First National Bank (Cheraw, SC)

View Charter #9342 on SPMC View balance sheet

Episode Information

Episode UID
934201547
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
93420 national
Charter Number
9342
Start Date
November 13, 1928
Location
Cheraw, South Carolina (34.698, -79.883)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
317f648b819daf00

Response Measures

Full suspension, Books examined

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

Embezzlement by the cashier is reported alongside a run prompted by another local bank's closing; examiner intervened.

Events (5)
1. February 13, 1909 Chartered
Source
historical_nic
2. November 13, 1928 Run
Cause
Local Banks
Cause Details
Run was prompted by the closing of the Bank of Cheraw and Chesterfield County and other recent local bank closings.
Measures
Bank closed its doors to prevent further withdrawals.
Newspaper Excerpt
Tuesday run started on prevent the bank the amine: reports institution, the shortage made good
Source
newspapers
3. November 13, 1928 Suspension
Cause
Government Action
Cause Details
Bank closed and placed under the bank examiner following heavy withdrawals and discovery of a $55,000 shortage/embezzlement.
Newspaper Excerpt
The First National Bank of Cheraw ... closed November 13. ... the bank was put into the hands of the bank examiner to protect depositors.
Source
newspapers
4. November 14, 1928 Receivership
Source
historical_nic
5. November 14, 1928 Receivership
Newspaper Excerpt
There have been an unusual number of banks in South Carolina to close their doors ... A national bank at Cheraw, the First National, also closed when a run on it was prompted ... S. G. Godfrey, arrested today on a charge of embezzlement ... was cashier.
Source
newspapers

Newspaper Articles (4)
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 Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, November 17, 1928

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Article Text

Closing Of Many Palmetto Banks Laid To 'Psychology' Doors Shut on Solvent Institutions to Protect Depositors, Says Examiner—Eleven Closed Since October 17. COLUMBIA, S. C., Nov. 16.—There have been an unusual number of banks in South Carolina to close their doors within the past month, but not all of these closings by any means are due to bad business conditions, according to State Bank Examiner Albert S. Fant of Columbia, who today made a statement to this correspondent. The psychology of the situation is largely to blame, Mr. Fant said. In many of the cases the banks were not insolvent, but were put into the hands of the bank examiner to protect depositors, guaranteeing like treatment to all. If a run on a bank starts, Mr. Fant explained and the bank stays open and continues to pay depositors as long as the cash in hand lasts, those depositors first on the scene, regardless of the interests of the depositors as a whole or the interests of the community, will get their money while others will not get anything. NO PREFERENCE. This means that preference is shown to some depositors. The only way to guarantee equal treatment to all depositors in such a case as required by law is for the bank to shut its doors. This explains why a good many of the banks that have closed in the state lately have been put into the hands of the bank examiner. Not all of them by any means are failures. There have been fifteen state banks to close in South Carolina this year. Eleven of these have closed since October 17, a month ago. Two closed this week. One of the banks, the Bank of Cheraw and Chesterfield County, located at Cheraw, which closed on November 9, had five branches, at McBee, Mount Croghan, Pageland, Ruby and Chesterfield, and all of these closed with the parent bank. A national bank at Cheraw, the First National, also closed when a run on it was prompted by the closing of the Bank of Cheraw and Chesterfield county. It is this bank of which S. G. Godfrey, arrested today on a charge of embezzlement in connection with a $55,000 shortage, was cashier. State Bank Examiner Fant stated today that all of the banks that have closed recently have been in the eastern part of the state, where both cotton and tobacco crops this year are poorer than they were last year, bringing out a feeling of depression. The banks suffered, he said, even though all of them were not insolvent. It is the psychology of the thing, Mr. Fant said. The people became frightened and called for their money. The situation is unfortunate especially when its extreme trend is so unnecessary. The banks closed this week are the Peoples bank at Scranton, S. C., and the Farmers and Merchants of Coward, S. C. During the week of November 5-10 the Bank of Dillon, at Dillon; the Bank of Timmonsville, at Timmonsville; the Merchants and Planters bank at Hartsville; Merchants and Planters Bank at Lamar, and the Bank of Cheraw and Chesterfield County and its five branches closed their doors. OTHERS CLOSED. Other banks to close within the past month were the State Loan and Savings bank at Bamberg, the Bank of Florence at Florence, the Palmetto Bank and Trust Co., of Florence, and the Peoples Bank of Darlington.

4. 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