy, which the would not pay for any length At the same time, Mr. Coolidge told the that any atempt at on farm the entry of the fatal render effort board plied funds its stage might well be provided by the na that no aid than agri culture that further the farmer's condi would from wider the co-operative Thanks to he added, great has In 1921 the products had 69. had risen 90. The are Yields per acre this season were about per cent. average for the last ten acreage harvested was largest This very definite creased gross income for agriculture Marketing the Problem "It apparent that farmer has the art of But further adbe made the use and of breeds stock, tific and the elimination all wasteful which reduce the and the quality The farmer who is with every has yet been well learned market. ing. One the greatest handicaps agriculture temporary The consume the farmer ever raises. His arises from attempting the wrong wrong The successful method meeting this has have way take the bankers, the the packers and the millers. This all the agencies of the right recently California. marketing has failed offers the most to the great avoids tempt the fatal the the would disaster proposal which the American willing for length prin of taking the keting affords. further render through its the Measures Already Taken already taken that the 1922 was dam the after the "The these laws the and kept the great industry in he The the that be benefited that done the capacity the market he wages be case and tional sales of farm produce abroad. The the farmer, through the federal farm constituted benefit the which no earth before Red Cross Roll Call. Special for the Red Cross call at the chapter the Bank of Western Carolina. chapter appointed to of the roll call Mrs. charge the roll call for Barnwell county and call and vicinity Barnwell: Victor Lewis, Kline: Miss Owens, Dunbarton: and Mrs. Herman Brown. Blackville. Fifty-five Thousand Said to Have Gone in Speculation in Cotton Futures. Cheraw, Nov. 16 (By Charged funds of the First National bank of Cheraw, S. G. Godfrey, president and cashier, was taken into custody to. day out by Thom. H. Davis of Columbia, national Later he obtained liberty on $10,000 The First National bank of Cheraw, 900 with $240,000 closed Mr. today that the Apparently the he said, had been going on for several William Godfrey, brother of the accused cashier, president of the Mr. Godfrey charged, specuin the name his arrest today, Mr. Godfrey was taken to the bank there he explained whole affair. He been drawing sheets from the cash ledger and hiding was disyesterday by the bank exreported here that Mr. roughs that the shortage made good. Mr. Burroughs prominent and man When arrested today Mr. Godfrey told the might with the whole story thereby ble Godfrey made clean breast of the whole and the exact the shortage. The Bank Cheraw and Chesterfield county closed Monday night. Tuesday started the First prevent the run the bank closed, the aminer reports that the institution, with the shortage good, condition. nothing else its he said Cheraw excited city yesterday. The was quieted down today the opening temporary bank by the South and its affiliate, the bank. This was occupied by the and which years ago $50,000 laid out table, the people the community began has of since the was started years was lar man among his Mr was in Cheraw today there that had gone president and the First National bank Cheraw, closed Tuesday was arrested this charged embezzling funds the bank and released Mr. Godfrey said have good the falcations, which, had going for being used for speculation Mr Godfrey of the and was highly where the arrest has caused tense Statue of Richard the LionHearted in London Disarmed by Wind. London, Nov. 16 (By A. P.)-A gale of great violence whipped south England and wire communications, buffeting shipping ventured abroad and causing spread to property, well injuries persons. Six deaths reported. Along the channel ports and the Bristol coast area, the storm was described worst in many years. Throughout the day it frequently attained velocity of "rom 60 to 70 miles, and with London poles, trees and hanging yielded before the fierce and many persons the hurts. mighty through of Brittain's historic warriors. The sword the heroic figure Richard, the the house of was snapped from his hand and hurled the pavement. Edith crawlduring the day minus funnel, which lost overboard during battering by devastating seas voyage from Creetown, The crew was without food for two and was forced in the because the cabins galleys were Extensive damage suffered in the Cardiff district. Trees upthe fronts of blown off and the harbor forced to remain their docks. Antwerp. Belgium, Nov. 16 (By city this causing one death and and were blown and wires and damage was done in the neighboring