The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-07-28
were mercy Drawn together BY pure curiosity
and morbid desire TO see all that went on.
LETTERS OF CREDIT.

the friends OF those travelling abroad In regard 10
the letters OF credit they had obtained from Dun-
can, sherman Co., and which, 1t Is supposed,
win be invaltdated by their failure AS viii be
seen by Mr.. Duncan's statement, 1t would appear
that some provision has been made for this
CASA OF creditors. Should these measures
not prove effective there viii likely be a
sudden stampede for homo ON the part OF hun
dreds OF tourists who made use OF the old and
well Unknown house TO pass their lunds for use at
different points in their travels.
CURIOUS FACT.
One singular point which appears TO be not gen.
orally known IN connection with this failure, and
one which Is looked upon by some peope proof
that the stoppage OF the firm was not altogether
unHnticipated. is that about fortnight since the
house commenced discharginR q number OF It's
clerks, and continued the process until some
twenty or twenty-five had been disposed Of
A VISIT TO THE BANKING HOUSE.
A HERALD reporter sought admittance at the
rear entrance to the banking house ana found the
iron gate locked. A lively tattoo brought out q
messenger, VINO SAID that the members OF the
firm did not want 10 see anybody. second mes
sage was replied to by Mr. Duncan to the effect
that a statement would be sent to all OF the even
ing papers showing the status OF the firm. Mean
while the legal advisers Of the firm were pass
Ing rapidly to and from the ONCE through the iron
grated door on Pine street; bur no one would re-
veal the secret OF the failure. AT last the re.
porter sent in TO know Mt wnat time the state
ment would be READY. Mr. Duncan replied, DON'T
bother me-"
THE STATEMENT
After q few minutes the following statement
was given by the firm. 1t was written in the
well known hand Of Mr.. 8. L. NJ. Barlow, and
read -
To THE PRESIDENT OF THE NEW YORK STOCK Ex-
CHANGES:
SIR-A careful examination Of our business and
AFFAIRS SHOWS US most unexpectedly that, through
losses and mislortunes, our available asSets are
much reduced that we are compelled to go into
liquidation. We reach this conclusion with the
deepest regret but the fact that up TO the la test
moment our most unexamplea credit having re-
NAMED unimpared, would have com PEELED US, If
we continued business, to hazard new obligations
and receive new condolences, which we were un-
willing TO assume For the protectlOn OF our
creditors, without distinction or preference, we
have this day made general assignment to Hon.
dress for all matters connected with our affairs
WIN be at our late banking house, No. IL Nassau
street. DUNCAN, SHERMAN Il co.
AS soon as this letter came upon the street.
which was at about twenty minutes past eleven
A. M, the news spread like widhre. Loans were
called in and the price of money advanced from
two per cent, at the opening, to five per cent be-
fore noon. Stocks fell OF all alonn the list from
three to four per cent, and all the scenery for q
panic was ready to shit upon the Wall street
market Happily the good sense and cool judy
ment OF the older fnanciers stopped the play.
THE FIRST EFFECT.
Early In the morning the news came from the
Clearing House that the Bank or the state OF
New York had thrown out the checks and drafts
OF Duncan, Sherman Co. The gold brokers
jumped at the conclusion that the late irm had
sold large amounts OF sterling exchange,
and That those bills would come back;
created, and the quotations rose rapidly from
112A at ten A. NJ. to l13 at nalf-past ten A. M,
reaching 113K at eleven O'clock ia at half past
eleven and 1l6X at noon. The highest price OF
gold during the day was 1l6X. The frightened
brokers then recovered their senses and started
out their scouts to learn the extent OF the disas-
ter. few moments interviewed and then the
story was told. Facts were plainly set forth and
the reaction or the gold maTEet showed that the
disaster had been everest /. TED. Gold began
falling and at three O'Clock ciSsed at I14%.
INTERVIEW WITH Mr.. W. BUTLER DUNCAN.
The HERALD reporter found Mr.. william Butler
Duncan last night upon the balcony Of his elegant
residence at Staten Island in company with one
OF his lawyers, Mr.. Mcfarland. When the eporter
approached him and presented his card Mr.. Dun
can said :-"An that can say at present has been
already spoken. How can / say more at this
hour ~
REPoRTER-Can you not give me some idea Of
the causes which LED to your une x pected suspen-
sion2
MCFARLAND tine lawyer interrupting-How
can he IL was the product OF circumstances
which have been developing for months past.
REPoRTER-Mr. Duncan, I'm sure the morning
papers viii stare yeu in the face with numerous
stories which you VIII be compelled TO contradict.
May ask you few questions9
Mr.. DUNCAN-Ask me Whatever questions you
please; 1 am at your service. You alone have
found me out. am ready to be interrogated.
REPoRTER-The founder OF your house was Alex
ander Duncan, was he mott
Mr. DUNCAN-He was
REPoRTER-Mr. Alexander Duncan has recently
resided abroadH
Mr.. DUNcAN-He mas.
REPoRTER-Where is he nowH
Mr.. DUNcAN-He Is abroad still.
REPoRTER-Is 1. true that about two or three
months ago you, anticipating what mas to-day
happened, went to Eui ope to consult Mr.. Alex
ander Duncan, for the purpose OF securing his aid
to negotiate new loans and extend the credit OF
your nrmP
Mr.. DUNcAY-lt is not true; 1t is false.
REPoRTER-It is said that you applied to Ba-
ring Brothers, Brown Brothers and other rep
resentative European banking nrms for assistance
Mr.. DUNoAN-There is not a word OF truth In 1t.
REPoRTER-Is the report published In an after
noon paper, to the erect that the Union Banking
Company, Of London, sustains heavy losses on
account OF your suspension true or fasef
Mr.. DuNcAN-The company you speak OF is not
involved even TO the amount OF fartning. 1
read the article in the commercial and desire
you particularly to contradict It. 1t has not the
slightest foundation in fact.
RRPoRTER-What Mr.. Duncan, was the real
cause Of your failure y
Mr.. MCFARLAND (the lawyer)-No one thing, but
q hundred things combined, sir.
REPoRTER-Did the fall OF three per cent In cot
ton during the past three months nave anything
to do with your suspension
Mr. DUNcAN-All that will presently be made
known py the proper authorities. cannot speak
one way or the other tonight.
REPoRTER-wel, did you have in your posses
efon cartain rai,road securitiea auch 10 ,boea ~