 In 1921 he became rector of Grace Church in Lawrence, Massachusetts, while in 1925 he transferred to Chestnut Hill, Pennsylvania to become rector of St Paul's Church where he remained till 1938.In 1938 he was elected Coadjutor Bishop of Central New York and was consecrated on September 29 by Presiding Bishop Henry St. George Tucker.Upon the retirement of Bishop Coley on July 1, 1942, Peabody succeeded as diocesan bishop.