Liberty National Bank of South Carolina (Columbia, SC)

View Charter #9687 on SPMC View balance sheet

Episode Information

Episode UID
968701486
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
96870 national
Charter Number
9687
Start Date
October 24, 1923
Location
Columbia, South Carolina (34.001, -81.035)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
b566e4649795f82c

Response Measures

Capital injected

Other: Liberty National was taken over by the National Loan & Exchange (merger/takeover) to protect depositors; later receivership/liquidation proceedings followed.

Receivership Details

Depositor recovery rate
87.1%
Date receivership started
1926-03-04
OCC cause of failure
Losses
Share of assets assessed as good
13.0%
Share of assets assessed as doubtful
5.7%
Share of assets assessed as worthless
81.3%

Description

Bank was 'whispered out of business' in 1923 and taken over; later liquidated with a receiver in mid-1920s.

Events (6)
1. March 4, 1910 Chartered
Source
historical_nic
2. October 24, 1923 Run
Cause
Local Banks
Cause Details
Whispering and loss of confidence following the recent closing of the Merchants' Bank and connections with other local banks and a failed merger.
Measures
Appeal to and takeover by the National Loan & Exchange to protect depositors and restore confidence.
Newspaper Excerpt
There were numerous withdrawals from the savings department of the Liberty National Monday and the directors ... felt that a run was threatening.
Source
newspapers
3. October 24, 1923 Suspension
Cause
Local Banks
Cause Details
Operations halted after heavy withdrawals and loss of confidence tied to other local bank failures and failed merger financing.
Newspaper Excerpt
The Liberty National Bank, of Columbia has passed; it will not be reopened today as its affairs will be taken over by the National Loan and Exchange...
Source
newspapers
4. December 10, 1923 Voluntary Liquidation
Source
historical_nic
5. March 4, 1926 Receivership
Source
historical_nic
6. March 4, 1926 Receivership
Newspaper Excerpt
Malcolm S. (McConihe) ... has been acting as bank receiver ... Liberty National Bank of Columbia ... finally liquidated; receiver started suits to collect from stockholders.
Source
newspapers

Newspaper Articles (11)
1. October 25, 1923 The Times and Democrat Orangeburg, SC
Article from The Times and Democrat, October 25, 1923

