The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-07-28

directed his clearing house clerk 20 throw out the
checks OF Duncan, Sherman Co., ana 10 was
done. lie said that he knew nothing further
about the house, except that It's name had beea
connected with the Mobile and ohio Railroad,
Atlantic and Great Western and Erie.
AT THE BANK or NEW YoRK.
Shortly after the suspension OF Messrs. Duncan.
Sherman Co. became known there was q rumor
started on the "street" that the Union BanE Of
London bad stopped payment For that hank, n
was said, the suspended nrm acted AZ correspsn-
dents. On inquiry az the Bank OF New York,
which acts as the agent OF the Union Bank IN TINS
city, Is was found that there was no ground for
the rumor at all and II could only be accounted
for, said the cashier, by tie fact that cables had
come over TO the effect that the Union BanE, OF
London, had refused 10 honor the drafts %
Duncan, sherman 4 Co. This oricial also
stated that the fanure Of tins nrm
had been complete surprise 20 min,
and ne could only account for Il Dy supposing the
popular rumor to be true that they were largely
interested In cotton aud In several arms Which
had failed on the other slde Of tue water. The
failure would not he thought, bring about sny
disastrous results TO other banks. ana there was
no run on the New YORK Bank anticipated. lie
could give us no PROBABLE idea OF the extent OF
the losses or OF the probable assets OF Duncan.
Sherman CO. To doubt the Union BanK OF Lon
don, ne finally declared, would be the same as
mistr listing the Bank OF England.
WHAT PRESIDENT TAPPAN SAYS.
Mr.. Tappan, the President OF the Gallatin Ma
tional Bank. In answer to inquiries put TO him
yesterday, SAID tine failure OF Duncan. Sner-
man Co, was one that took us AL by sur
prise. Such an event was entirely unlocked for,
and came upon the street. like q thunder clap.
The firm was looked upon as one Of the highest
haa N ms n
supposed to have been engaged In speculative
transactions. Nothing has been known about It
for The past two or three years, ana no positive
Information could ever be procured as 10 its
financial condition. 1t was supposed TO be doing
q large Southern business, and IL was in
the habit or making large shipments OF
cotton, which. iG was imagined, the
firm had either bought from or advanced
against to their correspondents aud friends in
the South. The firms dealings In cotton on time
contracts were not, as far as have any knowl-
edge, considered TO be very large. Il has also
been supposed, and, in fact. generally understood
that Duncan, Sherman & Co. were largely In ter.
ested in numerous railway enterprises, but what
particular lines they financed cannot tell. The
principal cause OF their failure l look to De the
decline In values which has occurred in cotton
not only in the South ana New York, but in
Liverpool. There was no intimation given that
they were in difficulties, and their paper could be
readily sold, as 1T was generally supposed, inde-
pendent OF the reliableness OF the members OF the
firm themselves, that the firm was supported by
Barring Brothers and the Union Bank OF London
as well as by the original founder OF the firm. /
can give no idea as to the probable amount OF
the firms liabilities or OF the assets likely to be
realiZed.n
THE BROADWAY BANK.
A N
Bank, where he found Mr.. j. L. Everitt the
cashier, and ascertained his views. The Presi-
dent OF the bank, Mr.. Everltt stared, mad
made up his mind year ago not to purchase any
more OF Duncan, Sherman & CO.'S paper. 1t was
noticed that 1t was put upon the market in q
large quantity, and from the fact that 1t seemed
to he forced the President deemed it prudent not
to nave anything to do with 1t. He believed that
in the Western States many banking houses would
suffer from the failure OF Duncan Sherman Co.,
as they weFe more likely to be Influenced by the
highest interest. Persons travelling abroad, a
great number OF whom, it is likely,
have letters ef credit from the
house, VIII be much Inconvenience. He
did not think that any local embarrassment
would be occasioned, as the banks, ne surmised
had not recently been buying the paper OF the
failed firm. The failure can scarcely influence tho
general money situation and Will only to q serious
extent AFFECT the suspended firm itsen. The losses,
Mr.. Everitt thought, would be scattered. The
house had q considerable number Of depositors
and these, OF course, would sufer. The disaster
to the firm was very unfortunate at this time, as
hope was just beginning to be felt thar confidence
was restored. There Is no comparison at all be-
tween this failure and that of Jay Cooke d Co.
SHOE AND LEATHER BANK.
The President of the Shoe and Leather Bank, at
the corner OF Broadway and Chambers street, was
called on by HERALD reporter for his views OF
the suspension. He said that II was most dis
astrous affair, and he believed, entirely unex-
pected 1t would have the eject OF making bank
ing houses LOOK more closely after the paper
offered Tor sale. The Shoe and Leather Bank had
often bought Duncan, Sherman & Co.'s paper
largely, but had not done SO for the last twelve
months. There was SO much paper in the
market that, he thought, IL was not ufflcien tly
well scrutinized. There was no fear Of this
crash having any effect upon the business Of the
city. 1t would AFFECT Connecticut and Rhode
Island especially, as. he believed, the paper OF the
house was largely circulated In those states. In
the western States also many houses would more
or less suffer- He was afraid that the trouble TO
Duncan, sherman i Co. arose from their going
outside OF their legitimate business and engaging
In buying GOLD and stocks. From the facts before
him he could not say what would probably be the
future OF the house.
FISK HATCH.
The members OF this firm said that they could
not tell the cause Of the suspension. Duncan,
sherman 4 Co. had always borne a first class rep
utaton, but 1t had been reported on the street
for long time that the firm MADE large advances
on the bonds Of the Mobile and Ohio Railroad, and
that It was carrying large amounts OF cotton.
From what Information had been given to them
they believed that Duncan, Sherman & Co. had
not been issuing large amounts OF sterling ex-
change, ana the circular letters or credit al
though numerous, were not for large amounts. In
the opinion OF this firm the eject would not be
felt among the bankers OF New YORK, for, since the
last panic, the money business OF New York has
been conducted on a conservative plan. No large
loans had been made on doubtful securities, and
the result OF the failure would be to shut up only
such small business men as are always looking for
an excuse to 1ail under under the shadow OF a
or.at mama Aa a conaeuuance Fisk q Hatch