Mail Stop 4561


								February 22, 2006


By U.S. Mail and facsimile to 256-543-3864

Gates Little
Chairman of the Board, President
and Chief Executive Officer
The Southern Banc Company, Inc.
221 S. 6th Street
Gadsden, Alabama

Re:	The Southern Banc Company, Inc.
	Form 10-KSB for the Fiscal Year Ended June 30, 2005
	File No. 033-93218

Dear Mr. Little:

      We have reviewed your filings and have the following
comment.
We have limited our review to only your financial statements and
related disclosures and do not intend to expand our review to
other
portions of your documents.  Please be as detailed as necessary in
your explanation.  After reviewing this information, we may raise
additional comments.

	Please understand that the purpose of our review process is
to
assist you in your compliance with the applicable disclosure
requirements and to enhance the overall disclosure in your filing.
We look forward to working with you in these respects.  We welcome
any questions you may have about our comment or any other aspect
of
our review.  Feel free to call us at the telephone numbers listed
at
the end of this letter.







Form 10-KSB for the Fiscal Year Ended June 30, 2005

Exhibit 13 - Annual Report

Management`s Discussion and Analysis of Financial Condition and
Results of Operations, page 4

1. We note your disclosure on page 5 that you recognized a gain on
the sale of stock in your data processing bureau in fiscal year
2005.
Please tell us and in future filings disclose the following:

* the nature of your investment in your data processing bureau;
* whether you are referring to your wholly-owned subsidiary First
Service;
* quantify the dollar and percentage ownership in your investment
prior to and subsequent to the sale transaction;
* how you account for the investment before and after the sale
transaction;
* describe the transaction in which you sold stock in the data
processing service, and;
* how you determined the gain recognized on the sale of the stock.

* * * * *

       Please respond to this comment within 10 business days or
tell
us when you will provide us with a response.  Please file your
response on EDGAR.  Detailed cover letters greatly facilitate our
review.  Please understand that we may have additional comments
after
reviewing your amendment and response to our comment.

	 We urge all persons who are responsible for the accuracy and
adequacy of the disclosure in the filing to be certain that the
filing includes all information required under the Securities
Exchange Act of 1934 and that they have provided all information
investors require for an informed investment decision.  Since the
company and its management are in possession of all facts relating
to
a company`s disclosure, they are responsible for the accuracy and
adequacy of the disclosures they have made.

	In connection with responding to our comment, please provide,
in
writing, a statement from the company acknowledging that:

* the company is responsible for the adequacy and accuracy of the
disclosure in the filing;

* staff comments or changes to disclosure in response to staff
comments do not foreclose the Commission from taking any action
with
respect to the filing; and

* the company may not assert staff comments as a defense in any
proceeding initiated by the Commission or any person under the
federal securities laws of the United States.

      In addition, please be advised that the Division of
Enforcement
has access to all information you provide to the staff of the
Division of Corporation Finance in our review of your filing or in
response to our comment on your filing.

	You may contact Matthew Komar (Staff Accountant) at (202)
551-
3781 or me at  (202) 551-3449 if you have questions regarding the
comment on the financial statements and related matters.


      Sincerely,



      Joyce Sweeney
								Accounting Branch Chief

Gates Little
The Southern Banc Company, Inc.
February 22, 2006
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