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Article Text

Liberty Nat. Bank of Columbia Taken Over by Nat. Loan & Exchange Bank COLUMBIA, Oct. 24—The Liberty National Bank, of Columbia has passed; it will not be reopened today as its affairs will be taken over by the National Loan and Exchange of which E. W. Robertson is president. The Liberty National was entirely solvent, but there has been so much whispering around due to the closing of the Merchants' Bank a week ago that it was anticipated that a run was threatening. This was due in a way to the fact that the Liberty National was connected with the Merchants' Bank and the Palmetto National in the merger which was contemplated last summer and met with the approval of the comptroller of the currency but was frustrated in some rather mysterious manner at the source of financing in New York. Due to the failure of the merger to materialize, all three of those banks have ceased. There were numerous withdrawals from the savings department of the Liberty National Monday and the directors it is said, felt that the situation was foreboded. It is stated on good authority that they made an appeal to Mr. Robertson, who was the only local agency strong enough to stave off a calamity and by reason of his financial standing to restore confidence. As a result of the conference the Liberty National was actually taken over by the National Loan and Exchange and all depositors will be protected. The fate of the stockholders remains to be seen. Whispered Out of Business. The State of South Carolina carried a large deposit in the Liberty National and State Treasurer Carter became somewhat uneasy last week on account of the whisperings, and conferred with the state bank examiner and Monday with the Governor. Governor McLeod tonight was somewhat indignant at the turn that affairs had taken. "That bank was entirely solvent," he said, "but it was literally whispered out of business. The State's money is and was safe." The Liberty National Bank was the outcome of the amalgamation of the Union National and the Peoples' National. It started right away to enjoy a fine business. A series of untoward events caused the confidence of the public finally to waver, but as a matter of fact the death blow to this bank and to the Palmetto National was struck when the Bank of Columbia failed in 1921. The local banks had stopped a run on that bank by shoveling in the currency. They gamely saved the situation temporarily, but the strain of after events was too severe and the final collapse of the Palmetto National the Merchants' and the Liberty National can be traced directly to the weakened condition of their finances when they went to the rescue of the Bank of Columbia which permitted them to become the victims of circumstances. No matter how prudently they have been managed the debacle was apparently inevitable. Sigh of Relief Columbia no doubt will draw a sigh of relief for all of the financial snags have been removed. The depositors of the Liberty National have just cause to feel every confidence in the National Loan and Exchange bank, for it has been one of the most conservatively managed in the country and the president, E. W. Robertson, a financier of wisdom and experience stands very high with the Federal Reserve Board and with the great financial powers of America. The banking situation in Columbia today is in the hands of four national banking institutions and three or four small but useful and safe neighborhood banks. The reeling of unrest that has been so disturbing for months has reached its peak and has passed and the people of Columbia face a substantial future. A. F. Lever, president of the Liberty National Bank, who was in fact drafted for this public service, in a period of transition of the bank, said tonight, "the terms offered to the Liberty National Bank by the National Loan and Exchange could not be more liberal from every point of view, and the directors of the Liberty National are quite open in expression of appreciation of the spirit of the negotiations upon the part of the Loan and Exchange Bank and its officers." The officers of the Liberty National are A. F. Lever, president; Julien C. Rogers, vice president and cashier. Mr. Lever is also president of the Carolina Joint Stock Farm bank and as it were has just been on furlough to the Liberty National. It is not known what will become of the personnel of the bank in the merger.

2. July 17, 1926 The Item Sumter, SC
Article from The Item, July 17, 1926

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Article Text

MOTOR BUS OPERATORS RESIST State Highway Commission Stockholders of Defunct to Fed- Served With Injunction to lumbia Bank Appeal eral Court For Relief Prevent Collecting Motor From Bus License Fees Assessment Columbia, McIntosh, comptroller of the of the late Liberty National bank of Columbia, directed by order of UnitStates Judge Cochran show cause why they should be restrained and enjoined during of action institutpendency in behalf stockholers of bank from collecting tempting collect stock levied the comptroller shareholders of the The issued yesterday morning returnJudge Cochran July order issued filing by McGowan petition the Liberty National bank. the liquidating committee the Liberty National Jones, ley Schirmer. Jones and Timberlake McCormick Columbia, Eastover, Rowland Sumter Woodward of Bishopville, asking that the pointment the in the aside and the ment voided. Liberty National its doors 1923 the tional Loan Exchange became liquidating agent. Mr. Connihie this took charge receiver and in June the assessment of 50 cent., calculated raise was dered by the comptroller against payable today, resist this assessment the stockholders initiated action federal courts, alleging: That Loan Exchange bank undertook the liquidation of the Liberty National under the Liberty National bank went voluntary liquidation under the contract the national not the the receiver and the attempted the assessment been done under mistake of law fact and should be aside; that the the bank should be the that the should count the Loan Exchange for by him that the assessment should be voided. Attorneys the plaintiffs Benet. Shand McGowan Columbia, Robinson Columand George Bell Timmerman Lexington.

