Farmers & Merchants Bank (Orangeburg, SC)

Episode Information

Episode UID
67009471488
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
6700947 routing
Routing Number
67-0094
Start Date
December 28, 1923
Location
Orangeburg, South Carolina (33.492, -80.856)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7ef552bd7b079985

Response Measures

None

Events (3)
1. December 28, 1923 Run
Cause
Rumor Or Misinformation
Cause Details
Rumors regarding the solvency of the bank leaked while directors were discussing liquidation or a takeover.
Measures
The bank called in the state bank examiner and closed to conserve assets and ensure equal treatment of depositors.
Newspaper Excerpt
Deposits were being withdrawn and a run on the bank threatened.
Source
newspapers
2. December 29, 1923 Receivership
Newspaper Excerpt
Under his direction the bank has been closed, and he has taken charge and will be down to investigate the first of the coming week.
Source
newspapers
3. December 29, 1923 Suspension
Cause
Rumor Or Misinformation
Cause Details
The bank closed to prevent a threatened run from depleting cash resources after rumors of its insolvency spread.
Newspaper Excerpt
The Farmers & Merchants bank of this city was closed this morning in accordance with a decision made by its officials.
Source
newspapers

Newspaper Articles (2)
1. December 30, 1923 The State Columbia, SC
Article from The State, December 30, 1923

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Article Text

ORANGEBURG BANK CLOSES DOORS Directors of Opinion Assets Should Realize Enough to Pay Depositors in Full. Special to The State. Orangeburg, Dec. 29.—The Farmers & Merchants bank of this city was closed this morning in accordance with a decision made by its officials. The deposits amount to approximately $118,000. The bank was organized in 1903 with a capital of $30,000. Since 1920, the year of deflation, it has had some slow paper, but during the past fall the collections have been very satisfactory. The loan from the war finance corporation was paid, and the bank now has only a small loan outstanding secured largely by Liberty bonds. However, the directors found that the bank was not making any money, and they have been planning some method of liquidation. It has been, and still is the opinion of the directors that the assets should realize enough to pay the depositors in full. Discussions were had with other bank officials with a view to the bank being taken over. Evidently some rumors against the solvency of the bank must have gotten out. Deposits were being withdrawn and a run on the bank threatened. In order to conserve the assets of the bank, so that all depositors should feel alike, it was decided to call in the state bank examiner. Under his direction the bank has been closed, and he has taken charge and will be down to investigate the first of the coming week. At that time it is possible arrangements may be made for some payments to the depositors. The cash resources of the bank have not been exhausted. In order to prevent the possible depletion of such resources this step was taken.

2. January 1, 1924 The Columbia Record Columbia, SC
Article from The Columbia Record, January 1, 1924

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Article Text

Orangeburg Bank Failure is the First in About 40 Years Orangeburg, Jan. 1.—Orangeburg has experienced its first bank failure in about forty years with the close of the Farmers and Merchants Bank. This institution was the smallest bank in the city, having twenty-three thousand dollars capital stock and carrying deposits aggregating around one hundred fifteen thousand dollars. The decision to close the bank came in order that all depositors might be treated equally when it appeared likely that a run would develop. It is generally expected that the stockholders will be called upon for the legal assessment and that eventually the depositors will receive practically all of their money. The officers of the bank were W. B. Thompson, president and Orrin N. Bowman, cashier. The four other larger banks in Orangeburg are in good shape and have just finished paying their usual annual dividend. Their total capital stock and surplus amounts to more than one million dollars. The president of the bank, W. B. Thompson, issued the following statement: "The bank was organized in 1903 with a capital of $30,000. Since 1920, the year of deflation, it has had some slow paper, but during the past fall the collections have been very satisfactory. The loan from the war finance corporation was paid, and the bank now has only a small loan outstanding secured largely by Liberty bonds. "However, the directors found that the bank was not making any money and they have been planning some method of liquidation. It has been and still is the opinion of the directors that the assets should realize enough to pay the depositors in full. "Discussions were had with other bank officials with a view to the bank being taken over. Evidently some rumors against the solvency of the bank must have gotten out. Deposits were being withdrawn and a run on the bank threatened. "In order to conserve the assets of the bank, so that all depositors should feel alike, it was decided to call in the state bank examiner. Under his direction the bank has been closed and he has taken charge and will be down to investigate the first of the coming week. At that time it is possible arrangements may be made for some payments to the depositors. The cash resources of the bank have not been exhausted. In order to prevent the possible depletion of such resources this step was taken."