Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1869-05-28
From the Gew York Tribune, May IS.
FAILURE OF 4 PROMINENT NEW
YORK FIRM.
Liabilities over a Million of DoIIars-Ex,
element in Wall Street

The unfortunate mania for gold specula-
ton, which has of late years led the most
ciear-headed fnanciers into transactions,
which, to say the least of them, were eX-
tremely foOl-hardy, yesterday caused the
downfall of an old and prominent commits
sion house, firm which has borne an en-
viable reputation in this city and abroad
since 1885. Messrs. Schepeler Il Co., of
No. 50 Wall street, when they adhered to
their legitimate business, were German
bankers and exporters of petroleum, pro-
visions, and other products, their transac-
tiOns being conducted on an immense
scale. Bnt of late they, in common with
other spectators, have been operating
largely for fall in gold, trusting that the
weekly sales which the Secretary of the
Treasury was expected to make, and other
circumstances, would produce the effect
they desired. In spite of their efforts and
their seemingly wellfounded expectations,
however, gold has been steadily rising for
several days past, and at each rise Schepe-
ler ~ Co have been forced to speculate
heavily to cover their former losses. It is
said that some time since they agreed to
furnish certain parties $40, 600, 900 of gold
at specified price, expecting, of course,
that the causes above enumerated would
combine to lower the market. When gold
commenced to rise they considered that
its initiation would be only temporary, and
still continued to fulfil their contract.
Finally. however, the payment of heavy
margins-toWard the last of and s per
cent.-eXhausted their excbequer, and on
Saturday they were forced to confess their
inability to meet their obligations. The
actual amount of their deficiency is alleged
to be 81, 100000
The failure of Schepeler Il Co. was ru-
mored on the street at eight o'clock yes
terday morning, but SO we'll known was the
firm, and so well established their reputa-
tion for shrewdness and business tact, that
by many the rumor was regarded as a
"clever dodge" to affect the gold
market. However, at the hour when
those struggling, yelling masses of
humanity, yclept the Gold and Stock
Boards, assembled at their rooms,
it was demonstrated beyond a doubt
that the rumors were not only not un
founded, but, strange to say, were not eX-
aggerated. Immediately the excitement
became intense, and Schepeler & Co. s
failure was the interminable theme for
every Wall street gossip for the balance of
the day. 1t was somewhat amusing to
note the amount of knowledge evinced re-
garding the downfallen firm by certain
parties who belong to the widely-dissemi-
mated class Of 'I-told-you-sos. They had
foreseen the crash and were clear Of it, and
hugged themselves exultingly at their es-
cape from danger which the widest
imagination could scarcely suppose them
capable of encountering. But there was
large class who said nothing. gave no sign,
but were yet largely involved by the failure
OF this firm, whose connection in this city,
as we'll as in Europe, was very extensive.
Of these, many were reported to have
failed with the larger firm but late yester-
day afternoon, it was ascertained that all
had paid up, with the exception of two
Messrs. SchneiWin9, Frank & Schepper, of
Exchange Place, and Messrs. Kretz &
Hertel, of Broad street The firms were
reported to have failed, but there was
nothing definite ascertained as to them.
the Gold Board, gold, which had previ-
ously fuctuated considerably, on the
strength of the early rumors, went up from
no. to 1922, fell again to 14l4, maintain
ing this figure until afternoon, when it
rose to 142, closing at 141s. In the ab-
sence of cable quotations, which most
usually cause the variations in the gold
market, these fluctuations are attributable
solely to the failure Of Messrs. Schepeler
& Co. There was much comment at the
Board on the absence OF these quotations,
but the members had probably forgotten
that the Whitsuntide holidays are now oc-
curing at London and Frankfort, and
that the business of both of the grand COM
mercial centres is suspended during their
continuance.
Messrs. Schepeler & Co., it is thought,
will not be able to meet tithe of their
heavy liabilities, as they used all their
available funds on Saturday to meet a
heavy foreign call.