3. July 21, 1926 The Watchman and Southron Sumter, SC
Article from The Watchman and Southron, July 21, 1926

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Article Text

ENJOINED Stockholders of Defunct Columbia Bank Appeal to Federal Court For Relief From Assessment Columbia, Intosh, comptroller of the currency for States and Malcolm Connihie, receiver of late Liberty National bank Columdirected by of United Judge Cochran cause why they should not be restrained during the pendency action Institutbehalf of the stockholers bank from collecting the stock against the of the bank. The order issued yesterday returnable Judge July 27 at 10 The order following filing by McGowan petition the Liberty National liquidating Liberty National Sloan, Walter Love, Schirmer, Jones and W Cormick Columbia, Hamer Eastover, Rowland Sumter Woodward Bishopville asking that the pointment the receiver the case set aside and the assessment The Liberty National bank closed its doors 1925 and the tional Loan Exchange liquidating agent. Mr Connihie this year took charge and in June the assessment cent., culated was dered by the comptroller against the stockholders, payable today, July resist this the initiated the action the federal alleging: That Loan Exchange bank undertook the liquidation Liberty bank under con tract the Liberty National bank went voluntary under the national do not ply; that the the levy the has been under fact and should be aside; that bank be returned the Loan Exchange bank and that the receiver should count to Loan bank for moneys by him and that the assessment should be voided. Attorneys for the plaintiffs are: Benet, Shand MeGowan lumbia, Robinson ColumGeorge Bell of Lexington

4. July 28, 1926 The Item Sumter, SC
Article from The Item, July 28, 1926

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Article Text

Bank Petition Dismissed By Judge July petition Liberty National Bank Columbia several of that institution askinjunction to restrain the United States Comptroller Currency, McIntosh, and bank receiver, Malcolm McConihe, from collecting attempting collect the against stockholders of the bank, missed Judge Ernest Cochran. the United States eastern district court. Judge Cochran following hearTng Tuesday an order Wednesday refusing to grant the juction.

5. July 28, 1926 Florence Morning News Florence, SC
Article from Florence Morning News, July 28, 1926

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Article Text

BANK CASE TAKEN UNDER ADVISEMENT CHARLESTON, July hearing petition by the Liberty National Bank, Columbia, several stockholders of that institution and stockholders United States Judge Ernest Cochrane this afternoon took the case under advisement. The petition asked the court restrain the comptroller the currency and the bank's receiver from collecting or attempting collect against the stockholders, holding that these assessments were made under mistake of fact and law. Judge Cochrane overruled the time being motion by the defense the case for lack In addition to asking an injunction against assessment. the petitioners that the appointment of the ceiver be set aside being violation of the law of the Unit ed States regulating banks which liquidating voluntarily.

6. July 29, 1926 The Greenville News Greenville, SC
Article from The Greenville News, July 29, 1926

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Article Text

Bank Stockholders Are Denied Petition petition of the Liberty National bank, of Columbia, and several stockholders of that Institution asking for an injunction to restrain the United States Comptroller of Currency, J. W. McIntosh, and the Bank Receiver Malcolm 8. McConihe from collecting or attempting to collect the assessment against shareholders of the bank was dismissed the by Judge of Ernest United States eastern district court. Judge Cochran, following hearing held Tuesday, issued an order Wedneeday refusing to grant the Injune-

7. July 29, 1926 The State Columbia, SC
Article from The State, July 29, 1926

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Article Text

COCHRAN REFUSES TO GIVE INJUNCTION Dismisses Petition of Liberty National Bank of Columbia. July (By Liberty National bank of Columbia and stock holders of that institution. nsking United currency, and the receiver, from or the assessment against of the bank, was by Judge Ernest Cochran the United States Eastern district Judge following ing Tuesday, Wednesday refusing to grant the injunction. "Pa" Blames Klan. Austin, Texas, July James E. charged that the Ku Klux Klan the "silent behind the defeat his Miriam Ferguson, in last Saturday's primary.

