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PEOPLES STATE BANK UNDER A NEW DEAL H. D. Hughes is now in charge of the affairs of the Peoples State Bank as special deputy bank commissioner This differs from a receivership in that he is directly under the state bank commissioner instead of the state bank receiver. In other words the bank is not in the hands of receiver but its affairs will be worked out under the state bank commissioner. This comes under a law that permits banks that are in good condition to proceed for six months to make collections and renewals but not to accept deposits. At the end of that time the bank can either liquidate or open for business. An assessment will immediately be made upon the stockholders of 50 per cent. It is understood that all stockholders have made preparations, with very few exceptions, are in a position to pay in this assessment. Many collections have been made by Examiner Arbethnot, examiner in charge since the bank closed and fifty per cent of the deposits is now on hand in cash and bonds. With the fifty per cent stockholders assessments cash and bonds available will amount to 70 per cent of deposits. There is not another bank in Kansas that can show as satisfactory statement. The bank will be continued on this basis until the 12th of June, on which date, or before, it will be reopened or liquidated 100 per cent on the dollar. This is the first time under the present bank commissioner that a bank has been handled in this manner. Since the closing of the Peoples State Bank there has been more or less loose talk in regard to McDonald as a banking community. The fact of the matter is that in the four bank failures in McDonald, bank depositors here will lose less than Standard.