EXHIBIT 23

                           THE PEOPLES HOLDING COMPANY

                         CONSENT OF INDEPENDENT AUDITORS

We consent to the incoporation by reference in this Annual Report (Form 10-K) of
The Peoples  Holding  Company of our report dated January 22, 1999,  included in
the 1998 Annual Report to Shareholders of The Peoples Holding Company.

We also consent to the incorporation by reference in the Registration  Statement
(Form S-3 No.  33-20108) of The Peoples Holding  Company and related  Prospectus
and in the  Registration  Statement  (Form S-4,  No.  333-72507)  of The Peoples
Holding  Company and related  Prospectus,  of our report dated January 22, 1999,
with respect to the  consolidated  financial  statements of The Peoples  Holding
Company incorporated by reference in this Annual Report (Form 10-K) for the year
ended December 31, 1998.

                                              /s/  Ernst & Young LLP


Memphis, Tennessee
March 26, 1999





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