8. May 23, 1927 The Robesonian Lumberton, NC
Article from The Robesonian, May 23, 1927

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AFFAIRS OF FIRST NATIONAL WILL BE CONCLUDED SOON Another Dividend Expected SoonExpenses of Receivership Unusually Small. Malcolm S. receiver Mr. of the First National Bank of Lumberton. spent the week-end with Judge T. 1., Johnson, companying the Intter to Raleigh, where on yesterday they attended :: part of the commencement exercises of Heredith college. Mr. Conihe when seen by 100resentative of The Robesonian this morning. stated his duties as reveiver the First National Bank would probably be concluded at an early date. and that as soon as certain lit!gation between the Bank of McDo adds and the First National Bank had terminated a final dividend worki be paid. I: has been nearly two years since Mr. McConihe entered upon his duties as receiver and practically all the valuable INSURE of the bank have been collected. or will be collected within the week ten days There are a large number of insolvent notes which have been reduced to judgment in an effort to lections thereon. Mr. McConibe explained that the CXDenses of the Lumberton trust have leen very small, due to the fact that he has been as receiver for the People's National Bank of Bennettsville and the Liberty National Bank of Columbia. Most of the expense of the teree trusts has been barne by the other banks, but now that the Liberty Bank has been finally liquidated, it would throw a burden on the Lumberton trust out of all proporGon to the small amount uncollected and Mr. McConihe is giving in today's Robesonian notice of a public sale of the remaining uncollected assets. Any one interested is urged to read the notice of sale. He is anxious Lo get the best possible bid to be submitted to the comptroller of the The sale is being made subject to the anproval of the comptroller. asuccessful sale is made. the depositors will get a final dividend in a very short time. Mr. McConibe expressed the opinion that the receivership of the First National Bank had been conducted with less expense than any other bank receivership of which he had knowledge, and he has been acting as bank receiver throughout the South and West for number of years. He paid high compliment to Judge T. L. Johnson, who has acted as his attorney, both here and at Bennettsville, and says that much credit is due Mr. Johnson for the speed. efficiency and low cost with which the trust has been handled. Mr. Johnson says, however, that the depositors are to be congratulated that Mr. McConihe was sent here for he has realized more out of the assets than even the most optimistic thought it possible to collect when the bank failed. 55 per cent has already been paid. with another dividend forthcoming.

9. April 19, 1928 Florence Morning News Florence, SC
Article from Florence Morning News, April 19, 1928

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BANK RECEIVER STARTS ACTION TO COLLECT CASH April Suit collect stockholders stock in the Liberty National Bank of Columbia has bee instituted against ten by R E. receiver for the bank with the filing here in federal court of ten summons and from 8100 to Stockholders and amounts follow Mrs Livingston North Garrett $100 these Colum-

10. March 18, 1933 The Greenville News Greenville, SC

Article Text

TO NATIONAL Plan Completed And Will Be Submitted To Fifth District Committee COLUMBIA, Mar. the South Carolina National Charlesbranches here and at Greenville, will be to federal reserve committee district within 10 Edwards, federal conservator. announced here tonight. Edwards, who conservator for this week, explained the federal district to handle organization member banks being set at He said he talked with banking authorities both Richmond Washington and had reason to the reorganization plan would "most favorable sideration. Reorganization of the bank would return to the hands its direcBefore his Edwards was executive vice president of the bank Julian Mitchell of Charleston

11. August 19, 1933 The State Columbia, SC

Article Text

Over $2,600,000 Available Immediately to Depositors on 40 Per Cent. Basis. CENTRAL OFFICE HERE Mitchell Remains as President With Edwards as Executive Vice President of the Bank. Ends at Noon ing Means Much to State. The outh Carolina National bank, with units Columbia, Charleston and Greenville, will reopen Monday morning for business This meaning that up since will immediateanM execof the the same time became known the central office for and credit, maintained Columbia for the last years, continue be Mr. Edwards Charlespresident. addition and Edwards the officers Greenville LaCoste Joseph Bell M. vice presiassistJohn Columbia; James last Mr Edwards has been the since the banking holiMarch. terminate noon today and the fairs the board and the bank resume operation under approved the the The affairs the bank have handled Edwards, that has loans. All trust deposits end of date. These accounts total $2,341.The bank opening Monday banking than enough to pay There are depositors inserted bank this issue of The the owners the bank paid, the fact that stock the bank the shares their benethey vitally interested in the of the institution Immediately payable 40 per cent The remaining later. In the payable per The reopening plan had agreed the deposits cent. not inoffsets. took $800.000 in preferred stock based acceptance quired amount of deposits. Mr.