Bank of Florence - Florence, SC

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: October 26, 1928
Location: Florence, South Carolina (34.195, -79.763)

Metadata

Model: gpt-5-mini
Short Digest: 6a2f48cb

Response Measures

Full suspension, Books examined

Other: State bank examiner placed the bank in receivership; receiver appointed Sam Royall.

Description

Articles (late Oct–Nov 1928) report heavy/excessive withdrawals and a threatened run causing the Bank of Florence to close Oct 26/27, 1928. Directors placed the bank in the hands of the state bank examiner; a receiver (Sam Royall) was later appointed and liquidation/receivership proceeded. Cause of the run appears driven by local contagion of nearby bank closures (several banks in the section closed that week), not by a discrete misinformation event.

Events (3)

1. October 26, 1928 Run

Cause: Local Banks
Cause Details: Threatened run/excessive withdrawals amid other nearby bank closings in the same week (contagion in the section).
Measures: Directors closed the bank to prevent preference to depositors; placed bank in hands of state bank examiner.
Newspaper Excerpt: closed its doors yesterday because of excessive withdrawals... threatened run the bank caused them to close.
Source: newspapers

2. October 26, 1928 Suspension

Cause: Government Action
Cause Details: Directors placed the bank in the hands of the state bank examiner after heavy withdrawals; bank ceased operations (suspension/closure) pending reorganization.
Newspaper Excerpt: The Palmetto Bank and Trust company, which closed its doors yesterday because of excessive withdrawals, following the closing of the bank of Florence the state bank examiner...
Source: newspapers

3. November 15, 1928 Receivership

Newspaper Excerpt: Sam Royall Appointed As Receiver For Bank Of Florence ... the directors met appointment Sam Royall of this city receiver. ... the appointment Mr. Royall is expected to qualify for the position some time this week ... receiver for the Bank of Florence means of course that its affairs will now enter the process liquidation . . . . (Nov. 15, 1928 article).
Source: newspapers

Newspaper Articles (4)

1. October 27, 1928 The Herald Rock Hill, SC

Article from The Herald, October 27, 1928

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Article Text

Banks in Florence Close Their Doors Florence, Oct. meetof the board of directors of the Palmetto Bank and Trust company, which closed its doors yesterday because of excessive withdrawals, following the closing of the bank of Florence the state bank examiner, were laid, for reorganization which was believed would lead early reopening the bank. Directors they considered the affairs of the bank sound. It was closed. they to prevent preference to depositors in the face of an incipThe Bank of Florence had capital stock of $100,000 with deposits of $667,012.61. The Bank and Trust company's stock and

2. October 31, 1928 Danville Register and Bee Danville, VA

Article from Danville Register and Bee, October 31, 1928

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Article Text

Third S. C. Bank Closes Its Doors LORENCE, 8. C., Oct. (INS) The third bank in this section to than week occurred close in less Bank when Peoples today failed to open of Darlington, near here. its A statement by the board of rectors declared threatened run the bank caused them to close. The statement added that the bank was in sound condition and that the depositors would be protected. was capitalized at $100,000. The Bank of Florence. one of the oldest in this of South Carolins, and the Palmetto Bank and Trust company were closed here last Each was capitalized at Friday.

3. November 7, 1928 The Indiana Democrat Indiana, PA

Article from The Indiana Democrat, November 7, 1928

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Article Text

Third Bank Is Closed In Florence, Oct. Peoples' Bank of Darlington, closed yesterday, the third bank in this section to close in less than week. The board of directors declared threatened run on the bank caused the closing. The board added the bank was in sound condition and that the depositors would be protected. It capitalized at $100,000. The Bank of Florence and the Palmetto Bank and Trust Company were closed Friday. Each was capitalized at $100,000.

4. November 15, 1928 Florence Morning News Florence, SC

Article from Florence Morning News, November 15, 1928

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Article Text

CENTS VESTRIS PASSENGER DESCRIBES DISASTER FLORENCE STATE EXAMINER MRS. HOOVER WILL MAKE JOURNEY WITH PRESIDENT-ELECT Nicaragua To Be First Port Of Call On Long Tour Commercial, First National Both In Fine Shape Declares Fant DEPOSITS INCREASE Sam Royall Appointed As Receiver For Bank Of Florence banking situation in the city Florence absolutely clarified." said State Bank Examiner Albert Fant reporter for The Morning last night "Both Savings Bank and The First Bank Florence are in fine what more they enjoy the confidence of the public.' declared that its the banks business Florence had creases. He pointed that the banks have cash in their In discussing the banking situation here. Mr. Fant freely and frankly voiced his satisfaction and pleas over conditions exist respect to The First National and Commercial and Savings Mr Fant made this statement fol. lowing day ences and here and in oth parts Eastern no he attended ing the stockholders of the Palmetto Bank and Trust Company which on October 26. hours after had become known Bank Florence opened business that morning Messrs Watson houn the State Bank examiner's office were also present at the ference. The ratified the action of the board of directors San placing the the bank the hands the state bank aminer and passed commending them for the action committee to ascertain any could worked for rehabilitation of the bank This committee make report its findings to the state examiner. Following the meeting of stockholders the late yesterday afternoon the directors met appointment Sam Royall of this city receiver. expressed warm approval of Mr. Royall's Judge who holding civil court here. night issued the appointment Mr. Royall is pected qualify for the position some time this week He enjoys the complete of the ple of section of receiver for the Bank of Florence means of course that its affairs will now enter the process liquidation Mr. Fant announced last night that had appointed H. Lucas. of the Palmetto Bank Trust Company assist Mr. Calhoun handling the affairs the Bank Scranton and the Farmer's Merchants Bank Coward Mr. Lucas visited both places The Farmers and Bank given Coward of which Lynch president. failed for busiyesterday morning has that capital stock $20,000 Decision close the state bank examwas reached by the directors after on the bank starting time Tuesday reached serious the proportions STANFORD UNIVERSITY Herbert Hoover the his good will mission to South This was disclosed today as Mr. Hoover went into variety details connected with the itinerary his trip lunchwith Victor Kimberly the Battleship Maryland which will leave Pedro Monday for the continent to the Southward Present plans call for the departof Hoover and his party from Alto on special train Sunday evening The train would San Pedro without stopping Angeles and immediately his arrival Mr Hoover plans board his and ship Under the schedule. which was pointed out, susceptible many the first port after leatving San Pedro would Corinto on West Coast ragua, probably would by the president of that Republic From he would move down the Coast to Panama Canal Zone where brief would stop made to enable Mr. Hoover inspect the Panama Canal Callao. Peru, would be next port to which he present flexible schedule would him from that point he could Lima, capital Peru Valparaiso would be touched next. place the general plan has move the Andes the Eastern the continand Bolivia consideration but decision yet has been reached garding the inclusion these counthe itinerary for his journey Certain of his itinerary tof Henry who to him the trip the State Depart expected reach Alto Sunday from Washington and travel the special train the Pedro. Nicaragua the only Central American which even tentatively on good will Information was obtained that Mr returning to Washington until the day his inauguration on March It is fairly certain now that after returning America will establish his headquarters some point Florida, lected. and will summon there party leaders with whom discuss affairs of his administration