Peoples Bank - Stafford, VA

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: March 15, 1927
Location: Stafford, Virginia (38.422, -77.408)

Metadata

Model: gpt-5-mini
Short Digest: 97387320

Response Measures

None

Description

Cashier John M. Ashby confessed an $8,000 shortage (defalcation/embezzlement). State examiners/board temporarily closed the bank and directors asked the state bank to assume charge. The articles report a suspension by state examiners (government action) tied to embezzlement; no later reopening is mentioned in these pieces, so I classify as suspension_closure but the permanent outcome is not reported.

Events (2)

1. March 15, 1927 Other

Newspaper Excerpt: Cashier John M. Ashby ... was in jail today on charge of being short $8,000 in his counts. Directors ... said Asby's bond of $10,000 was expected to cover the shortage.
Source: newspapers

2. March 15, 1927 Suspension

Cause: Government Action
Cause Details: State examiners closed the bank after the cashier confessed an $8,000 shortage (embezzlement/defalcation).
Newspaper Excerpt: closed by State Examiners til the affairs of the bank can be ... Directors of the bank asked state bank to assume charge temporarily
Source: newspapers

Newspaper Articles (2)

1. March 15, 1927 Daily Press Newport News, VA

Article from Daily Press, March 15, 1927

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Article Text

STAFFORD CASHIER CONFESSES SHORTAGE OF $8,000 March Confessing about of the People's Bank Stafford charge of embezzlement and lodged in county jall The of the bank were im in session their closed by State Examiners til the affairs of the bank can be Ashby made full confession the defalcation while bank examingoing the books morning While telling them his he pistol and the exploded. the bullet the stated that had accidentially. Ashby had cashier of the bank for four years

2. March 15, 1927 Evening Herald Courier Bristol, TN

Article from Evening Herald Courier, March 15, 1927

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Article Text

Shortage In Va. Banker's Counts 15 (AP)-John M Ashby cashier of the People's Bank of Stafford, was in jail today on charge of being short $8,000 in his counts. Directors of the bank asked state bank to assume charge temporarily, issuing a statement saying that Asby's bond of $10. 000 was expected to cover the shortage.